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23400.0 | 2022-05-10 00:00:00 UTC | Noteworthy ETF Outflows: SPY, AAPL, MSFT, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-spy-aapl-msft-abbv | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $2.4 billion dollar outflow -- that's a 0.7% decrease week over week (from 904,580,000 to 898,630,000). Among the largest underlying components of SPY, in trading today Apple Inc (Symbol: AAPL) is up about 2.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. 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 $396.50 per share, with $479.98 as the 52 week high point — that compares with a last trade of $402.08. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPY, in trading today Apple Inc (Symbol: AAPL) is up about 2.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. 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 $396.50 per share, with $479.98 as the 52 week high point — that compares with a last trade of $402.08. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPY, in trading today Apple Inc (Symbol: AAPL) is up about 2.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. 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 $396.50 per share, with $479.98 as the 52 week high point — that compares with a last trade of $402.08. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of SPY, in trading today Apple Inc (Symbol: AAPL) is up about 2.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. 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 $2.4 billion dollar outflow -- that's a 0.7% decrease week over week (from 904,580,000 to 898,630,000). 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 $396.50 per share, with $479.98 as the 52 week high point — that compares with a last trade of $402.08. | Among the largest underlying components of SPY, in trading today Apple Inc (Symbol: AAPL) is up about 2.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. 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 $396.50 per share, with $479.98 as the 52 week high point — that compares with a last trade of $402.08. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). |
23401.0 | 2022-05-10 00:00:00 UTC | Q1 Earnings Scorecard and Analyst Reports for AbbVie, QUALCOMM & Linde | ABBV | https://www.nasdaq.com/articles/q1-earnings-scorecard-and-analyst-reports-for-abbvie-qualcomm-linde | nan | nan | Tuesday, May 10, 2022
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. (ABBV), QUALCOMM Incorporated (QCOM), and Linde plc (LIN). 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 peirod 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 Abbott Laboratories (ABT), CVS Health Corporation (CVS), and Booking Holdings Inc. (BKNG).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
Qualcomm (QCOM) Rides on 5G Chips, Solid EDGE Traction
Linde (LIN) to Gain on Contracts With On-Site Customers
Featured Reports
Abbott (ABT) Rides on Diabetes Business amid Forex Woes
The Zacks analyst is impressed with Abbott's diabetes arm robust performance in the first quarter led by strong growth in FreeStyle Libre. Yet, adverse currency movement continues to pose concerns.
CVS Health (CVS) Rides on Robust Retail Sales Amid Cost Woes
The Zacks analyst is upbeat about the strong sales performance by CVS Health's retail arm on high prescription and front store volume. Yet, rising operating costs builds pressure on its bottom line.
Fund-Raising Ability Aids Blackstone (BX), High Costs Ails
Per the Zacks analyst, Blackstone's solid fund rising capability and asset inflows will likely aid profitability. However, mounting expenses and low dividend sustainability are major concerns.
Innovations Aid Textron (TXT), Low Jet Demand Hurts Revenues
Per the Zacks analyst, new product launch will enable Textron to capture more shares in the market. Yet COVID-19 induced poor commercial jet demand might hurt deliveries and thereby its revenues.
Solid Retirement Business Aids Principal Financial (PFG)
Per the Zacks analyst, Principal is set to grow on the strength of retirement and long-term savings business in Latin America and Asia as well as group benefits and protection in the United States.
Robust Digital Sales Aid Yum! Brands (YUM), Debt High
Per the Zacks analyst, Yum! Brands benefits from robust digitalization. During first-quarter 2022, the company reported digital sales of over $6 billion. However, high debt levels remain concern.
Booking Holdings (BKNG) Banks on Improving Customer Bookings
Per the Zacks analyst, Booking Holdings is benefiting from increasing customer bookings owing to the ongoing vaccination drive and removal of travel restrictions worldwide.
New Upgrades
Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.
Electrical & Electronic Solutions Strength Aids WESCO (WCC)
Per the Zacks analyst, strong momentum in non-residential construction, original equipment manufacturer, and industrial businesses is benefiting WESCO's Electrical & Electronic Solutions segment.
InterDigital (IDCC) Rides on Licensing Momentum, 5G Rollout
Per the Zacks analyst, InterDigital is poised to gain from the growth opportunities fueled by the 5G rollout, while securing patent license agreements in the handset and consumer electronics markets.
New Downgrades
Sally Beauty (SBH) Remains Troubled by Higher SG&A Costs
Per the Zacks analyst, Sally Beauty is seeing higher SG&A expenses for a while. In fiscal second-quarter, adjusted SG&A expenses increased $15.8 million due to cost pressures from labor among others.
Maximus (MMS) Remains Troubled by Higher Lower Current Ratio
Per the Zacks analyst, Maximus is seeing lower current ratio for a while. The company's current ratio at the end of March-quarter was pegged at 1.45, lower than prior-year quarter's 1.57.
Supply Chain & Costs Woes Dent Spectrum Brands' (GPS) Margins
Per the Zacks analyst, the ongoing supply-chain woes, input cost inflation and higher restructuring costs, hurt Spectrum Brands' margins in Q2. It expects inflation pressure to persist in fiscal 2022.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Today's 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. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Qualcomm (QCOM) Rides on 5G Chips, Solid EDGE Traction Linde (LIN) to Gain on Contracts With On-Site Customers Featured Reports Abbott (ABT) Rides on Diabetes Business amid Forex Woes The Zacks analyst is impressed with Abbott's diabetes arm robust performance in the first quarter led by strong growth in FreeStyle Libre. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc. (ABBV), QUALCOMM Incorporated (QCOM), and Linde plc (LIN). | Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc. (ABBV), QUALCOMM Incorporated (QCOM), and Linde plc (LIN). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Qualcomm (QCOM) Rides on 5G Chips, Solid EDGE Traction Linde (LIN) to Gain on Contracts With On-Site Customers Featured Reports Abbott (ABT) Rides on Diabetes Business amid Forex Woes The Zacks analyst is impressed with Abbott's diabetes arm robust performance in the first quarter led by strong growth in FreeStyle Libre. 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. | Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc. (ABBV), QUALCOMM Incorporated (QCOM), and Linde plc (LIN). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Qualcomm (QCOM) Rides on 5G Chips, Solid EDGE Traction Linde (LIN) to Gain on Contracts With On-Site Customers Featured Reports Abbott (ABT) Rides on Diabetes Business amid Forex Woes The Zacks analyst is impressed with Abbott's diabetes arm robust performance in the first quarter led by strong growth in FreeStyle Libre. 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Qualcomm (QCOM) Rides on 5G Chips, Solid EDGE Traction Linde (LIN) to Gain on Contracts With On-Site Customers Featured Reports Abbott (ABT) Rides on Diabetes Business amid Forex Woes The Zacks analyst is impressed with Abbott's diabetes arm robust performance in the first quarter led by strong growth in FreeStyle Libre. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc. (ABBV), QUALCOMM Incorporated (QCOM), and Linde plc (LIN). 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. |
23402.0 | 2022-05-10 00:00:00 UTC | Reata (RETA) Q1 Earnings Top, Omaveloxolone MAA Likely in Q4 | ABBV | https://www.nasdaq.com/articles/reata-reta-q1-earnings-top-omaveloxolone-maa-likely-in-q4 | nan | nan | Reata Pharmaceuticals, Inc. RETA reported first-quarter 2022 loss of $2.03 per share, narrower than the Zacks Consensus Estimate of a loss of $2.26.
However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.33 per share, wider than the loss of $1.16 per share recorded in the year-ago period.
Total revenues, comprising collaboration revenues, were $0.9 million, flat year over year. Revenues missed the Zacks Consensus Estimate of $1.91 million.
Shares of Reata have declined 21.4% so far this year compared with the industry’s decrease of 28%.
Image Source: Zacks Investment Research
Quarter in Detail
Adjusted research and development expenses rose 14.7% year over year to $32.2 million.
Adjusted general and administrative expenses were $17 million, up 32.5% from the year-ago period.
The company had cash and cash equivalents of $532 million as of Mar 31, 2022, compared with $590.3 million as of Dec 31, 2021. The company expects its cash resources to fund operations through 2024-end.
Pipeline Update
Reata has developed its lead pipeline candidates — bardoxolone methyl (bardoxolone) and omaveloxolone — for rare forms of chronic kidney disease (“CKD”) and neurological diseases, respectively. Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019.
The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie.
Reata is developing omaveloxolone as a potential treatment for Friedreich’s ataxia (“FA”).
In March 2022, the company completed a rolling submission of an NDA seeking approval for omaveloxolone for the treatment of patients with FA. The company plans to file a regulatory application seeking approval for omaveloxolone as a treatment for FA patients in Europe in the fourth quarter of 2022.
Reata has started commercial preparation to support the launch of omaveloxolone as a FA therapy in early 2023.
Reata is currently evaluating bardoxolone for treating autosomal dominant polycystic kidney disease in a late-stage study, FALCON. The company recently met with the FDA to discuss the study’s protocol amendment in a Type A meeting. The company stated that the FDA is aligned with the proposed primary endpoint of eGFR change from baseline at week 108 for the FALCON study. The FDA stated that data from the FALCON study can support a regulatory filing, if positive.
Reata has developed bardoxolone as a treatment for patients with CKD caused by Alport syndrome and also filed a new drug application for the same last year. However, the FDA issued a complete response letter in February. Reata is likely to work with the FDA to decide the next step forward for bardoxolone in CKD caused by Alport syndrome.
In December 2021, an FDA advisory committee voted against the approval of the bardoxolone NDA, stating that the clinical data provided with the NDA does not support the effectiveness of the candidate in slowing the progression of CKD.
Reata Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Reata Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Reata Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Reata currently has a Zacks Rank #3 (Hold).
A couple of better-ranked drug/biotech stocks include Eliem Therapeutics ELYM and Lyell Immunopharma LYEL, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eliem’s loss per share estimates have improved from $2.62 to $2.43 for 2022 and from $3.30 to $2.86 for 2023 in the past 30 days. ELYM stock has declined 35.7% so far this year.
Eliem delivered an earnings surprise of 15.94%, on average, in the last four quarters.
Lyell loss per share estimates have narrowed from $1.19 to $1.09 for 2022 and from $1.52 to $1.41 for 2023 in the past 30 days. LYEL has declined 30% so far this year.
Lyell delivered an earnings surprise of 25.26%, on average, in the last four quarters.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Reata Pharmaceuticals, Inc. (RETA): Free Stock Analysis Report
Lyell Immunopharma, Inc. (LYEL): Free Stock Analysis Report
Eliem Therapeutics, Inc. (ELYM): 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. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, had the rights belonged to AbbVie. |
23403.0 | 2022-05-10 00:00:00 UTC | 6 Undervalued Stocks You Should Buy For the Long Term | ABBV | https://www.nasdaq.com/articles/6-undervalued-stocks-you-should-buy-for-the-long-term | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These are the 6 undervalued stocks you should buy for the long term that have low price-to-earnings (P/E) multiples, pay good dividends, and also have share buyback programs.
McDonald’s (MCD): McDonald’s trades with a 2.23% dividend yield, 25x forward earnings and should do well as a result.
The Allstate Corporation (NYSE:ALL) — The insurer has a new $5 billion buyback program and yields 2.64%.
HP Inc. (NYSE:HPQ) — The computer printer maker has a 2.7% yield as well as a hefty, consistent buyback program.
Target (NYSE:TGT) — A fast-growing retailer with good cash flow — enough to pay a 1.61% yield and a 6.88% buyback yield.
AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.69% yield and consistent dividend growth.
NRG Energy (NYSE: NRG) — A Houston-based integrated power company with a 3.38% yield and growing dividends.
Source: akamakis / Shutterstock.com
These six undervalued stocks should be able to weather a major inflation and recession cycle. This is because their dividends and buyback programs are likely to survive. This gives these stocks very defensive characteristics.
For one, short-sellers are not really attracted to companies that have solid dividends. They have to pony up the dividends to investors if they take short positions in these stocks. Second, large buyback programs tend to stabilize demand for a stock when investor trading volumes wane in a recession.
In addition, the lower number of shares automatically increases the dividend per share paid out over time. It also increases earnings per share, thereby lowering the P/E multiples.
4 Blue-Chip Stocks to Buy for May 2022
Let’s dive in and look at these six stocks.
MCD McDonalds $246.57
ALL Allstate $129.78
HPQ HP Inc. $38.14
TGT Target $220.37
ABBV AbbVie $152.60
NRG NRG Energy $41.32
Undervalued Stocks: McDonald’s Corp (MCD)
Source: 8th.creator / Shutterstock.com
Market Value: $182 billion
McDonald’s Corp (NYSE:MCD) just released strong Q1 earnings on April 28. Its Q1 results on April 28, showed comparable sales rose 11.8% and 11% including the effects of store closings in Russia and Ukraine.
Everyone eats fast food, even if they won’t admit it. McDonald’s tends to hold up very well during recessions and economic slowdowns as a result. For example, its Q1 2022 free cash flow (FCF) was $1.732 billion vs. $1.77 billion a year ago, despite the closing of stores in Ukraine and Russia. McDonald’s expects to see $50 million per month in negative effects from the closings.
McDonald’s pays a very steady dividend and has a 2.23% dividend yield. It costs just $1.025 billion each quarter, well less than its $1.7 billion in FCF. As such, the company can expect that its dividend will be secure, even during a recession.
McDonald’s has raised its dividend annually over the last 13 years, according to Seeking Alpha. Moreover, McDonald’s just spent $1.5 billion on buybacks in Q1, 87% higher than in Q4.
Right now the stock trades on a forward P/E of about 25 times for this year and 23 times next year’s forecast earnings per share (EPS). This is on par with its average 24.8x forward P/E multiple over the past 5 years, according to Morningstar. This shows that MCD stock is one of the top undervalued stocks to own for the long term.
The Allstate Corp (ALL)
Source: madamF / Shutterstock.com
Market Value: $35.6billion
The Allstate Corp (NYSE:ALL) is a property and casualty insurer that recently announced a new $5 billion buyback program. ALL stock trades on a low P/E of 13.4x this year’s forecast EPS and 9.78x next year’s EPS expectations. This is taken from an average of 20 analysts surveyed by Refinitiv (Yahoo! Finance).
It also has a solid 2.64% dividend yield. This includes 12 consecutive years of dividend growth and 28 consecutive years of dividend payments, according to Seeking Alpha.
The fact is that people will keep paying their car, home, and other property insurance bills even during a recession. This is because they have to and it’s ingrained in American financial psychology to do so.
7 Defensive Dividend Healthcare Stocks to Buy Now
This makes Allstate one of the top undervalued stocks to buy for the long term, even with a recession or high inflation.
Undervalued Stocks: HP Inc. (HPQ)
Source: Shutterstock
Market Value: $40.06 billion
HP Inc (NYSE:HPQ) is a computer printer and device maker that has a decent 2.7% yield as well as a hefty, consistent buyback program. Its annual dividend is $1.00 per share and has enjoyed 11 years of consecutive dividend increases, as well as 32 years of continuous dividend payments.
Moreover, based on analysts’ estimates, HPQ stock trades for just 8.6 times the average of 16 analysts’ EPS estimate of $4.26 this year. It is slightly lower based on next year’s estimates.
HP has ample cash flow. From its Feb. 28, Jan. 31, quarterly results, HP made cash flow provided by operating activities of $1.7 billion and FCF of $1.4 billion. From this FCF HP paid $271 million on dividends and $1.5 billion on share repurchases.
Warren Buffett likes HP and recently took a large 11.4% stake in the company. HPQ stock is likely to be one of the top undervalued stocks to own for the long term.
Target Corp (TGT)
Source: jejim / Shutterstock.com
Market Value: $101.9 billion
Target Corp (NYSE:TGT) is a fast-growing retailer with good cash flow and pays a stable dividend with a 1.61% yield. The company will likely produce its next financial results for the quarter ending April 30 on June 1 or shortly thereafter. But so far, analysts surveyed by Refinitiv (Yahoo! Finance) forecast annual EPS of $14.58 for this year (ending January 2023). That puts TGT stock on a forward P/E of just 15.5 times earnings.
The fact is people will still buy groceries, clothes, and cheap items at fashionable discount stores like Target during a recession. We saw this happen during the Covid-19 lock-down period. Target performed greatly and had one of its best years. In 2021 its sales rose 13.2%. Comparable sales grew 12.7% in 2021, on top of 19.3% in 2020.
Last quarter the company produced almost $2 billion in FCF, representing 6.3% of its total sales. Going forward this allows Target to cover its $432 million quarterly dividend costs.
7 Dividend Stocks to Buy for May With Yields Over 6%
Moreover, the company has been aggressively buying back its stock, spending over $2.3 billion in the last quarter alone. Last year it bought back $7.36 billion worth of its stock. That represents 6.88% of its existing market cap and a higher portion of its average market cap during the year.
Undervalued Stocks: AbbVie Inc (ABBV)
Market Value: $269.2 billion
AbbVie Inc (NYSE:ABBV) is a profitable pharmaceutical company that has an attractive 3.69% dividend yield. It is known for its Humira drug, for rheumatoid arthritis and Crohn’s disease, and other drugs like RINVOQ for severe active rheumatoid arthritis.
ABBV stock trades on a cheap forward P/E of just 10.83x for this year and 13.4x next year’s earnings forecasts. Last year its sales were up 22.7% and this year it is forecast to rise over 10%.
Last year AbbVie generated over $17 billion in FCF. It used that to pay out $9.26 billion in dividends. That leaves it plenty of room to pay higher dividends and buy back its shares.
It spent about $934 million in buybacks last year. This makes ABBV stock one of the more secure undervalued stocks to own for the long term and even during a recession. It
NRG Energy (NRG)
Source: Casimiro PT / Shutterstock.com
Market Value: $9.9 billion
NRG Energy (NYSE:NRG) is a Houston-based integrated power company with a 3.38% yield and growing dividends. It is one of the largest U.S. independent power producers. It has 7 million customers and generates 16 gigawatts of power generation capacity primarily in Texas.
NRG stock is attractive to value investors as it offers a 3.38% dividend yield and nine years of continuously paid dividends. Moreover, analysts forecast $3.35 in EPS this year and $4.14 next year. So, trading at $41.38 on May 10, NRG stock trades for 11.5 times earnings this year and just 9.667 times 2023 earnings estimates.
Moreover, the company has plenty of FCF to cover both its dividends and buyback programs. Last year it generated $493 million in cash flow from operations and paid out just $319 million in dividends plus $48 million in buybacks.
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This makes this utility stock one of the safest undervalued stocks for the long term.
On the date of publication, Mark Hake did not hold (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 6 Undervalued Stocks You Should Buy For the Long Term 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 (NYSE:ABBV) — A cheap pharmaceutical company with a 3.69% yield and consistent dividend growth. MCD McDonalds $246.57 ALL Allstate $129.78 HPQ HP Inc. $38.14 TGT Target $220.37 ABBV AbbVie $152.60 NRG NRG Energy $41.32 Undervalued Stocks: McDonald’s Corp (MCD) Source: 8th.creator / Shutterstock.com Market Value: $182 billion McDonald’s Corp (NYSE:MCD) just released strong Q1 earnings on April 28. Undervalued Stocks: AbbVie Inc (ABBV) Market Value: $269.2 billion AbbVie Inc (NYSE:ABBV) is a profitable pharmaceutical company that has an attractive 3.69% dividend yield. | MCD McDonalds $246.57 ALL Allstate $129.78 HPQ HP Inc. $38.14 TGT Target $220.37 ABBV AbbVie $152.60 NRG NRG Energy $41.32 Undervalued Stocks: McDonald’s Corp (MCD) Source: 8th.creator / Shutterstock.com Market Value: $182 billion McDonald’s Corp (NYSE:MCD) just released strong Q1 earnings on April 28. AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.69% yield and consistent dividend growth. Undervalued Stocks: AbbVie Inc (ABBV) Market Value: $269.2 billion AbbVie Inc (NYSE:ABBV) is a profitable pharmaceutical company that has an attractive 3.69% dividend yield. | MCD McDonalds $246.57 ALL Allstate $129.78 HPQ HP Inc. $38.14 TGT Target $220.37 ABBV AbbVie $152.60 NRG NRG Energy $41.32 Undervalued Stocks: McDonald’s Corp (MCD) Source: 8th.creator / Shutterstock.com Market Value: $182 billion McDonald’s Corp (NYSE:MCD) just released strong Q1 earnings on April 28. AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.69% yield and consistent dividend growth. Undervalued Stocks: AbbVie Inc (ABBV) Market Value: $269.2 billion AbbVie Inc (NYSE:ABBV) is a profitable pharmaceutical company that has an attractive 3.69% dividend yield. | MCD McDonalds $246.57 ALL Allstate $129.78 HPQ HP Inc. $38.14 TGT Target $220.37 ABBV AbbVie $152.60 NRG NRG Energy $41.32 Undervalued Stocks: McDonald’s Corp (MCD) Source: 8th.creator / Shutterstock.com Market Value: $182 billion McDonald’s Corp (NYSE:MCD) just released strong Q1 earnings on April 28. AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.69% yield and consistent dividend growth. Undervalued Stocks: AbbVie Inc (ABBV) Market Value: $269.2 billion AbbVie Inc (NYSE:ABBV) is a profitable pharmaceutical company that has an attractive 3.69% dividend yield. |
23404.0 | 2022-05-10 00:00:00 UTC | Walgreens, CVS, Walmart begin $878 million opioid trial in Ohio | ABBV | https://www.nasdaq.com/articles/walgreens-cvs-walmart-begin-%24878-million-opioid-trial-in-ohio | nan | nan | By Dietrich Knauth
May 10 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N on Tuesday begin a first-of-its-kind trial to determine what the pharmacy chains owe for their role in the opioid epidemic in two Ohio counties, which are seeking $878 million.
A federal jury decided in November that the companies helped create a public nuisance with an alleged flood of addictive pain pills that wound up on the black market, in the first trial the companies faced over the crisis.
The jury did not decide how much the companies should pay to help alleviate the health crisis, which will now be determined by U.S. District Judge Dan Polster, marking the first trial to separately determine what the pharmacy chains owe after having been found liable.
Ohio's Lake and Trumbull Counties want the pharmacy chains to fund a $878 million five-year plan that includes treatment for addiction and overdoses, resources for law enforcement and healthcare providers, and employment training for addicts.
Walgreens, CVS and Walmart countered with an offer of a one-year program to buy back unused prescription opioid drugs in the two counties. They argue that Ohio's public nuisance law only requires them to stop the nuisance identified by the jury - an oversupply of prescription drugs - and not to address all of its negative effects.
CVS, Walgreens and Walmart have denied the counties’ allegations and said they would appeal the November verdict.
The companies argued that if they must do more than buy drugs back, they should not be forced to cover costs related to illegal drug use. They also said the counties have overstated the costs of their five-year plan.
The U.S. opioid epidemic has caused more than 500,000 overdose deaths over two decades, according to government data. More than 3,300 opioid lawsuits have been filed nationally against drugmakers, distributors and pharmacy chains, leading to a wave of proposed settlements.
CVS and Walgreens recently agreed to pay more than $1.1 billion to settle an opioid lawsuit by the state of Florida, the first time that pharmacy chains have reached a statewide settlement of opioid claims.
The Ohio counties’ public nuisance theory has rarely been tested at trial, and it has had mixed results in other courts.
Oklahoma's top court on Nov. 9 overturned a $465 million judgment against Johnson & Johnson JNJ.N, and a California judge in November ruled in favor of four drugmakers in a case brought by several large counties.
A New York jury in December found drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N responsible for causing a public nuisance in the state, although the amount they must pay will be determined in a trial later in 2022.
(Reporting by Dietrich Knauth Editing by Bill Berkrot)
((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. | A New York jury in December found drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N responsible for causing a public nuisance in the state, although the amount they must pay will be determined in a trial later in 2022. By Dietrich Knauth May 10 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N on Tuesday begin a first-of-its-kind trial to determine what the pharmacy chains owe for their role in the opioid epidemic in two Ohio counties, which are seeking $878 million. Walgreens, CVS and Walmart countered with an offer of a one-year program to buy back unused prescription opioid drugs in the two counties. | A New York jury in December found drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N responsible for causing a public nuisance in the state, although the amount they must pay will be determined in a trial later in 2022. Walgreens, CVS and Walmart countered with an offer of a one-year program to buy back unused prescription opioid drugs in the two counties. They argue that Ohio's public nuisance law only requires them to stop the nuisance identified by the jury - an oversupply of prescription drugs - and not to address all of its negative effects. | A New York jury in December found drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N responsible for causing a public nuisance in the state, although the amount they must pay will be determined in a trial later in 2022. By Dietrich Knauth May 10 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N on Tuesday begin a first-of-its-kind trial to determine what the pharmacy chains owe for their role in the opioid epidemic in two Ohio counties, which are seeking $878 million. The jury did not decide how much the companies should pay to help alleviate the health crisis, which will now be determined by U.S. District Judge Dan Polster, marking the first trial to separately determine what the pharmacy chains owe after having been found liable. | A New York jury in December found drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N responsible for causing a public nuisance in the state, although the amount they must pay will be determined in a trial later in 2022. By Dietrich Knauth May 10 (Reuters) - CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N on Tuesday begin a first-of-its-kind trial to determine what the pharmacy chains owe for their role in the opioid epidemic in two Ohio counties, which are seeking $878 million. The jury did not decide how much the companies should pay to help alleviate the health crisis, which will now be determined by U.S. District Judge Dan Polster, marking the first trial to separately determine what the pharmacy chains owe after having been found liable. |
23405.0 | 2022-05-06 00:00:00 UTC | Ironwood (IRWD) Q1 Earnings Miss, Linzess Growth Continues | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-q1-earnings-miss-linzess-growth-continues | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported first-quarter 2022 adjusted earnings of 21 cents per share, missing the Zacks Consensus Estimate of 27 cents. The company had reported adjusted earnings of 24 cents per share in the year-ago quarter.
Total revenues of $97.5 million beat the Zacks Consensus Estimate of $95.49 million. Revenues were up almost 9.8% year over year.
Shares of Ironwood were down 1.3% on May 5, following lower-than-expected earnings. However, the company’s shares have gained 5.1% so far this year against the industry’s decrease of 19.7%.
Image Source: Zacks Investment Research
Quarter in Detail
As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $232.3 million in the United States, up 8% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. The sales growth was driven by strong demand for Linzess, partially offset by the lower net price of the drug and inventory channel fluctuations.
Ironwood's share of net profits from the sales of Linzess in the United States (included in collaborative revenues) was $94.3 million in the first quarter, up 9.7% year over year.
Per data provided by IQVIA, the prescription volume for Linzess capsules in the first quarter increased about 11% year over year.
The company recorded $3.2 million in royalties and other revenues compared with $2.9 million in the year-ago period.
We note that Ironwood has agreements with two partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively. Ironwood records royalties on sales of Linzess from Astellas and AstraZeneca in their respective territories.
Selling, general and administrative expenses were up 4.3% year over year to $28.9 million during the first quarter. Research & development expenses declined 30.3% year over year to $10.8 million.
2022 Guidance Maintained
Ironwood maintained its previously issued guidance for 2022. The company expects its total revenues to be between $420 million and $430 million. It expects U.S. sales of Linzess to grow in low single-digit percentage points.
The company expects adjusted EBITDA to be more than $250 million for the year.
Pipeline Update
Ironwood is progressing well with the development of its linaclotide clinical program for pediatric patients. The data readout from a late-stage study evaluating linaclotide in functional constipation patients aged 6 to 17 years is expected in the second half of 2022.
Ironwood’s two early-stage studies are evaluate its pipeline candidates — IW-3300 and CNP-104 — for treating visceral pain conditions and primary biliary cholangitis, respectively.
Ironwood Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Ironwood Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank & Stock to Consider
Currently, Ironwood carries a Zacks Rank #3 (Hold).
Xencor XNCR is a better-ranked drug stock, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss per share estimates for Xencor have narrowed from $2.96 to $2.67 for 2022 in the past 30 days. XNCR’s shares have declined 38.2% so far this year.
Xencor has a four-quarter average earnings surprise of 125.72%.
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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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AstraZeneca PLC (AZN): Free Stock Analysis Report
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $232.3 million in the United States, up 8% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $232.3 million in the United States, up 8% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $232.3 million in the United States, up 8% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $232.3 million in the United States, up 8% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23406.0 | 2022-05-06 00:00:00 UTC | 7 Defensive Dividend Healthcare Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/7-defensive-dividend-healthcare-stocks-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Adding defensive healthcare stocks can be a great way to ride out continued volatility in the market.
AbbVie (ABBV): Investors are overreacting to this venerable big pharma company’s recent earnings report.
Amgen (AMGN): An established biotech company with a high forward dividend yield (3.33%).
Baxter International (BAX): A reasonably-priced medical products provider on track to deliver strong results.
Quest Diagnostics (DGX): Focus will soon shift to the evergreen nature of its main testing business.
Humana (HUM): Growing Medicare Advantage enrollments point to stability and growth for Humana.
Merck (MRK): Still has room to move higher, despite recent post-earnings spike.
Zoetis (ZTS): While regarded as a high-growth high-flier, Zoetis is inflation and recession-resistant.
Uncertainty about the stock market and the overall economy continues to run high. It’s not too late to go defensive. A good way to do that is to focus your portfolio on dividend-paying defensive stocks. Resilient during market downturns, they can provide you steady returns due to their dividend payouts. There are defensive stocks that offer solid dividends across all sectors, but a great place to look is among healthcare stocks.
Why healthcare? It’s a very recession-resistant sector. In good times and bad times, health care products and services are in-demand. Earnings for high-quality healthcare stocks stay pretty consistent, no matter the health of the overall economy.
So far this year, knowing full well of its “safe harbor” bona fides, investors have already started to cycle into this space. That said, as the market overall has pulled back in recent days, even these names have experienced some weakness.
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Said weakness is likely to be temporary, making now a great time to “buy the dip,” and add them to your portfolio. When it comes to healthcare stocks, these seven are just what the doctor ordered.
ABBV AbbVie $152.84
AMGN Amgen $233.68
BAX Baxter International $72.83
DGX Quest Diagnostics $137.35
HUM Humana $437.23
MRK Merck $87.59
ZTS Zoetis $172.81
Healthcare Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
As I discussed last month, several developments, along with market-related factors, have knocked down AbbVie (NYSE:ABBV) shares. Along with this, a mixed quarterly earnings report added more pressure towards the end of April.
However, don’t let this pharmaceutical stock’s recent performance scare you away. AbbVie’s operating performance last quarter may not be indicative of future earnings results. Sales from newer drugs like Skyrizi and Rinvoq still stand to make up for declining Humira sales. Humira (its current flagship drug) will lose its U.S. exclusivity in 2023.
Furthermore, the market has overreacted to what’s really a slight walking back of its 2022 earnings guidance. Recent negatives are already baked into the ABBV stock price. It trades for just 10.5 times forward earnings and has a 3.8% forward dividend yield. Once the market comes to its senses and again appreciates its defensive qualities, this latest pullback will reverse.
This stock earns an “A” rating in my Dividend Grader.
Amgen (AMGN)
Source: Michael Vi / Shutterstock.com
When you think about biotech, stability may not be the first thing that comes to mind. After all, aren’t biotech stocks volatile? That may be the case for most smaller, more early-stage biotech names, but for established ones like Amgen (NASDAQ:AMGN), that’s not the case.
With its diversified portfolio of therapeutics, covering a wide variety of ailments, Amgen is consistently profitable. Demand for its life-saving treatments stays robust, whether the economy is experiencing boom times, tough times, or something in-between. In turn, this enables the company to offer and sustain an above-average dividend.
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At today’s prices, AMGN stock has a forward yield of 3.3%. It’s also grown this dividend ten years in a row. As its earnings continue to rise, chances are this payout will continue to grow. Reasonably priced at 13 times this year’s estimated earnings, consider it a great defensive healthcare play.
This stock earns an “A” rating in my Dividend Grader.
Baxter International (BAX)
Source: Shutterstock
After talking about two healthcare stocks involved in drug making, let’s take a look at Baxter International (NYSE:BAX), which is involved in another area of the sector: medical devices and products.
A leading maker of intravenous products, Baxter also provides a wide variety of products used everyday in hospitals. Through its bioscience unit, Baxter is also a big provider of recombinant and blood plasma proteins. The stability of its business, dull as it may sound, is what makes it a great defensive play.
The company is on track to deliver strong results in 2022 and 2023. Especially as the benefits from its late 2021 acquisition of Hillrom begin to take shape. BAX stock trades at a low valuation (17 times earnings) given its quality and growth potential. It also has a growing dividend (currently yielding 1.6%). It’s another good example of the types of stocks you should be buying right now.
This stock earns a “B” rating in my Dividend Grader.
Healthcare Stocks: Quest Diagnostics (DGX)
Source: Sundry Photography / Shutterstock.com
Quest Diagnostics (NYSE:DGX) is another good example of a high-quality non-drug healthcare stock. Just like how Baxter is a little-known but important name in healthcare, so too is Quest.
A testing services provider, it plays a critical role in the modern healthcare system. However, it’s not this fact investors are focused on right now. Instead, investors are still absorbing the loss of its pandemic-era tailwind. Covid-19 testing helped to boost its results in 2020 and 2021.
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This boost is expected to fade this year and the next. Even so, this already accounted for in the current DGX stock price. The evergreen nature of its main business will come back into focus. Ahead of this, you may want to consider buying it. It’s at a reasonable valuation at today’s prices. Its forward dividend of 2% may not scream high-yield, but this payout should continue to rise, given Quest’s history of dividend growth.
This stock earns an “A” rating in my Dividend Grader.
Humana (HUM)
Humana (NYSE:HUM) plays a big role in America’s healthcare system. The third-largest health insurer overall, it’s the second largest provider of Medicare Advantage plans.
Its focus on this area of the healthcare economy brings with it stability and growth opportunity. As Medicare Advantage enrollment continues to rise, thanks to demographic trends, Humana stands to see continued earnings growth in the years ahead, irrespective of economic conditions.
With these factors in mind, it’s no wonder HUM stock has held up relatively well year-to-date. Better yet, it’s not too late to add it to your portfolio. At today’s prices, it continues to trade at a more-than-fair valuation (19 times earnings). Steady earnings and dividend growth will drive it to higher prices over time. Earnings are expected to grow by double-digits (12%) this year. Over the past five year, it’s raised its dividend by an average of 14.5% per year.
This stock earns an “A” rating in my Dividend Grader.
Merck (MRK)
Source: Atmosphere1 / Shutterstock.com
Like AbbVie, Merck (NYSE:MRK) is a big pharma play, sporting both a low valuation (12 times forward earnings) and a high dividend (forward yield of 3.1%). Unlike AbbVie though, Merck has been on a tear in recent days.
That’s because of a positive response to its first quarter earnings report. Revenue and earnings beat estimates. This was due not just to strong growth with its Covid-19 treatment, Lagevrio. Existing treatments like Keytruda performed strongly as well. But while the stock has spiked on this news, don’t think that it’s too late to buy.
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The market continues to pivot to safe harbor plays. MRK stock is a prime example of a name many will cycle into. It offers stable earnings and stable dividends. As InvestorPlace’s Faizan Farooque pointed out last month, it’s been paying out dividends uninterrupted for over 40 years! This is the kind of dependability you need in today’s uncertain times.
This stock earns an “A” rating in my Dividend Grader.
Healthcare Stocks: Zoetis (ZTS)
Source: Casimiro PT / Shutterstock.com
Admittedly, at first glance Zoetis (NYSE:ZTS) may seem more like a growth stock than a defensive stock. Trading for a high price-to-earnings (P/E) multiple (34.3 times), isn’t this the time of play we should avoid today?
Not necessarily. Shares in this leading provider of animal health products has a good chance of maintaining its valuation, which has already compressed since the start of 2022. Don’t let the reputation of ZTS stock as a high-flier fool you.
As an online commentator recently argued, Zoetis’s business is both inflation and recession resistant. This will likely enable it to maintain the level of earnings growth needed to sustain its current valuation. Although not a high-yielder (0.74%), you should keep in mind the potential for Zoetis to grow its payout over time. In the past five years, it’s increased its dividend by an average of 25% per year.
This stock earns an “A” rating in my Dividend Grader.
On the date of publication, Louis Navellier held long positions in ABBV, AMGN, DGX and ZTS. 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 opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Defensive Dividend Healthcare 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): Investors are overreacting to this venerable big pharma company’s recent earnings report. ABBV AbbVie $152.84 AMGN Amgen $233.68 BAX Baxter International $72.83 DGX Quest Diagnostics $137.35 HUM Humana $437.23 MRK Merck $87.59 ZTS Zoetis $172.81 Healthcare Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As I discussed last month, several developments, along with market-related factors, have knocked down AbbVie (NYSE:ABBV) shares. AbbVie’s operating performance last quarter may not be indicative of future earnings results. | ABBV AbbVie $152.84 AMGN Amgen $233.68 BAX Baxter International $72.83 DGX Quest Diagnostics $137.35 HUM Humana $437.23 MRK Merck $87.59 ZTS Zoetis $172.81 Healthcare Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As I discussed last month, several developments, along with market-related factors, have knocked down AbbVie (NYSE:ABBV) shares. Merck (MRK) Source: Atmosphere1 / Shutterstock.com Like AbbVie, Merck (NYSE:MRK) is a big pharma play, sporting both a low valuation (12 times forward earnings) and a high dividend (forward yield of 3.1%). AbbVie (ABBV): Investors are overreacting to this venerable big pharma company’s recent earnings report. | ABBV AbbVie $152.84 AMGN Amgen $233.68 BAX Baxter International $72.83 DGX Quest Diagnostics $137.35 HUM Humana $437.23 MRK Merck $87.59 ZTS Zoetis $172.81 Healthcare Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As I discussed last month, several developments, along with market-related factors, have knocked down AbbVie (NYSE:ABBV) shares. AbbVie (ABBV): Investors are overreacting to this venerable big pharma company’s recent earnings report. AbbVie’s operating performance last quarter may not be indicative of future earnings results. | AbbVie (ABBV): Investors are overreacting to this venerable big pharma company’s recent earnings report. ABBV AbbVie $152.84 AMGN Amgen $233.68 BAX Baxter International $72.83 DGX Quest Diagnostics $137.35 HUM Humana $437.23 MRK Merck $87.59 ZTS Zoetis $172.81 Healthcare Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As I discussed last month, several developments, along with market-related factors, have knocked down AbbVie (NYSE:ABBV) shares. AbbVie’s operating performance last quarter may not be indicative of future earnings results. |
23407.0 | 2022-05-05 00:00:00 UTC | June 24th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/june-24th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 24th 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 $4.60. 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 $145.40 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $151.75/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 3.07% return on the cash commitment, or 22.39% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $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 $4.00. If an investor was to purchase shares of ABBV stock at the current price level of $151.75/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 4.78% if the stock gets called away at the June 24th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red:
Considering the fact that the $155.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.64% boost of extra return to the investor, or 19.24% 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 $151.75) 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 24th 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 24th 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 $4.00. 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 24th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 24th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 24th expiration. |
23408.0 | 2022-05-05 00:00:00 UTC | Walgreens reaches $683 mln opioid settlement with Florida | ABBV | https://www.nasdaq.com/articles/walgreens-reaches-%24683-mln-opioid-settlement-with-florida | nan | nan | By Dietrich Knauth
May 5 (Reuters) - Walgreens Boots Alliance WBA.O said on Thursday it has reached a $683 million settlement with Florida to resolve claims that the pharmacy chain exacerbated an opioid epidemic in the state.
The settlement includes $620 million to be paid to Florida over 18 years, plus $63 million for legal fees.
It ends a trial that began on April 11, after Walgreens decided not to join a combined $878 million settlement with four other healthcare companies.
(Reporting by Dietrich Knauth; Editing by Bill Berkrot and 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 5 (Reuters) - Walgreens Boots Alliance WBA.O said on Thursday it has reached a $683 million settlement with Florida to resolve claims that the pharmacy chain exacerbated an opioid epidemic in the state. It ends a trial that began on April 11, after Walgreens decided not to join a combined $878 million settlement with four other healthcare companies. (Reporting by Dietrich Knauth; Editing by Bill Berkrot and 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 5 (Reuters) - Walgreens Boots Alliance WBA.O said on Thursday it has reached a $683 million settlement with Florida to resolve claims that the pharmacy chain exacerbated an opioid epidemic in the state. It ends a trial that began on April 11, after Walgreens decided not to join a combined $878 million settlement with four other healthcare companies. (Reporting by Dietrich Knauth; Editing by Bill Berkrot and 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 5 (Reuters) - Walgreens Boots Alliance WBA.O said on Thursday it has reached a $683 million settlement with Florida to resolve claims that the pharmacy chain exacerbated an opioid epidemic in the state. The settlement includes $620 million to be paid to Florida over 18 years, plus $63 million for legal fees. (Reporting by Dietrich Knauth; Editing by Bill Berkrot and 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 5 (Reuters) - Walgreens Boots Alliance WBA.O said on Thursday it has reached a $683 million settlement with Florida to resolve claims that the pharmacy chain exacerbated an opioid epidemic in the state. The settlement includes $620 million to be paid to Florida over 18 years, plus $63 million for legal fees. It ends a trial that began on April 11, after Walgreens decided not to join a combined $878 million settlement with four other healthcare companies. |
23409.0 | 2022-05-05 00:00:00 UTC | Here is What to Know Beyond Why AbbVie Inc. (ABBV) is a Trending Stock | ABBV | https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-abbvie-inc.-abbv-is-a-trending-stock | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned -10.3%, compared to the Zacks S&P 500 composite's -6.1% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. 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 $3.44 per share for the current quarter, representing a year-over-year change of +10.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.6%.
The consensus earnings estimate of $14.04 for the current fiscal year indicates a year-over-year change of +10.6%. This estimate has changed -0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.84 indicates a change of -15.7% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +104.1%.
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
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 $14.73 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $59.67 billion and $55.75 billion estimates indicate +6.2% and -6.6% 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
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. | Last Reported Results and Surprise History AbbVie reported revenues of $13.54 billion in the last reported quarter, representing a year-over-year change of +4.1%. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. | 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) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. | For the next fiscal year, the consensus earnings estimate of $11.84 indicates a change of -15.7% from what AbbVie is expected to report a year ago. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 0.5%. |
23410.0 | 2022-05-05 00:00:00 UTC | 3 Top Healthcare Stocks to Buy for May | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-to-buy-for-may | nan | nan | Investing in trends that are unlikely to reverse is key to being a successful investor.
A more populous and aging global population is almost a guarantee that quality healthcare stocks will do well over the long haul. That's because healthcare products and services are essential to extended life expectancies, which also builds in pricing power for such stocks.
Here are three healthcare stocks that have proven to be reliable dividend growers, and each looks like a solid buy for this month.
Image source: Getty Images.
1. Medtronic
With a $145 billion market capitalization and operations in 150 countries, Medtronic (NYSE: MDT) is the largest pure-play medical devices stock in the world.
The company's 49,000-plus patents and 300-plus ongoing clinical trials across a variety of treatment areas like diabetes, cardiovascular disease, and neuroscience position it to be the biggest beneficiary of a promising industry forecast. Rising rates of chronic disease and an aging population are expected to help the global medical devices industry compound at 5.5% annually from $532.6 billion in 2021 to $734.4 billion in 2027.
This explains why analysts anticipate that Medtronic will be able to deliver 12.2% annual adjusted diluted earnings per share (EPS) growth through the next five years.
And with a dividend payout ratio set to be 44.5% for its fiscal year ending this month, the stock should hand out high-single-digit annual dividend increases for the foreseeable future. Given Medtronic's market-beating 2.4% dividend yield, this is a nice mix of starting yield and growth potential.
At the current $105 share price, Medtronic trades at a forward price-to-earnings ratio of just 18. This is an enticing valuation for a blue-chip stock with strong growth prospects, which is what makes Medtronic a solid buy for long-term investors.
2. AbbVie
The next stock to consider buying in May is AbbVie (NYSE: ABBV). AbbVie's $270 billion market cap makes it the fourth-largest pharma stock in the world.
Unsurprisingly, the mega-cap stock features one of the most impressive drug portfolios in the world. AbbVie's portfolio contained 13 blockbuster drugs in 2021, including the top-selling drug in the world, Humira.
It's easy for such a successful company to rest on its laurels. But that doesn't appear to be what AbbVie has done over the past several years since it has 60 compounds in different phases of clinical development. Analysts predict the company's stacked drug portfolio/pipeline and increasing demand for pharmaceuticals will lead to a 2% annual earnings growth over the next five years.
Better yet, AbbVie is a Dividend King that offers a market-crushing 3.8% dividend yield. What's more, the stock's projected 40.2% payout ratio for 2022 leaves it room to grow its dividend ahead of earnings over the medium term. That's why I am expecting mid-to-upper single-digit annual dividend growth over the next several years, which is a healthy combo of income and growth.
Investors can snatch up AbbVie's stock at $150 a share, which works out to a reasonable forward price-to-earnings (P/E) ratio of just 12.2.
3. Humana
The third stock to think about purchasing this month is Humana (NYSE: HUM). The stock's $57 billion market cap makes it the fifth-largest health insurer in the world.
Healthcare costs are steadily rising, and more people in the U.S. are turning to health insurers to assume risks on their behalf. Along with Humana's status as a leading health insurer, this is why analysts are anticipating 14% annual earnings growth for the next five years.
And given that Humana's dividend payout ratio will be less than 13% in 2022, the stock has plenty of room to grow its payout in the years ahead. This makes up for Humana's low starting yield of 0.7%.
Best of all, Humana's stock trades at a forward P/E ratio of 15.6. This is a more-than-fair valuation for a stock with low-teens annual earnings growth in its future, which makes Humana an interesting buy for long-term investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie The next stock to consider buying in May is AbbVie (NYSE: ABBV). AbbVie's $270 billion market cap makes it the fourth-largest pharma stock in the world. AbbVie's portfolio contained 13 blockbuster drugs in 2021, including the top-selling drug in the world, Humira. | AbbVie The next stock to consider buying in May is AbbVie (NYSE: ABBV). AbbVie's $270 billion market cap makes it the fourth-largest pharma stock in the world. AbbVie's portfolio contained 13 blockbuster drugs in 2021, including the top-selling drug in the world, Humira. | See the 10 stocks *Stock Advisor returns as of April 7, 2022 Kody Kester has positions in AbbVie and Medtronic. AbbVie The next stock to consider buying in May is AbbVie (NYSE: ABBV). AbbVie's $270 billion market cap makes it the fourth-largest pharma stock in the world. | AbbVie The next stock to consider buying in May is AbbVie (NYSE: ABBV). AbbVie's $270 billion market cap makes it the fourth-largest pharma stock in the world. AbbVie's portfolio contained 13 blockbuster drugs in 2021, including the top-selling drug in the world, Humira. |
23411.0 | 2022-05-05 00:00:00 UTC | Pfizer Is Poised to Shatter These 2 Records in 2022 | ABBV | https://www.nasdaq.com/articles/pfizer-is-poised-to-shatter-these-2-records-in-2022 | nan | nan | Pfizer (NYSE: PFE) just delivered the best quarter in the company's history. Its first-quarter revenue topped $25.6 billion. Adjusted profits totaled more than $9.3 billion.
The drugmaker isn't done yet. And it's likely to go beyond notching wins against its own historical performance. Pfizer is poised to shatter these two biopharmaceutical industry records in 2022.
Image source: Getty Images.
1. Best-selling non-vaccine drug ever
Pfizer's Comirnaty already holds the title as the best-selling drug in a single year. The COVID-19 vaccine generated nearly $36.8 billion in 2021. No other drug has ever come close to that sales level.
Currently, AbbVie's (NYSE: ABBV) Humira reigns as the world's best-selling non-vaccine drug. Last year, the autoimmune-disease drug raked in close to $20.7 billion. That broke the previous record of single-year sales for a non-vaccine drug of $19.8 billion set by Humira in 2020.
But Humira seems unlikely to remain at the top for very long. Pfizer's guidance projects that its COVID-19 pill, Paxlovid, will make at least $22 billion this year.
Pfizer didn't increase its sales outlook for Paxlovid in its first-quarter update. However, the company is set to produce 120 million treatment courses in 2022. It doesn't have to sell all of those courses to make a lot more than $22 billion.
2. Most revenue for a pharma company
Thanks in large part to the anticipated surge in sales for Paxlovid, Pfizer is also on track to generate the most annual revenue for a pharmaceutical company ever in 2022. The company currently expects full-year revenue of between $98 billion and $102 billion.
Last year, Pfizer reported revenue of nearly $81.3 billion. This set an all-time high for the company. However, Johnson & Johnson (NYSE: JNJ) made $93.8 billion in 2021. That's the record Pfizer seems likely to beat this year.
J&J's revenue total, though, probably should come with an asterisk in the context of determining the most annual revenue for a pharma company. While pharmaceuticals ranked as the healthcare giant's top moneymaker, its consumer health and medical device segments contributed nearly $41.7 billion in sales.
But Pfizer's anticipated 2022 revenue will come entirely from pharmaceuticals. Comirnaty's sales probably won't be as high as they were last year but should still approach $32 billion. As previously mentioned, Paxlovid will kick in at least $22 billion. Pfizer also has plenty of other megablockbusters, notably including its Prevnar vaccines, blood thinner Eliquis, and rare heart disease drug Vyndaqel/Vyndamax.
Will 2022 be Pfizer's peak?
Pfizer CEO Albert Bourla stated in the company's Q1 call that new innovations could change the dynamics in the COVID-19 market in 2023. He also thinks that it's possible that the U.S. will transition to a private market next year. Both factors could create headwinds for Paxlovid sales.
The consensus for Comirnaty sales next year is in the ballpark of $17 billion to $18 billion. That's a significant decline from the $32 billion in sales that Pfizer projects for this year.
Sure, sales for many of Pfizer's other products should increase. However, the company only expects an average of 6% annual non-COVID-19 revenue growth through 2025. It then faces the loss of exclusivity for several top-selling drugs.
It seems likely that Pfizer will indeed break the records this year for the highest sales for a non-vaccine drug and the most annual revenue for a pharma company ever. But don't look for those potential new records to be broken by Pfizer or anyone else in the near future.
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Keith Speights has positions in AbbVie and Pfizer. 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. | Currently, AbbVie's (NYSE: ABBV) Humira reigns as the world's best-selling non-vaccine drug. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Pfizer. While pharmaceuticals ranked as the healthcare giant's top moneymaker, its consumer health and medical device segments contributed nearly $41.7 billion in sales. | Currently, AbbVie's (NYSE: ABBV) Humira reigns as the world's best-selling non-vaccine drug. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Pfizer. Best-selling non-vaccine drug ever Pfizer's Comirnaty already holds the title as the best-selling drug in a single year. | Currently, AbbVie's (NYSE: ABBV) Humira reigns as the world's best-selling non-vaccine drug. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Pfizer. Most revenue for a pharma company Thanks in large part to the anticipated surge in sales for Paxlovid, Pfizer is also on track to generate the most annual revenue for a pharmaceutical company ever in 2022. | Currently, AbbVie's (NYSE: ABBV) Humira reigns as the world's best-selling non-vaccine drug. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Pfizer. That broke the previous record of single-year sales for a non-vaccine drug of $19.8 billion set by Humira in 2020. |
23412.0 | 2022-05-05 00:00:00 UTC | This Stock Is Trouncing the Market in 2022 -- and Its Prospects Just Got Even Better | ABBV | https://www.nasdaq.com/articles/this-stock-is-trouncing-the-market-in-2022-and-its-prospects-just-got-even-better | nan | nan | It's hard to swim against the current, and investors these days definitely find the current going against them. Most stocks have fallen, with the S&P 500 index in correction territory and the Nasdaq Composite index in bear territory again.
However, not every stock is being swept in the wrong direction. Here's one that's trouncing the market so far in 2022. And its prospects just got even better.
Image source: Getty Images.
Firming up the monopoly
In 2012, Vertex Pharmaceuticals (NASDAQ: VRTX) became the first company to win U.S. approval of a drug that treated the underlying cause of cystic fibrosis (CF). That drug -- ivacaftor (marketed as Kalydeco) -- became the foundation for three other CF drugs that followed in its footsteps.
Vertex has achieved remarkable success in the subsequent years with a virtual monopoly in the CF market. The company's sales totaled nearly $7.6 billion in 2021, up 22% year over year. As previously mentioned, the biotech stock has also handily beaten the market this year with a gain of nearly 20%.
That monopoly in CF now appears stronger than it did only a week ago. Why? AbbVie (NYSE: ABBV) announced in its first-quarter conference call last Friday that it's throwing in the towel on developing a triplet therapy for treating CF. Chief Scientific Officer Tom Hudson stated that the efficacy of the experimental combination therapy didn't meet the pre-specified efficacy criteria for continuing development.
Hudson added that AbbVie hopes to advance a new triple combo into phase 2 testing by early 2023. However, this news leaves Vertex still dominant in the CF market with no challenger anywhere close to being in a position to launch a rival product.
Vertex still has plenty of growth opportunities in CF. The company believes that it could capture another 30% of the market with its existing therapies. It also plans to file for approval later this year to begin clinical testing of an experimental messenger RNA therapy that could address the remaining 5,000 or so patients for whom its current drugs can't help.
Forging new paths
Meanwhile, Vertex continues to forge new paths beyond CF. The company and its partner, CRISPR Therapeutics, should report results from a pivotal study of CTX001 in treating rare blood disorders sickle cell disease and transfusion-dependent beta-thalassemia within a few months. Assuming those results are positive, regulatory filings for the gene-editing therapy could be on the way before year-end.
Vertex recently advanced VX-147 into pivotal late-stage testing in treating APOL1-mediated kidney disease. There are around 100,000 people in the U.S. and Europe with this genetic disease. That's even higher than the 83,000 individuals with CF.
The company also expects to begin pivotal clinical studies for its non-opioid pain drug VX-548 in the second half of 2022. In March, Vertex reported positive results from two phase 2 studies of the experimental drug in alleviating acute pain following abdominoplasty surgery and bunionectomy surgery.
The only negative for Vertex this year is that the U.S. Food and Drug Administration (FDA) recently placed a clinical hold on the phase 1/2 study evaluating VX-880 in treating type 1 diabetes (T1D). This move by the FDA caught Vertex by surprise. The company stated in a press release that it will work with the agency to address any concerns so the trial can resume as soon as possible.
Vertex's T1D program could be a game changer. The company is on track to submit an Investigational New Drug application this year to advance additional T1D therapies into clinical testing. Vertex's long-term aim is to cure the disease.
Potential for surprises
There's always the potential for surprises with Vertex -- both positive and negative. That's a fact of life for any biopharmaceutical company.
It's possible that Vertex's first-quarter results, scheduled to be announced after the market close on May 5, could be disappointing. The company could experience additional clinical setbacks.
However, the overall outlook for Vertex appears to be very good. The company has a promising pipeline and a robust and growing cash stockpile. And with the latest news from AbbVie, Vertex's CF monopoly is stronger than ever.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) announced in its first-quarter conference call last Friday that it's throwing in the towel on developing a triplet therapy for treating CF. Hudson added that AbbVie hopes to advance a new triple combo into phase 2 testing by early 2023. And with the latest news from AbbVie, Vertex's CF monopoly is stronger than ever. | And with the latest news from AbbVie, Vertex's CF monopoly is stronger than ever. AbbVie (NYSE: ABBV) announced in its first-quarter conference call last Friday that it's throwing in the towel on developing a triplet therapy for treating CF. Hudson added that AbbVie hopes to advance a new triple combo into phase 2 testing by early 2023. | See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Vertex Pharmaceuticals. AbbVie (NYSE: ABBV) announced in its first-quarter conference call last Friday that it's throwing in the towel on developing a triplet therapy for treating CF. Hudson added that AbbVie hopes to advance a new triple combo into phase 2 testing by early 2023. | AbbVie (NYSE: ABBV) announced in its first-quarter conference call last Friday that it's throwing in the towel on developing a triplet therapy for treating CF. Hudson added that AbbVie hopes to advance a new triple combo into phase 2 testing by early 2023. And with the latest news from AbbVie, Vertex's CF monopoly is stronger than ever. |
23413.0 | 2022-05-04 00:00:00 UTC | These Warren Buffett Dividend Stocks Can Make You $12,800 in Passive Income | ABBV | https://www.nasdaq.com/articles/these-warren-buffett-dividend-stocks-can-make-you-%2412800-in-passive-income | nan | nan | If anyone knows that it takes money to make money, it's Warren Buffett. But the longtime Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO also knows that making significant passive income is actually easy if you have enough to invest in the right stocks.
Some great stock ideas can be found right in Berkshire's own portfolio. Investing $100,000 in each of these three Buffett dividend stocks can make you more than $12,800 in combined passive income per year.
Image source: Getty Images.
1. Store Capital
Store Capital (NYSE: STOR) ranks as one of the highest-yielding dividend stocks among Berkshire's holdings. Its dividend yield currently tops 5.4%. An initial investment of $100,000 in the stock would generate annual income of more than $5,400.
This shouldn't be surprising. Store Capital is a real estate investment trust (REIT). REITs must return at least 90% of their taxable income to shareholders in the form of dividends.
However, Store Capital hasn't given investors much to be happy about other than dividend income lately. Its stock has fallen with increased economic uncertainty. The REIT focuses heavily on leasing properties to restaurants, many of which have been hurt by rising inflation rates.
But Store Capital itself is largely immune to the impact of inflation on its leases. The company has built-in rent escalations that help offset rising prices. Its business should be able to weather any storm relatively well.
2. Chevron
Chevron's (NYSE: CVX) dividend yield of a little over 3.6% is the lowest it's been in several years. However, that's enough for an investment of $100,000 to provide over $3,600 in passive income on a yearly basis.
The oil and gas giant hasn't reduced its dividend, by the way. Chevron has increased its dividend for 35 consecutive years. The company's lower dividend yield is solely due to the stock's impressive performance.
Chevron has been a big winner for Buffett. The stock now ranks as Berkshire's third-largest holding. And the Oracle of Omaha continues to be bullish about the prospects for the oil industry.
Importantly, Chevron continues to invest in both traditional energy (i.e., oil and gas) and new energy sources. The company's CEO, Mike Wirth, said in Chevron's Q1 conference call last week, "We're on a path to delivering higher returns and lower carbon and rewarding our stakeholders all along the way."
3. AbbVie
If you've been keeping track, Store Capital and Chevron together could generate at least $9,000 in passive income per year. Investing another $100,000 in AbbVie (NYSE: ABBV) would add another $3,840, bringing the total to $12,840.
AbbVie's dividend is as dependable as they come. The big drugmaker is a Dividend King with a track record of 50 consecutive years of dividend increases.
The stock has also held up well. AbbVie is handily beating the overall market so far this year. That's true even after its shares sank last week following the company's disappointing Q1 update. AbbVie missed Wall Street's revenue estimate and lowered its 2022 adjusted earnings guidance.
However, there was plenty of good news in the company's latest quarterly update. In particular, AbbVie appears to be in a solid position to quickly rebound from the loss of U.S. exclusivity for top-selling Humira next year. The pharmaceutical company should be able to keep those dividends flowing for a long time to come.
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Keith Speights has positions in AbbVie and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends STORE Capital and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In particular, AbbVie appears to be in a solid position to quickly rebound from the loss of U.S. exclusivity for top-selling Humira next year. AbbVie If you've been keeping track, Store Capital and Chevron together could generate at least $9,000 in passive income per year. Investing another $100,000 in AbbVie (NYSE: ABBV) would add another $3,840, bringing the total to $12,840. | AbbVie If you've been keeping track, Store Capital and Chevron together could generate at least $9,000 in passive income per year. Investing another $100,000 in AbbVie (NYSE: ABBV) would add another $3,840, bringing the total to $12,840. AbbVie's dividend is as dependable as they come. | See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Berkshire Hathaway (B shares). AbbVie If you've been keeping track, Store Capital and Chevron together could generate at least $9,000 in passive income per year. Investing another $100,000 in AbbVie (NYSE: ABBV) would add another $3,840, bringing the total to $12,840. | AbbVie If you've been keeping track, Store Capital and Chevron together could generate at least $9,000 in passive income per year. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie and Berkshire Hathaway (B shares). Investing another $100,000 in AbbVie (NYSE: ABBV) would add another $3,840, bringing the total to $12,840. |
23414.0 | 2022-05-02 00:00:00 UTC | Is First Trust Health Care AlphaDEX ETF (FXH) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-first-trust-health-care-alphadex-etf-fxh-a-strong-etf-right-now-1 | nan | nan | Designed to provide broad exposure to the Health Care ETFs category of the market, the First Trust Health Care AlphaDEX ETF (FXH) is a smart beta exchange traded fund launched on 05/08/2007.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.41 billion, this makes it one of the larger ETFs in the Health Care ETFs. FXH is managed by First Trust Advisors. This particular fund, before fees and expenses, seeks to match the performance of the StrataQuant Health Care Index.
The StrataQuant Health Care Index employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.61%.
It's 12-month trailing dividend yield comes in at 0%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
FXH's heaviest allocation is in the Healthcare sector, which is about 100% of the portfolio.
When you look at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN).
FXH's top 10 holdings account for about 21.91% of its total assets under management.
Performance and Risk
So far this year, FXH has lost about -12.97%, and is down about -7.33% in the last one year (as of 05/02/2022). During this past 52-week period, the fund has traded between $106.27 and $128.11.
FXH has a beta of 0.86 and standard deviation of 22.86% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 86 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Health Care AlphaDEX ETF is an excellent option for investors seeking to outperform the Health Care ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
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 $16.02 billion in assets, Health Care Select Sector SPDR ETF has $36.84 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When you look at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. | When you look at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report Vanguard Health Care ETF (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. | When you look at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Health Care ETFs category of the market, the First Trust Health Care AlphaDEX ETF (FXH) is a smart beta exchange traded fund launched on 05/08/2007. | When you look at individual holdings, Abbvie Inc. (ABBV) accounts for about 2.47% of the fund's total assets, followed by Universal Health Services, Inc. (class B) (UHS) and Regeneron Pharmaceuticals, Inc. (REGN). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Health Care ETFs category of the market, the First Trust Health Care AlphaDEX ETF (FXH) is a smart beta exchange traded fund launched on 05/08/2007. |
23415.0 | 2022-04-30 00:00:00 UTC | AbbVie's Q1 Good News That Investors Could Be Missing | ABBV | https://www.nasdaq.com/articles/abbvies-q1-good-news-that-investors-could-be-missing | nan | nan | The first-quarter results AbbVie (NYSE: ABBV) delivered before the market opened Friday were disappointing in several ways. The drugmaker's revenue of $13.5 billion undershot the consensus Wall Street estimate of $13.6 billion, and management also lowered its full-year adjusted earnings guidance.
The pharma stock slid by 6.1% on Friday after the update, and had been off by more than 10% earlier in the session. This wasn't all that surprising, especially considering that the overall market fell sharply as well. The S&P 500 was down 3.6% for the day.
However, AbbVie did narrowly beat analysts' earnings expectations. More importantly, though, there was some good news in its Q1 update that investors could be overlooking.
Image source: Getty Images.
A negative that's actually a positive
Sure, AbbVie reduced its 2022 adjusted earnings per share guidance from a range of $14 to $14.20 to a new range of $13.92 to $14.12. However, this seeming negative is actually a positive.
Every penny of the cut in guidance was due to acquired in-process research-and-development and milestone expenses incurred by the company during the first quarter. Investors should be glad that AbbVie has these higher expenses.
Investing in R&D is exactly what AbbVie should continue to do. In March, the company paid $130 million up front to acquire Syndesi Therapeutics. That deal also includes the potential for former Syndesi shareholders to receive up to $870 million in additional milestone payments. The purchase gave AbbVie a portfolio of neurological programs that are a good fit with its pre-existing pipeline.
Making milestone payments is also something that investors should applaud. When AbbVie incurs milestone expenses, it means that clinical studies have gone well or that regulatory decisions have been favorable.
AbbVie's Allergan acquisition is accomplishing its goals
AbbVie acquired Allergan in 2020. The company's goals for this transaction were to diversify its revenue sources and better position itself for long-term growth. AbbVie's Q1 results show that it's accomplishing these goals.
Allergan's crown jewel was its Botox franchise. In the first quarter, Botox generated therapeutic net revenue of $614 million, up 15.4% year over year. Cosmetic Botox net sales totaled $641 million, a 34.4% year-over-year jump.
But AbbVie got a lot more than just Botox with the Allergan acquisition. Antipsychotic drug Vraylar's sales rose 23.4% year over year in Q1 to $427 million. Sales of migraine drug Ubrelvy vaulted 70% higher to $138 million.
Overall, products obtained in the Allergan deal contributed revenue of more than $3.6 billion in the quarter. Allergan's aesthetics and neuroscience businesses stood out as major growth drivers for AbbVie. This momentum seems likely to continue.
AbbVie's post-Humira strategy is already working
The long-anticipated loss of U.S. exclusivity for Humira, its top-selling drug, will become a reality next year. However, AbbVie's Q1 results hint that the company's post-Humira strategy is already working.
Diversifying its revenue base through acquisitions was certainly a key part of that strategy. But AbbVie also planned to preserve its dominance in the immunology market even as its revenues from Humira fade due to biosimilar competition. That's exactly what we saw in the first quarter.
Sales for Rinvoq and Skyrizi -- its two successors to Humira -- soared 53.6% and 63.7% year over year, respectively. Combined, the two autoimmune-disease drugs generated net revenue of more than $1.4 billion.
Those numbers will almost certainly continue to climb sharply. Rinvoq picked up another big regulatory win in April when the Food and Drug Administration (FDA) approved it for treating ulcerative colitis. Skyrizi could soon add another indication to its label as well; an FDA decision on approving the drug as a treatment for Crohn's disease is on the way.
AbbVie forecasts that Rinvoq and Skyrizi will together generate more than $15 billion in sales in 2025. That will go a long way towards offsetting the expected sales declines for Humira.
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Keith Speights has positions in AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's post-Humira strategy is already working The long-anticipated loss of U.S. exclusivity for Humira, its top-selling drug, will become a reality next year. But AbbVie also planned to preserve its dominance in the immunology market even as its revenues from Humira fade due to biosimilar competition. The first-quarter results AbbVie (NYSE: ABBV) delivered before the market opened Friday were disappointing in several ways. | When AbbVie incurs milestone expenses, it means that clinical studies have gone well or that regulatory decisions have been favorable. AbbVie's Allergan acquisition is accomplishing its goals AbbVie acquired Allergan in 2020. The first-quarter results AbbVie (NYSE: ABBV) delivered before the market opened Friday were disappointing in several ways. | AbbVie's Allergan acquisition is accomplishing its goals AbbVie acquired Allergan in 2020. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights has positions in AbbVie. The first-quarter results AbbVie (NYSE: ABBV) delivered before the market opened Friday were disappointing in several ways. | AbbVie's Allergan acquisition is accomplishing its goals AbbVie acquired Allergan in 2020. The first-quarter results AbbVie (NYSE: ABBV) delivered before the market opened Friday were disappointing in several ways. However, AbbVie did narrowly beat analysts' earnings expectations. |
23416.0 | 2022-04-30 00:00:00 UTC | AbbVie (ABBV) Q1 2022 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q1-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q1 2022 Earnings Call
Apr 29, 2022, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to the AbbVie first quarter 2022earnings conference call [Operator instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.
I would now like to introduce Ms. Liz Shea, vice president, head of investor relations.
Liz Shea -- Vice President of Investor Relations
Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Rob Michael, vice chairman, finance and commercial operations and chief financial officer; Jeff Stewart, executive vice president, chief commercial officer; and Tom Hudson, senior vice president, R&D and chief scientific officer. Joining us for the Q&A portion of the call are Carrie Strom, senior vice president and president, global allergan aesthetics; Neil Gallagher, vice president and chief medical officer; and Roopal Thakkar, vice president, global regulatory affairs. Before we get started, some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.
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These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on their website. Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll briefly comment on our overall performance, then Jeff, Tom and Rob will review our first quarter business highlights, pipeline progress and financial results in more detail. I'm pleased with the excellent start to 2022.
It further reinforces our confidence in the long-term fundamentals of the business. We reported adjusted earnings per share of $3.16, exceeding our expectations. Total net revenue of more than $13.5 billion was up 5.4% on an operational basis, also above our expectations. These results demonstrate strong momentum across several key products and portfolios, including robust double-digit operational revenue growth from Skyrizi, Rinvoq, Neuroscience and Aesthetics.
Skyrizi is performing exceptionally well. We are achieving impressive market share gains in psoriasis, which remains a significant market opportunity. Skyrizi's recent launch in psoriatic arthritis as well as the anticipated regulatory approval in Crohn's disease should also serve as important growth drivers over the long term. Rinvoq is also contributing compelling sales growth.
Subscription trends in RA have recently stabilized as we expected and we are making excellent progress repositioning the brand as the leading second-line agent based on the robust data generated across our broad development programs. The early launch trends for Rinvoq in both atopic dermatitis and psoriatic arthritis are highly encouraging, with commercial access and paid prescriptions expected to ramp significantly over the coming months. We anticipate that these two new indications, along with the recent U.S. approval in ulcerative colitis, should add substantial revenue growth for Rinvoq over the long term.
Neuroscience remains an exciting opportunity for our company. Vraylar continues to have strong momentum across our currently approved indications and the pending regulatory approval in major depressive disorder represents a significant upside to current projections. In migraine, our portfolio of distinct therapies with Ubrelvy, Qulipta and Botox Therapeutic is demonstrating robust double-digit sales growth. With the migraine market anticipated to roughly double in size over the next several years, there is significant headroom for continued revenue growth with these compelling therapies.
Aesthetics is once again exceeding expectations. The category continues to grow robust double digits, especially in toxins and fillers, where there is substantial opportunity for further market penetration. Our commercial team is executing at a high level with targeted promotion and enhanced digital services, including our Alle loyalty program driving strong market share performance across our major brands. In summary, this is an exciting time for AbbVie, and I'm extremely pleased with the evolution and momentum of our diverse portfolio.
We're making excellent progress with the launches of several new products and indications, which will collectively add meaningful revenue for AbbVie as commercial access ramps for each of these opportunities over the remainder of this year. We're off to another exceptional start, and our long-term growth prospects remain strong. I'd now like to take a brief moment to thank Mike Severino for his contributions to the success of AbbVie over the last eight years. As you know, Mike has decided to leave AbbVie at the end of May to pursue another career opportunity, and we wish him all the best.
I'd also like to take this opportunity to formally introduce to you Tom Hudson. Tom joined AbbVie back in 2016 as the head of discovery and early development. In 2018, Tom undertook responsibilities for AbbVie's entire discovery organization. Then in 2019, was promoted to the Head of AbbVie R&D and chief scientific officer, where he assumed responsibility for all of AbbVie's R&D.
Tom has an impressive background as a clinical scientist. His medical specialty is in clinical immunology and allergy. Tom played a critical role in the human genome project while working at both the Whitehead Institute and MIT, where Tom led the team that mapped the human genome. Tom was also instrumental in the international half map project to refine the genetic architecture of the human genome.
Tom went on to further lead the Ontario Institute for Cancer Research, which included discovery and translational cancer research with a clinical network of more than 1,000 investigators. Tom will be providing an update on our continued pipeline progress to you later in the call. But first, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Thank you, Rick. We continue to demonstrate strong commercial execution across our therapeutic portfolio. I'll start with Immunology, which delivered global revenues of more than $6.1 billion, reflecting growth of 8.1% on an operational basis. Humira global sales were approximately $4.7 billion, down 1.8% on an operational basis with low single-digit revenue growth in the U.S., offset by biosimilar competition across international markets, where revenues were down 17.9% operationally.
Skyrizi global revenues were $940 million, reflecting positive momentum in both approved indications. In psoriasis, Skyrizi is demonstrating impressive market share gains globally. Skyrizi now accounts for approximately 23% of the total prescription share in the U.S. biologic market.
Skyrizi's in-play psoriasis share, which includes both new and switching patients, also remains very, very strong and now reflects roughly 40% patient share in the U.S. and a clear No.1 leadership position. Skyrizi is performing exceptionally well internationally, where we have now achieved approximately 10% psoriasis share across our top 12 markets as well as in-play share leadership in more than 20 key countries. While we were early in our launch in psoriatic arthritis, we are encouraged by the uptake in this indication.
In the dermatology segment, Skyrizi has already achieved in-play patient share of more than 10% in the U.S. Internationally, Skyrizi PSA is now approved in 45 countries, with reimbursement expected to increase throughout the year. Importantly, we are also preparing for the launch of Skyrizi in Crohn's disease, which represents another important long-term growth driver with approval decisions anticipated this year. Turning now to Rinvoq, which delivered global sales of $465 million, demonstrating continued strong growth.
As anticipated, we have seen an impact on new patient starts following the label update and Rinvoq prescriptions have now stabilized in the U.S., with in-play market share currently 12% in RA. We expect growth in the second line plus RA setting going forward where our field force is now focused on leveraging compelling data from two important Phase III trials. First, SELECT-CHOICE, which demonstrated Rinvoq's superiority versus ORENCIA across key efficacy parameters, including clinical remission in previously treated RA patients. And second, the open-label extension of SELECT-COMPARE which demonstrated that many RA patients with an inadequate response to Humira are able to achieve remission after switching to Rinvoq.
Early feedback suggests this updated Rinvoq RA messaging is resonating very well with healthcare practitioners. Internationally, Rinvoq share continues to ramp in RA with a total market share of approximately 5.5% across key geographies. We are also making excellent progress with Rinvoq's newly launched indications, including atopic dermatitis, psoriatic arthritis and ulcerative colitis. Managed care access is expected to ramp strongly for each of these indications over the coming months.
As we build access, initial prescriptions are covered by our BRIDGE program. which provides free patients or free goods to patients until formulary coverage is established. As a reminder, the volume from our BRIDGE program is not captured in third-party prescription data. I'll start with atopic dermatitis.
We are seeing new patient starts accelerating as we build access. When you include prescriptions from our Bridge program, Rinvoq total in-play AD share is already in the mid-teens. So we are pleased with the early adoption and repeating prescribers. As an oral option that provides significant skin clearance and itch relief, we believe Rinvoq has a strong differentiated position in this highly underpenetrated AD market.
In PSA, we are seeing a nice uptake in Rinvoq's in-play share, especially in the room segment, where the severity of joint or skin manifestations of the disease can vary significantly by patients. And importantly, we have also launched Skyrizi in the room PSA segment this quarter, giving us two very compelling therapies to address the wide range of PSA patient types, regardless of how their symptoms present. We have also launched our first indication in the IBD segment, Rinvoq for ulcerative colitis, where we are seeing a significant long-term opportunity in the second-line plus setting. Nearly 50% of UC patients are currently on or have used TNF therapy, so the addressable patient population is substantial.
Given the strong benefit risk in this indication, we believe Rinvoq will be a welcome therapeutic option for UC patients and physicians. Turning now to hematologic oncology. Global revenues were more than $1.6 billion, down 0.6% on an operational basis. Imbruvica global revenues were approximately $1.2 billion, down 7.4%.
There are two factors impacting our Imbruvica results. First, we are seeing greater market share erosion in new patient starts than originally anticipated from newer therapy, including other BTK inhibitors, as well as our own Venclexta. Second, we continue to see higher-than-expected COVID suppression on new patient starts in CLL, which as a treat-to-progression therapy, has impacted the total BTK treated patient market. Our guidance assumes a market recovery over the course of this year, but it's too early to determine exactly how this may play out given the continued impact from recent COVID variant.
Despite these dynamics, Imbruvica remains the market-leading therapy for total patients across CLL and several other major blood cancers. Based on the magnitude of clinical data and real-world evidence generated for Imbruvica, showing sustained disease control, as well as overall patient survival, we are confident it will continue to be a meaningful product for AbbVie over the long term. Venclexta, however, is helping to offset some of the headwinds facing Imbruvica. Global sales were $473 million, up 21.1% on an operational basis.
In the U.S., Venclexta's the clear market share leader in frontline AML among patients who are ineligible for intensive induction chemotherapy and recently achieved leading new patient share in second line plus PLL. We are also seeing robust momentum internationally with strong performance across all approved indications. Additionally, we continue to make excellent progress building out our heme on portfolio with several compelling late-stage assets, such as epcoritamab for B-cell malignancies, navitoclax for myelofibrosis and ABBV-383 for multiple myeloma, expected support expected to support sustainable long-term growth. Turning now to Neuroscience, where revenues were approximately $1.5 billion, up more than 20% on an operational basis, including robust double-digit growth from Vraylar, Botox Therapeutic and Ubrelvy.
Ubrelvy is performing very well and continues to be the market-leading oral CGRP treatment for acute migraine, with sequential demand growth observed. Qulipta is also demonstrating exceptional uptake in migraine prevention, with recent total prescriptions performing ahead of comparable branded launches. Qulipta is now capturing nearly 25% on of the new-to-brand share in the U.S. preventative CGRP class when we consider both paid and bridge volume.
We expect commercial access to continue to ramp strongly over the remainder of the year. Qulipta has also recently demonstrated positive results from a registration-enabling study for the preventative treatment of chronic migraine, which we plan to submit to the agency for potential expanded use in the U.S. as well as to support regulatory applications across the international markets. This indication, if approved, will provide added differentiation for Qulipta as the only oral CGRP therapy for the preventative treatment of both episodic and chronic migraine.
In our other notable therapeutics, Eye Care revenues of $771 million were down 2.8% on an operational basis with recent generic competition for Restasis unfavorably impacting our results. Mavyret sales were $380 million, down 4.6% on an operational basis as treated patient volumes remain depressed compared to pre-COVID levels. So overall, I'm extremely pleased with our execution across the therapeutic portfolio, including the progress we are making with recent new product launches. We remain on track to deliver strong revenue growth once again in 2022.
And with that, I'll turn the call over to Tom for additional comments on our R&D program. Tom?
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Thank you, Jeff. I'll start with immunology. We recently received FDA approval for Rinvoq in ulcerative colitis, a disease where there continues to be a significant unmet need for therapies that can provide high response rates and drillable remission. In our UC development program, Rinvoq demonstrated some of the highest rates of remission and endoscopic improvements seen in Phase III studies.
Importantly, Rinvoq also provided durable responses sustained through one year of treatment. Given the strong benefit risk profile, we believe Rinvoq will be an important new medicine for patients. Our regulatory applications for Rinvoq in UC remain under review in Europe and Japan, with approval decisions expected in the second half of this year. Also in the area of inflammatory bowel disease, we recently reported positive top line results from the second Phase III induction study for Rinvoq in Chron's disease.
Similar to results from the first induction trial, in this induction study, Rinvoq demonstrated a very strong impact on the disease as measured by clinical remission and endoscopic response. We expect to see results from the Phase III maintenance study later in the quarter with our regulatory submissions for Rinvoq and Crohn's disease expected in the third quarter and approval decisions anticipated in 2023. Rounding out Rinvoq's development programs in rheumatology, we also have regulatory applications under review in ankylosing spondylitis and nonradiographic axial SpA. We expect an FDA approval decision in the second quarter for AS and decisions in the fourth quarter for non-radiographic axial SpA.
Moving to Skyrizi, where in the quarter, we announced an update regarding our regulatory application for Crohn's disease in the U.S. Following an FDA request for additional information primarily related to the on-body injection device used for maintenance dosing, we provided additional data for the device from an ongoing real life use study, which showed that patients can safely and effectively use the on-body device to self-administer Skyrizi. After responding to the agency's request, we received a three-month extension of our Skyrizi submission in Crohn's disease. We remain confident in a strong benefit risk profile for Skyrizi in Crohn's disease and we now expect a decision in June.
Moving now to our oncology portfolio, where we continue to make excellent progress across all stages of our heme and solid tumor pipeline. We recently announced positive top line results from the first expansion cohort of the Phase II study, evaluating epcoritamab in patients with aggressive B-cell lymphoma who have received at least two prior lines of therapy. Epcoritamab performed extremely well as a monotherapy in these heavily pretreated and high-risk patients, demonstrating an overall response rate of 63% with a median duration of response of 12 months. These results are particularly encouraging given that nearly 40% of patients had failed CAR-T therapy.
We plan to discuss these results with regulatory agencies about the potential to support submission for accelerated approval in the second half of this year. We continue to make good progress with the indication expansion programs for Venclexta and remain on track to see results from the Phase III CANOVA trial in relapsed/refractory multiple myeloma patients with a t1114 mutation in the second half of this year. In our Venclexta MDS program, based on feedback from the FDA, we have recently modified our regulatory strategy and now intend to submit data from our ongoing Phase III program. Venclexta remains under breakthrough therapy designation for MDS and we continue to have a high degree of enthusiasm for Venclexta in this indication.
We expect data readout from the Phase III study and our regulatory submission for MDS in 2024. In neuroscience, the FDA recently accepted our application for Vraylar as an adjunctive treatment for major depressive disorder. Based on the strong benefit-risk profile demonstrated in our clinical program, we believe Vraylar will be an important new therapy in this patient population, and we look forward to bringing this new treatment option to patients suffering from major depressive disorders. In the area of migraine, we recently reported positive top line results from a Phase III study evaluating Qulipta for the prevention of chronic migraine.
Qulipta performed very well in this study with both doses meeting the primary and all secondary endpoints, demonstrating Qulipta's ability to significantly reduce migraine days for patients suffering from chronic migraine. This summer, we plan to submit our regulatory application to the FDA for Qulipta in chronic migraine and also plan to submit data from our Phase III studies in both chronic migraine and episodic migraine to support regulatory applications in markets outside the U.S. In our cystic fibrosis program, we recently completed an interim analysis of a Phase II proof-of-concept study evaluating our triple combination therapy. The results -- the efficacy results from this interim analysis did not meet our prespecified criteria for advancing this triple therapy in development.
This study was designed with a 28-day run-in treatment period with a dual combination therapy containing our C1 corrector and potentiator followed by a 28-day treatment period with a triple combination, which included the addition of our C2 corrector, ABBV-119. This allowed us to independently assess the therapeutic potential of our C2 corrector. The results showed that the addition of 119 did not provide a meaningful improvement in FEV1 or reduction in sweat chloride concentration over our dual combination therapy. During the run-in treatment period, we were able to again assess the efficacy of our dual therapy, which performed well providing efficacy consistent with results for the existing dual accommodation therapy.
So based on the performance of our dual therapy, we plan to continue our CF program. We have an additional C2 corrector, ABBV-576 in Phase I studies that we plan to advance into a new triple therapy with our existing C1 corrector and potentiator. 576 is structurally distinct from our previous C2 corrector 119 and has a better PK profile and provides higher drug exposure, which has the potential to deliver better efficacy. Our plan is to begin a Phase II study for this new triple combo by early next year.
And in aesthetics, we recently began the Phase III program for our short-acting toxin in Gabelo lines. This novel toxin is designed to provide rapid onset of action and a short duration of effect, which would lower the barrier for adoption for certain segment of consumers. We expect to see data from this program next year with regulatory applications also anticipated in 2023. So in summary, we've continued to make significant progress with our pipeline to start the year, and we look forward to many more data readouts, regulatory submissions and approvals throughout the remainder of 2022.
With that, I'll turn the call over to Rob for additional comments on our first quarter performance and financial outlook. Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Thank you, Tom. AbbVie's first quarter results demonstrate the strength of our broad portfolio, including double-digit growth from Skyrizi, Rinvoq, Venclexta, neuroscience and aesthetics. We also continue to deliver strong P&L performance, with another quarter of robust operating margin expansion while fully funding the business for long-term growth. We reported adjusted earnings per share of $3.16, reflecting growth of 9.3%, compared to prior year and $0.04 above our guidance midpoint.
This includes an $0.08 unfavorable impact of acquired IPR&D expense that was not factored into our original guidance. Total net revenues were more than $13.5 billion, up 5.4% on an operational basis, excluding a 1.3% unfavorable impact from foreign exchange. Net revenues came in above our guidance despite the entry of generic competition for Restasis. The adjusted operating margin ratio was 51.4% of sales, an improvement of 150 basis points versus the prior year.
This includes adjusted gross margin of 84.5% of sales, adjusted R&D investment of 10.9% of sales, acquired IPR&D expense of 1.1% of sales, and adjusted SG&A expense of 21.1% of sales. Net interest expense was $539 million, and the adjusted tax rate was 12.1%. Turning to our financial outlook. We are updating our full-year adjusted earnings per share guidance to include the $0.08 for acquired IPR&D expense that was incurred during the first quarter.
As a result, we now expect full year adjusted earnings per share between $13.92 and $14.12. This earnings per share guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond the first quarter. We now expect net revenues of approximately $59.4 billion. At current rates, we expect foreign exchange to have a 1.4% unfavorable impact on full year sales growth.
This revenue guidance includes updated Restasis sales of approximately $400 million. Moving to the P&L. We now expect adjusted gross margin of 84.5% of sales, adjusted SG&A expense of $12.5 billion and an adjusted operating margin ratio of 51.8% of sales. Turning to the second quarter.
We anticipate net revenues of approximately $14.6 billion. At current rates, we expect foreign exchange to have a 1.5% unfavorable impact on sales growth. We expect adjusted earnings per share between $3.38 and $3.42. This guidance does not include acquired IPR&D expense that may be incurred in the quarter.
In closing, we are off to an excellent start to the year with strong performance across multiple areas. We are making significant progress with new product launches and the pipeline, underscoring our confidence in AbbVie's long-term growth outlook. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President of Investor Relations
Thanks, Rob. We will now open the call for questions. [Operator instructions] Operator, we'll take the first question, please.
Questions & Answers:
Operator
Thank you. Our first question comes from Mohit Bansal from Wells Fargo. Your line is open.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Great. Thanks for taking my question. And maybe to begin with on Imbruvica. So I mean, the script trends are down, and you mentioned that we are -- for new starts, you are losing some share to the competition.
When you think -- can you please characterize how much share you are losing? And do you think it will stabilize over time? And when you look at Imbruvica and Venclexta combined, do you think the franchise can grow going forward from here? Thank you.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you for the question. So as I mentioned in my comments, we are seeing greater share erosion. Imbruvica continues to be the leading share in the later lines, although we have lost our frontline share position to Calquence.
And obviously, Venclexta is also moving there. So we see a couple of things that are taking place. So we have that share erosion that's putting some pressure on the brand. And then clearly, we see the continued suppression of the market.
So it's kind of like a double hit. If we think of this over the short, mid and longer term, what I would say would be this. So in the short term, meaning this year, we projected the share decline, and that includes some stabilization, but we still think the brand is under some pressure from other BTKs and Venclexta. And basically, we have flat guidance this year.
And some of that includes a recovery of the market back to sort of more normal levels and we'll have to see how that progresses over the year. If I think more about the midterm, I think what's important context there is new patient starts essentially make up roughly 13% to 15% of Imbruvica. So it's got a very, very large installed base, about 85%, maybe a little bit more in terms of what that's going to happen. We're not seeing any changes in persistency or items like that.
So we think that we have a very good sense of stability for the brand over time in terms of what this may mean. And so that's basically how we think about it. To answer your other question, if you look at the combined share, AbbVie has quite a strong position. We have roughly 33% of total share in the front line and we have between 42% and 46% of second-line plus.
So clearly, Venclexta is able to offset, as I commented in my remarks, some of those pressures. So it's very important for AbbVie. It's going to be a very big brand over the long term. In the short term here in midterm, the growth is going to be more challenged moving forward.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Mohit. Operator. Next question, please.
Operator
Our next question comes from Terence Flynn from Morgan Stanley. Your line is open.
Terence Flynn -- Morgan Stanley -- Analyst
Hi. Thanks for taking the questions. I was just wondering, obviously, you guys have been speaking with payers about the Humira positioning for 2023. Are you willing to give us any update in terms of how you're thinking about that guidance figure that you put out a couple of years ago? Any change in thinking there? And then are you able to disclose the CR rate for the recent epcoritamab Phase II trial? Just wondering how that factors into the decision about whether to seek accelerated approval here.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So Terence, this is Rick. I'll take the first for you. And I'm probably going to answer a little broader because I think it is important. I understand the interest in trying to understand how to model 2023, it's obviously important to us to model 2023 as accurately as possible.
And I think if you step back, obviously, contracting is one portion of a variable that will impact the speed at which biosimilars are able to adopt -- be adopted in the market. If you step back and look, there's probably four key variables that will impact what that adoption rate looks like. One of them is obviously what will Humira's access be post biosimilars entering the marketplace. And this is the period where you would normally be doing the contracting around that.
I think we'll do well in being able to be co-positioned versus biosimilars in the vast majority of covered lives here in the United States. But that process isn't done, and we're not in a position to be able to ultimately give you any further update until we're a little further along in that process. The second variable that will impact what 2023 looks like is how will the biosimilars price? We don't know that. Obviously, we have seen how they price in markets outside the U.S., but there's no market exactly like the U.S.
internationally. And so that's a variable. We're making some projections of what we believe that pricing will look like. But that's ultimately something we're going to have to see how it plays out.
I'd say the third variable is how competitive will these biosimilars be. It's going to be by the summer of 2023, there's going to be a lot of biosimilars in the U.S. market, but they're not all the same. And how competitive will they be against what is Humira today? And what are the bulk of patients use as it relates to Humira.
And what I mean by that is interchangeability and a number of other factors are going to play into the competitiveness of those biosimilars. And I'd say the fourth variable, and it's not something that people think about that much, and that is the ability of a biosimilar to be able to supply the U.S. market. There's no market like the United States for Humira anywhere around the world.
In the United States, it's significantly larger than any other market around the world. There are certainly biosimilar players that are like an AbbVie, and I would expect them to have manufacturing capacity. There are generic players that could have sufficient manufacturing capacity, and then there are very small companies. But I think anybody, any payer that's going to want to convert in any significant way to a biosimilar, they're going to want confidence that they can have a reliability of supply of that biosimilar.
And we've spent years building the network that we have. We have full redundancy of every aspect of the manufacturing process on Humira. And we've never had a problem supplying the U.S. market.
So I think we can be viewed as kind of the gold standard. So those are the variables that are going to impact what this transition looks like. The guidance we've given so far is this 45%, plus or minus 10%. I think at this point, that's still the best information that we can provide.
Later this year, I think some of these variables will be clearer to it. And we may be in a position to be able to provide some more information to investors, and we would do that. Some will not. Pricing will not be clear at that point.
We're not going to know how they're going to price until we actually get into -- they actually get into the marketplace. So I think that's the way to think about these variables. Rob, anything you'd add?
Rob Michael -- Executive Vice President and Chief Financial Officer
Yes. So this is Rob. I would just add that we've been trying to give investors some directional guidance on how to think about '23 beyond just the Humira, 45% plus or minus 10%. We've talked about Aesthetics growing high single digits annually over the next decade.
You can get a sense based on Jeff's response today and the way to think about Imbruvica, in terms of operating margin, I've talked about that pulling back to the 46% to 47% range with no cuts to investment because we're going to return to growth very quickly. So we're going to continue to invest in this business. And as I look at Street consensus, I see modeling of cuts in SG&A not necessarily reflecting the appropriate operating margin levels. So it's something just to keep in mind.
And then even -- we've talked about the tax rate growing 1 point per year on average. Obviously, you saw this year, it only grew 0.2 points. Other years, it may go higher. So we've tried to give the Street some ideas of the way to think about '23 model in advance of our formal guidance.
Liz Shea -- Vice President of Investor Relations
OK. Number two, Neil?
Neil Gallagher -- Vice President and Chief Medical Officer
This is Neil Gallagher. I'll take the question regarding epcoritamab. So we recently reported data from the expansion cohort of relapsed or refractory DLBCL patients. We reported an overall response rate of 63% with a median duration of response of 12 months.
One thing that's really important to bear in mind is that this is a pretty refractory patient population with a median number of prior therapies of 3.5 in a range up to 11 in at the upper end. And importantly, just under 40% of these patients have failed prior therapy with the CAR-T. Overall, the safety profile remains manageable with the vast majority of the cases of CRS at class effect with these agents being grade one and two. To directly address your question, we are not yet ready to reveal additional detail about the data.
They will be revealed at a forthcoming medical meeting. And in fact, I was just in contact with the team yesterday, and I know that they're working very diligently to get those data on a podium in a meeting in the very near future.
Liz Shea -- Vice President of Investor Relations
OK. Thank you, Terence. Operator We'll take the next question, please.
Operator
Thank you. Our next question is from Tim Anderson from Wolfe Research. Your line is open.
Unknown speaker
Hello. Thanks for taking the question. This is Alice on for Tim Anderson. A question on Rinvoq.
Where could in-play market share in atopic eventually get in your view? And are you seeing any switching away from Dupixent at all? Thank you.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you for the question. I'll give you some context. I mentioned that we see roughly in the mid-teens now after about three months, which we're very pleased in and some more flavor on that.
If you think about the HCPs and the doctors that prescribe in the U.S. now, you've got about 9,000. Those are the dermatologists and some allergists. There's about 3,000 of those physicians that are the big prescribers.
They're very productive. Those 3,000 are the ones that are driving Skyrizi, for example, or other big brands in psoriasis. So we see after just about three months, we see almost 1,000 doctors that have prescribed Rinvoq. And so that's driving that 15%.
Some of it depends in terms of where the in-play share ends up, how many of the competitors come in. We're not really sure that baricitinib will come into the market. We'll have to see. We haven't seen much Pfizer activity yet.
To give you some sort of international perspective, in the Canadian market, we're seeing where there's really just dupi and Rinvoq at this point after a couple of quarters, we're seeing a 30% in-play share in Canada. So we are, as I mentioned, very, very encouraged with the early adoption. In particular, my comment around how fast once you see the first prescription take place with some of those productive doctors, how fast they go to the second or third. To give you some flavor of what we see in the U.S., and again, the data is early, we see, as expected, the majority of our use so far in that dynamic market are not switches necessarily.
We see about, let's say, one-thirds, believe it or not, that are not even exposed to Dupi. And the doctors are saying, look, I've already given another oral systemic, for example, but the itch in the skin is so severe that they're going to go, I'm going to go right and get the relief with Rinvoq. And then maybe the other two-thirds, you see dupi partial responders, particularly related to the itch just isn't suppressed as much, and they still have some skin involvement. Or there is, as we've highlighted before, a warehouse of Dupi nonresponders that has been built up over the last four years.
So that's the behavior that we see. Again, I'm very encouraged on the early results, not just in the U.S. but around the world. Rinvoq is going to be a real player in this underserved market.
Thank you, Alice. Operator. Next question, please.
Operator
Our next question is from Steve Scala from Cowen. Your line is open.
Steve Scala -- Cowen and Company -- Analyst
Thank you. Two questions. First on epcoritamab, the data looks great. Could this molecule immediately start taking share from CAR-T? Or do you think physicians will want to see durability data before selecting a bispecific ahead of a cell therapy? So that's the first question.
The second question is, I'm trying to sift through the answer to the Humira question just a moment ago. On the one hand, it seems we need to consider that Humira could be more resilient in 2023 than expected. On the other hand, the Street needs to raise spending assumptions. So would you object to either of those conclusions based on what was stated?
Neil Gallagher -- Vice President and Chief Medical Officer
Thanks, Steve. This is Neil. I'll take the first question on epcoritamab. The fact that we saw such remarkable activity in a patient population that had failed CAR-T does not imply that the medicine should be positioned after failure of CAR-T.
I think they are two very different classes of medicines, as you know. CAR-T has significant challenges with respect to the need for -- to be prior to administration. Whereas the safety profile with epcoritamab is extremely manageable. And again, I don't want to repeat what I said earlier on around CRS.
So overall, we see a very strong benefit risk profile emerging for the medicine. And therefore, our intention is to move the medicine into earlier lines of therapy initially gain an approval with respect to -- gain approval in refractory DLBCL and after that move the medicine into earlier lines of therapy.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Steve, this is Rick. I think Rob and I will handle the second question for you. Yes. Look, I think it's a great question, and we've gotten that question a lot.
What's the erosion going to be in '23? And is it going to be lighter in '23 and therefore, spill more into '24. And I think that's a reasonable question to start to think through. I'd say as I step back and look at it, I would tell you this. Look, at the end of the day, it could be lighter in '23.
That would force more of it out into '24. If I look at the business, that's a good thing. We give us higher cash flows in '23 than what we would be projecting now. Ultimately, I think there will be a settling out between '23 and '24.
We'll still get to the levels that we have described or at least that we are modeling. And I think the important thing is, look, Humira is going to play out over these two-year period of time. What's important to AbbVie, though, is what's that underlying growth that's driving the business and is going to sustain the growth on the other side of the LOE. That's the critical aspect of it.
The Skyrizi, the Rinvoqs, our Neuroscience pipeline, Aesthetics, it's all of those major growth drivers that we have because that growth is going to be suppressed in '23 and somewhat maybe in '24. But as soon as that pressure is off, that's when it reemerge and be able to deliver growth on the other side of it. And so what we're focused on is, obviously, we're going to try to manage the '23-'24 dynamic to the extent that we're able to. But that's not the most critical part for the business.
The most critical part is driving these growth brands and delivering on the pipeline.
Rob Michael -- Executive Vice President and Chief Financial Officer
This is Rob. What I would add, Steve, just to clarify, I mean, we have a business that's going to deliver high single-digit growth during 2025. It doesn't make sense to be cutting investment in '23. And that's what the Street consensus is modeling currently.
So we expect to invest in this business, invest in R&D, invest in SG&A to drive that long-term growth. And given how quickly we'll return to that growth, I wouldn't expect us to be cutting investment in '23.
Steve Scala -- Cowen and Company -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Steve. Operator. Next question, please.
Operator
Thank you. Our next question comes from Andrew Baum from Citi. Your line is open.
Andrew Baum -- Citi -- Analyst
Thank you. Question for Jeff. Perhaps you could comment on the impact of IL-31 inhibitor in atopic dermatitis where we're expecting additional Phase II data, which obviously don't have the JAK labeling associated with how you think it's going to impact the market in terms of delaying the onset of JAK therapy? And then second for Neil, could you talk to how large the commercial potential for Venclexta in t(1114) myeloma, which is due to reported Phase III this year? Many thanks.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you, Andrew. So important question. So the way that we see the market for the other ILs, I do think that there will be a segment of conservative dermatologists that will attempt to sequence.
And I think that largely that they'll be disappointed because it seems the newer agents are very, very difficult to distinguish from Dupixent. I think certainly, there could be market access dynamics that start to appear with subsequent ILs, I think that's something that we will watch and you would want to watch. I think what's, again, maybe not appreciated as we watch the early quarters of performance in Europe and the first quarter of performance here in the U.S. is that there's significant amount of early adopters and dermatologists that will go right to a JAK inhibitor, as I mentioned.
They're not always sequencing through Dupi. And it's because the severity of some of these patients and the level of the clinical involvement is very, very significant. And so we do see what you would call a significant amount of naive use based on the profile of the JAK inhibitor. Now these are early adopters.
These are people that have already contemplated the risk benefit, and I think that's important. And so the way that we see the market developing is that when physicians would start with Dupi, which will be in a significant proportion of patients, it's not clear at all that their next step will be another IL that has been approved or will be approved. In fact, we think it's more likely that they will move toward the best JAK that can get to these high levels of skin clearance, the EZ 90 plus almost no perceived itch. And I think that's the endpoint that this market is going to move toward and Rinvoq is the drug that clearly can deliver on that promise.
And so that's how we see the market developing, and that's why we remain encouraged on the early results around the world from what we're seeing with the agent.
Neil Gallagher -- Vice President and Chief Medical Officer
This is Neil. With respect to the question on Venclexta, venetoclax CANOVA. So the CANOVA study is a study of venetoclax in multiple myeloma patients with a particular translocation, t(1114). We're making extremely good progress with the study, and we fully anticipate having a Phase III data from the study during the course of 2022.
We know from this particular patient population that were included in earlier studies with Venclexta that they are explicitly sensitive to treatment with the medicines in various combinations. The prevalence of this population is around 20% of multiple myeloma and multiple myeloma, as you know, is the common of malignancy. So this is a very significant proportion of the multiple myeloma population that could gain benefit from Venclexta. And as mentioned, we're looking forward to being able to communicate the Phase III data during the course of 2022.
Thanks for the question.
Liz Shea -- Vice President of Investor Relations
Thank you. Andrew. Operator. Next question, please.
Operator
Thank you. Our next question comes from Chris Schott from J.P. Morgan. Your line is open.
Chris Schott -- J.P. Morgan -- Analyst
Great. Thanks very much for the questions. First one for me is just can you elaborate a bit more on Rinvoq coverage, both in AD and UC. I guess just trying to get a sense of where we are today and what's the outlook for the next few quarters? And maybe as part of that, it seems like you're seeing some nice uptake in your BRIDGE programs.
Can you just comment when you expect we should start to think about those translating over to third-party Rxs and that would be maybe more visible to the outside world in terms of how that uptick you're seeing? And then my second question was just on Q1 itself. Were there any notable either payer adjustments or gross to net issues? I guess Humira, for example, it seems like the low single-digit growth was a departure from recent trends. I'm just trying understand a little bit better what happened in the quarter. Is there anything we should just be kind of keeping in mind as we consider the Q1 results? Thanks.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you, Chris. It's Jeff. So with your first question is -- we're very confident that we are going to get to high levels of paid access for Rinvoq and Skyrizi's new indications.
So typically, what we'll see based on the approval time line, we'll be ramping up into the -- by the middle of the year up in the high 90s in terms of our access -- for commercial access. So I think that everyone should be confident that, that's where you're going to start to see this BRIDGE program start to fully convert as the months go by into the paid prescription. So typically, that's the timing we're looking at. You're going to see very strong momentum on paid access by -- toward the end of next quarter is what we've guided toward.
So that's the answer to your first question. I think if you think about -- and maybe just to frame the Humira question. The Humira fundamentals are and the market fundamentals are quite strong. You see the markets are performing nicely.
Our market share growth trends, we haven't seen any trend shift. They've been largely stable. There's some sequential decline based on the size of the market and actually our own brand, Skyrizi and Rinvoq that are playing very strongly into these markets. What I would say is that, in some cases, Q1 can be quite unique over the years.
You've got the issue with the plans resetting their deductibles, you've got issues with doctors that have to put in another prior authorization for the year. And so you do see some co-pay and sort of deductible dynamic. But we think that's really a first quarter type of event, and it's largely been very consistent with what we expected. So maybe I don't know, Rob, if you want to build on that a little bit.
Rob Michael -- Executive Vice President and Chief Financial Officer
Yes. I would just add that if you look back to our guidance for the quarter, and we gave guidance to the therapeutic area level, we pretty much came in line with that guidance. And so we expected this dynamic, and we're also we're not changing our full-year outlook for U.S. Humira, 8% growth.
And that, again, will be driven by market driving volume growth. And so -- it's in line with our expectations. I understand Street consensus had a different point of view, but we weren't surprised by that.
Liz Shea -- Vice President of Investor Relations
Thanks, Chris. Operator. Next question, please. Thank you.
Operator
Our next question comes from Chris Shibutani from Goldman Sachs. Your line is open.
Chris Shibutani -- Goldman Sachs -- Analyst
Thank you. Good morning. If I could ask on Vraylar, the product, I think you comment expectations for an MDD approval and yet they'll frame it as potential for upside. Can you help us understand perhaps some of the potential there? Just thinking back to some of the scale of the peak sales opportunity that, that drug was characterized previously, MDD certainly seems as if it's a potential significant opportunity.
Thanks.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you for the question. And it is a significant opportunity. So as we highlighted and Tom highlighted, the NDA has been accepted, and we're confident in the approval.
I think what we said in the past is that just with the base indication. So before we get that approval, I mean, the FDA has to still approve it toward the end of the year. We believe that we can ramp toward a $4 billion opportunity. So that would mean our share just in the base indications of a unique profile with the mania, the mix manian depression, the bipolar depression, we moved somewhere up sort of doubling our share penetration.
So right now, we're at about 2.7% TRx share. So we we'd really get close to doubling that based on the momentum. And then MDD would build on top of that. And so it's significant.
I mean, the physicians that we've talked to when we show them the profile are very pleased. First, they know Vraylar, they like Vraylar. They like the strong efficacy, they highlight nonsedating. They highlight at least verbally a brightening effect of the agent, minimal weight gain, metabolic effects.
And so as they think about that, how that would translate to adjunctive MDD, they like that profile. The other piece that we hear is they like the starting dose. They like that starting dose of the 1.5 milligram dose, which is what we believe that ultimately will be approved. We'll have to see.
So easy to start, easy to take, well tolerated. And so to your point, we believe that MDD will offer some upside and acceleration to the brand's momentum when we achieve it.
Liz Shea -- Vice President of Investor Relations
Thanks, Chris. Operator. Next question, please.
Operator
Thank you. Our next question comes from Vamil Divan from Mizuho Securities. Your line is open.
Vamil Divan -- Mizuho Securities -- Analyst
Great thanks for taking my questions. Just maybe get back to some of what we were just talking about around the pricing in 1Q. But I had a couple of questions regarding the migraine franchise. So the Ubrelvy scripts from a legacy publicly out third-party data, it looks like the gross to net -- some net pricing is back to where we were in 1Q '21.
And just trying to understand if this is just a seasonality of things or 4Q to 1Q dynamic or maybe there might be something broader where net pricing for these products is going down. And then tied to that, with Qulipta, as you mentioned, look, the prescription numbers are pretty good as it builds up here. I'm curious now that you have sort of two products in that market, does that impact how you're thinking about the opportunity, especially from a pricing side or sort of payer negotiation side? Is there any thoughts on sort of bundling the two other in any way to present to get even better active than what you have right now? So any thoughts you could share there would be helpful as well.
Rob Michael -- Executive Vice President and Chief Financial Officer
So Vamil, this is Rob. I'll take your first question. So when you look at that there is seasonality in this market in the U.S., and so you do see a shift from Q4 to Q1. If you look at year over year, you'd see that in Q4, as you mentioned, Q1 year over year is relatively flat.
I would think about it that way for the full year as well. So you do tend to see a suppression in Q1 because of plans resetting that dynamic we see in the U.S. market. But then over the course of the rest of the year, you do see higher pricing.
So on average, the way to think about it is price is relatively stable.
Jeff Stewart -- Executive Vice President, Commercial Operations
And Vamil, it's Jeff now. So I think -- look, we are pleased with the Ubrelvy momentum. I mean, actually, since we launched Qulipta, Ubrelvy has accelerated. So we have to -- because we can't see the competitor because you can see the whole thing.
But when we factor Nurtec by eight versus 16, and we try to understand the acute dynamic, we can see that we're clearly the market-leading acute CGRP and that's nice to see. The physicians really like Ubrelvy, the markets are robust. I think what you're seeing is what Rob highlighted in terms of the overall performance. I didn't really fully appreciate your second question in terms of the access, I can give you a broad overview.
Obviously, we're seeing great momentum with the brand. Much of the brand is still because the access is ramping is still bridged, just like we discussed there with the immunology agent. So we think, again, by the middle of the year, we're going to see commercial access really start to ramp, and you'll see the conversion start to take place. What's nice is that we're confident in that.
We think that our price points and net price or negotiations are going well. And because of its unique profile, as an agent, basically, the strength of the drug is really significant in terms of its performance against episodic migraine. We feel like we're in good shape. And we're going to build on top of that basically 25% in-play share, which is right now at the top of the league table.
So that's how we see it. We're confident in the access ramp.
Vamil Divan -- Mizuho Securities -- Analyst
Maybe just to clarify the second question then just [inaudible] Ubrelvy, is there any advantage of another strategy you might have now because you have two approved migraine oral therapies? Or is it pretty much similar it would be if you had one or the other?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. It's pretty similar based on the way that the pricing and the different dynamics work on the other CGRP. It's not -- it's just sort of a straight -- it's a straight play on the access there. OK.
Thank you so much.
Liz Shea -- Vice President of Investor Relations
Thanks. Operator. Our next question, please.
Operator
Thank you. Our next question comes from Geoff Meacham from Bank of America. Your line is open.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Hey, guys. Morning. Thanks for taking the question. I just had another one on the INI landscape.
Rick, when you look at the market disruption that you'll see in '23 and '24, presumably, that's going to have an indirect effect on Skyrizi and Rinvoq when you think pricing and share. What would you guys view as a win over this period from a new start or switch perspective or a growth perspective is the first question. And the second part of it is, what gives you guys confidence in the market really normalizing after a 2024 period? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
I think as we look at our long-range plan, we don't see or anticipate a dramatic impact. We've provided that 2025 guidance and I think it's reflective of significant growth of Skyrizi and Rinvoq. If you look at those assets and you look at their clinical performance, they really stand out. And that's what's driving the kind of volume and growth that we're seeing.
And I think you will see obvious price disruption in the Humira market from biosimilars. But I don't anticipate that you're going to see that bleed over in a significant way to those other assets. Jeff, do you see any differently?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. I don't see, Geoff, much difference. I mean if you think of it in some ways, even on -- let's take Rinvoq, for example. I mean, you could say, wow, in prior viewpoints, maybe everyone will step behind a biosimilar at some point in the future.
Well, one, we didn't think that, that would happen wide scale as the market develops anyway. But even if it did, our label is already behind a TNF. And so when you look at the level of efficacy that Rinvoq's bringing in those later lines, I mean it's -- we're really quite insulated from that, I would put forth. And second Skyrizi is just -- is a phenomenal asset.
I mean the level of performance and what it's doing to transform certainly psoriasis today, PSA right now and what we think will happen with Crohn's and ultimately, IBD, when you look at the level of healing and sort of restating that standard of care, we think the assets themselves are quite well positioned for the middle part of the decade, and that sort of goes to the elements of the planning that Rick talked about.
Liz Shea -- Vice President of Investor Relations
Thanks, Jeff. Operator. Next question, please.
Operator
Our next question comes from Gary Nachman from BMO Capital Markets. Your line is open.
Gary Nachman -- BMO Capital Markets -- Analyst
Hi, thanks. First, just following on that last response. Can you talk more broadly about how you see the expansion of Rinvoq and Skyrizi into the IBD indication? So how is the initial launch for Rinvoq for ulcerative colitis going? I know it's early days, but what's the outlook there given physician receptivity around the product? Are physicians saying they're excited to have Rinvoq for Crohn's as well? And also, how do you see Skyrizi fitting in with Crohn's versus Rinvoq? And then secondly, on Aesthetics, it was strong in the first quarter, but did you see any impact in the early part of 1Q from Omicron? And what have the trends been more recently in March and April in the aesthetics business?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you for the question. It's Jeff again. So we are very, very encouraged by the IBD momentum that we can build.
And we're right on the cusp of it. And to give some sense is basically this market -- the market of Crohn's and you see that -- it actually has fairly high biologic penetration. When we do our research and our engagement with the physicians, what they typically have done for more than a decade since the availability of Remicade and then Humira, they really hang on as much as possible to their first-line use. They try to intensify, they do all sorts of things because it's quite scary for the physicians and the patients because no one set a different standard of care.
So when you start to look at the healing rates that we start to see with Rinvoq in UC, the healing of the bowel, the remission rate, the combination of what we can see, this market looks very, very good to have both of those assets come in with higher standards of care. So we're very, very encouraged, and we think that the IBD market is probably underappreciated in terms of what that looks like. And the patients are so challenged with their disease because it's quite severe with the bowel preparations, the hospitalizations, all of these things, having two assets is a great thing to bring to the market. Certainly, in the U.S., it's likely we see that with UC today that you're going to have later line use based on the labeling.
Skyrizi is not going to have that limitation. So you can imagine that you have an ability to co-position to sequence appropriately, to think about how you bring that whole portfolio around the world, and that's how we see it. We're quite encouraged that we would have both Rinvoq for Crohn's and Rinvoq for Skyrizi in the market. And it's kind of very similar to my comments I made on what's happening with PSA today in rheumatology, where both of those assets Rinvoq for PSA and Skyrizi PSA are in the market together working as a portfolio.
To get to your first point, it's been only a month or so with our UC launch, but the physicians gastros are very encouraged with the profile. They've not seen the level of remission or the level of healing before in any asset. So there's quite a wow reaction to the efficacy profile. They realize that they have to think about, I've got to think through my patients that are not doing well on TNF or have cycled through a TNF and are struggling.
And I mentioned that's a pretty large addressable population. It's at least 50% of the market today. So early qualitative results are quite strong. And the bridge results are also quite strong.
So we're pleased with the gastro launches thus far.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Carrie?
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Gary, this is Carrie Strom, president of global allergen aesthetics, and I'll take your question about the aesthetics market. And in Q1, we did see U.S. toxin and filler markets, both growing in the mid-20s percent. And we expect that sort of growth to continue for the rest of 2022.
And the way to think about it is similar amount of absolute volume growth as '21, but of course, off of a larger base. And in terms of what's driving that market growth, we're seeing very strong demand trends supported by our increased commercial investments, for example, increased consumer activation for acquisition and retention, field force expansions in key markets. And we see these trends also supported just by fundamentals and aesthetics that will continue in the long term. People think about aesthetics more like health and wellness.
It's been much more destigmatized, and we see factors like social media and word of mouth continuing to drive aesthetics in the future. Your question around the pandemic, I would say that we are seeing an impact right now in China, and we anticipate that this recent surge of COVID cases in China which has resulted in lockdowns across several major cities, has reduced patient traffic into aesthetic offices in China. And China is a top market for aesthetics. So we expect this to impact our near-term international performance for both toxins and fillers.
I should also mention that Russia is a key market for fillers globally. And as the tragic events in the Ukraine have unfolded, we have suspended operations for our aesthetics business in Russia. So although absolute aesthetic sales in Russia are modest, like I said, Russia is among one of the largest filler markets in the world. So we expect to see an impact on our filler performance in coming quarters.
But despite these dynamics, we do not need to change our total guidance for Aesthetics. So we see our continued robust toxin performance in the U.S. to offset this anticipated transitory impact in both China and Russia.
Liz Shea -- Vice President of Investor Relations
Thanks, Gary. Operator. Next question, please.
Operator
Thank you. Our next question comes from Robyn Karnauskas from Truist Securities. Your line is open.
Robyn Karnauskas -- Truist Securities -- Analyst
Great. Thanks for taking my question. So for epcoritamab, I just have a question on approval. Given the recent FDA discussion around the PI3 kinase class and sort of hinting that they want controlled data for accelerated approval, how do you view that in light of that panel, the likelihood of accelerated approval? And then second, just a little bit more questions around the Bridge program.
I think you said that you're going to expect more payment reimbursement coming online in the middle of the year. Just talk to me how long people stay in the Bridge program and how you expect that bridge program to continue? And what -- how many people might continue to use it after payers and online. Thanks.
Neil Gallagher -- Vice President and Chief Medical Officer
Hey, Robyn. It's Neil. I'll start off with the question around epcoritamab, but maybe just a comment -- a general comment on accelerated approval overall. I think as we're all aware, it prompted your question that the agencies in the course of -- in the process of updating its guidance with respect to accelerated approval.
We haven't seen the totality of that guidance, but we anticipate hearing more from them during the course of '22. As I alluded to, and I'm not going to repeat what I said earlier on about the epco data, but we are extremely pleased with how the molecule is performing, and it is our intent to engage with the agency based on the data that we've toplined recently. It is our intent to engage with the agency in a conversation to explore a path to accelerated approval. And likewise, with some of our other programs, we recently got a BTD designation for Teliso-V.
For example, earlier this year with a 54% response rate in c-Met high non-small-cell lung cancer. Again, it is our intent when we have data that are these strong to continue to engage with the agency on those programs to explore potential costs to accelerated approval. So thanks for the question.
Jeff Stewart -- Executive Vice President, Commercial Operations
OK. It's Jeff. Just to comment on your bridge question. Thank you for that.
So the bridge transition will be very efficient. So what I mean by that is because of the connections that we have with the payers and our specialty pharmacy network, we're able to -- once access is achieved rapidly and appropriately transition patients from the bridge to basically their paid pharmacy in their prescription. So there's not going to be lingering bridge effects, particularly in the immunology space. So once it starts to move and that access ramps, the bridge transition is quite fast.
And that can be within weeks or a month. And we know that that's the case because we have the model from our earlier launches from Skyrizi and Rinvoq. So ultimately, once you start to achieve those high levels of access, bridge programs drop very, very fast, and the vast majority, the very vast majority is paid prescriptions. So it's very efficient, and I hope that helps.
Liz Shea -- Vice President of Investor Relations
Thanks, Robyn. Operator, we have time for one final question.
Operator
Our final question comes from Josh Schimmer from Evercore ISI. Your line is open.
Josh Schimmer -- Evercore ISI -- Analyst
Great. Thanks for putting me in. And congrats to both Mike and Tom. For Skyrizi, did your long-term outlook improve again? Or am I misunderstanding the contingent consideration line item?
Rob Michael -- Executive Vice President and Chief Financial Officer
So Josh, it's Rob. If you look at the continued consideration, actually, it's a fair value liability, it went down this quarter because of discount rate. So we always have to pay attention to discount rate movement. So we saw the average discount rate increase by about 130 basis points.
You're seeing, obviously, as rising interest rates are taking hold of the market. That's something we have to take into account because we had to mark this to market every quarter. If you look at our release, we had a similar -- we had a decrease last year as well. Again, we had discount rates increase in Q1 of last year, albeit to a lesser extent.
So that's what you're seeing is just really the discount rate movement. No other real fundamental changes to the valuation of that liability.
Josh Schimmer -- Evercore ISI -- Analyst
Got it. Thanks for clarifying.
Liz Shea -- Vice President of Investor Relations
Well, thank you, Josh. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 74 minutes
Call participants:
Liz Shea -- Vice President of Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Commercial Operations
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Rob Michael -- Executive Vice President and Chief Financial Officer
Mohit Bansal -- Wells Fargo Securities -- Analyst
Terence Flynn -- Morgan Stanley -- Analyst
Neil Gallagher -- Vice President and Chief Medical Officer
Unknown speaker
Steve Scala -- Cowen and Company -- Analyst
Andrew Baum -- Citi -- Analyst
Chris Schott -- J.P. Morgan -- Analyst
Chris Shibutani -- Goldman Sachs -- Analyst
Vamil Divan -- Mizuho Securities -- Analyst
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Robyn Karnauskas -- Truist Securities -- Analyst
Josh Schimmer -- Evercore ISI -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Based on the magnitude of clinical data and real-world evidence generated for Imbruvica, showing sustained disease control, as well as overall patient survival, we are confident it will continue to be a meaningful product for AbbVie over the long term. AbbVie (NYSE: ABBV) Q1 2022 Earnings Call Apr 29, 2022, 9:00 a.m. Welcome to the AbbVie first quarter 2022earnings conference call [Operator instructions] Today's conference is being recorded. | Operator [Operator signoff] Duration: 74 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President and Chief Financial Officer Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Neil Gallagher -- Vice President and Chief Medical Officer Unknown speaker Steve Scala -- Cowen and Company -- Analyst Andrew Baum -- Citi -- Analyst Chris Schott -- J.P. Morgan -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Robyn Karnauskas -- Truist Securities -- Analyst Josh Schimmer -- Evercore ISI -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2022 Earnings Call Apr 29, 2022, 9:00 a.m. Welcome to the AbbVie first quarter 2022earnings conference call [Operator instructions] Today's conference is being recorded. | Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Gary, this is Carrie Strom, president of global allergen aesthetics, and I'll take your question about the aesthetics market. Operator [Operator signoff] Duration: 74 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President and Chief Financial Officer Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Neil Gallagher -- Vice President and Chief Medical Officer Unknown speaker Steve Scala -- Cowen and Company -- Analyst Andrew Baum -- Citi -- Analyst Chris Schott -- J.P. Morgan -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Robyn Karnauskas -- Truist Securities -- Analyst Josh Schimmer -- Evercore ISI -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2022 Earnings Call Apr 29, 2022, 9:00 a.m. | Operator [Operator signoff] Duration: 74 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Executive Vice President and Chief Financial Officer Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Neil Gallagher -- Vice President and Chief Medical Officer Unknown speaker Steve Scala -- Cowen and Company -- Analyst Andrew Baum -- Citi -- Analyst Chris Schott -- J.P. Morgan -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Robyn Karnauskas -- Truist Securities -- Analyst Josh Schimmer -- Evercore ISI -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2022 Earnings Call Apr 29, 2022, 9:00 a.m. Welcome to the AbbVie first quarter 2022earnings conference call [Operator instructions] Today's conference is being recorded. |
23417.0 | 2022-04-30 00:00:00 UTC | FDA Approves AbbVie's Rinvoq To Treatment Active Ankylosing Spondylitis | ABBV | https://www.nasdaq.com/articles/fda-approves-abbvies-rinvoq-to-treatment-active-ankylosing-spondylitis | nan | nan | (RTTNews) - The U.S. Food and Drug Administration has approved AbbVie's (ABBV) Rinvoq (upadacitinib; 15 mg, once daily) for the treatment of adults with active ankylosing spondylitis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers.
The FDA approval was supported by efficacy and safety data from the Phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients who had an inadequate response or intolerance to one or two biologic disease-modifying anti-rheumatic drugs and the Phase 2/3 SELECT-AXIS 1 clinical trial evaluating RINVOQ in patients who were naïve to bDMARDs and had an inadequate response or intolerance to at least two nonsteroidal anti-inflammatory drugs.
Active Ankylosing spondylitis is a chronic inflammatory musculoskeletal disease primarily affecting the spine and characterized by debilitating symptoms of inflammatory back pain, stiffness and restricted mobility.
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 U.S. Food and Drug Administration has approved AbbVie's (ABBV) Rinvoq (upadacitinib; 15 mg, once daily) for the treatment of adults with active ankylosing spondylitis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval was supported by efficacy and safety data from the Phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients who had an inadequate response or intolerance to one or two biologic disease-modifying anti-rheumatic drugs and the Phase 2/3 SELECT-AXIS 1 clinical trial evaluating RINVOQ in patients who were naïve to bDMARDs and had an inadequate response or intolerance to at least two nonsteroidal anti-inflammatory drugs. Active Ankylosing spondylitis is a chronic inflammatory musculoskeletal disease primarily affecting the spine and characterized by debilitating symptoms of inflammatory back pain, stiffness and restricted mobility. | (RTTNews) - The U.S. Food and Drug Administration has approved AbbVie's (ABBV) Rinvoq (upadacitinib; 15 mg, once daily) for the treatment of adults with active ankylosing spondylitis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval was supported by efficacy and safety data from the Phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients who had an inadequate response or intolerance to one or two biologic disease-modifying anti-rheumatic drugs and the Phase 2/3 SELECT-AXIS 1 clinical trial evaluating RINVOQ in patients who were naïve to bDMARDs and had an inadequate response or intolerance to at least two nonsteroidal anti-inflammatory drugs. Active Ankylosing spondylitis is a chronic inflammatory musculoskeletal disease primarily affecting the spine and characterized by debilitating symptoms of inflammatory back pain, stiffness and restricted mobility. | (RTTNews) - The U.S. Food and Drug Administration has approved AbbVie's (ABBV) Rinvoq (upadacitinib; 15 mg, once daily) for the treatment of adults with active ankylosing spondylitis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval was supported by efficacy and safety data from the Phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients who had an inadequate response or intolerance to one or two biologic disease-modifying anti-rheumatic drugs and the Phase 2/3 SELECT-AXIS 1 clinical trial evaluating RINVOQ in patients who were naïve to bDMARDs and had an inadequate response or intolerance to at least two nonsteroidal anti-inflammatory drugs. 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 U.S. Food and Drug Administration has approved AbbVie's (ABBV) Rinvoq (upadacitinib; 15 mg, once daily) for the treatment of adults with active ankylosing spondylitis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval was supported by efficacy and safety data from the Phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients who had an inadequate response or intolerance to one or two biologic disease-modifying anti-rheumatic drugs and the Phase 2/3 SELECT-AXIS 1 clinical trial evaluating RINVOQ in patients who were naïve to bDMARDs and had an inadequate response or intolerance to at least two nonsteroidal anti-inflammatory drugs. Active Ankylosing spondylitis is a chronic inflammatory musculoskeletal disease primarily affecting the spine and characterized by debilitating symptoms of inflammatory back pain, stiffness and restricted mobility. |
23418.0 | 2022-04-29 00:00:00 UTC | AbbVie Shares Hurt On Reduced Earnings Outlook | ABBV | https://www.nasdaq.com/articles/abbvie-shares-hurt-on-reduced-earnings-outlook | nan | nan | (RTTNews) - Shares of biopharmaceutical company AbbVie Inc. (ABBV) are down more than 8% after the company reduced its annual earnings outlook. Its first-quarter sales also missed analysts' view.
The company cut its annual EPS outlook to $13.92 - $14.12 from $14.00 - $14.20 citing a $0.08 per share impact related to the acquired IPR&D and milestones expense incurred during the first quarter. Analysts on average expect earnings of $14.11 per share for the period.
Net revenues were $13.538 billion in the first quarter, an increase of 4.1 percent year-on-year, but missed the consensus estimate at $13.61 billion.
The company reported net earnings of $4.49 billion or $2.51 per share compared with $3.553 billion or $1.99 per share in the same quarter a year ago.
Excluding special items, earnings were $3.16. The consensus estimate stood at $3.14 per share.
ABBV is at $143.10 currently. It has traded in the range of $105.56-$175.91 in the past 52 weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Shares of biopharmaceutical company AbbVie Inc. (ABBV) are down more than 8% after the company reduced its annual earnings outlook. ABBV is at $143.10 currently. The company cut its annual EPS outlook to $13.92 - $14.12 from $14.00 - $14.20 citing a $0.08 per share impact related to the acquired IPR&D and milestones expense incurred during the first quarter. | (RTTNews) - Shares of biopharmaceutical company AbbVie Inc. (ABBV) are down more than 8% after the company reduced its annual earnings outlook. ABBV is at $143.10 currently. Its first-quarter sales also missed analysts' view. | (RTTNews) - Shares of biopharmaceutical company AbbVie Inc. (ABBV) are down more than 8% after the company reduced its annual earnings outlook. ABBV is at $143.10 currently. The company cut its annual EPS outlook to $13.92 - $14.12 from $14.00 - $14.20 citing a $0.08 per share impact related to the acquired IPR&D and milestones expense incurred during the first quarter. | (RTTNews) - Shares of biopharmaceutical company AbbVie Inc. (ABBV) are down more than 8% after the company reduced its annual earnings outlook. ABBV is at $143.10 currently. Its first-quarter sales also missed analysts' view. |
23419.0 | 2022-04-29 00:00:00 UTC | Why AbbVie's Shares Dropped 10.5% Friday | ABBV | https://www.nasdaq.com/articles/why-abbvies-shares-dropped-10.5-friday | nan | nan | What happened
Pharmaceutical company AbbVie (NYSE: ABBV) saw its shares drop 10.5% on Friday. The stock closed at $156.31 on Thursday, then opened on Friday at $149.56 and fell to a low of $139.93 in early morning trading before rallying a bit in the afternoon.
The stock's 52-week low is $105.56 with a 52-week high of $175.91.
Image source: Getty Images.
So what
The company released its first-quarter earnings before the market opened on Friday, and while most of the numbers were fairly positive, there were certain trends that may have bothered investors. The good news is the company reported revenue of $13.54 billion, up 4.1% year over year, and earnings per share (EPS) of $2.51, compared to EPS of $1.99 in the same period a year ago. The bad news was AbbVie reported lower sales of cancer drug Imbruvica and immunology stalwart Humira, thanks to competition from newer therapies. The company also lowered its annual EPS guidance from the range of $14 to $14.20 down to the range of $13.92 to $14.12, to reflect costs from various acquisitions, research and development collaborations, licensing arrangements, and milestone payments that began showing up in the first quarter.
Humira was still the company's biggest seller with $4.7 billion in revenue, but its sales were down 2% year over year. This wasn't a big shocker as the drug is already facing biosimilar competition in Europe. The drop in Imbruvica's revenue was a different matter. AbbVie reported $1.1 billion in sales for the drug, down 7.4%.
Taking the long view, however, the pharmaceutical company's aesthetics and neuroscience franchises continue to improve, as well as its sales from Skyrizi, Rinvoq, and Venclexta. Aesthetics had $1.374 billion in revenue, up 20.5% from the same period last year, and the neuroscience segment had $1.488 billion in revenue, up 19.2% year over year.
Skyrizi and Rinvoq are both immunology drugs and they are showing that they could easily make up for any lost sales for Humira. Skyrizi brought in $940 million in revenue in the quarter, up 63.7% year over year, while Rinvoq, which just got a label expansion from the Food and Drug Administration to treat adults with ulcerative colitis who have had an poor response to one or more tumor necrosis factor blockers, brought in $465 million, up 53.6% over the same period last year. Blood cancer drug Venclexta had a reported $473 million in revenue, up 16.9% year over year.
Now what
While several major indexes are down so far this year, AbbVie's shares are up more than 6%, even with Thursday's drop. Long-term investors see the value in the stock as it has a strong portfolio and an outsize pipeline it is investing heavily in. It also raised its dividend by 8.5% this year to $1.41 a share, the 50th consecutive year the Dividend King has increased its dividend. At its current price, it offers a yield of 3.84%, rewarding longtime investors. The lower share price, to me, makes the stock even more attractive, as with a price-to-earnings ratio of 24.13, it is less expensive compared to many other pharmaceutical companies.
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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 bad news was AbbVie reported lower sales of cancer drug Imbruvica and immunology stalwart Humira, thanks to competition from newer therapies. What happened Pharmaceutical company AbbVie (NYSE: ABBV) saw its shares drop 10.5% on Friday. AbbVie reported $1.1 billion in sales for the drug, down 7.4%. | The bad news was AbbVie reported lower sales of cancer drug Imbruvica and immunology stalwart Humira, thanks to competition from newer therapies. What happened Pharmaceutical company AbbVie (NYSE: ABBV) saw its shares drop 10.5% on Friday. AbbVie reported $1.1 billion in sales for the drug, down 7.4%. | What happened Pharmaceutical company AbbVie (NYSE: ABBV) saw its shares drop 10.5% on Friday. The bad news was AbbVie reported lower sales of cancer drug Imbruvica and immunology stalwart Humira, thanks to competition from newer therapies. AbbVie reported $1.1 billion in sales for the drug, down 7.4%. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! See the 10 stocks *Stock Advisor returns as of April 7, 2022 Jim Halley has positions in AbbVie. What happened Pharmaceutical company AbbVie (NYSE: ABBV) saw its shares drop 10.5% on Friday. |
23420.0 | 2022-04-29 00:00:00 UTC | Health Care Sector Update for 04/29/2022: RMD,ABBV,FNCH,ZYME | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-04-29-2022%3A-rmdabbvfnchzyme | nan | nan | Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 2.0% and the SPDR Health Care Select Sector ETF (XLV) down 2.1%.
The Nasdaq Biotechnology index was retreating 1.7%.
In company news, ResMed (RMD) slipped 6.3% after the medical devices company overnight reported non-GAAP net income of $1.32 per share for its fiscal Q3 ended March 31, improving on a $1.30 per share adjusted profit during the year-ago period but still trailing analyst projections by $0.12 per share. Revenue increased 12.4% year-over-year to $864.5 million, also lagging the $899.7 million analysts mean.
AbbVie (ABBV) dropped 7.2% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items.
To the upside, Finch Therapeutics Group (FNCH) climbed over 17% after the US Food and Drug Administration removed a clinical hold on the investigational new drug application for its CP101 drug candidate and clearing the way for Finch to soon begin enrollment for phase III testing of the prospective treatment for the prevention of recurrent C. difficile infection.
Zymeworks (ZYME) raced more than 23% higher after overnight confirming an unsolicited acquisition proposal from All Blue Falcons FZE and its affiliates, with the $10.50-per-share offer for the early-stage oncology pharmaceuticals company representing a 112% premium over Thursday's closing price.
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) dropped 7.2% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Zymeworks (ZYME) raced more than 23% higher after overnight confirming an unsolicited acquisition proposal from All Blue Falcons FZE and its affiliates, with the $10.50-per-share offer for the early-stage oncology pharmaceuticals company representing a 112% premium over Thursday's closing price. | AbbVie (ABBV) dropped 7.2% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 2.0% and the SPDR Health Care Select Sector ETF (XLV) down 2.1%. | AbbVie (ABBV) dropped 7.2% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 2.0% and the SPDR Health Care Select Sector ETF (XLV) down 2.1%. | AbbVie (ABBV) dropped 7.2% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 2.0% and the SPDR Health Care Select Sector ETF (XLV) down 2.1%. |
23421.0 | 2022-04-29 00:00:00 UTC | Notable Friday Option Activity: ABBV, CBOE, EXPE | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-abbv-cboe-expe | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 59,816 contracts have traded so far, representing approximately 6.0 million underlying shares. That amounts to about 73.7% of ABBV's average daily trading volume over the past month of 8.1 million shares. Particularly high volume was seen for the $150 strike put option expiring April 29, 2022, with 6,132 contracts trading so far today, representing approximately 613,200 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange:
Cboe Global Markets Inc (Symbol: CBOE) saw options trading volume of 4,337 contracts, representing approximately 433,700 underlying shares or approximately 63% of CBOE's average daily trading volume over the past month, of 688,475 shares. Particularly high volume was seen for the $120 strike put option expiring May 20, 2022, with 600 contracts trading so far today, representing approximately 60,000 underlying shares of CBOE. Below is a chart showing CBOE's trailing twelve month trading history, with the $120 strike highlighted in orange:
And Expedia Group Inc (Symbol: EXPE) options are showing a volume of 12,563 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 56.1% of EXPE's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $170 strike put option expiring May 06, 2022, with 2,883 contracts trading so far today, representing approximately 288,300 underlying shares of EXPE. Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange:
For the various different available expirations for ABBV options, CBOE options, or EXPE 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 $150 strike put option expiring April 29, 2022, with 6,132 contracts trading so far today, representing approximately 613,200 underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 59,816 contracts have traded so far, representing approximately 6.0 million underlying shares. That amounts to about 73.7% of ABBV's average daily trading volume over the past month of 8.1 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: Cboe Global Markets Inc (Symbol: CBOE) saw options trading volume of 4,337 contracts, representing approximately 433,700 underlying shares or approximately 63% of CBOE's average daily trading volume over the past month, of 688,475 shares. Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange: For the various different available expirations for ABBV options, CBOE options, or EXPE options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 59,816 contracts have traded so far, representing approximately 6.0 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 59,816 contracts have traded so far, representing approximately 6.0 million underlying shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: Cboe Global Markets Inc (Symbol: CBOE) saw options trading volume of 4,337 contracts, representing approximately 433,700 underlying shares or approximately 63% of CBOE's average daily trading volume over the past month, of 688,475 shares. That amounts to about 73.7% of ABBV's average daily trading volume over the past month of 8.1 million shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 59,816 contracts have traded so far, representing approximately 6.0 million underlying shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $150 strike highlighted in orange: Cboe Global Markets Inc (Symbol: CBOE) saw options trading volume of 4,337 contracts, representing approximately 433,700 underlying shares or approximately 63% of CBOE's average daily trading volume over the past month, of 688,475 shares. That amounts to about 73.7% of ABBV's average daily trading volume over the past month of 8.1 million shares. |
23422.0 | 2022-04-29 00:00:00 UTC | Technology Sector Update for 04/29/2022: ABBV,FNCH,ZYME | ABBV | https://www.nasdaq.com/articles/technology-sector-update-for-04-29-2022%3A-abbvfnchzyme | nan | nan | Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 1.7% and the SPDR Health Care Select Sector ETF (XLV) down 1.9%.
The Nasdaq Biotechnology index was retreating 0.8%.
In company news, AbbVie (ABBV) dropped 8.7% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items.
Finch Therapeutics Group (FNCH) climbed almost 28% after the US Food and Drug Administration removed a clinical hold on the investigational new drug application for its CP101 drug candidate and clearing the way for Finch to soon begin enrollment for phase III testing of the prospective treatment for the prevention of recurrent C. difficile infection.
Zymeworks (ZYME) raced nearly 36% higher after overnight confirming an unsolicited acquisition proposal from All Blue Falcons FZE and its affiliates, with the $10.50-per-share offer for the early-stage oncology pharmaceuticals company representing a 112% premium over Thursday's closing price.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, AbbVie (ABBV) dropped 8.7% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Zymeworks (ZYME) raced nearly 36% higher after overnight confirming an unsolicited acquisition proposal from All Blue Falcons FZE and its affiliates, with the $10.50-per-share offer for the early-stage oncology pharmaceuticals company representing a 112% premium over Thursday's closing price. | Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. In company news, AbbVie (ABBV) dropped 8.7% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 1.7% and the SPDR Health Care Select Sector ETF (XLV) down 1.9%. | In company news, AbbVie (ABBV) dropped 8.7% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 1.7% and the SPDR Health Care Select Sector ETF (XLV) down 1.9%. | In company news, AbbVie (ABBV) dropped 8.7% after the drugmaker cut its FY22 earnings outlook by $0.08 per share on both sides of its previous guidance to a new range looking for non-GAAP net income in a range of $13.92 to $14.12 from previous projections of $14 to $14.20 per share. Analysts polled by Capital IQ, on average, are expecting AbbVie to earn $14.17 per share this year, excluding one-time items. Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index sinking 1.7% and the SPDR Health Care Select Sector ETF (XLV) down 1.9%. |
23423.0 | 2022-04-29 00:00:00 UTC | Health Care Sector Update for 04/29/2022: LNTH, NVO, ABBV, XLV, IBB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-04-29-2022%3A-lnth-nvo-abbv-xlv-ibb | nan | nan | Health care stocks were mixed premarket Friday. The Health Care SPDR (XLV) was down 0.83%, and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive.
Lantheus Holdings (LNTH) was gaining more than 16% after it reported Q1 adjusted earnings of $0.97 per diluted share, up from $0.05 a year earlier. Four analysts polled by Capital IQ expected normalized EPS of $0.46.
Novo Nordisk (NVO) was advancing by more than 3% after it reported Q1 EPS of 6.22 Danish kroner ($0.88), up from 5.45 kroner a year earlier.
AbbVie (ABBV) reported Q1 adjusted EPS of $3.16, up from $2.89 a year earlier. Analysts polled by Capital IQ expected $3.14. AbbVie was recently down more than 4%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) reported Q1 adjusted EPS of $3.16, up from $2.89 a year earlier. AbbVie was recently down more than 4%. The Health Care SPDR (XLV) was down 0.83%, and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive. | AbbVie (ABBV) reported Q1 adjusted EPS of $3.16, up from $2.89 a year earlier. AbbVie was recently down more than 4%. Four analysts polled by Capital IQ expected normalized EPS of $0.46. | AbbVie (ABBV) reported Q1 adjusted EPS of $3.16, up from $2.89 a year earlier. AbbVie was recently down more than 4%. The Health Care SPDR (XLV) was down 0.83%, and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive. | AbbVie (ABBV) reported Q1 adjusted EPS of $3.16, up from $2.89 a year earlier. AbbVie was recently down more than 4%. The Health Care SPDR (XLV) was down 0.83%, and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive. |
23424.0 | 2022-04-29 00:00:00 UTC | AbbVie misses quarterly sales expectations on Humira competition | ABBV | https://www.nasdaq.com/articles/abbvie-misses-quarterly-sales-expectations-on-humira-competition | nan | nan | By Manas Mishra
April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq.
Shares of Illinois-based Abbvie fell 4.3% to $159.30 before the bell.
Sales of the world's best selling drug, Humira, fell 2.7% to $4.74 billion in the first quarter, below estimates of $4.91 billion as it faces competition from cheaper biosimilar copies in Europe. U.S. rivals are expected next year when it loses patent protection in the country.
AbbVie has been hoping that sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi will eventually exceed that of Humira, and the company has been working to gain expanded approvals for both drugs.
Rinvoq sales rose 53.6% to $465 million in the quarter ended March 31, but fell below estimates of $500.6 million. However, Skyrizi sales of $940 million beat estimates by nearly $24 million.
"We anticipate re-acceleration of Rinvoq following recent expanded U.S. approvals and re-labelling for rheumatoid arthritis," said Citi analyst Andrew Baum, referring to a narrower recommendation by the U.S. health regulator in December.
Last year, AbbVie completed its $63 billion purchase of Botox-maker Allergan, a move to diversify its portfolio ahead of Humira's loss of exclusivity.
Botox sales in cosmetic applications rose 34.4% to $641 million, breezing past estimates of $569.88 million.
Net revenues of $13.54 billion missed Refinitiv IBES estimates of $13.61 billion, but beat AbbVie's own target of $13.50 billion.
At the request of the U.S. Securities and Exchange Commission, several drug companies have adjusted their forecasts to include expenses from milestone payments and acquisitions.
AbbVie lowered its adjusted earnings per share forecast to between $13.92 and $14.12, from earlier estimates of $14.00 to $14.20, citing the impact of those expenses.
Humira sales over the past two yearshttps://tmsnrt.rs/3vrH574
(Reporting by Manas Mishra in Bengaluru; Editing by Amy Caren Daniel and Krishna Chandra Eluri)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15; within U.S. +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year, AbbVie completed its $63 billion purchase of Botox-maker Allergan, a move to diversify its portfolio ahead of Humira's loss of exclusivity. By Manas Mishra April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. Shares of Illinois-based Abbvie fell 4.3% to $159.30 before the bell. | By Manas Mishra April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. Shares of Illinois-based Abbvie fell 4.3% to $159.30 before the bell. AbbVie has been hoping that sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi will eventually exceed that of Humira, and the company has been working to gain expanded approvals for both drugs. | By Manas Mishra April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. AbbVie has been hoping that sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi will eventually exceed that of Humira, and the company has been working to gain expanded approvals for both drugs. Shares of Illinois-based Abbvie fell 4.3% to $159.30 before the bell. | Net revenues of $13.54 billion missed Refinitiv IBES estimates of $13.61 billion, but beat AbbVie's own target of $13.50 billion. AbbVie lowered its adjusted earnings per share forecast to between $13.92 and $14.12, from earlier estimates of $14.00 to $14.20, citing the impact of those expenses. By Manas Mishra April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. |
23425.0 | 2022-04-29 00:00:00 UTC | AbbVie (ABBV) Tops Q1 Earnings Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-tops-q1-earnings-estimates | nan | nan | AbbVie (ABBV) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $3.15 per share. This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 0.32%. A quarter ago, it was expected that this drugmaker would post earnings of $3.29 per share when it actually produced earnings of $3.31, delivering a surprise of 0.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.54 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $13.01 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AbbVie shares have added about 15.4% since the beginning of the year versus the S&P 500's decline of -10%.
What's Next for AbbVie?
While AbbVie has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AbbVie: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.51 on $14.93 billion in revenues for the coming quarter and $14.11 on $60.34 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Pfizer (PFE), has yet to report results for the quarter ended March 2022. The results are expected to be released on May 3.
This drugmaker is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of +78.5%. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level.
Pfizer's revenues are expected to be $26.49 billion, up 81.7% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $3.15 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.54 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 0.09%. AbbVie shares have added about 15.4% since the beginning of the year versus the S&P 500's decline of -10%. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.54 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 0.09%. AbbVie (ABBV) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $3.15 per share. AbbVie shares have added about 15.4% since the beginning of the year versus the S&P 500's decline of -10%. | AbbVie (ABBV) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $3.15 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.54 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 0.09%. AbbVie shares have added about 15.4% since the beginning of the year versus the S&P 500's decline of -10%. | AbbVie (ABBV) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $3.15 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $13.54 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 0.09%. AbbVie shares have added about 15.4% since the beginning of the year versus the S&P 500's decline of -10%. |
23426.0 | 2022-04-29 00:00:00 UTC | AbbVie Q1 Income Rises | ABBV | https://www.nasdaq.com/articles/abbvie-q1-income-rises | nan | nan | (RTTNews) - AbbVie (ABBV) released a profit for its first quarter that increased from the same period last year
The company's earnings totaled $4.49 billion, or $2.51 per share. This compares with $3.55 billion, or $1.99 per share, in last year's first quarter.
Excluding items, AbbVie reported adjusted earnings of $5.64 billion or $3.16 per share for the period.
The company's revenue for the quarter fell 2.0% to $13.54 billion from $13.81 billion last year.
AbbVie earnings at a glance (GAAP) :
-Earnings (Q1): $4.49 Bln. vs. $3.55 Bln. last year. -EPS (Q1): $2.51 vs. $1.99 last year. -Revenue (Q1): $13.54 Bln vs. $13.81 Bln last year.
-Guidance: Full year EPS guidance: Adj: $13.92 - $14.12
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) released a profit for its first quarter that increased from the same period last year The company's earnings totaled $4.49 billion, or $2.51 per share. Excluding items, AbbVie reported adjusted earnings of $5.64 billion or $3.16 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q1): $4.49 Bln. | (RTTNews) - AbbVie (ABBV) released a profit for its first quarter that increased from the same period last year The company's earnings totaled $4.49 billion, or $2.51 per share. Excluding items, AbbVie reported adjusted earnings of $5.64 billion or $3.16 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q1): $4.49 Bln. | (RTTNews) - AbbVie (ABBV) released a profit for its first quarter that increased from the same period last year The company's earnings totaled $4.49 billion, or $2.51 per share. Excluding items, AbbVie reported adjusted earnings of $5.64 billion or $3.16 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q1): $4.49 Bln. | AbbVie earnings at a glance (GAAP) : -Earnings (Q1): $4.49 Bln. (RTTNews) - AbbVie (ABBV) released a profit for its first quarter that increased from the same period last year The company's earnings totaled $4.49 billion, or $2.51 per share. Excluding items, AbbVie reported adjusted earnings of $5.64 billion or $3.16 per share for the period. |
23427.0 | 2022-04-29 00:00:00 UTC | AbbVie Trims FY22 Adj. EPS Outlook - Update | ABBV | https://www.nasdaq.com/articles/abbvie-trims-fy22-adj.-eps-outlook-update | nan | nan | (RTTNews) - While reporting financial results for the first quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) trimmed its adjusted earnings guidance for the full-year 2022.
For fiscal 2022, AbbVie now projects adjusted earnings in a range of $13.92 to $14.12 per share, which includes an unfavorable impact of $0.08 per share related to the acquired IPR&D and milestones expense incurred during the first quarter 2022.
However, the adjusted earnings guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2022, as both cannot be reliably forecasted.
Previously, the company expected adjusted earnings in the range of $14.00 to $14.20 per share.
On average, 22 analysts polled by Thomson Reuters expect the company to report earnings of $14.11 per share for the year. Analysts' estimates typically exclude special items.
"Our momentum combined with ramping contributions from new products and new indications will drive accelerating revenue and EPS growth through the rest of the year," said Richard Gonzalez, chairman and CEO.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting financial results for the first quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) trimmed its adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects adjusted earnings in a range of $13.92 to $14.12 per share, which includes an unfavorable impact of $0.08 per share related to the acquired IPR&D and milestones expense incurred during the first quarter 2022. However, the adjusted earnings guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2022, as both cannot be reliably forecasted. | (RTTNews) - While reporting financial results for the first quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) trimmed its adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects adjusted earnings in a range of $13.92 to $14.12 per share, which includes an unfavorable impact of $0.08 per share related to the acquired IPR&D and milestones expense incurred during the first quarter 2022. However, the adjusted earnings guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2022, as both cannot be reliably forecasted. | (RTTNews) - While reporting financial results for the first quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) trimmed its adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects adjusted earnings in a range of $13.92 to $14.12 per share, which includes an unfavorable impact of $0.08 per share related to the acquired IPR&D and milestones expense incurred during the first quarter 2022. However, the adjusted earnings guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2022, as both cannot be reliably forecasted. | For fiscal 2022, AbbVie now projects adjusted earnings in a range of $13.92 to $14.12 per share, which includes an unfavorable impact of $0.08 per share related to the acquired IPR&D and milestones expense incurred during the first quarter 2022. (RTTNews) - While reporting financial results for the first quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) trimmed its adjusted earnings guidance for the full-year 2022. However, the adjusted earnings guidance excludes any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of 2022, as both cannot be reliably forecasted. |
23428.0 | 2022-04-29 00:00:00 UTC | AbbVie misses quarterly sales estimates as Humira rivals bite | ABBV | https://www.nasdaq.com/articles/abbvie-misses-quarterly-sales-estimates-as-humira-rivals-bite | nan | nan | April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq.
Sales of the world's best selling drug, Humira, fell 2.7% to $4.74 billion in the first quarter, below estimates of $4.91 billion as it faces competition from cheaper biosimilar copies in Europe. Rivals for the drug are expected in the United States next year, when it loses patent protection in the country.
AbbVie has been hoping that peak sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi would exceed that of Humira eventually, and the company has been working to gain expanded approvals for both drugs.
Rinvoq sales rose 53.6% to $465 million in the quarter ended March 31, but fell below estimates of $500.6 million. However, Skyrizi sales of $940 million beat estimates by nearly $24 million.
Last year, AbbVie completed its $63 billion purchase of Botox-maker Allergan, a move meant to diversify its portfolio ahead of Humira's loss of exclusivity in 2023.
Botox sales in cosmetic applications rose 34.4% to $641 million, breezing past estimates of $569.88 million.
Net revenues of $13.54 billion missed Refinitiv IBES estimates of $13.61 billion, but beat AbbVie's own target of $13.50 billion.
AbbVie lowered its adjusted earnings per share forecast to between $13.92 and $14.12, from earlier estimates of $14.00 to $14.20, citing a hit from upfront and milestone expenses which are now included in its results based on new regulatory guidance.
(Reporting by Manas Mishra in Bengaluru; Editing by Amy Caren Daniel)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15; within U.S. +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year, AbbVie completed its $63 billion purchase of Botox-maker Allergan, a move meant to diversify its portfolio ahead of Humira's loss of exclusivity in 2023. AbbVie lowered its adjusted earnings per share forecast to between $13.92 and $14.12, from earlier estimates of $14.00 to $14.20, citing a hit from upfront and milestone expenses which are now included in its results based on new regulatory guidance. April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. | April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. AbbVie has been hoping that peak sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi would exceed that of Humira eventually, and the company has been working to gain expanded approvals for both drugs. Last year, AbbVie completed its $63 billion purchase of Botox-maker Allergan, a move meant to diversify its portfolio ahead of Humira's loss of exclusivity in 2023. | April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. AbbVie has been hoping that peak sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi would exceed that of Humira eventually, and the company has been working to gain expanded approvals for both drugs. Last year, AbbVie completed its $63 billion purchase of Botox-maker Allergan, a move meant to diversify its portfolio ahead of Humira's loss of exclusivity in 2023. | April 29 (Reuters) - AbbVie Inc ABBV.N missed Wall Street estimates for first-quarter sales on Friday, hurt by European competition for its blockbuster rheumatoid arthritis drug Humira and lower-than-expected revenue from its newer drug Rinvoq. Net revenues of $13.54 billion missed Refinitiv IBES estimates of $13.61 billion, but beat AbbVie's own target of $13.50 billion. AbbVie has been hoping that peak sales of its other rheumatoid arthritis drug Rinvoq and plaque psoriasis treatment Skyrizi would exceed that of Humira eventually, and the company has been working to gain expanded approvals for both drugs. |
23429.0 | 2022-04-29 00:00:00 UTC | The 3 Best ETFs for Dividends | ABBV | https://www.nasdaq.com/articles/the-3-best-etfs-for-dividends-0 | nan | nan | If you're wishing you had a little more exposure to income investments right now and a little less exposure to growth, you're not alone. The market's recent shellacking hasn't exactly been uniform; growth stocks have really taken it on the chin. And their sell-off may not be over yet.
The good news is, it's not too late to start shifting more of your portfolio into dividend-paying positions. You don't even have to do any stock picking to make this happen, either. This trio of exchange-traded funds (ETFs) can do the job in a snap. Here's a closer look at each.
iShares High Dividend Equity Fund
If your goal is producing above-average dividend income right now, your first stop should arguably be the iShares High Dividend Equity Fund (NYSEMKT: HDV).
Just as the name implies, this iShares fund seeks to maximize your payout by choosing stocks with superior dividend yields. That's not to suggest, however, it merely tracks down the market's highest-yielding names and shoves them into a bucket you can then buy a piece of. This fund is meant to mirror the Morningstar Dividend Yield Focus Index, which limits its constituents to U.S. stocks "screened for superior company quality and financial health."
The end result is a basket of 75 solid stocks that also happen to pay above-average dividends. Among its top holdings right now are names like AbbVie, JPMorgan Chase, and Verizon, supporting the fund's current yield of around 3.2%.
Image source: Getty Images.
That may not seem like a whole lot; you can certainly find bigger yields out there. But you'd be hard-pressed to find better yields without giving up the solid blue chip status all of this fund's stocks boast.
Vanguard Dividend Appreciation ETF
If you're more interested in long-term dividend growth than current income levels, consider the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG).
Once again, the name says it all. The ETF is built around tickers that may not necessarily dish out a ton of regular quarterly income now, but rather it holds stocks that reliably grow their payouts in a big way over time. Microsoft is this ETF's top holding at this time, fairly representing the bigger premise here. Microsoft shares are valued at a premium, and while the company doesn't prioritize dividends, it does pay them. Its priority is growth. It just so happens that its dividend grows in step with the company's top and bottom lines.
And this ETF certainly accomplishes its goal. Last year's total payments of $2.66 per share were 46% better than what the fund was paying just five years back, and almost 90% stronger than the annualized dividend from a decade ago.
The trade-off is the yield you're stepping into. The Vanguard Dividend Appreciation ETF's current yield is a modest 1.7%. That's why it's not a an ETF to choose if you need good passive income right now. If you can afford to park some money in the fund now and wait five or 10 years, however, it'll be well worth it. You should get some respectable capital appreciation in the meantime.
SPDR S&P 500 High Dividend ETF
Finally, add the SPDR S&P 500 High Dividend ETF (NYSEMKT: SPYD) to your list of ETFs to consider if you're looking to add passive income potential to your portfolio.
At first glance it seems comparable to the aforementioned iShares High Dividend Equity Fund. And there's some overlap, to be sure. But there's more difference between the two than it seems on the surface. The SPDR S&P 500 High Dividend ETF is arguably the more aggressive option, with the higher yield to prove it. This fund's current dividend yield stands at 3.7%, reflecting the fact that the underlying index is focused more on stronger payouts and less on raw fiscal health.
Not that it's buying junk. Valero Energy, Cardinal Health, and real estate investment trust Iron Mountain are three of the ETF's 10 biggest holdings at this time, mirroring the S&P 500 High Dividend Index its modeled after.
It's a distinction that matters more than you might think. The Morningstar Dividend Yield Focus Index serving as the basis for the iShares High Dividend Equity Fund is rather static, since companies that are fiscally healthy tend to remain fiscally healthy, and therefore remain in the index. The S&P 500 High Dividend Index, however, is rebalanced every six months to hold the 80 highest-yielding S&P 500 names at that particular time. While this potentially leads to above-average taxable turnover, it also ensures this ETF offers the highest-possible yield at any given time among the three ETFs in focus 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. | Among its top holdings right now are names like AbbVie, JPMorgan Chase, and Verizon, supporting the fund's current yield of around 3.2%. This fund is meant to mirror the Morningstar Dividend Yield Focus Index, which limits its constituents to U.S. stocks "screened for superior company quality and financial health." The ETF is built around tickers that may not necessarily dish out a ton of regular quarterly income now, but rather it holds stocks that reliably grow their payouts in a big way over time. | Among its top holdings right now are names like AbbVie, JPMorgan Chase, and Verizon, supporting the fund's current yield of around 3.2%. iShares High Dividend Equity Fund If your goal is producing above-average dividend income right now, your first stop should arguably be the iShares High Dividend Equity Fund (NYSEMKT: HDV). SPDR S&P 500 High Dividend ETF Finally, add the SPDR S&P 500 High Dividend ETF (NYSEMKT: SPYD) to your list of ETFs to consider if you're looking to add passive income potential to your portfolio. | Among its top holdings right now are names like AbbVie, JPMorgan Chase, and Verizon, supporting the fund's current yield of around 3.2%. iShares High Dividend Equity Fund If your goal is producing above-average dividend income right now, your first stop should arguably be the iShares High Dividend Equity Fund (NYSEMKT: HDV). Vanguard Dividend Appreciation ETF If you're more interested in long-term dividend growth than current income levels, consider the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). | Among its top holdings right now are names like AbbVie, JPMorgan Chase, and Verizon, supporting the fund's current yield of around 3.2%. iShares High Dividend Equity Fund If your goal is producing above-average dividend income right now, your first stop should arguably be the iShares High Dividend Equity Fund (NYSEMKT: HDV). Vanguard Dividend Appreciation ETF If you're more interested in long-term dividend growth than current income levels, consider the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). |
23430.0 | 2022-04-28 00:00:00 UTC | XRP vs. AbbVie: Price Relationship Crosses Threshold | ABBV | https://www.nasdaq.com/articles/xrp-vs.-abbvie%3A-price-relationship-crosses-threshold | nan | nan | Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices versus various digital assets over time.
We noticed that as of 4/28/2022, XRP ($XRP) can buy you the least amount of AbbVie shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of ABBV(Symbol: ABBV) with the proceeds, you would only be able to buy 0.41 share of ABBV. That's versus a high amount of 1.48 shares over the trailing twelve months. Here's how this relationship looks charted, over the past year:
The main driver of the above bar chart has, of course, been the performance of AbbVie shares, relative to the performance of XRP; and here's how the two compare over the past year on a total return basis:
Check out our XRP historical price chart and AbbVie vs Crypto pages for additional charts. Note that any stock splits and/or dividends are included when we calculate the ABBV returns.
Be sure to follow us at CryptocurrenciesChannel.com for more interesting stock market vs. digital asset comparisons!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Note that any stock splits and/or dividends are included when we calculate the ABBV returns. We noticed that as of 4/28/2022, XRP ($XRP) can buy you the least amount of AbbVie shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of ABBV(Symbol: ABBV) with the proceeds, you would only be able to buy 0.41 share of ABBV. | We noticed that as of 4/28/2022, XRP ($XRP) can buy you the least amount of AbbVie shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of ABBV(Symbol: ABBV) with the proceeds, you would only be able to buy 0.41 share of ABBV. Here's how this relationship looks charted, over the past year: The main driver of the above bar chart has, of course, been the performance of AbbVie shares, relative to the performance of XRP; and here's how the two compare over the past year on a total return basis: Check out our XRP historical price chart and AbbVie vs Crypto pages for additional charts. | We noticed that as of 4/28/2022, XRP ($XRP) can buy you the least amount of AbbVie shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of ABBV(Symbol: ABBV) with the proceeds, you would only be able to buy 0.41 share of ABBV. Here's how this relationship looks charted, over the past year: The main driver of the above bar chart has, of course, been the performance of AbbVie shares, relative to the performance of XRP; and here's how the two compare over the past year on a total return basis: Check out our XRP historical price chart and AbbVie vs Crypto pages for additional charts. | We noticed that as of 4/28/2022, XRP ($XRP) can buy you the least amount of AbbVie shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of ABBV(Symbol: ABBV) with the proceeds, you would only be able to buy 0.41 share of ABBV. Here's how this relationship looks charted, over the past year: The main driver of the above bar chart has, of course, been the performance of AbbVie shares, relative to the performance of XRP; and here's how the two compare over the past year on a total return basis: Check out our XRP historical price chart and AbbVie vs Crypto pages for additional charts. |
23431.0 | 2022-04-28 00:00:00 UTC | Pre-Market Earnings Report for April 29, 2022 : XOM, CVX, ABBV, AZN, BMY, HON, CHTR, CL, AON, TRP, PSX, LYB | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-april-29-2022-%3A-xom-cvx-abbv-azn-bmy-hon-chtr-cl-aon-trp | nan | nan | The following companies are expected to report earnings prior to market open on 04/29/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending March 31, 2022. The oil company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.25. This value represents a 246.15% increase compared to the same quarter last year. In the past year XOM has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 4.59%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for XOM is 8.60 vs. an industry ratio of 6.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending March 31, 2022. The oil company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.44. This value represents a 282.22% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVX is 9.28 vs. an industry ratio of 6.70, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending March 31, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.15. This value represents a 6.78% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 11.15 vs. an industry ratio of 15.60.
Astrazeneca PLC (AZN)is reporting for the quarter ending March 31, 2022. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.84. This value represents a 3.70% increase compared to the same quarter last year. AZN missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -14.29%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AZN is 19.94 vs. an industry ratio of 15.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Bristol-Myers Squibb Company (BMY)is reporting for the quarter ending March 31, 2022. The biomedical (gene) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.92. This value represents a 10.34% increase compared to the same quarter last year. BMY missed the consensus earnings per share in the 1st calendar quarter of 2021 by -3.33%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BMY is 9.78 vs. an industry ratio of -13.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Honeywell International Inc. (HON)is reporting for the quarter ending March 31, 2022. The diversified operations company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.86. This value represents a 3.12% decrease compared to the same quarter last year. In the past year HON has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 0.48%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for HON is 21.80 vs. an industry ratio of 18.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending March 31, 2022. The cable tv company's consensus earnings per share forecast from the 15 analysts that follow the stock is $6.50. This value represents a 58.15% increase compared to the same quarter last year. CHTR missed the consensus earnings per share in the 1st calendar quarter of 2021 by -5.3%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CHTR is 16.16 vs. an industry ratio of 16.70.
Colgate-Palmolive Company (CL)is reporting for the quarter ending March 31, 2022. The cleaning company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.74. This value represents a 7.50% decrease compared to the same quarter last year. In the past year CL has met analyst expectations three times and beat the expectations the other quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CL is 24.83 vs. an industry ratio of 24.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending March 31, 2022. The insurance brokers company's consensus earnings per share forecast from the 6 analysts that follow the stock is $4.86. This value represents a 13.55% increase compared to the same quarter last year. In the past year AON has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 9.12%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AON is 23.52 vs. an industry ratio of 19.20, implying that they will have a higher earnings growth than their competitors in the same industry.
TC Energy Corporation (TRP)is reporting for the quarter ending March 31, 2022. The alternative energy company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.90. This value represents a 1.12% increase compared to the same quarter last year. In the past year TRP has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TRP is 16.14 vs. an industry ratio of -7.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending March 31, 2022. The oil refining company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.14. This value represents a 198.28% increase compared to the same quarter last year. In the past year PSX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 52.33%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PSX is 10.35 vs. an industry ratio of 12.70.
LyondellBasell Industries NV (LYB)is reporting for the quarter ending March 31, 2022. The chemical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.48. This value represents a 9.43% increase compared to the same quarter last year. The last two quarters LYB had negative earnings surprises; the latest report they missed by -5.71%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LYB is 6.55 vs. an industry ratio of 16.50.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending March 31, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 11.15 vs. an industry ratio of 15.60. | AbbVie Inc. (ABBV)is reporting for the quarter ending March 31, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 11.15 vs. an industry ratio of 15.60. | AbbVie Inc. (ABBV)is reporting for the quarter ending March 31, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 11.15 vs. an industry ratio of 15.60. | AbbVie Inc. (ABBV)is reporting for the quarter ending March 31, 2022. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABBV is 11.15 vs. an industry ratio of 15.60. |
23432.0 | 2022-04-28 00:00:00 UTC | Drug/Biotech Stocks Q1 Earnings Due on Apr 29: BMY, ABBV, AZN | ABBV | https://www.nasdaq.com/articles/drug-biotech-stocks-q1-earnings-due-on-apr-29%3A-bmy-abbv-azn | nan | nan | First-quarter earnings kick-started last week for the pharma/biotech sector. A few pharma bigwigs have reported so far, along with a few biotech players. Several are scheduled to report shortly. Bellwether Johnson & Johnson JNJ reported mixed results, beating on earnings but missing revenue estimates. Swiss major Novartis NVS too reported mixed first-quarter results as earnings beat estimates, but sales lagged expectations. Roche’s performance in the first quarter was encouraging, driven by demand for COVID-19 tests and contribution from newer drugs.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech and medical device companies.
Per the Earnings Trends report, as of Apr 27, 21.1% of the companies in the Medical sector, constituting nearly 37.2% of the sector’s market capitalization, reported earnings. While 83.3% beat earnings estimates, 75% topped the same for sales. Earnings increased 5.6% year over year on 14% higher revenues. Overall, first-quarter earnings for the Medical sector are expected to rise 10.5% on a 13.8% sales increase.
Let’s analyze three pharma/biotech companies — Bristol Myers BMY, AbbVie ABBV and AstraZeneca AZN that are set to report results on Apr 29.
Bristol Myers
Bristol-Myers is scheduled to report quarterly results before the opening bell. The company beat earnings estimates in two of the last four quarters and missed in one, the average surprise being 1.01%. In the last reported quarter, the company met expectations.
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote
Bristol-Myers currently has an Earnings ESP of +1.57% and a Zacks Rank #3, indicating a likely earnings surprise. The Zacks Consensus Estimate for earnings stands at $1.92 per share.
Earnings in the first quarter might have gained from strong demand for Eliquis and incremental contribution from newer drugs. Label expansions of Opdivo are likely to have boosted results.
AbbVie
AbbVie has an excellent track record, with earnings beating estimates in all of the last four quarters, the surprise being 2.55%, on average. In the last reported quarter, it beat earnings expectations by 0.61%.
Per our proven model, AbbVie is likely to report an earnings beat, as it currently has an Earnings ESP of +0.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. price-consensus-eps-surprise-chart | AbbVie Inc. Quote
Strong demand for immunology drugs, aesthetics and cosmetics products is expected to have driven sales in the first quarter of 2022. Moreover, new drug launches in the past few quarters are likely to have brought additional sales during the first quarter.
AstraZeneca
The earnings surprise history has been good so far for AstraZeneca. It surpassed expectations in two of the trailing four quarters and missed in one, delivering an earnings surprise of 2.22%, on average. In the last reported quarter, AstraZeneca pulled off an earnings surprise of 9.09%.
AstraZeneca, too, is likely to report an earnings beat, as it currently has an Earnings ESP of +2.56% and Zacks Rank #3.
AstraZeneca PLC Price, Consensus and EPS Surprise
AstraZeneca PLC price-consensus-eps-surprise-chart | AstraZeneca PLC Quote
AstraZeneca’s newer drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi are likely to have driven revenues in the first quarter. Contribution from its COVID-19 vaccine might have boosted revenues further. Cost-cutting efforts are expected to have aided earnings.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
.
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AstraZeneca PLC (AZN): Free Stock Analysis Report
Novartis AG (NVS): 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. | Let’s analyze three pharma/biotech companies — Bristol Myers BMY, AbbVie ABBV and AstraZeneca AZN that are set to report results on Apr 29. AbbVie AbbVie has an excellent track record, with earnings beating estimates in all of the last four quarters, the surprise being 2.55%, on average. Per our proven model, AbbVie is likely to report an earnings beat, as it currently has an Earnings ESP of +0.18% and a Zacks Rank #3. | AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. price-consensus-eps-surprise-chart | AbbVie Inc. Quote Strong demand for immunology drugs, aesthetics and cosmetics products is expected to have driven sales in the first quarter of 2022. Let’s analyze three pharma/biotech companies — Bristol Myers BMY, AbbVie ABBV and AstraZeneca AZN that are set to report results on Apr 29. AbbVie AbbVie has an excellent track record, with earnings beating estimates in all of the last four quarters, the surprise being 2.55%, on average. | Let’s analyze three pharma/biotech companies — Bristol Myers BMY, AbbVie ABBV and AstraZeneca AZN that are set to report results on Apr 29. AbbVie AbbVie has an excellent track record, with earnings beating estimates in all of the last four quarters, the surprise being 2.55%, on average. Per our proven model, AbbVie is likely to report an earnings beat, as it currently has an Earnings ESP of +0.18% and a Zacks Rank #3. | Let’s analyze three pharma/biotech companies — Bristol Myers BMY, AbbVie ABBV and AstraZeneca AZN that are set to report results on Apr 29. AbbVie AbbVie has an excellent track record, with earnings beating estimates in all of the last four quarters, the surprise being 2.55%, on average. Per our proven model, AbbVie is likely to report an earnings beat, as it currently has an Earnings ESP of +0.18% and a Zacks Rank #3. |
23433.0 | 2022-04-28 00:00:00 UTC | 7 A-Rated Dividend Stocks to Buy Forever | ABBV | https://www.nasdaq.com/articles/7-a-rated-dividend-stocks-to-buy-forever | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Quality dividend stocks like these can see portfolios through good times and bad. Buy these and hold them forever.
AbbVie (ABBV): 3.64% forward yield. The market is overreacting to recent news with this pharmaceutical giant.
Best Buy (BBY): 3.86% forward yield. An economic slowdown may not affect its ability to keep raising its dividend.
ConAgra Brands (CAG): 3.46% forward yield. Its status as a defensive stock may outweigh concerns about inflationary pressures.
Darden Restaurants (DRI): 3.28% forward yield. Cost saving measures could reduce the impact of an economic downturn.
Fidelity National Financial (FNF): 4.31% forward yield. Even as earnings move lower, more-than-sufficient dividend coverage.
Southern Copper (SCCO): 6.05% forward yield. Investors may be underestimating how long the copper boom lasts.
Walgreens Boot Alliance (WBA): 4.19% forward yield, loss in “boost” from vaccination wave won’t affect current rate of payout.
Source: iQoncept/shutterstock.com
Looking for plays that can perform well in any market? Consider dividend stocks. Whether in a bull market and a bear market, high-quality names in this category provide steady returns through their respective payouts.
During bear markets, these types of plays can show greater resiliency. During bull markets, shares in fundamentally-superior companies with a steady dividend perform well. They may not go parabolic like some growth names when the market’s trending higher, but they do typically experience steady appreciation during such market conditions.
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However, the key words here are “high-quality” and “fundamentally superior.” Not every stock with a payout makes a great play, yet if you focus on quality first, yield second, you can find many names that stand to provide solid returns over a long timeframe. Through bull markets, bear markets, and everything in-between. That’s the case here with these seven A-rated dividend stocks:
ABBV AbbVie $156.27
BBY Best Buy $93.23
CAG ConAgra Brands $35.46
DRI Darden Restaurants $132.07
FNF Fidelity National Financial $39.42
SCCO Southern Copper $61.84
WBA Walgreens Boot Alliance $44.39
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
After going on a tear during early 2022, AbbVie (NYSE:ABBV) stock has pulled back this month. Mostly, due to the announced exit of a key executive. Along with this, news of falling sales for a drug (lymphoma therapy Imbruvica) that it co-developed with another pharmaceutical giant.
These developments may be putting pressure on it, but neither item affects the long-term bull case for this stock. Much like a past concern that’s largely been absorbed (the prospect of falling sales for its blockbuster drug Humira), other factors outweigh the executive exit and Imbruvica news.
Namely, this company’s robust pipeline. The strength of its pipeline gives it a strong chance of meeting or beating expectations in the years ahead. In turn, maintaining and growing its $1.41 per share quarterly dividend (yield of 3.64%). Trading at a low valuation (11x expected earnings), you may want to dive in after its recent weakness.
This stock earns an “A” rating in my Dividend Grader.
Best Buy (BBY)
Source: Ken Wolter / Shutterstock.com
You may think that Best Buy (NYSE:BBY) isn’t exactly a “great buy” right now. After all, with news of in-store traffic going down, and the prospect of a slowdown in spending on big-ticket items due to inflation, and the prospect of an economic slowdown caused the Federal Reserve’s efforts to tame inflation (rate hikes), it may seem like there’s disappointment ahead for shares in this electronics retailing giant.
Keep in mind, though, the big drop BBY stock has seen (from $140 to $90 per share) since November. Chances are these near-term issues are more than priced-in. Not only that, it’s possible the crowd is underestimating how resilient will be during a more challenging economic environment.
Resiliency will likely enable it to not only maintain its current 70 cent per share quarterly dividend (3.86% forward yield). It will likely enable it to keep raising this dividend, as it’s done eight years in a row.
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This stock earns an “A” rating in my Dividend Grader.
ConAgra Brands (CAG)
Source: Jonathan Weiss / Shutterstock.com
A major packaged foods company, inflation has been top of mind with investors when it comes to shares in ConAgra Brands (NYSE:CAG). The most recent outlook provided by management suggests it’s having trouble passing rising costs onto consumers.
While upping its sales forecast, it has slashed its earnings forecast. Interestingly though, CAG stock has moved up throughout the month. Why? It’s possible that investors, already aware of both inflationary pressures, plus the fading of its pandemic-era tailwinds, have moved on from both issues. Instead, seeking steadier plays, as rising interest rates make more speculative stocks less appealing, they’re cycling into this safe harbor stock.
Given it has more-than-enough coverage for its dividend (forward yield of 3.46%), and room to raise it further? We could see the market move more into this defensive play. This in turn could mean a continued trip higher, despite worries about inflation’s impact on earnings.
This stock earns an “A” rating in my Dividend Grader.
Darden Restaurants (DRI)
Source: Shutterstock
Darden Restaurants (NYSE:DRI), operator of restaurant chains like Olive Garden and Longhorn Steakhouse, may also seem like an odd choice to buy at this stage in the economic cycle. As inflation affects consumer spending, and as the Fed’s tightening plans threaten to slow down the economy, won’t its performance be affected?
Not so fast. The positive impact of the post-pandemic re-opening has so far outweighed the headwind of rising prices. Also, through efforts it made during the lockdown era, it’s been able to reduce operating costs.
That is why, per analyst consensus, Darden is on track to see its earnings rise from $4.77 per share last fiscal year (ending May 2021) to $7.38 per share this fiscal year. While earnings growth from here may come more slowly, it stands to be more than enough to enable management to continue growing the quarterly dividend for DRI stock (3.28% forward yield).
7 Bear Market Stocks to Buy if You're Feeling Fearful
This stock earns an “A” rating in my Dividend Grader.
Fidelity National Financial (FNF)
Source: viewimage / Shutterstock.com
After talking about some of the more well-known dividend stocks, let’s take a look at a more under-the-radar play. Fidelity National Financial (NYSE:FNF) isn’t a name meme traders will ever get excited about.
A provider of title insurance, the boom in residential real estate has been a boon for the company, and for FNF stock. The rush to buy houses resulted in big revenue/earnings growth in 2021. Yes, as housing demand begins to soften, there’s concern its strong operating performance will take a hit.
However, although earnings are set to drop this year, a possible housing market slowdown so far doesn’t appear to be one on-par with the late 2000s housing crash. It’s expected to earn $6.10 per share in 2022, and $6.36 per share in 2023. In other words, more than enough room to raise its annual $1.76 per share payout (4.31% forward yield).
This stock earns an “A” rating in my Dividend Grader.
Southern Copper (SCCO)
Source: ppart / Shutterstock
Earlier this month, I included Southern Copper (NYSE:SCCO) on another list of high-quality dividend stocks to buy. Right now, the market is concerned that the rise in copper prices won’t last. If it falls back, the company will see a big drop in earnings, threatening its dividend.
That’s why you are able to buy SCCO stock today, at a price that gives it a very high dividend yield (6.05%). My counter? It’s possible the market is underestimating how long things will stay favorable for copper producers. Take booming demand, thanks to the rise of electric vehicles (EVs), and couple it with low supply levels, which we are seeing today.
What do you get? A good chance of copper prices staying near multi-decade highs. This would enable Southern Copper to maintain its current payout. As concerns lessen that its dividend is under threat, its share price should zoom back toward its recent high.
7 Consumer Stocks to Buy as the Weather Warms Up
This stock earns an “A” rating in my Dividend Grader.
Walgreens Boots Alliance (WBA)
Source: saaton / Shutterstock.com
In a recession-resilient industry (healthcare), Walgreens Boots Alliance (NASDAQ:WBA) appears well-positioned to weather any economic challenges ahead. But despite this, investors remain more focused on negatives with the pharmacy chain. Namely, the loss of the “boost” its business received from the vaccine rollout.
However, you can’t say the loss of this boost isn’t already factored into the price of WBA stock. Shares today trade at a discounted valuation (9x expected earnings this fiscal year). The loss of this boost also in no way threatens its current annual dividend payout of $1.91 per share (forward yield of 4.19%).
Rather, as it earns around $5 per share this fiscal year and next fiscal year, Walgreens may be in a position to raise its payout rate. It’s done so over the past seven years. In the past five years, it’s raised its dividend by an average of 5.05% per year.
This stock earns an “A” rating in my Dividend Grader.
On the date of publication, Louis Navellier held long positions in ABBV, CAG, and DRI. 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 opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 A-Rated Dividend Stocks to Buy Forever 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): 3.64% forward yield. That’s the case here with these seven A-rated dividend stocks: ABBV AbbVie $156.27 BBY Best Buy $93.23 CAG ConAgra Brands $35.46 DRI Darden Restaurants $132.07 FNF Fidelity National Financial $39.42 SCCO Southern Copper $61.84 WBA Walgreens Boot Alliance $44.39 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com After going on a tear during early 2022, AbbVie (NYSE:ABBV) stock has pulled back this month. On the date of publication, Louis Navellier held long positions in ABBV, CAG, and DRI. | That’s the case here with these seven A-rated dividend stocks: ABBV AbbVie $156.27 BBY Best Buy $93.23 CAG ConAgra Brands $35.46 DRI Darden Restaurants $132.07 FNF Fidelity National Financial $39.42 SCCO Southern Copper $61.84 WBA Walgreens Boot Alliance $44.39 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com After going on a tear during early 2022, AbbVie (NYSE:ABBV) stock has pulled back this month. AbbVie (ABBV): 3.64% forward yield. On the date of publication, Louis Navellier held long positions in ABBV, CAG, and DRI. | That’s the case here with these seven A-rated dividend stocks: ABBV AbbVie $156.27 BBY Best Buy $93.23 CAG ConAgra Brands $35.46 DRI Darden Restaurants $132.07 FNF Fidelity National Financial $39.42 SCCO Southern Copper $61.84 WBA Walgreens Boot Alliance $44.39 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com After going on a tear during early 2022, AbbVie (NYSE:ABBV) stock has pulled back this month. AbbVie (ABBV): 3.64% forward yield. On the date of publication, Louis Navellier held long positions in ABBV, CAG, and DRI. | AbbVie (ABBV): 3.64% forward yield. That’s the case here with these seven A-rated dividend stocks: ABBV AbbVie $156.27 BBY Best Buy $93.23 CAG ConAgra Brands $35.46 DRI Darden Restaurants $132.07 FNF Fidelity National Financial $39.42 SCCO Southern Copper $61.84 WBA Walgreens Boot Alliance $44.39 AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com After going on a tear during early 2022, AbbVie (NYSE:ABBV) stock has pulled back this month. On the date of publication, Louis Navellier held long positions in ABBV, CAG, and DRI. |
23434.0 | 2022-04-28 00:00:00 UTC | Eli Lilly (LLY) Q1 Earnings and Revenues Top Estimates | ABBV | https://www.nasdaq.com/articles/eli-lilly-lly-q1-earnings-and-revenues-top-estimates | nan | nan | Eli Lilly (LLY) came out with quarterly earnings of $2.62 per share, beating the Zacks Consensus Estimate of $2.32 per share. This compares to earnings of $1.87 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 12.93%. A quarter ago, it was expected that this drugmaker would post earnings of $2.51 per share when it actually produced earnings of $2.49, delivering a surprise of -0.80%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Lilly, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $7.81 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 3.87%. This compares to year-ago revenues of $6.81 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Lilly shares have added about 3.2% since the beginning of the year versus the S&P 500's decline of -12.2%.
What's Next for Lilly?
While Lilly has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Lilly: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.13 on $6.77 billion in revenues for the coming quarter and $8.71 on $28.56 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Large Cap Pharmaceuticals is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, AbbVie (ABBV), is yet to report results for the quarter ended March 2022. The results are expected to be released on April 29.
This drugmaker is expected to post quarterly earnings of $3.15 per share in its upcoming report, which represents a year-over-year change of +6.8%. The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level.
AbbVie's revenues are expected to be $13.55 billion, up 4.2% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Eli Lilly and Company (LLY): 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. | One other stock from the same industry, AbbVie (ABBV), is yet to report results for the quarter ended March 2022. AbbVie's revenues are expected to be $13.55 billion, up 4.2% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report | One other stock from the same industry, AbbVie (ABBV), is yet to report results for the quarter ended March 2022. AbbVie's revenues are expected to be $13.55 billion, up 4.2% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report | One other stock from the same industry, AbbVie (ABBV), is yet to report results for the quarter ended March 2022. AbbVie's revenues are expected to be $13.55 billion, up 4.2% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report | One other stock from the same industry, AbbVie (ABBV), is yet to report results for the quarter ended March 2022. AbbVie's revenues are expected to be $13.55 billion, up 4.2% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23435.0 | 2022-04-28 00:00:00 UTC | Why Earnings Season Could Be Great for AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/why-earnings-season-could-be-great-for-abbvie-abbv | nan | nan | Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because AbbVie is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABBV in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $3.16 per share for ABBV, compared to a broader Zacks Consensus Estimate of $3.15 per share. This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.18% heading into earnings season.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming report.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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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. | After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABBV in this report. Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming report. | This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.18% heading into earnings season. Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming report. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV may be one such company. | This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.18% heading into earnings season. Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV may be one such company. | Given that ABBV has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions suggest that good things are ahead for AbbVie, and that a beat might be in the cards for the upcoming report. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV may be one such company. |
23436.0 | 2022-04-27 00:00:00 UTC | 3 Small-Cap Medical Stocks With Big Momentum | ABBV | https://www.nasdaq.com/articles/3-small-cap-medical-stocks-with-big-momentum | nan | nan | Rengenxbio (NASDAQ: RGNX), Corcept Therapeutics (NASDAQ: CORT), and Pacira BioSciences (NASDAQ: PCRX) are all small-cap healthcare stocks with market caps below $3.5 billion. While the share prices of many companies in this sector have plummeted recently, these three have risen in the past three months.
That said, they aren't necessarily overpriced. While not well-known, they offer the potential for incredible growth. So far, they seem to be headed in the right direction -- they each increased their earnings last year.
At the same time, small-caps often don't have much product diversification or as much cash to handle downturns, so there can be more risk than in mid-cap or large-cap stocks. Investors need to make sure that their growth is sustainable. Let's take a closer look.
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Regenxbio
Regenxbio shares are up by more than 17% over the past three months.
This biotech company specializes in gene therapies using a specialized virus delivery system. Last year, the company reported revenue of $470.3 million, up from $154.6 million in 2020. Net income totaled $127.8 million, or $2.91 per share, vs. a net loss of $111.3 million or $2.98 per share in 2020.
The company has only one approved therapy: Zolgesma, which is used to treat children aged two and under with spinal muscular dystrophy, but it is already making money from its pipeline.
Most of Regenxbio's 2021 revenue came from a $370 million upfront payment from AbbVie as part of the company's collaboration agreement in developing RGX-314, a one-time gene therapy intended to treat wet, age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other chronic retinal diseases.
The deal with AbbVie could be worth as much as $1.38 billion for Regenxbio from reaching certain development, regulatory, and commercial milestones -- and that doesn't even count Regenxbio's share of potential future U.S. sales of the therapy. (AbbVie will market the drug outside the U.S. and pay Regenbio tiered royalties based on its international sales.)
Regenexbio also receives royalty revenue from Novartis for Zolgesma. In the fourth quarter, Novartis said its Zolgesma sales were up 35% year over year. Thanks to royalty payments, Regenxbio said it had $849.3 million in cash as of Dec. 31 -- enough, management says, to fund its operations through 2025 as it develops its five treatment candidates, including RGX-314.
Corcept Therapeutics
Corcept Therapeutics' shares are up more than 32% over the past three months.
Corcept focuses on therapies that modulate the stress hormone cortisol to help treat cancer and metabolic and psychiatric disorders. It has one marketed drug, Korlym, which is approved to treat high blood sugar in patients with Cushing's syndrome or hypercortisolism, a condition that occurs when a tumor increases the body's level of cortisol to the point that it can lead to high blood pressure, bone loss, and type-2 diabetes.
Last year, the company's revenue grew by 3.4% to $366 million and net income rose 6% to $112.5 million. The company said it expects to bring in between $400 million and $430 million in revenue this year. The company also spent $207.5 million to repurchase 10 million shares in the fourth quarter.
Perhaps most exciting is that the company has several therapies in late-stage studies, including Relacorilant, which is in two phase 3 trials: one as a treatment for endogenous Cushing's syndrome and another as a treatment for Cushing's syndrome caused by adrenal adenomas. Relacorilant is also in a phase 2 trial in combination with Abraxane as a treatment for ovarian cancer. Another key Corcept pipeline drug is Miricorilant, which is in two phase 2 trials as a potential treatment for antipsychotic-induced weight gain.
The one thing hanging over Corcept is an investigation by the United States Attorney's Office for the District of New Jersey into whether Corcept violated any laws in its sale and promotion of Korlym. In November, the company said it received a subpoena for records regarding the matter, but as of early February, when Corcept issued its 2021 annual report, the U.S. Attorney's Office said it did not consider it a defendant in the matter, but rather an entity within the scope of the investigation.
While nothing further has been said about the investigation by Corcept or the U.S. Attorney's Office, it is something that stockholders are watching carefully and will probably continue to slow interest in the stock until the matter is resolved.
Pacira BioSciences
Shares of Pacira BioSciences are up more than 14% over the past three months. Pacira specializes in non-opioid pain management and health solutions in hospitals and ambulatory surgery centers, using its multivesicular liposome (pMVL) drug delivery technology.
The company has three products: analgesic Exparel (bupivacaine liposome injectable suspension), used as a post-surgery pain reliever; Zilretta (triamcinolone acetonide extended-release injectable suspension), used to treat osteoarthritis knee pain; and the Iovera hand-held cryotherapy system for relief of osteoarthritis pain, both before and after surgery.
Exparel, first approved in 2011, remains Pacira's key product. For the first quarter of 2022, the drug brought in record sales of $129.2 million, up 12%, year over year. It was also responsible for some 80% of the company's total revenue, preliminarily reported as $157.4 million to $158.4 million. Moreover, the company noted last year that it is pursuing several label expansions for Exparel.
Last year, Pacira's annual revenue grew 26.3% to $538.9 million. Management also said Pacira is on track for its eighth consecutive year of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Pacira's sales should continue to rise as the medical community works through the backlog of elective surgical procedures that were delayed due to the pandemic. The company sees a lot of untapped potential for Exparel sales, along with natural growth in sales for Zilretta and Iovera.
CORT PE Ratio (Forward) data by YCharts
Big gains in little packages
Small-cap stocks can be hidden gems with great potential for growth, sporting relatively low valuations because they aren't well-known yet. The downside of each of these healthcare companies is that they have little diversity when it comes to revenue sources: Regenxbio and Corcept have only one approved therapy each, and Pacira is heavily reliant on its lead therapy.
However, Corcept has a growing pipeline of therapies in late-stage trials, and while it has had the slowest revenue growth of the three, I think that's about to change, though again, the pending investigation into Korlym sales should be watched. I also see plenty of potential for Pacira -- its business will likely pick up as elective procedures increase. Based on their forward price-to-earnings ratios of 18.39 and 18.25, respectively, they appear to be well-priced for interested investors.
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Jim Halley owns AbbVie. The Motley Fool owns and recommends Regenxbio. 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. | Most of Regenxbio's 2021 revenue came from a $370 million upfront payment from AbbVie as part of the company's collaboration agreement in developing RGX-314, a one-time gene therapy intended to treat wet, age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other chronic retinal diseases. The deal with AbbVie could be worth as much as $1.38 billion for Regenxbio from reaching certain development, regulatory, and commercial milestones -- and that doesn't even count Regenxbio's share of potential future U.S. sales of the therapy. (AbbVie will market the drug outside the U.S. and pay Regenbio tiered royalties based on its international sales.) | Most of Regenxbio's 2021 revenue came from a $370 million upfront payment from AbbVie as part of the company's collaboration agreement in developing RGX-314, a one-time gene therapy intended to treat wet, age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other chronic retinal diseases. The deal with AbbVie could be worth as much as $1.38 billion for Regenxbio from reaching certain development, regulatory, and commercial milestones -- and that doesn't even count Regenxbio's share of potential future U.S. sales of the therapy. (AbbVie will market the drug outside the U.S. and pay Regenbio tiered royalties based on its international sales.) | Most of Regenxbio's 2021 revenue came from a $370 million upfront payment from AbbVie as part of the company's collaboration agreement in developing RGX-314, a one-time gene therapy intended to treat wet, age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other chronic retinal diseases. The deal with AbbVie could be worth as much as $1.38 billion for Regenxbio from reaching certain development, regulatory, and commercial milestones -- and that doesn't even count Regenxbio's share of potential future U.S. sales of the therapy. (AbbVie will market the drug outside the U.S. and pay Regenbio tiered royalties based on its international sales.) | Most of Regenxbio's 2021 revenue came from a $370 million upfront payment from AbbVie as part of the company's collaboration agreement in developing RGX-314, a one-time gene therapy intended to treat wet, age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other chronic retinal diseases. The deal with AbbVie could be worth as much as $1.38 billion for Regenxbio from reaching certain development, regulatory, and commercial milestones -- and that doesn't even count Regenxbio's share of potential future U.S. sales of the therapy. (AbbVie will market the drug outside the U.S. and pay Regenbio tiered royalties based on its international sales.) |
23437.0 | 2022-04-27 00:00:00 UTC | AbbVie: Health Canada Approves VRAYLAR - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie%3A-health-canada-approves-vraylar-quick-facts | nan | nan | (RTTNews) - AbbVie (ABBV) said Health Canada has approved VRAYLAR (cariprazine) as monotherapy for the acute management of manic, mixed, and depressive episodes associated with bipolar l disorder in adults, and the treatment of schizophrenia in adults. VRAYLAR is a new atypical antipsychotic medication with partial agonist activity at central dopamine D3 receptors in addition to targeted activity at D2 and serotonin 5-HT1A and 5-HT2A receptors.
VRAYLAR is being developed jointly by AbbVie and Gedeon Richter, with AbbVie responsible for commercialization in the U.S., Canada, Japan, Taiwan and certain Latin American countries.
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 Health Canada has approved VRAYLAR (cariprazine) as monotherapy for the acute management of manic, mixed, and depressive episodes associated with bipolar l disorder in adults, and the treatment of schizophrenia in adults. VRAYLAR is being developed jointly by AbbVie and Gedeon Richter, with AbbVie responsible for commercialization in the U.S., Canada, Japan, Taiwan and certain Latin American countries. VRAYLAR is a new atypical antipsychotic medication with partial agonist activity at central dopamine D3 receptors in addition to targeted activity at D2 and serotonin 5-HT1A and 5-HT2A receptors. | (RTTNews) - AbbVie (ABBV) said Health Canada has approved VRAYLAR (cariprazine) as monotherapy for the acute management of manic, mixed, and depressive episodes associated with bipolar l disorder in adults, and the treatment of schizophrenia in adults. VRAYLAR is being developed jointly by AbbVie and Gedeon Richter, with AbbVie responsible for commercialization in the U.S., Canada, Japan, Taiwan and certain Latin American countries. VRAYLAR is a new atypical antipsychotic medication with partial agonist activity at central dopamine D3 receptors in addition to targeted activity at D2 and serotonin 5-HT1A and 5-HT2A receptors. | (RTTNews) - AbbVie (ABBV) said Health Canada has approved VRAYLAR (cariprazine) as monotherapy for the acute management of manic, mixed, and depressive episodes associated with bipolar l disorder in adults, and the treatment of schizophrenia in adults. VRAYLAR is being developed jointly by AbbVie and Gedeon Richter, with AbbVie responsible for commercialization in the U.S., Canada, Japan, Taiwan and certain Latin American countries. VRAYLAR is a new atypical antipsychotic medication with partial agonist activity at central dopamine D3 receptors in addition to targeted activity at D2 and serotonin 5-HT1A and 5-HT2A receptors. | (RTTNews) - AbbVie (ABBV) said Health Canada has approved VRAYLAR (cariprazine) as monotherapy for the acute management of manic, mixed, and depressive episodes associated with bipolar l disorder in adults, and the treatment of schizophrenia in adults. VRAYLAR is being developed jointly by AbbVie and Gedeon Richter, with AbbVie responsible for commercialization in the U.S., Canada, Japan, Taiwan and certain Latin American countries. VRAYLAR is a new atypical antipsychotic medication with partial agonist activity at central dopamine D3 receptors in addition to targeted activity at D2 and serotonin 5-HT1A and 5-HT2A receptors. |
23438.0 | 2022-04-27 00:00:00 UTC | Will Biogen (BIIB) Succeed in Beating Q1 Earnings Estimates? | ABBV | https://www.nasdaq.com/articles/will-biogen-biib-succeed-in-beating-q1-earnings-estimates | nan | nan | We expect Biogen BIIB to beat expectations when it reports first-quarter 2022 results on May 3, before market open. In the last reported quarter, the company delivered an earnings surprise of 2.11%.
The company’s earnings beat estimates in each of the last four quarters. The company has a four-quarter earnings surprise of 11.72%, on average.
Biogen Inc. Price and EPS Surprise
Biogen Inc. price-eps-surprise | Biogen Inc. Quote
Biogen’s stock has declined 13.8% this year so far compared with a decrease of 17.1% for the industry
Image Source: Zacks Investment Research
Factors to Consider
Biogen’s sales in the first quarter are likely to have been hurt by lower sales of Tecfidera and Spinraza.
Biogen’s multiple sclerosis revenues have been declining since the past few quarters. It is unlikely that MS sales have improved in the first quarter.
Among Biogen’s MS drugs, sales of Tecfidera are likely to have declined steeply, hurt by the launch of multiple generics products in the United States. Tecfidera generics are also expected to be launched in Europe in the first half of 2022. It remains to be seen if generics were launched in Europe and hurt sales from the drug.
Sales of another MS drug, Tysabri may have benefited from volume increases and patient growth, despite increased competitive pressure and price reductions in certain European markets.
The Zacks Consensus Estimate for sales of Tecfidera in the first quarter is pegged at $403 million while that for Tysabri is $495 million.
Sales volumes of new MS drug Vumerity are likely to have increased compared with the year-ago quarter, continuing the trend observed in the past three quarters of 2021. The Zacks Consensus Estimate for Vumerity is $127 million.
Biogen receives royalties on U.S. sales of Roche’s RHHBY MS drug, Ocrevus, which is also expected to have contributed to the top line. The Zacks Consensus Estimate for Ocrevus royalties is $238 million.
Roche’s Ocrevus (ocrelizumab) was approved for the treatment of relapsing MS (RMS) and primary progressive MS (PPMS) in March 2017
Revenues from Biogen’s share of Roche’s drugs, Rituxan and Gazyva are also likely to have declined in the quarter due to biosimilar competition and the impacts of COVID-19.
The negative impact of COVID-19 and increased competition in the United States are likely to have hurt sales of Biogen’s spinal muscular atrophy drug, Spinraza, in the United States. Outside the United States, sales of Spinraza might have been hurt due to competition and pricing pressure in Europe. The Zacks Consensus Estimate for sales of Spinraza is $408 million.
Sales of the new Alzheimer’s drug, Aduhelm, are likely to have been minimal as patient access is limited.
Earlier this month, the Centers for Medicare & Medicaid Services (“CMS”) released its final National Coverage Determination (NCD) decision for the class of anti-amyloid antibodies approved by the FDA like Aduhelm. Per the final NCD decision, Medicare said it would cover FDA-approved drugs like Aduhelm only for patients enrolled in CMS-approved studies. This means Medicare will not cover Aduhelm for patients treated outside of clinical studies.
With the CMS now abiding by the draft decision released in January, it will restrict patient access to Aduhelm and limit its commercial potential.
In Europe too, Biogen announced last week that it had withdrawn its marketing authorization application (MAA) for aducanumab. The decision to withdraw the MAA was based on a suggestion by the EMA’s Committee for Medicinal Products for Human Use (CHMP) that the data provided thus far would not be sufficient for a positive opinion from the agency to support marketing approval of the candidate.
Management is likely to face questions on these setbacks related to Aduhelm on the first-quarter conference call.
Biosimilars revenues may have benefited from volume increase, which is likely to have been offset by pricing pressure. The Zacks Consensus Estimate for sales of biosimilars is $213 million.
The reduction in revenues from Tecfidera and Rituxan, both high-margin products, is expected to have lowered Biogen’s gross margin in the first quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Biogen in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is the case here, as elaborated below.
Earnings ESP: Biogen’s Earnings ESP is +1.57% as the Most Accurate Estimate of $4.43 is higher than the Zacks Consensus Estimate of $4.36. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Biogen has a Zacks Rank #3
Other Stocks to Consider
Here are some large drug/biotech stocks that also have the right combination of elements to beat on earnings this time around:
AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AbbVie’s stock has surged 17.6% this year so far. AbbVie topped earnings estimates in three of the last four quarters. AbbVie has a four-quarter earnings surprise of 2.55%, on average. ABBV is scheduled to release its first-quarter 2022 results on Apr 29.
Moderna MRNA with an Earnings ESP of +3.89% and a Zacks Rank #3.
Moderna topped earnings estimates in three of the last four quarters. Moderna has a four-quarter earnings surprise of 11.88%, on average. The stock has declined 42.6% this year so far.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Biogen Inc. (BIIB): Free Stock Analysis Report
Roche Holding AG (RHHBY): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zacks Rank: Biogen has a Zacks Rank #3 Other Stocks to Consider Here are some large drug/biotech stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has surged 17.6% this year so far. AbbVie topped earnings estimates in three of the last four quarters. | Zacks Rank: Biogen has a Zacks Rank #3 Other Stocks to Consider Here are some large drug/biotech stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has surged 17.6% this year so far. AbbVie topped earnings estimates in three of the last four quarters. | Zacks Rank: Biogen has a Zacks Rank #3 Other Stocks to Consider Here are some large drug/biotech stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has surged 17.6% this year so far. AbbVie topped earnings estimates in three of the last four quarters. | AbbVie topped earnings estimates in three of the last four quarters. Zacks Rank: Biogen has a Zacks Rank #3 Other Stocks to Consider Here are some large drug/biotech stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has surged 17.6% this year so far. |
23439.0 | 2022-04-26 00:00:00 UTC | AbbVie: What to Expect from Q1 Earnings | ABBV | https://www.nasdaq.com/articles/abbvie%3A-what-to-expect-from-q1-earnings | nan | nan | Shares of biopharma company AbbVie (NYSE: ABBV) have surged 15.5% year-to-date, outperforming the broader market. Amid the volatility, many investors prefer safer bets like AbbVie, which offers an attractive dividend yield.
AbbVie’s dividend yield stands at 3.49%, ahead of the healthcare sector’s average dividend yield of 1.35%.
AbbVie is widely known for its blockbuster autoimmune disease drug Humira, which generated $20.7 billion in revenue in 2021, accounting for 37% of the company’s overall revenue.
While concerns about the loss of the U.S. exclusivity for Humira in 2023 prevail, AbbVie is strengthening its portfolio through organic growth, strategic acquisitions (like Allergan in 2020), and collaborations.
The company sees robust growth prospects for several drugs, including immunology drugs Skyrizi and Rinvoq. It anticipates Skyrizi and Rinvoq to contribute over $15 billion in combined risk-adjusted global sales in 2025.
Upcoming Results
AbbVie’s Q421 revenue grew 7.4% to $14.89 billion, slightly lagging analysts’ estimate of $14.95 billion. Revenue from Humira increased 3.5% to $5.3 billion, driven by 6% growth in the U.S., partially offset by a 9.1% decline in Humira’s international revenue due to biosimilar competition.
Q421 adjusted EPS of $3.31 increased 13.4% year-over-year and surpassed analysts’ estimates of $3.28. AbbVie expects 2022 adjusted EPS in the range of $14.00-$14.20 compared to $12.70 in 2021 and higher than Wall Street’s expectations of $13.99.
AbbVie is scheduled to announce its Q122 results on April 29. Analysts expect revenue to increase 5.3% to $13.62 billion and EPS to grow 6.4% to $3.14.
Wall Street’s Take
Ahead of the print, BMO Capital analyst Gary Nachman reiterated a Buy rating on AbbVie and raised the price target to $174 from $161 based on an improving outlook.
Nachman expects “solid 1Q22 results” driven by continued momentum in the company’s key growth drivers. Specifically, the analyst is optimistic about “immunology with impressive Skyrizi Rx trends and Rinvoq growth taking JAK share (recent positive physician feedback on increasing use), and Neuroscience led by robust migraine franchise accelerating with Qulipta/Ubrelvy taking share (also positive physician feedback).”
Further, Nachman expects Abbvie’s Aesthetics line to perform well and help to offset potential revenue declines in Hematologic Oncology and Eye Care business lines. He also believes that AbbVie’s pipeline could drive further multiple expansion.
Turning to the rest of the Street, AbbVie scores a Moderate Buy consensus rating based on 10 Buys and five Holds. The average AbbVie price target of $161.73 suggests a modest 3.47% upside potential from current levels.
Conclusion
While Humira continues to be AbbVie’s crown jewel, investors will be keen to observe the performance of other rapidly growing drugs, like Skyrizi and Rinvoq, which are expected to drive the company’s top-line growth in the years ahead.
Currently, AbbVie scores a nine out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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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. | Wall Street’s Take Ahead of the print, BMO Capital analyst Gary Nachman reiterated a Buy rating on AbbVie and raised the price target to $174 from $161 based on an improving outlook. Specifically, the analyst is optimistic about “immunology with impressive Skyrizi Rx trends and Rinvoq growth taking JAK share (recent positive physician feedback on increasing use), and Neuroscience led by robust migraine franchise accelerating with Qulipta/Ubrelvy taking share (also positive physician feedback).” Further, Nachman expects Abbvie’s Aesthetics line to perform well and help to offset potential revenue declines in Hematologic Oncology and Eye Care business lines. Conclusion While Humira continues to be AbbVie’s crown jewel, investors will be keen to observe the performance of other rapidly growing drugs, like Skyrizi and Rinvoq, which are expected to drive the company’s top-line growth in the years ahead. | Specifically, the analyst is optimistic about “immunology with impressive Skyrizi Rx trends and Rinvoq growth taking JAK share (recent positive physician feedback on increasing use), and Neuroscience led by robust migraine franchise accelerating with Qulipta/Ubrelvy taking share (also positive physician feedback).” Further, Nachman expects Abbvie’s Aesthetics line to perform well and help to offset potential revenue declines in Hematologic Oncology and Eye Care business lines. Shares of biopharma company AbbVie (NYSE: ABBV) have surged 15.5% year-to-date, outperforming the broader market. Amid the volatility, many investors prefer safer bets like AbbVie, which offers an attractive dividend yield. | AbbVie is widely known for its blockbuster autoimmune disease drug Humira, which generated $20.7 billion in revenue in 2021, accounting for 37% of the company’s overall revenue. Specifically, the analyst is optimistic about “immunology with impressive Skyrizi Rx trends and Rinvoq growth taking JAK share (recent positive physician feedback on increasing use), and Neuroscience led by robust migraine franchise accelerating with Qulipta/Ubrelvy taking share (also positive physician feedback).” Further, Nachman expects Abbvie’s Aesthetics line to perform well and help to offset potential revenue declines in Hematologic Oncology and Eye Care business lines. Conclusion While Humira continues to be AbbVie’s crown jewel, investors will be keen to observe the performance of other rapidly growing drugs, like Skyrizi and Rinvoq, which are expected to drive the company’s top-line growth in the years ahead. | Wall Street’s Take Ahead of the print, BMO Capital analyst Gary Nachman reiterated a Buy rating on AbbVie and raised the price target to $174 from $161 based on an improving outlook. Shares of biopharma company AbbVie (NYSE: ABBV) have surged 15.5% year-to-date, outperforming the broader market. Amid the volatility, many investors prefer safer bets like AbbVie, which offers an attractive dividend yield. |
23440.0 | 2022-04-26 00:00:00 UTC | Universal Health (UHS) Q1 Earnings Miss Mark, Tumble Y/Y | ABBV | https://www.nasdaq.com/articles/universal-health-uhs-q1-earnings-miss-mark-tumble-y-y | nan | nan | Universal Health Services, Inc. UHS reported first-quarter 2022 adjusted earnings of $2.15 per share, which missed the Zacks Consensus Estimate of $2.47 by 13%. The bottom line decreased 11.9% year over year.
Results were hurt by escalating expenses and lower admissions in its Behavioral Health Care Services segment. However, the same was partly offset by better revenues.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
Quarterly Operational Update
Net revenues of $3.29 billion improved 9.3% year over year. The top line beat the consensus mark by 2.2%.
Total operating costs rose 12.6% year over year to $3 billion in the first quarter, mainly due to increased salaries, wages and benefits, other operating expenses, supplies expense, depreciation and amortization.
Segmental Update
Acute Care Hospital Services
On same facility basis, adjusted patient days increased 5.5% year over year in the first quarter. Net revenues improved 9.7% year over year in the quarter on same facility basis from UHS’s acute care services.
Behavioral Health Care Services
In the quarter under review, adjusted patient days on same facility basis slid 1.3% year over year. Net revenues drawn from Universal Health’s behavioral health care services inched up 3.8% year over year.
Financial Update (as of Mar 31, 2022)
Universal Health exited the first quarter with cash and cash equivalents of $105.9 million, down 8.1% from the level at 2021 end.
UHS had $736 million of aggregate available borrowing capacity pursuant to its $1.2-billion revolving credit facility, net of outstanding borrowings and letters of credit at the end of first-quarter 2022.
Total assets of $13.1 billion were up 0.4% from the figure as of Dec 31, 2021.
UHS’s long-term debt totaled $4.25 billion, which increased 2.6% from the 2021-end level.
During the three months of 2022, net cash provided by operating activities of $445 million compares favorably with $72 million reported in the year-ago comparable period.
This was mainly on the back of a favorable change resulting from Medicare-accelerated payments received in 2020 and repaid in first-quarter 2021, an unfavorable change in accounts receivable, an unfavorable change from a decline in net income and depreciation and amortization expense, stock-based compensation expense and gain/loss on sales of assets and businesses along with other combined net unfavorable changes.
Share Repurchase Update
In the first quarter, Universal Health bought back 2.65 million shares worth $350.2 million.
In February, management hiked its share repurchase plan by $1.4 billion.
As of Mar 31, 2021, UHS had an aggregate stock buyback plan of $1.41 billion.
Guidance
Universal Health reaffirmed its previously issued 2022 operating result forecast.
Zacks Rank
Universal Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in their upcoming releases:
Acadia Healthcare Company, Inc. ACHC provides behavioral health care services in the United States and the United Kingdom. ACHC
has an Earnings ESP of +0.95% and a Zacks Rank of 3, currently. ACHC will report March-quarter results on May 5. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brookdale Senior Living Inc. BKD is a leading owner and operator of senior-living facilities throughout the United States. BKD holds a Zacks Rank of 3 at present. BKD has an Earnings ESP of +8.76% and will report first-quarter earnings on May 5.
AbbVie Inc. ABBV became one of the top-most pharma companies after acquiring Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. ABBV is currently Zacks #3 Ranked and has an Earnings ESP of +0.18%. ABBV will report first-quarter earnings results on Apr 29.
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Universal Health Services, Inc. (UHS): Free Stock Analysis Report
Brookdale Senior Living Inc. (BKD): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ABBV became one of the top-most pharma companies after acquiring Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. ABBV is currently Zacks #3 Ranked and has an Earnings ESP of +0.18%. ABBV will report first-quarter earnings results on Apr 29. | AbbVie Inc. ABBV became one of the top-most pharma companies after acquiring Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. ABBV is currently Zacks #3 Ranked and has an Earnings ESP of +0.18%. ABBV will report first-quarter earnings results on Apr 29. | AbbVie Inc. ABBV became one of the top-most pharma companies after acquiring Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. ABBV is currently Zacks #3 Ranked and has an Earnings ESP of +0.18%. ABBV will report first-quarter earnings results on Apr 29. | AbbVie Inc. ABBV became one of the top-most pharma companies after acquiring Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. ABBV is currently Zacks #3 Ranked and has an Earnings ESP of +0.18%. ABBV will report first-quarter earnings results on Apr 29. |
23441.0 | 2022-04-26 00:00:00 UTC | Healthcare ETFs in Focus Ahead of Q1 Earnings | ABBV | https://www.nasdaq.com/articles/healthcare-etfs-in-focus-ahead-of-q1-earnings | nan | nan | The healthcare sector has gained some momentum lately on investors’ rush to safety in a volatile stock market. The sector is non-cyclical in nature, which in turn, is providing a cushion to the portfolio. Additionally, lockdown measures in China have led to global growth concerns, thereby raising the appeal for defensive bets (read: Healthcare ETFs Outperform Amid Rising Uncertainties).
Better-than-expected earnings from Johnson & Johnson JNJ and UnitedHealth Group UNH have also provided some support. Despite the latest strength, the ultra-popular ETFs, Health Care Select Sector SPDR Fund XLV, Vanguard Health Care ETF VHT, iShares U.S. Healthcare ETF IYH and Fidelity MSCI Health Care Index ETF FHLC, are down more than 2% each over the past month.
The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV and Gilead Sciences GILD that dominate returns. These firms are lined up to report their earnings in the next two weeks. All these stocks collectively account for 20.9% share in XLV, 20.3% in IYH, 17.9% in VHT and 21% in FHLC.
Let’s dig deeper into the earnings picture of these companies, which will drive the performance of the above-mentioned funds in the coming days:
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Surprise Prediction for These Stocks
Pfizer has a Zacks Rank #3 and an Earnings ESP of -9.53%. The stock witnessed a negative earnings estimate revision of three cents for the to-be-reported quarter over the past seven days. It delivered an earnings surprise of 19.79%, on average, in the past four quarters and has a VGM Score of A. Pfizer is scheduled to report earnings on May 3, before the opening bell.
Merck is expected to report results on Apr 28 before market open. It has a Zacks Rank #3 and an Earnings ESP of +3.36%. The stock witnessed a negative earnings estimate revision of four cents over the past seven days for the to-be-reported quarter. Additionally, the stock delivered an average beat of 5.33% in the last four quarters. Merck has a VGM Score of B (see: all the Healthcare ETFs here).
Amgen carries a Zacks Rank #3 and has an Earnings ESP of +2.58%. It witnessed a positive earnings estimate revision of a penny over the past seven days for the quarter to be reported. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The earnings surprise track over the past four quarters is strong, with the beat being 3.63%, on average. The stock has a VGM Score of B. Amgen will report earnings on Apr 27.
AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.18%. It saw a positive earnings estimate revision of a couple of cents over the past 30 days for the to-be-reported quarter and delivered an earnings surprise of 2.55%, on average, in the last four quarters. The stock has a VGM Score of B. The company is scheduled to report on Apr 29 before the opening bell.
Gilead is expected to release earnings on Apr 28 after market close. It has a Zacks Rank #3 and an Earnings ESP of +5.69%. The stock saw a negative earnings estimate revision of four cents over the seven days for the to-be-reported quarter. Gilead’s earnings surprise was 1.60%, on average, over the last four quarters. Gilead has a VGM Score of B.
Summing Up
The healthcare sector is expected to witness substantial earnings growth of 10.3% in the first quarter. In particular, FHLC has a Zacks ETF Rank #3 while the remaining three have a Zacks ETF Rank #1.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
iShares U.S. Healthcare ETF (IYH): ETF Research Reports
Vanguard Health Care ETF (VHT): ETF Research Reports
Fidelity MSCI Health Care Index ETF (FHLC): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV and Gilead Sciences GILD that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.18%. AbbVie Inc. (ABBV): Free Stock Analysis Report | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV and Gilead Sciences GILD that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.18%. AbbVie Inc. (ABBV): Free Stock Analysis Report | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV and Gilead Sciences GILD that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.18%. AbbVie Inc. (ABBV): Free Stock Analysis Report | The further price movement of these funds depends on earnings releases from some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV and Gilead Sciences GILD that dominate returns. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.18%. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23442.0 | 2022-04-26 00:00:00 UTC | Walgreens, drugmakers blame others for San Francisco's opioid crisis | ABBV | https://www.nasdaq.com/articles/walgreens-drugmakers-blame-others-for-san-franciscos-opioid-crisis | nan | nan | By Dietrich Knauth
April 26 (Reuters) - Pharmacy chain Walgreens Boots Alliance WBA.O and other defendants on Tuesday said they were not to blame for the opioid crisis in San Francisco, and that they acted responsibly when providing legal medications to patients in pain.
"Almost all of those prescriptions were written by good, well-meaning doctors," Walgreens attorney Kate Swift said during opening statements in a trial in San Francisco federal court. "It was appropriate for good pharmacists to fill those prescriptions."
The trial, which kicked off Monday, is the first to target drug manufacturers, distributors and pharmacies over the addictive pain medicines.
San Francisco has accused Walgreens, Teva Pharmaceutical Industries Ltd TEVA.TA, AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, of creating a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use.
A lawyer for San Francisco said during opening statements on Monday that the entire prescription drug industry was to blame for recklessly expanding the market for opioid drugs.
San Francisco has been hit hard by the opioid crisis, which has caused more than 500,000 overdose deaths nationwide in the past two decades, according to the U.S. Centers for Disease Control and Prevention. Opioid-related health issues now account for 25% of emergency room visits at the city's largest public hospital, according to the lawsuit.
Drugmakers Teva and Allergan said on Tuesday that they were minor players in the crisis compared to companies like Purdue Pharma and the wealthy Sackler family that owns the now bankrupt company.
"This crisis traces back to Purdue Pharma and the Sackler family and their pursuit of profits," said Collie James, an attorney for Teva and its affiliates.
By comparison, Teva's branded opioid drugs Actiq and Fentora, made by its Cephalon unit, were "a barely perceptible blip on the opioid market in San Francisco," James said.
Allergan attorney Hariklia Karis made similar arguments about Allergan's branded opioids, Kadian and Norco.
"Kadian made no difference in this market," Karis said. "Norco did not move the market."
The members of the Sackler family that own Purdue have said that they acted lawfully, but "regret" that its widely-prescribed OxyContin "unexpectedly became part of an opioid crisis."
San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O, and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N. The city previously settled with those defendants ahead of the trial.
The lawsuit was one of more than 3,000 cases filed by state and local governments over the U.S. opioid crisis.
J&J and the three large distributors agreed to a $26 billion nationwide settlement of opioid claims against them, which California and San Francisco joined. But many of the lawsuits are proceeding against other drugmakers, distributors and pharmacies.
(Reporting by Dietrich Knauth; Editing by Noeleen Walder and Bill Berkrot)
((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. | San Francisco has accused Walgreens, Teva Pharmaceutical Industries Ltd TEVA.TA, AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, of creating a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. By Dietrich Knauth April 26 (Reuters) - Pharmacy chain Walgreens Boots Alliance WBA.O and other defendants on Tuesday said they were not to blame for the opioid crisis in San Francisco, and that they acted responsibly when providing legal medications to patients in pain. "Almost all of those prescriptions were written by good, well-meaning doctors," Walgreens attorney Kate Swift said during opening statements in a trial in San Francisco federal court. | San Francisco has accused Walgreens, Teva Pharmaceutical Industries Ltd TEVA.TA, AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, of creating a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. Allergan attorney Hariklia Karis made similar arguments about Allergan's branded opioids, Kadian and Norco. San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O, and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N. | San Francisco has accused Walgreens, Teva Pharmaceutical Industries Ltd TEVA.TA, AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, of creating a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. A lawyer for San Francisco said during opening statements on Monday that the entire prescription drug industry was to blame for recklessly expanding the market for opioid drugs. By comparison, Teva's branded opioid drugs Actiq and Fentora, made by its Cephalon unit, were "a barely perceptible blip on the opioid market in San Francisco," James said. | San Francisco has accused Walgreens, Teva Pharmaceutical Industries Ltd TEVA.TA, AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, of creating a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. The trial, which kicked off Monday, is the first to target drug manufacturers, distributors and pharmacies over the addictive pain medicines. A lawyer for San Francisco said during opening statements on Monday that the entire prescription drug industry was to blame for recklessly expanding the market for opioid drugs. |
23443.0 | 2022-04-26 00:00:00 UTC | 3 Dividend Stocks for Value Investors Seeking Regular Income | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-for-value-investors-seeking-regular-income | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
3M Company (MMM): This dividend stock has been paying dividends to its shareholders for more than 100 years.
AbbVie (ABBV): AbbVie has doubled its dividend over a span of seven years, after its spin-off from Abbot Laboratories.
Johnson & Johnson (JNJ): The firm has raised its dividend for 60 consecutive years.
Source: Shutterstock
Dividend stocks give value investors a regular source of income. And in the current high-inflation environment, investing in dividend aristocrats is considered a safe bet as they provide hedge against rising inflation.
In March 2022, the United States authorities reported an annual inflation rate of 8.5%. This is highest in the last 40 years.
Also given low bond yields, investing in dividend stocks is prudent as returns would be higher. Investors should be cautious in selecting these stocks.
Below are three companies that have been distributing dividends for more than 50 years. These companies have sustained their dividends, even during unfavorable economic conditions. I have selected these stocks after considering their track record of steady performance, as well as their future growth prospects.
7 Consumer Stocks to Buy as the Weather Warms Up
From the valuation perspective, these dividend stocks are currently trading at discounts compared to their peer group average, making them an attractive investment proposition.
MMM 3M Company $146.73
ABBV AbbVie $154.25
JNJ Johnson & Johnson $183.88
3M Company (MMM)
Source: Ken Wolter / Shutterstock.com
3M Company (NYSE:MMM) has paid dividends to its shareholders without interruption for more than 100 years. The company has steadily increased its annual dividend for 64 consecutive years.
The dividend payout has increased at an annualized rate of around 10% over the past decade. The company has a dividend yield of 4%, higher than the 30-day SEC yield of 1.4% of the Vanguard Industrial Index ETF (NYSEARCA:VIS).
3M is a diversified technology company that manufactures and marketer of variety of products used in daily life. Over the last five years, the company has grown at a stable rate of 3.3%.
In 2021, its revenues increase 9.9% primarily led by an 8.8% growth in organic sales and a 1.6% favorable impact from currency translations.
Going forward, management estimates organic sales to grow in the range of 2% to 5%. Earnings per share (EPS) are expected in the range of $10.15 to $10.65. Free cash flow (FCF) is likely to be between $5.3 billion and $6.2 billion.
Although the estimates can be impacted by supply chain disruptions, the company has adequate cashflows to sustain its dividends and capex plans.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) was formed in 2013 from the spinoff of Abbott Laboratories (NYSE:ABT). The company is a biopharmaceutical firm that discovers, develops, manufactures, and sells its products globally.
The company is known for its drug Humira, an immunology medication with several uses.
Over the last five years, ABBV has grown at an impressive compounded annual rate of 17%. However, this drug is expected to lose its patent in 2022.
Regulatory approval of its Rinvoq drug (used in treating patients with moderate to severe ulcerative colitis) should keep the growth momentum going. The drug is likely to generate more than $400 million in annual sales.
Further, the company expects to achieve over $2 billion worth of synergy from its acquisition of Allergan to develop new aesthetics business.
In 2022, the board raised its dividend by 8.5% in 2022 to $1.41 a share. Counting its time as part of ABT, the company has raised dividends for over 50 years.
Overall, AbbVie has raised its dividend 250% after its spin-off and maintained a pay-out ratio of 88%. It has a dividend yield of 3.6%.
For 2022, management anticipates adjusted earnings of $14-$14.20 per share, up by 10% year-over-year.
7 Top-Rated Biotech Stocks to Buy for Q2
Free cash flow is expected to be $24 billion, which it will utilized in paying debts, investing in its robust pipeline of products and support its dividend.
Johnson & Johnson (JNJ)
Source: Sundry Photography / Shutterstock.com
The last of our dividend stocks, Johnson & Johnson (NYSE:JNJ), is a healthcare provider in the United States. The firm researches and develops, manufactures and sells various products in categories like consumer health, pharmaceuticals, and medical devices.
The company’s greatest strengths lie in its size and diversity of revenue streams. Over the last five years, JNJ has recorded a compounded annual revenue growth rate of 5.6%.
In the first quarter of 2022, the company reported revenues of $23.4 billion, up 5% year-over-year, led by strength in all its segments on an operational basis (excluding the impact of currency). Earnings of $2.67 per share overshadowed consensus estimates by 7 cents per share.
The board has raised its dividend for 60 consecutive years, including a 6.6% increase in Q1 2022 to $1.13 per share. At present, this provides a yield of about 2.5%, and maintains a payout ratio of 57%.
However, management lowered its FY 2022 guidance due to a slower demand for Covid-19 vaccine.
Excluding revenues from the Covid-19 vaccine, the company is expected to generate revenues in the range of $94.8 billion to $95.8 billion, down from its previously estimation of $95.9 billion to $96.9 billion. Organic sales are likely to grow in the range of 6.5%-7.5%.
Adjusted earnings per share is now forecasted in the range of $10.15-$10.35, down from $10.40-$10.60 per share guided previously.
On the date of publication, Sakshi Agarwalla 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 for Value Investors Seeking Regular Income 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): AbbVie has doubled its dividend over a span of seven years, after its spin-off from Abbot Laboratories. MMM 3M Company $146.73 ABBV AbbVie $154.25 JNJ Johnson & Johnson $183.88 3M Company (MMM) Source: Ken Wolter / Shutterstock.com 3M Company (NYSE:MMM) has paid dividends to its shareholders without interruption for more than 100 years. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) was formed in 2013 from the spinoff of Abbott Laboratories (NYSE:ABT). | MMM 3M Company $146.73 ABBV AbbVie $154.25 JNJ Johnson & Johnson $183.88 3M Company (MMM) Source: Ken Wolter / Shutterstock.com 3M Company (NYSE:MMM) has paid dividends to its shareholders without interruption for more than 100 years. AbbVie (ABBV): AbbVie has doubled its dividend over a span of seven years, after its spin-off from Abbot Laboratories. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) was formed in 2013 from the spinoff of Abbott Laboratories (NYSE:ABT). | MMM 3M Company $146.73 ABBV AbbVie $154.25 JNJ Johnson & Johnson $183.88 3M Company (MMM) Source: Ken Wolter / Shutterstock.com 3M Company (NYSE:MMM) has paid dividends to its shareholders without interruption for more than 100 years. AbbVie (ABBV): AbbVie has doubled its dividend over a span of seven years, after its spin-off from Abbot Laboratories. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) was formed in 2013 from the spinoff of Abbott Laboratories (NYSE:ABT). | AbbVie (ABBV): AbbVie has doubled its dividend over a span of seven years, after its spin-off from Abbot Laboratories. MMM 3M Company $146.73 ABBV AbbVie $154.25 JNJ Johnson & Johnson $183.88 3M Company (MMM) Source: Ken Wolter / Shutterstock.com 3M Company (NYSE:MMM) has paid dividends to its shareholders without interruption for more than 100 years. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) was formed in 2013 from the spinoff of Abbott Laboratories (NYSE:ABT). |
23444.0 | 2022-04-26 00:00:00 UTC | 7 Retirement Stocks to Buy to Sleep Soundly at Night | ABBV | https://www.nasdaq.com/articles/7-retirement-stocks-to-buy-to-sleep-soundly-at-night | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Kimberly Clark Corp (KMB) Kimberly-Clark produces many types of products, including diapers and feminine hygiene products. The company has delivered 50 consecutive years of dividend increases.
Lockheed Martin (LMT) Lockheed Martin is a company that has been in the aerospace industry for 100 years. This makes it a safe bet for any economic environment.
Merck & Co. (MRK) Merck has been paying uninterrupted dividends for more than 40 years, indicating its brand is valuable. The company has a disciplined approach towards finance.
AbbVie (ABBV) Humira is about to go off-patent. However, management is doing everything they can to make sure the company stays competitive.
Digital Realty Trust (DLR) Digital Reality Trust invests in and provides services for data centers across the world. Data center usage is growing fast, so it’s a great time to invest in this company.
General Mills (GIS) General Mills, a company that has a lot of well-known brands, has been able to grow its customer base over the years. This means its products will always sell, even during economic downturns.
Procter & Gamble (PG) P&G pays dividends and has done so for 131 years. It has increased its dividend every year for 65 years in a row. PG stock is a safe investment for your retirement fund.
As the population ages, more people are looking for ways to save for retirement. This can be done by investing in retirement stocks.
Retirement stocks have a low risk of losing value due to a downturn in the market and will not fluctuate too much based on market conditions.
It is not only difficult for retirees to save up enough money for retirement but also for people who need to save for their retirement. To have a successful investment, you must know how the stock market works and how it will affect your portfolio.
7 Consumer Stocks to Buy as the Weather Warms Up
In this article, we will look at seven retirement stocks that are great for any portfolio. There is a focus on stability, but these companies also have great operating models which will continue churning profits in the long run.
Ticker Company Current Price
KMB Kimberly Clark Corp $143.48
LMT Lockheed Martin Corporation $442.89
MRK Merck & Co. $85.44
ABBV AbbVie $156.30
DLR Digital Realty Trust, Inc. $151.56
GIS General Mills, Inc. $72.20
PG Procter & Gamble Co $162.55
Retirement Stocks: Kimberly Clark (KMB)
Source: Trong Nguyen / Shutterstock.com
Kimberly-Clark (NYSE:KMB) is a company that makes many types of products, including diapers and feminine hygiene products.
The company’s first product was a tissue paper mill, and the first tissue product was made from recycled cotton rags. Kimberly-Clark remains one of the leading manufacturers of paper products today.
Kimberly-Clark is a good retirement stock because it has historically provided good returns in diverse market environments. It has also proven to remain popular with many people, no matter their economic state.
This year was a momentous year for the company since it became one of the only 39 companies to have made it through 50 consecutive years of dividend increases. Despite the economic downturn, recession, and so on, this company could still hike its dividends, proving its mettle as one of the best retirement stocks.
Lockheed Martin (LMT)
Source: Joe Ravi / Shutterstock.com
Lockheed Martin (NYSE:LMT) has been a leader in aerospace, defense, security, and technology for over 100 years.
The company was founded by Clarence L. “Kelly” Johnson in 1912 to manufacture precision machine tools for the U.S. Navy during World War I. The company’s first major contract was a manufacturing order from the Army for C-4 aircraft engines for World War II bombers and fighters like the P-38 Lightning and B-17 Flying Fortress.
Lockheed Martin is best known for making the F-35 and other weapon systems. It also makes missile defense systems, military helicopters and more.
In the past 100 years, the company has had a very close and fruitful relationship with the U.S. government that has led to new products, advancements in technology, and even helping to win World War II.
Concerns about the pandemic and defense spending have caused some people to avoid the stock. However, its long association with the defense establishment makes it a safe bet in almost any economic environment.
Merck & Co. (MRK)
Source: Atmosphere1 / Shutterstock.com
Merck & Co. (NYSE:MRK) is one of the most popular drug companies in the United States. The company has been around since 1891 and has made many contributions to science, healthcare, and society as a whole.
Merck manufactures prescription drugs and medical devices, including vaccines, immunotherapy agents, cancer treatment, blood thinners, asthma inhalers, antibiotics, etc.
For over 40 years, Merck has been paying uninterrupted dividends, proving its brand is valuable, and the company has a disciplined approach to its finances.
Merck is looking bright with its drug development strategy. They have new products coming to market, enabling the company to manage its patent expiry schedule and keep its business strong. As a result, shareholders can expect reliable dividends too.
Retirement Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is a pharmaceutical company focusing on developing and marketing biopharmaceuticals and small molecule drugs. The company has been around for over 150 years, and it is one of the top five pharmaceutical companies in the world.
AbbVie focuses on developing new drugs for chronic diseases like cancer, immunology, infectious diseases, cardiovascular disease, endocrinology and diabetes. It makes more than 34 drugs and is developing 59 new drugs. These include several of their most popular medications.
AbbVie’s most well-known product is Humira, which is used to treat autoimmune diseases such as Crohn’s disease, ulcerative colitis, psoriatic arthritis, ankylosing spondylitis, chronic plaque psoriasis and rheumatoid arthritis.
With Humira about to go off-patent, investors are worried that AbbVie might struggle in the coming years. However, in light of new trends toward regenerative medicine and other advances, it is possible that this could be a golden opportunity for the company. AbbVie’s management has been focused on strategic investments and acquisitions to help the company stay competitive.
Digital Realty Trust (DLR)
Source: dotshock / Shutterstock
When deciding on retirement stocks to invest in, the discussion will often turn towards real estate investment trusts. A REIT is a corporation that owns real estate assets and pays out a minimum of 90% of its taxable income to shareholders through dividends.
It makes them very attractive investment options for retirees and income investors. But not every REIT is the same. For example, Digital Realty Trust (NYSE:DLR) invests in and provides services from data centers. The global data center market size is poised for growth, growing at 4.95%. Under forecast, it can reach upwards of $288.3 billion by 2027.
REITs are things that specialize in high-growth industries. Therefore, the REIT is something that focuses on a high-growth sector. Digital Realty had $1.1 billion in revenue in the fourth quarter of 2021, up from last year’s same quarter by 5%.
Funds from operations (FFO), a key metric to gauge REIT performance, came in at $3.71 per share versus 16 cents in the prior year. The company forecasts an expected 2022 year-end core FFO per share of between $6.80 and $6.90.
General Mills (GIS)
Source: designs by Jack / Shutterstock.com
General Mills (NYSE:GIS) has been a company producing food for over 150 years. It is the largest cereal manufacturer in the U.S. and have various products.
General Mills is well-known for its iconic brands such as Cheerios, Betty Crocker and Pillsbury. In recent years, they have also been at the forefront of innovation with products like Nature Valley granola bars and Fiber One cereal.
Historically, the company was involved in several business areas. However, in 1995, the shift to focus on consumer-packaged foods happened.
General Mills has a lot of well-known brands, which have helped grow the company’s customer base over the years. This means its products will sell, even in economic downturns.
Despite some recent changes within the company, GIS has always been a reliable source of income for investors looking to retire. It’s paid uninterrupted dividends every year since 1898, so there’s a lot of confidence in this company.
Retirement Stocks: Procter & Gamble (PG)
Source: rblfmr/ShutterStock.com
Procter & Gamble (NYSE:PG) is a leading global consumer goods company that has been on the market since 1837. It is one of the world’s largest companies, with over $76.1 billion in annual revenue last year.
Procter & Gamble has been making products for over 150 years and is still going strong. It has a wide range of products designed to make life easier for their customers. Its products include cleaning agents, food, personal care items and more.
P&G is known for its brands of everyday household products such as Pampers diapers, Gillette razors, Tide detergent, Downy fabric softener and Crest toothpaste.
In addition to its household brands, P&G sells beauty care products under the Head & Shoulders brand. The company also makes health care products such as Olay skincare products and Oral-B toothbrushes under the Crest brand name.
P&G has paid a dividend for 131 consecutive years and increased its payout for 65 straight years. If you are looking for retirement stocks, it does not get any safer than PG stock.
On the publication date, Faizan 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 Retirement Stocks to Buy to Sleep Soundly at Night 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) Humira is about to go off-patent. Ticker Company Current Price KMB Kimberly Clark Corp $143.48 LMT Lockheed Martin Corporation $442.89 MRK Merck & Co. $85.44 ABBV AbbVie $156.30 DLR Digital Realty Trust, Inc. $151.56 GIS General Mills, Inc. $72.20 PG Procter & Gamble Co $162.55 Retirement Stocks: Kimberly Clark (KMB) Source: Trong Nguyen / Shutterstock.com Kimberly-Clark (NYSE:KMB) is a company that makes many types of products, including diapers and feminine hygiene products. Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical company focusing on developing and marketing biopharmaceuticals and small molecule drugs. | Ticker Company Current Price KMB Kimberly Clark Corp $143.48 LMT Lockheed Martin Corporation $442.89 MRK Merck & Co. $85.44 ABBV AbbVie $156.30 DLR Digital Realty Trust, Inc. $151.56 GIS General Mills, Inc. $72.20 PG Procter & Gamble Co $162.55 Retirement Stocks: Kimberly Clark (KMB) Source: Trong Nguyen / Shutterstock.com Kimberly-Clark (NYSE:KMB) is a company that makes many types of products, including diapers and feminine hygiene products. AbbVie (ABBV) Humira is about to go off-patent. Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical company focusing on developing and marketing biopharmaceuticals and small molecule drugs. | Ticker Company Current Price KMB Kimberly Clark Corp $143.48 LMT Lockheed Martin Corporation $442.89 MRK Merck & Co. $85.44 ABBV AbbVie $156.30 DLR Digital Realty Trust, Inc. $151.56 GIS General Mills, Inc. $72.20 PG Procter & Gamble Co $162.55 Retirement Stocks: Kimberly Clark (KMB) Source: Trong Nguyen / Shutterstock.com Kimberly-Clark (NYSE:KMB) is a company that makes many types of products, including diapers and feminine hygiene products. Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical company focusing on developing and marketing biopharmaceuticals and small molecule drugs. AbbVie (ABBV) Humira is about to go off-patent. | Ticker Company Current Price KMB Kimberly Clark Corp $143.48 LMT Lockheed Martin Corporation $442.89 MRK Merck & Co. $85.44 ABBV AbbVie $156.30 DLR Digital Realty Trust, Inc. $151.56 GIS General Mills, Inc. $72.20 PG Procter & Gamble Co $162.55 Retirement Stocks: Kimberly Clark (KMB) Source: Trong Nguyen / Shutterstock.com Kimberly-Clark (NYSE:KMB) is a company that makes many types of products, including diapers and feminine hygiene products. AbbVie (ABBV) Humira is about to go off-patent. Retirement Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is a pharmaceutical company focusing on developing and marketing biopharmaceuticals and small molecule drugs. |
23445.0 | 2022-04-26 00:00:00 UTC | What Stocks to Buy That Should Do Well in a Recession — Our 7 Top Picks | ABBV | https://www.nasdaq.com/articles/what-stocks-to-buy-that-should-do-well-in-a-recession-our-7-top-picks | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
McDonald’s Corp (NYSE:MCD) — People eat fast food in a recession; pays a 2.21% yield with good dividend growth
Target (NYSE:TGT) — a growing retailer with good cash flow; pays a stable dividend with a 1.49% yield
Walmart (NYSE:WMT) — A discount retailer attractive to buyers, with a 1.43% yield, and a growing dividend
The Proctor and Gamble Co. (NYSE:PG) — A well-recognized consumer brand name with a 2.27% yield and a stable growing dividend
AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.64% yield and consistent dividend growth
Amgen (NASDAQ: AMGN) — A cheap biotech that now produces good cash flow, a 3.1% yield, and good dividend growth
NRG Energy (NYSE: NRG) — A Houston-based integrated power company with a 3.69% yield and growing dividends
These seven recession stocks should do well in an economic slowdown. These stocks tend to do well as they have good brand names, pay dividends and are focused on consumer staples, healthcare, utilities or the retail sectors.
It turns out that Americans will still use brand names, buy groceries and clothes, get healthcare services and pay their utilities during a recession. These types of stocks tend to do well in economic slowdowns, especially since many investors will flock to them as safer investments.
Moreover, those that pay dividends, which these seven recession stocks all do, tend to stay very stable.
7 Bear Market Stocks to Buy if You're Feeling Fearful
One reason is that short sellers won’t bother trying to bet against these kinds of stocks. This is especially the case with those that have higher and more stable yields. Why? Because short sellers must pay out the dividends or cover their short position prior to the ex-date.
MCD McDonald’s Corporation $252.88
TGT Target Corporation $241.66
WMT Walmart Inc. $156.94
PG The Procter & Gamble Company $162.55
ABBV AbbVie Inc. $156.30
AMGN Amgen Inc. $252.17
NRG NRG Energy Inc. $37.61
Let’s dive in and look at these stocks.
Recession Stocks: McDonald’s Corporation (MCD)
Source: 8th.creator / Shutterstock.com
Market Capitalization: $189 billion
Everyone eats fast food, even if they won’t admit it. McDonald’s tends to hold up very well during recessions and economic slowdowns as a result. The stock trades on a forward price-to-earnings (P/E) of about 25 times, as well as offering a 2.21% dividend yield. So it is actually good value here today.
This is also consistent with its historical P/E, as Morningstar reports that its five-year average multiple is 24.7x. This is the same with its dividend yield where the five-year average is 2.33%. More importantly, McDonald’s has a very consistent history of raising its dividend after every four quarters.
Despite losing $50 million a month in Russia, McDonald’s should still produce significant positive free cash flow in 2022. I estimated in a recent article this won’t be more than about 8% of its $7.5 billion in free cash flow (FCF) this year. In addition, McDonald’s will likely continue both its share buyback program and the likely increase in its dividend after the next two payments.
Target Corporation (TGT)
Source: jejim / Shutterstock.com
Market Cap: $111.74 billion
The theory here is that people will still buy groceries, clothes and cheap items at fashionable discount stores like Target even during a recession. This is exactly what happened during the Covid-19 crisis in 2020. In fiscal 2021, reported last month, comparable sales grew 12.7%, on top of 19.3% in 2020. A strong fourth quarter saw 8.9% comp sales growth on top of 20.5% in the previous year’s period.
Target is a popular discount retailer that trades at a reasonable multiple and has a 1.49% dividend yield. Moreover, the company is solidly profitable and trades for just 16x forward earnings. (This is based on the Yahoo! Finance stats page, which uses Refinitiv analyst survey data.)
7 Consumer Stocks to Buy as the Weather Warms Up
Moreover, Target has a robust buyback program which will help push the stock higher. Last year it bought back $7.36 billion worth of its stock. That represents 6.37% of its existing market cap, and a higher portion of its average market cap during the year. That provides additional returns to shareholders since it allows the company to raise its dividend per share with no extra cost. The buying pressure it provides also helps keep short-sellers away, as only 2.56% of its shares’ float is short now.
Recession Stocks: Walmart Inc. (WMT)
Source: Jonathan Weiss / Shutterstock.com
Market Cap: $439 billion
Walmart is known as a bargain-basement discount retailer, which is exactly what shoppers want during an economic downturn. Moreover, WMT stock trades at a reasonable valuation, about 23 times forward earnings and a 1.43% dividend yield. This is consistent with its average P/E of about 22x for the past five years and a 1.91% yield (1.41% in the last 12 months).
The fact is Walmart is an earnings and FCF powerhouse. Last year (ended January 2022), sales rose 2.4% to $572.75 billion and its net income rose 1.2% to $13.67 billion. This gives it a 2.38% net income margin. Most of that net income converted into FCF, as it produced $11.08 billion in FCF last year. This works out to an FCF margin of 1.93%. As a result, given that analysts forecast revenue this year of almost $600 billion (i.e., $590.4 billion), it could make up to $11.5 billion in FCF.
This will give investors a lot of comfort during an economic downturn. For example, the dividends it pays out cost just $6.15 billion last year. This is only about 53% of its forecast FCF this year, giving it plenty of room to keep raising the dividend over time. Moreover, given that it is buying back $10 billion of its shares over the next two years, WMT stock should continue to do well even during a recession.
The Procter & Gamble Company (PG)
Source: rblfmr/ShutterStock.com
Market Cap: $393 billion
Proctor & Gamble is a consumer staples brand name product company with a reasonable valuation, trading at 26 times forward earnings and with a 2.27% dividend yield. Some of its popular brand names are Head & Shoulders, Herbal Essences, Tide, Bounty, Oral-B, and others in the beauty, personal grooming, healthcare, home, baby, and feminine product sectors.
On April 20, P&G released its fiscal Q3 for the quarter ending March 31 showing sales rose 7% year-over-year (YoY) and 10% on an “organic” basis. Moreover, the company’s slide deck shows that it is highly focused on producing free cash flow. It mentions “FCF” 15 times in the deck and produced $2.5 billion in FCF, which was 74% of its net income.
7 Bear Market Stocks to Buy if You're Feeling Fearful
P&G has increased its dividend per share for the past 66 years. On top of that, Proctor and Gamble says it will buy back $10 billion of its shares (in 2022). That means it will use 100% of its FCF to buy back its stock. This works out to 2.54% of its market cap (i.e, $10 billion/$393 billion). As a result, the total yield investors (including its 2.27% dividend yield) is almost 5.0% (2.27% div yield plus 2.54% buyback yield = 4.8%). That should help PG stock do quite well during any kind of economic downturn.
Recession Stocks: AbbVie Inc. (ABBV)
Source: Piotr Swat / Shutterstock.com
Market Cap: $277 billion
AbbVie is a profitable pharmaceutical company that has an attractive 3.64% dividend yield. It is best known for its Humira, a therapy administered as an injection for rheumatoid arthritis and Crohn’s disease, and other drugs like RINVOQ for severe active rheumatoid arthritis. The company has been consistently profitable, unrelated to economic cycles.
For example, last year its sales were up 22.7% and this year it forecasts earnings per share will rise 11% to between $14 and $14.20. At $154.99 as of April 22, that puts ABBV stock on a forward P/E of 11x. That is a very cheap multiple, given its consistent growth and its high dividend yield.
Morningstar reports that its average historical P/E has been over 25x, or twice its forward P/E today. In addition, historically the company has had a 4.5% dividend yield, which is higher than its present yield. But AbbVie usually raises its dividend after every four quarters, including a decision two quarters ago to boost the payout by 8.5%. So investors can expect this will occur even during a recession if that happens over the next year.
Last year the company produced $22 billion in FCF and paid out $9.26 billion in dividends. That leaves it plenty of room to pay higher dividends and buy back its shares. This makes ABBV stock one of the more secure stocks to own during a recession.
Amgen Inc. (AMGN)
Source: Shutterstock
Market Cap: $136 billion
Amgen is a California-based biopharmaceutical that specializes in immunology, oncology, and blood disorders. Last year, generated $26 billion in total revenue and is forecast to produce $26.2 billion, as well as $27.4 billion next year. Moreover, analysts also forecast positive earnings, putting it on a forward P/E of 14 times. This is also consistent with its forward P/E average of 13.7 times over the last five years, according to Morningstar.
Amgen will report its Q1 results on April 27. But last quarter it produced $8.4 billion in free cash flow in 2021, including $2.5 billion in Q4 alone. Amgen is one of the growing numbers of companies that report their FCF figures, which can be seen on page 9 of its last earnings release. The Q4 number represents 10% of its revenue, which means that by 2023 it could be producing $2.74 billion in FCF.
7 Consumer Stocks to Buy as the Weather Warms Up
This means that using an FCF yield metric of 1.5%, its target market could be $182.7 billion, or 34.3% higher than its market cap today of $136 billion. That implies that AMGN stock could rise at least a third over the next two years. The company’s strong dividends as well as its buybacks ($6 billion run rate in Q4) could push the stock much higher. No wonder analysts like this stock for the long run.
Recession Stocks: NRG Energy (NRG)
Source: Casimiro PT / Shutterstock.com
Market Cap: $9.2 billion
NRG Energy is a Houston-based integrated power company, bringing electricity and related products and services to 7 million customers, including its 2021 acquisition of Direct Energy. It is one of the largest U.S. independent power producers, with 16 gigawatts of nuclear, coal, gas, and oil power generation capacity primarily in Texas.
NRG stock is attractive to value investors as it offers a 3.69% dividend yield and a consistently growing dividend. Moreover, analysts forecast earnings per share of $3.47 this year. So, trading at $37.61 on April 25, NRG stock trades for just 10.83 times earnings. Next year, analysts forecast $4.27 EPS, putting NRG stock at just 8.7 forward earnings.
This is well below its historic forward P/E of 14.6x, according to Morningstar. So, even if consumers use less electricity in a slowdown, there is plenty of margin of safety in NRG stock. Moreover given that the company plans to buy back $1 billion of its share in 2022, that works out to a buyback yield of 10.9%.
On top of its 3.68% dividend yield, NRG has an attractive total yield of 14.6%. This should make it one of the best recession stocks on this list.
On the date of publication, Mark Hake did not hold (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 What Stocks to Buy That Should Do Well in a Recession — Our 7 Top Picks 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. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips McDonald’s Corp (NYSE:MCD) — People eat fast food in a recession; pays a 2.21% yield with good dividend growth Target (NYSE:TGT) — a growing retailer with good cash flow; pays a stable dividend with a 1.49% yield Walmart (NYSE:WMT) — A discount retailer attractive to buyers, with a 1.43% yield, and a growing dividend The Proctor and Gamble Co. (NYSE:PG) — A well-recognized consumer brand name with a 2.27% yield and a stable growing dividend AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.64% yield and consistent dividend growth Amgen (NASDAQ: AMGN) — A cheap biotech that now produces good cash flow, a 3.1% yield, and good dividend growth NRG Energy (NYSE: NRG) — A Houston-based integrated power company with a 3.69% yield and growing dividends These seven recession stocks should do well in an economic slowdown. MCD McDonald’s Corporation $252.88 TGT Target Corporation $241.66 WMT Walmart Inc. $156.94 PG The Procter & Gamble Company $162.55 ABBV AbbVie Inc. $156.30 AMGN Amgen Inc. $252.17 NRG NRG Energy Inc. $37.61 Let’s dive in and look at these stocks. Recession Stocks: AbbVie Inc. (ABBV) Source: Piotr Swat / Shutterstock.com Market Cap: $277 billion AbbVie is a profitable pharmaceutical company that has an attractive 3.64% dividend yield. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips McDonald’s Corp (NYSE:MCD) — People eat fast food in a recession; pays a 2.21% yield with good dividend growth Target (NYSE:TGT) — a growing retailer with good cash flow; pays a stable dividend with a 1.49% yield Walmart (NYSE:WMT) — A discount retailer attractive to buyers, with a 1.43% yield, and a growing dividend The Proctor and Gamble Co. (NYSE:PG) — A well-recognized consumer brand name with a 2.27% yield and a stable growing dividend AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.64% yield and consistent dividend growth Amgen (NASDAQ: AMGN) — A cheap biotech that now produces good cash flow, a 3.1% yield, and good dividend growth NRG Energy (NYSE: NRG) — A Houston-based integrated power company with a 3.69% yield and growing dividends These seven recession stocks should do well in an economic slowdown. MCD McDonald’s Corporation $252.88 TGT Target Corporation $241.66 WMT Walmart Inc. $156.94 PG The Procter & Gamble Company $162.55 ABBV AbbVie Inc. $156.30 AMGN Amgen Inc. $252.17 NRG NRG Energy Inc. $37.61 Let’s dive in and look at these stocks. Recession Stocks: AbbVie Inc. (ABBV) Source: Piotr Swat / Shutterstock.com Market Cap: $277 billion AbbVie is a profitable pharmaceutical company that has an attractive 3.64% dividend yield. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips McDonald’s Corp (NYSE:MCD) — People eat fast food in a recession; pays a 2.21% yield with good dividend growth Target (NYSE:TGT) — a growing retailer with good cash flow; pays a stable dividend with a 1.49% yield Walmart (NYSE:WMT) — A discount retailer attractive to buyers, with a 1.43% yield, and a growing dividend The Proctor and Gamble Co. (NYSE:PG) — A well-recognized consumer brand name with a 2.27% yield and a stable growing dividend AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.64% yield and consistent dividend growth Amgen (NASDAQ: AMGN) — A cheap biotech that now produces good cash flow, a 3.1% yield, and good dividend growth NRG Energy (NYSE: NRG) — A Houston-based integrated power company with a 3.69% yield and growing dividends These seven recession stocks should do well in an economic slowdown. MCD McDonald’s Corporation $252.88 TGT Target Corporation $241.66 WMT Walmart Inc. $156.94 PG The Procter & Gamble Company $162.55 ABBV AbbVie Inc. $156.30 AMGN Amgen Inc. $252.17 NRG NRG Energy Inc. $37.61 Let’s dive in and look at these stocks. Recession Stocks: AbbVie Inc. (ABBV) Source: Piotr Swat / Shutterstock.com Market Cap: $277 billion AbbVie is a profitable pharmaceutical company that has an attractive 3.64% dividend yield. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips McDonald’s Corp (NYSE:MCD) — People eat fast food in a recession; pays a 2.21% yield with good dividend growth Target (NYSE:TGT) — a growing retailer with good cash flow; pays a stable dividend with a 1.49% yield Walmart (NYSE:WMT) — A discount retailer attractive to buyers, with a 1.43% yield, and a growing dividend The Proctor and Gamble Co. (NYSE:PG) — A well-recognized consumer brand name with a 2.27% yield and a stable growing dividend AbbVie (NYSE:ABBV) — A cheap pharmaceutical company with a 3.64% yield and consistent dividend growth Amgen (NASDAQ: AMGN) — A cheap biotech that now produces good cash flow, a 3.1% yield, and good dividend growth NRG Energy (NYSE: NRG) — A Houston-based integrated power company with a 3.69% yield and growing dividends These seven recession stocks should do well in an economic slowdown. MCD McDonald’s Corporation $252.88 TGT Target Corporation $241.66 WMT Walmart Inc. $156.94 PG The Procter & Gamble Company $162.55 ABBV AbbVie Inc. $156.30 AMGN Amgen Inc. $252.17 NRG NRG Energy Inc. $37.61 Let’s dive in and look at these stocks. Recession Stocks: AbbVie Inc. (ABBV) Source: Piotr Swat / Shutterstock.com Market Cap: $277 billion AbbVie is a profitable pharmaceutical company that has an attractive 3.64% dividend yield. |
23446.0 | 2022-04-26 00:00:00 UTC | Will Merck (MRK) Beat Expectations This Earnings Season? | ABBV | https://www.nasdaq.com/articles/will-merck-mrk-beat-expectations-this-earnings-season | nan | nan | We expect Merck MRK to beat expectations when it reports first-quarter 2022 results on Apr 28 before market open. In the last reported quarter, the company delivered an earnings surprise of 23.29%.
The large drugmaker’s performance has been mixed, with the company missing earnings expectations in two of the trailing four quarters while beating in two. The company delivered a four-quarter earnings surprise of 5.33%, on average.
Merck & Co., Inc. Price and EPS Surprise
Merck & Co., Inc. price-eps-surprise | Merck & Co., Inc. Quote
Merck’s stock has risen 12.5% this year so far compared with an increase of 3.8% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
Merck and partner Ridgeback Biotherapeutics’ oral antiviral pill, molnupiravir, approved for treating high-risk adults with mild-to-moderate COVID-19 in late 2021, is likely to have been a key contributor to top-line growth in the first quarter.
The strong demand for cancer drugs is likely to have boosted Merck’s sales growth in the first quarter.
In oncology drugs, Keytruda sales are likely to have been driven by continued strong momentum in lung cancer indications and continued uptake in newer indications. The Zacks Consensus Estimate for Keytruda’s sales is $4.65 billion.
Higher alliance revenues from Lynparza driven by continued uptake across multiple approved indications in United States and Europe may have boosted oncology sales. Please note that Merck markets Lynparza in partnership with AstraZeneca AZN.
AstraZeneca and Merck formed a profit-sharing deal to co-market Lynparza and Koselugo in July 2017.
AstraZeneca and Merck’s Lynparza is approved for four cancer types, ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in an earlier-line setting for the approved cancer indications
Alliance revenues from Lenvima may have also boosted oncology sales.
The Zacks Consensus Estimate for alliance revenues from Lynparza and Lenvima is $295 million and $199 million, respectively.
In the hospital specialty portfolio, higher demand and growing market share may have benefited sales of Bridion Injection. The Zacks Consensus Estimate for Bridion is $374 million.
Merck’s vaccines portfolio is witnessing continued recovery due to the return to a more normal level of wellness visits. It remains to be seen if the positive trend continued in the first quarter. Important vaccines are HPV vaccine, Gardasil/Gardasil 9 and Proquad, M-M-R II and Varivax vaccines. With regard to Gardasil, ex-U.S. sales are expected to have been driven by strong demand in China and increased supply in the first quarter. It remains to be seen if U.S. sales improved in the quarter, gaining from the increased uptake in the mid-adult cohort as well as catch-up from missed doses due to the pandemic. The Zacks Consensus Estimate for Gardasil is $1.01 billion.
Sales of pneumococcal vaccine, Pneumovax 23 are likely to have been hurt by the prioritization of COVID-19 vaccines and the market shift toward newer pneumococcal conjugate vaccines.
Meanwhile, the top line is expected to have been impacted by the loss of U.S. market exclusivity for drugs like Remicade, Noxafil and Zetia and continued pricing pressure for the diabetes franchise (Januvia/Janumet) in the United States.
The Animal Health franchise should continue to see strong sales growth.
Earnings Whispers
Our proven model predicts an earnings beat for Merck in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is the case here.
Earnings ESP: Merck’s Earnings ESP is +3.36% as the Most Accurate Estimate of $1.88 is higher than the Zacks Consensus Estimate of $1.81. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Merck has a Zacks Rank #3
Other Stocks to Consider
Here are some large drug stocks that also have the right combination of elements to beat on earnings this time around:
AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3.
AbbVie’s stock has rallied 17.7% this year so far. AbbVie topped earnings estimates in three of the last four quarters. AbbVie has a four-quarter earnings surprise of 2.55%, on average. ABBV is scheduled to release its first-quarter 2022 results on Apr 29.
Sanofi SNY has an Earnings ESP of +0.89% and a Zacks Rank #3.
Sanofi’s stock has risen 8.9% this year so far. Sanofi topped earnings estimates in each of the last four quarters. Sanofi has a four-quarter earnings surprise of 8.8%, on average. SNY is scheduled to release its first-quarter 2022 results on Apr 28.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Sanofi (SNY): Free Stock Analysis Report
AstraZeneca PLC (AZN): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zacks Rank: Merck has a Zacks Rank #3 Other Stocks to Consider Here are some large drug stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has rallied 17.7% this year so far. AbbVie topped earnings estimates in three of the last four quarters. | Zacks Rank: Merck has a Zacks Rank #3 Other Stocks to Consider Here are some large drug stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has rallied 17.7% this year so far. AbbVie topped earnings estimates in three of the last four quarters. | Zacks Rank: Merck has a Zacks Rank #3 Other Stocks to Consider Here are some large drug stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has rallied 17.7% this year so far. AbbVie topped earnings estimates in three of the last four quarters. | AbbVie topped earnings estimates in three of the last four quarters. Zacks Rank: Merck has a Zacks Rank #3 Other Stocks to Consider Here are some large drug stocks that also have the right combination of elements to beat on earnings this time around: AbbVie ABBV with an Earnings ESP of +0.18% and a Zacks Rank #3. AbbVie’s stock has rallied 17.7% this year so far. |
23447.0 | 2022-04-25 00:00:00 UTC | AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outpaces-stock-market-gains%3A-what-you-should-know-1 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $156.30, marking a +0.85% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the drugmaker had lost 3.93% over the past month, lagging the Medical sector's loss of 3.69% and outpacing the S&P 500's loss of 5.26% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be April 29, 2022. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. Our most recent consensus estimate is calling for quarterly revenue of $13.56 billion, up 4.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.13 per share and revenue of $60.36 billion, which would represent changes of +11.26% and +7.4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.02% higher. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 10.97. For comparison, its industry has an average Forward P/E of 13.47, which means AbbVie is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 4.33. 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 2.28 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 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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. | In the latest trading session, AbbVie (ABBV) closed at $156.30, marking a +0.85% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. | In the latest trading session, AbbVie (ABBV) closed at $156.30, marking a +0.85% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. | In the latest trading session, AbbVie (ABBV) closed at $156.30, marking a +0.85% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. | In the latest trading session, AbbVie (ABBV) closed at $156.30, marking a +0.85% move from the previous day. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. |
23448.0 | 2022-04-25 00:00:00 UTC | Walgreens, Teva accused of fueling opioid addiction in quest for new markets | ABBV | https://www.nasdaq.com/articles/walgreens-teva-accused-of-fueling-opioid-addiction-in-quest-for-new-markets | nan | nan | By Dietrich Knauth
April 25 (Reuters) - Walgreens Boots Alliance WBA.O and Teva Pharmaceutical Industries Ltd TEVA.TA ignored the health risks when they created new markets for opioids, a lawyer for the city of San Francisco told a judge on Monday during opening statements of the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines.
Richard Heimann, a lawyer for the city, said on Monday that the prescription drug industry was complicit in expanding the market for opioids, regardless of the public health risks.
Opioids previously had been restricted for use in surgery, cancer treatment and end-of-life care, Heimann said. But the pharmaceutical industry made false claims about the drugs' safety in order to market the drugs to patients suffering from common and chronic conditions like lower back pain and arthritis, he said.
"The goal was to create a new market," Heimann said.
San Francisco has said that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use.
The companies have denied the allegations, saying that they sold opioid medications that were prescribed by doctors.
San Francisco has been hit hard by the opioid crisis, which has caused more than 500,000 overdose deaths nationwide in the past two decades, according to the U.S. Centers for Disease Control and Prevention.
San Francisco County received more than 163 million prescription pain pills from 2006 to 2014, which amounts to 22 pills per resident per year, according to the city. Opioid-related health issues now account for 25% of emergency room visits at the city's largest public hospital, according to the lawsuit.
San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - but the city previously settled with those defendants.
In one of a wave of opioid settlements, J&J this month agreed to pay $99 million to settle claims over its part in West Virginia's opioid crisis. .
Alabama reached $276 million in settlements with J&J, McKesson and Endo after that state opted out of a nationwide $26 billion settlement of opioid litigation.
Five months ago a California judge held that Los Angeles, Santa Clara, and Orange counties, as well as the city of Oakland, failed to prove that Endo, Johnson & Johnson, Teva and Allergan created a public nuisance through the sale and promotion of opioids pain medicines.
(Reporting by Dietrich Knauth; Editing by Noeleen Walder, Bill Berkrot and Howard Goller)
((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. | San Francisco has said that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. By Dietrich Knauth April 25 (Reuters) - Walgreens Boots Alliance WBA.O and Teva Pharmaceutical Industries Ltd TEVA.TA ignored the health risks when they created new markets for opioids, a lawyer for the city of San Francisco told a judge on Monday during opening statements of the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines. Richard Heimann, a lawyer for the city, said on Monday that the prescription drug industry was complicit in expanding the market for opioids, regardless of the public health risks. | San Francisco has said that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. By Dietrich Knauth April 25 (Reuters) - Walgreens Boots Alliance WBA.O and Teva Pharmaceutical Industries Ltd TEVA.TA ignored the health risks when they created new markets for opioids, a lawyer for the city of San Francisco told a judge on Monday during opening statements of the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines. San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - but the city previously settled with those defendants. | San Francisco has said that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. By Dietrich Knauth April 25 (Reuters) - Walgreens Boots Alliance WBA.O and Teva Pharmaceutical Industries Ltd TEVA.TA ignored the health risks when they created new markets for opioids, a lawyer for the city of San Francisco told a judge on Monday during opening statements of the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines. Five months ago a California judge held that Los Angeles, Santa Clara, and Orange counties, as well as the city of Oakland, failed to prove that Endo, Johnson & Johnson, Teva and Allergan created a public nuisance through the sale and promotion of opioids pain medicines. | San Francisco has said that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. Richard Heimann, a lawyer for the city, said on Monday that the prescription drug industry was complicit in expanding the market for opioids, regardless of the public health risks. San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - but the city previously settled with those defendants. |
23449.0 | 2022-04-25 00:00:00 UTC | Walgreens, Teva face San Francisco trial over opioid epidemic | ABBV | https://www.nasdaq.com/articles/walgreens-teva-face-san-francisco-trial-over-opioid-epidemic | nan | nan | By Dietrich Knauth
April 25 (Reuters) - San Francisco will square off on Monday against Walgreens Boots Alliance WBA.O and three other companies accused of fueling an opioid crisis in the city, the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines.
San Francisco has alleged that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use.
The companies have denied the allegations, saying that they sold opioid medications that were prescribed by doctors.
Opening arguments before Judge Charles Breyer in San Francisco are scheduled for 9:30am PT (4:30pm GMT) on Monday.
San Francisco has been hard hit by the opioid crisis, which has caused more than 500,000 overdose deaths nationwide in the past two decades, according to the U.S. Centers for Disease Control and Prevention.
Opioid-related health issues now account for 25% of emergency room visits at the city's largest public hospital, according to the lawsuit.
San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - but the city previously settled with those defendants.
City Attorney David Chiu said at a Wednesday news conference that the upcoming trial would be the first to test claims against "each part of the opioid supply chain."
The San Francisco case comes amid a wave of opioid settlements. J&J earlier this month agreed to pay $99 million to settle claims over its part in West Virginia's opioid crisis. .
Alabama reached $276 million in settlements with J&J, McKesson and Endo after that state opted out of a nationwide $26 billion settlement of opioid litigation.
The San Francisco trial comes five months after a state judge held that Los Angeles, Santa Clara, and Orange counties, as well as the city of Oakland, failed to prove that Endo, Johnson & Johnson, Teva and Allergan created a public nuisance through the sale and promotion of opioids pain medicines.
(Reporting by Dietrich Knauth; Editing by Noeleen Walder and Bill Berkrot)
((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. | San Francisco has alleged that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. By Dietrich Knauth April 25 (Reuters) - San Francisco will square off on Monday against Walgreens Boots Alliance WBA.O and three other companies accused of fueling an opioid crisis in the city, the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines. San Francisco has been hard hit by the opioid crisis, which has caused more than 500,000 overdose deaths nationwide in the past two decades, according to the U.S. Centers for Disease Control and Prevention. | San Francisco has alleged that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - but the city previously settled with those defendants. The San Francisco trial comes five months after a state judge held that Los Angeles, Santa Clara, and Orange counties, as well as the city of Oakland, failed to prove that Endo, Johnson & Johnson, Teva and Allergan created a public nuisance through the sale and promotion of opioids pain medicines. | San Francisco has alleged that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. By Dietrich Knauth April 25 (Reuters) - San Francisco will square off on Monday against Walgreens Boots Alliance WBA.O and three other companies accused of fueling an opioid crisis in the city, the first trial to target manufacturers, distributors and pharmacies over the addictive pain medicines. The San Francisco trial comes five months after a state judge held that Los Angeles, Santa Clara, and Orange counties, as well as the city of Oakland, failed to prove that Endo, Johnson & Johnson, Teva and Allergan created a public nuisance through the sale and promotion of opioids pain medicines. | San Francisco has alleged that pharmacy chain Walgreens, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit, and drug distributor Anda Inc, which is owned by Teva, created a "public nuisance" by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. San Francisco's lawsuit, filed in 2018, initially included claims against drugmakers Purdue Pharma LP, Johnson & Johnson JNJ.N and Endo International Plc ENDP.O and the three largest U.S. drug distributors - McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N - but the city previously settled with those defendants. The San Francisco trial comes five months after a state judge held that Los Angeles, Santa Clara, and Orange counties, as well as the city of Oakland, failed to prove that Endo, Johnson & Johnson, Teva and Allergan created a public nuisance through the sale and promotion of opioids pain medicines. |
23450.0 | 2022-04-24 00:00:00 UTC | These Dividend Stocks Are Trouncing the Market -- Are They Still Buys? | ABBV | https://www.nasdaq.com/articles/these-dividend-stocks-are-trouncing-the-market-are-they-still-buys | nan | nan | Stocks are always going up. It's just not all of them that do so. But there are always outliers that rise even when the overall market is sinking.
With growth stocks out of favor, many investors have turned to big drugmakers and energy giants that pay attractive dividends. Here are three such dividend stocks that are trouncing the market so far in 2022. Are they still buys?
Image source: Getty Images.
1. AbbVie
The S&P 500 index is down 10% year to date. Meanwhile, shares of AbbVie (NYSE: ABBV) have jumped 14%. The pharma stock has been up nearly 40% over the past 12 months.
AbbVie's dividend yield of over 3.6% continues to attract investors. It also helps that the company ranks as a Dividend King with 50 consecutive years of dividend increases under its belt.
I suspect that many investors like AbbVie's valuation as well. The drugmaker's shares trade at only 11.5 times expected earnings even after the big gains over the past year.
Some could also be shaking off earlier concerns that AbbVie won't be able to offset anticipated sales declines for Humira when it loses U.S. exclusivity next year. The company believes that it will quickly return to growth in 2024, which will pick up in the second half of this decade.
With several other of AbbVie's drugs gaining momentum, that optimism appears to be warranted. I think that AbbVie remains an especially appealing stock to buy for income investors.
2. AstraZeneca
AstraZeneca (NASDAQ: AZN) is another pharma stock that lags only slightly behind AbbVie. Its shares have risen 13% year to date, well ahead of the overall market performance.
My hunch is that quite a few investors view AstraZeneca as a relatively safe stock to buy in an uncertain market. The company certainly has a diversified revenue stream, with 13 blockbuster drugs in 2021. Sales soared 64% year over year in the fourth quarter of 2021.
AstraZeneca expects to continue those winning ways, albeit at a moderate pace. It looks for full-year 2022 revenue to increase in the high teens, with core earnings per share jumping in the mid-to-high 20% range.
The drugmaker's dividend isn't too shabby, either. AstraZeneca's dividend yield stands at 2.1%. The dividend program ranks among the company's top capital allocation priorities.
But is AstraZeneca still a good stock to buy? I think so. Although AstraZeneca doesn't check off all of the boxes that AbbVie does, its growth prospects are better than most big pharma stocks.
3. Chevron
There aren't many dividend stocks that have outperformed Chevron (NYSE: CVX) this year. The oil and gas giant's shares have vaulted 37% higher in 2022 thus far.
It's no surprise why Chevron stock has been so hot. Investors have flocked to the energy sector for good reason. Oil prices have ballooned with the Russian invasion of Ukraine and increased travel as COVID-19 restrictions ease.
Of course, Chevron has been a longtime favorite for income-seeking investors. That hasn't changed. Despite the strong year-to-date gains, the company's dividend still yields close to 3.3%.
Chevron boasts the strongest balance sheet among its peers. Its acquisition of Noble Energy was a smart move. The company is also expanding into clean energy with its deal to buy Renewable Energy Group.
My view is that the overall dynamics will continue to be in Chevron's favor throughout 2022. I also think that the stock has pretty good long-term prospects. This high-flying dividend stock still looks like a good pick, in my opinion.
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Keith Speights owns 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. | Some could also be shaking off earlier concerns that AbbVie won't be able to offset anticipated sales declines for Humira when it loses U.S. exclusivity next year. AbbVie The S&P 500 index is down 10% year to date. Meanwhile, shares of AbbVie (NYSE: ABBV) have jumped 14%. | AbbVie's dividend yield of over 3.6% continues to attract investors. AbbVie The S&P 500 index is down 10% year to date. Meanwhile, shares of AbbVie (NYSE: ABBV) have jumped 14%. | See the 10 stocks *Stock Advisor returns as of April 7, 2022 Keith Speights owns AbbVie. AbbVie The S&P 500 index is down 10% year to date. Meanwhile, shares of AbbVie (NYSE: ABBV) have jumped 14%. | AbbVie The S&P 500 index is down 10% year to date. Meanwhile, shares of AbbVie (NYSE: ABBV) have jumped 14%. AbbVie's dividend yield of over 3.6% continues to attract investors. |
23451.0 | 2022-04-24 00:00:00 UTC | 3 Dividend Growth Titans to Increase Your Passive Income | ABBV | https://www.nasdaq.com/articles/3-dividend-growth-titans-to-increase-your-passive-income | nan | nan | At a time when inflation is skyrocketing, it's particularly hard for many people's salaries to keep up with their most basic costs. A great alternative approach to cover those costs, without having to work more or wait on tough-to-get raises, is to build a passive income stream through dividends.
With that in mind, we asked three investors to come up with top companies with a history of not only paying, but also raising their dividends. After all, if inflation continues unabated, the only thing better than a passive income stream would be a passive income stream that grows.
They came up with McDonald's (NYSE: MCD), AbbVie (NYSE: ABBV), and Genuine Parts (NYSE: GPC). Find out why, and determine for yourself if these stocks have what it takes to earn a spot in the part of your portfolio focused on income growth.
Image source: Getty Images.
This Dividend Aristocrat is delivering record earnings
Parkev Tatevosian (McDonald's): Investors looking for passive income should not ignore McDonald's. Its over 25 years of paying and increasing its dividend has qualified McDonald's as a Dividend Aristocrat. The iconic restaurant brand is emerging from the pandemic stronger than ever, which could give rise to faster dividend increases in the coming years. The Golden Arches reported record earnings per share in 2021.
Digital sales are fueling the increase, which could prove to be long-lasting. The coronavirus pandemic made meal delivery popular, and McDonald's was a prime beneficiary of that trend. Online sales totaled $18 billion for McDonald's in 2021, and orders for delivery undoubtedly helped it reach that impressive sum. Fortunately for investors, the benefits will last beyond the acute phases of the pandemic, as consumers have proven they appreciate the convenience of delivery.
Remember, dividends are paid out of earnings. Without enough profits, dividends will be paid out of saving or borrowing, which can sustain payments temporarily but will eventually be exhausted. Therefore, McDonald's record earnings per share is a good sign for long-term income investors. Already, McDonald's has increased its dividend payment from $2.87 per share in 2012 to $5.25 in 2021.
MCD Payout Ratio data by YCharts.
McDonald's dividend payout ratio, which is the percentage of earnings it pays out in dividends, was recently 52%. That's nearly its lowest in the last decade, further indicating there's room to boost the payout. Making the case for investing in McDonald's more compelling, the stock is not expensive. Trading at a price-to-earnings ratio (P/E) of 25, it's roughly on par with its average historical valuation according to that metric.
A healthy addition to any portfolio
Eric Volkman (AbbVie): The pharmaceutical sector is not loaded with high-yield dividend payers. Yet for sharp-eyed investors who like getting paid on the regular, there are a handful of generous plays in that typically miserly bunch. One of the best of these is longtime industry veteran AbbVie.
Despite a recent pullback in share price, AbbVie has been a justifiably popular stock. The company is the developer and seller of the powerful Humira, which happens to be the top-selling drug on the planet (at least for now; more on this in a moment).
Humira alone has added a great amount of value to AbbVie, but the company is far from a one-trick pony. Thanks to its own efforts and a series of well-considered acquisitions, it has a wide and deep pipeline that covers a broad range of treatment categories.
This will give AbbVie plenty of muscle to compensate for the loss of Humira, the U.S. patent for which will begin expiring next year. It's a given that the company will take a hit from this -- the drug was responsible for nearly 40% of total revenue in 2021, after all -- but not as much as you might suspect for such a pivotal product.
On average, analysts tracking AbbVie stock are estimating that 2023 revenue will decline by 9% year over year, with per-share net income sliding by 13%. Yet that still places next year's top line at comfortably over $56 billion, and profitability well in the black at $12.30 per share. Meanwhile, after that, hotly growing therapies like plaque-psoriasis treatment Skyrizi and arthritis drug Rinvoq alone could potentially make up for the loss of Humira.
As this transition occurs, AbbVie's free cash flow (FCF) should remain strong. It ballooned by almost 31% in 2021 to just under $22 billion. That was far more than enough to take care of the $9.3 billion in dividends this Dividend King paid during the year.
A Dividend King gets its status from constant annual dividend raises, so we can count on AbbVie continuing to add to its payout even if FCF sags in the immediate post-Humira period. And this is a stock that, even with that recent share-price appreciation, already had a comparatively high dividend yield north of 3.5%.
So in AbbVie we have not only a solid pharmaceutical company with strong fundamentals, but also an excellent dividend stock that will keep lining its shareholders' pockets for years to come.
An almost perfect situation for this company's business
Chuck Saletta (Genuine Parts): Best known for its NAPA Auto Parts stores, Genuine Parts is a true titan among businesses with a history of rewarding shareholders for the risks they take by investing. With a 66-year history of paying an increasing dividend every year, it stands in rarefied company based on its ability to deliver cold, hard cash to its shareholders.
Even more outstanding for a company with that long a streak of dividend increases, its 2022 raise was a whopping 10%, which was enough to keep pace with the elevated inflation we've seen recently. A key reason for this is that the company sells auto parts. With new cars in short supply, even used cars are at a premium these days. That provides an incredible incentive for people to keep their existing vehicles running longer -- and thus drives demand for Genuine Parts' goods and services.
Of course, we all want the supply chain challenges that are behind those car shortages to end. This is why it's important to recognize that Genuine Parts isn't just a current success story, but rather one that has managed to keep its annual dividend growth streak alive for over six decades. It has done so through recessions, bubbles, the financial crisis, and even wars. That's a sign of a business structured to last -- driven in no small part by a product line that people want even when times are tough.
That's one of the best aspects of the car-parts business. Cars are rarely something that consumers have to buy new. Often, it's possible to keep a vehicle limping along for quite some time with maintenance and repairs. In a tough economy, people are more likely to have to take care of their existing cars, and that's a key driver of Genuine Parts's ability to consistently raise its dividend, even during recessions.
Because of that reality, this dividend-growth titan has a great chance of continuing to reward its shareholders, even as this unique and almost perfect situation for its business passes.
Get started now
Whether or not you believe McDonald's, AbbVie, or Genuine Parts deserves a spot in your portfolio, a strong and growing passive income stream can be a great tool to have as you try to fight inflation. The sooner you begin building yours, the sooner your investments can give you back some much-needed cash. So get started now, and improve your chances of seeing at least part of your bills being covered by the money your portfolio pays back to you.
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Chuck Saletta has no position in any of the stocks mentioned. Eric Volkman has no position in any of the stocks mentioned. Parkev Tatevosian 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. | Get started now Whether or not you believe McDonald's, AbbVie, or Genuine Parts deserves a spot in your portfolio, a strong and growing passive income stream can be a great tool to have as you try to fight inflation. They came up with McDonald's (NYSE: MCD), AbbVie (NYSE: ABBV), and Genuine Parts (NYSE: GPC). A healthy addition to any portfolio Eric Volkman (AbbVie): The pharmaceutical sector is not loaded with high-yield dividend payers. | They came up with McDonald's (NYSE: MCD), AbbVie (NYSE: ABBV), and Genuine Parts (NYSE: GPC). Get started now Whether or not you believe McDonald's, AbbVie, or Genuine Parts deserves a spot in your portfolio, a strong and growing passive income stream can be a great tool to have as you try to fight inflation. A healthy addition to any portfolio Eric Volkman (AbbVie): The pharmaceutical sector is not loaded with high-yield dividend payers. | They came up with McDonald's (NYSE: MCD), AbbVie (NYSE: ABBV), and Genuine Parts (NYSE: GPC). A healthy addition to any portfolio Eric Volkman (AbbVie): The pharmaceutical sector is not loaded with high-yield dividend payers. One of the best of these is longtime industry veteran AbbVie. | They came up with McDonald's (NYSE: MCD), AbbVie (NYSE: ABBV), and Genuine Parts (NYSE: GPC). A healthy addition to any portfolio Eric Volkman (AbbVie): The pharmaceutical sector is not loaded with high-yield dividend payers. One of the best of these is longtime industry veteran AbbVie. |
23452.0 | 2022-04-23 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 | nan | nan | Investors make the most money when they have more of a crockpot mentality than a microwave mentality. Buying and holding for the long term works -- when you pick the right stocks, of course.
We asked three Motley Fool contributors to identify dividend stocks that you can buy and hold for decades. Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Eli Lilly (NYSE: LLY).
Image source: Getty Images.
Dividend royalty
Keith Speights (AbbVie): Fewer than 40 stocks can claim the status of Dividend King, the elite group of companies that have increased their dividends for 50 years or more. AbbVie is one of only three drugmakers that have earned the honor.
But many members of dividend royalty don't offer yields that are especially attractive. AbbVie is a clear exception, with its dividend yield currently near 3.6%. This yield would be even higher if AbbVie's share price had not soared 45% over the past 12 months.
Technically, AbbVie has only been around since 2013. However, the business was part of Abbott Labs before then. Its roots date back to 1888.
Perhaps the best way to gauge the ability of a pharma company to survive and thrive over the long term is to see how it handles the loss of exclusivity (LOE) of a key product. AbbVie faces this scenario next year with its top-selling drug Humira losing exclusivity in the U.S.
But the company fully expects to quickly return to growth after the initial brunt of Humira's U.S. LOE. AbbVie has built a strong lineup of drugs through internal development and acquisitions.
In fact, the big drugmaker already has two successors to Humira on the market -- Rinvoq and Skyrizi. AbbVie thinks that the two drugs will combine for at least $15 billion in sales by 2025. By comparison, Humira generated $20.7 billion in global sales last year.
Over time, Rinvoq, Skyrizi, and other current blockbusters in AbbVie's portfolio will follow in Humira's footsteps with their own LOEs. However, AbbVie has demonstrated its ability to find ways to remain successful. I think the company is a good bet to continue doing so for decades to come.
Rest easy with this solid dividend stock
Prosper Junior Bakiny (Bristol Myers Squibb): Like many other pharmaceutical giants, Bristol Myers Squibb has been around a while -- the company's history dates back more than 100 years. Of course, this longevity alone isn't a guarantee of anything. Still, Bristol Myers seems to have what it takes to remain atop this industry for many more years.
Consider the company's lineup, which features such blockbuster medicines as anticoagulant Eliquis and cancer drugs Opdivo and Revlimid. These three products are Bristol Myers' best-selling medicines -- and all three were among the 10 top-selling pharma products in the world in 2021. But it's worth noting that the company had a total of eight drugs that generated more than $1 billion in sales last year.
Generic competition for Revlimid entered the U.S. market this year. That will likely lead to a drop in sales for the oncology product. Bristol Myers will face other patent cliffs for some of its most important products in the next half a decade.
Fortunately, the drugmaker is more than capable of dealing with this problem. Bristol Myers is currently in the process of bringing some new products to market that will help smooth the losses from its older products in the coming years.
The company expects $25 billion in revenue from its newer lineup of drugs in 2029. One reason Bristol Myers has been able to last so long is its ability to develop new medicines. And the drugmaker is showing, once again, that its research and development spending isn't going to waste.
Meanwhile, considering the world's aging population, lifesaving therapies will become even more important in the coming decades. This trend will help keep Bristol Myers and its peers in the industry busy -- and profitable. That will allow the company to sustain or increase its dividend payouts. Bristol Myers currently offers a yield of 2.8%, compared to the S&P 500's average of 1.37%.
The company has raised its payouts by 38.5% in the past five years. With a conservative cash payout ratio of 28.86%, there's plenty of room for more increases. Overall, Bristol Myers looks like a solid dividend payer to park in your portfolio for a long time.
Paying dividends for more than a century
David Jagielski (Eli Lilly): If you're looking for a dividend stock you can hold in your portfolio for decades, it's important to look at a business that has strong fundamentals and a bright future. That should give you a level of confidence that its payouts will remain safe over the long haul.
Eli Lilly is an excellent stock that emphatically ticks off those checkmarks. It has a vast pipeline that features dozens of programs that are in phase 2 or later trials.
Donanemab is one particularly attractive candidate with blockbuster potential. It's being evaluated in late-stage trials for treating Alzheimer's disease. Eli Lilly also has pipeline programs targeting cancer, diabetes, immunology, and pain.
The company continues to invest heavily in research and development (R&D) to open up even more opportunities. In 2021, the drugmaker spent $6.1 billion on R&D, which is nearly double the $3.1 billion it spent on dividends. And on top of that, Lilly also made $1.3 billion in share repurchases.
Eli Lilly can afford to do all that as its business is incredibly profitable, reporting more than $5 billion in earnings in each of the past three years. Its net margin is normally 20% or more of revenue. Its free cash flow has also more than doubled from $2.5 billion in 2018 to just under $5.4 billion in 2021.
The company raised its dividend by 15% this year. Its dividend yield now stands at 1.3%, in line with the S&P 500 average of around 1.4%.
Lilly has paid a dividend every year since 1885. With plenty of growth on the horizon and strong financials, Eli Lilly is one of the safest dividend stocks you'll find in the healthcare industry.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Bristol Myers Squibb. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Over time, Rinvoq, Skyrizi, and other current blockbusters in AbbVie's portfolio will follow in Humira's footsteps with their own LOEs. Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Eli Lilly (NYSE: LLY). Dividend royalty Keith Speights (AbbVie): Fewer than 40 stocks can claim the status of Dividend King, the elite group of companies that have increased their dividends for 50 years or more. | Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Eli Lilly (NYSE: LLY). Keith Speights owns AbbVie and Bristol Myers Squibb. Dividend royalty Keith Speights (AbbVie): Fewer than 40 stocks can claim the status of Dividend King, the elite group of companies that have increased their dividends for 50 years or more. | Dividend royalty Keith Speights (AbbVie): Fewer than 40 stocks can claim the status of Dividend King, the elite group of companies that have increased their dividends for 50 years or more. Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Eli Lilly (NYSE: LLY). AbbVie is one of only three drugmakers that have earned the honor. | Here's why they chose AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Eli Lilly (NYSE: LLY). Dividend royalty Keith Speights (AbbVie): Fewer than 40 stocks can claim the status of Dividend King, the elite group of companies that have increased their dividends for 50 years or more. AbbVie is one of only three drugmakers that have earned the honor. |
23453.0 | 2022-04-22 00:00:00 UTC | AbbVie (ABBV) Earnings Expected to Grow: What to Know Ahead of Next Week's Release | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release | nan | nan | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended March 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This drugmaker is expected to post quarterly earnings of $3.15 per share in its upcoming report, which represents a year-over-year change of +6.8%.
Revenues are expected to be $13.56 billion, up 4.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.72% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AbbVie?
For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.05%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AbbVie would post earnings of $3.29 per share when it actually produced earnings of $3.31, delivering a surprise of +0.61%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AbbVie doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended March 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended March 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. | Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended March 2022. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. | For the last reported quarter, it was expected that AbbVie would post earnings of $3.29 per share when it actually produced earnings of $3.31, delivering a surprise of +0.61%. Wall Street expects a year-over-year increase in earnings on higher revenues when AbbVie (ABBV) reports results for the quarter ended March 2022. How Have the Numbers Shaped Up for AbbVie? |
23454.0 | 2022-04-22 00:00:00 UTC | iShares Core High Dividend ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-core-high-dividend-etf-experiences-big-inflow | 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 $792.0 million dollar inflow -- that's a 8.5% increase week over week in outstanding units (from 85,550,000 to 92,800,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.3%, Johnson & Johnson (Symbol: JNJ) is down about 0.8%, and Verizon Communications Inc (Symbol: VZ) is lower by about 5.3%. 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 $108.27. 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 off about 1.3%, Johnson & Johnson (Symbol: JNJ) is down about 0.8%, and Verizon Communications Inc (Symbol: VZ) is lower by about 5.3%. 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 $108.27. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.3%, Johnson & Johnson (Symbol: JNJ) is down about 0.8%, and Verizon Communications Inc (Symbol: VZ) is lower by about 5.3%. 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 $108.27. 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 off about 1.3%, Johnson & Johnson (Symbol: JNJ) is down about 0.8%, and Verizon Communications Inc (Symbol: VZ) is lower by about 5.3%. 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 $792.0 million dollar inflow -- that's a 8.5% increase week over week in outstanding units (from 85,550,000 to 92,800,000). 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 $108.27. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is off about 1.3%, Johnson & Johnson (Symbol: JNJ) is down about 0.8%, and Verizon Communications Inc (Symbol: VZ) is lower by about 5.3%. 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 $792.0 million dollar inflow -- that's a 8.5% increase week over week in outstanding units (from 85,550,000 to 92,800,000). 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 $108.27. |
23455.0 | 2022-04-22 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbvie-0 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 03/31/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 14 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Archford Capital Strategies LLC Existing +470 +$279
Elk River Wealth Management LLC Existing -271 +$178
Wealth Enhancement Advisory Services LLC Existing -317 -$3
NorthCrest Asset Manangement LLC Existing +2,503 +$2,861
Piscataqua Savings Bank Existing +28,383 +$4,943
Spire Wealth Management Existing -16,109 -$578
Rothschild Investment Corp IL Existing -16,076 +$1,397
Holloway Wealth Management LLC Existing UNCH +$5
AE Wealth Management LLC Existing -5,841 +$6,680
Buttonwood Financial Advisors Inc. NEW +2,313 +$375
Sequent Asset Management LLC Existing -131 +$43
Carolina Wealth Advisors LLC Existing +1,294 +$1,236
Professional Advisory Services Inc. Existing UNCH +$83
Ballast Inc. Existing +144 +$67
Aggregate Change: -3,638 +$17,566
In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 12/31/2021 to 03/31/2022, with 6 having decreased their positions and 1 new position.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 03/31/2022 reporting period (out of the 541 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 12/31/2021 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds reduced their holdings by 777,722 shares in the aggregate, from 16,158,894 down to 15,381,172 for a share count decline of approximately -4.81%. The overall top three funds holding ABBV on 03/31/2022 were:
» FUND SHARES OF ABBV HELD
1. Nordea Investment Management AB 4,017,513
2. Guinness Asset Management LTD 715,105
3. Gateway Investment Advisers LLC 524,793
4-10 Find out the full Top 10 Hedge Funds Holding ABBV »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV).
10 S&P 500 Components Hedge Funds Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 03/31/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 14 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 03/31/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 14 of these funds. Gateway Investment Advisers LLC 524,793 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | We then compared that number to the sum total of ABBV shares those same funds held back at the 12/31/2021 period, to see how the aggregate share count held by hedge funds has moved for ABBV. Gateway Investment Advisers LLC 524,793 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 03/31/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 14 of these funds. | Existing +144 +$67 Aggregate Change: -3,638 +$17,566 In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 12/31/2021 to 03/31/2022, with 6 having decreased their positions and 1 new position. Gateway Investment Advisers LLC 524,793 4-10 Find out the full Top 10 Hedge Funds Holding ABBV » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 03/31/2022 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 14 of these funds. |
23456.0 | 2022-04-22 00:00:00 UTC | Pre-Market Most Active for Apr 22, 2022 : TQQQ, SQQQ, TWTR, QQQ, CRXT, RDBX, SNAP, CLF, AAPL, ABBV, NIO, GPS | ABBV | https://www.nasdaq.com/articles/pre-market-most-active-for-apr-22-2022-%3A-tqqq-sqqq-twtr-qqq-crxt-rdbx-snap-clf-aapl-abbv | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 19.03 to 13,739.48. The total Pre-Market volume is currently 16,431,399 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.44 at $45.53, with 1,816,485 shares traded. This represents a 15.09% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.45 at $41.35, with 1,459,263 shares traded. This represents a 46.89% increase from its 52 Week Low.
Twitter, Inc. (TWTR) is +0.48 at $47.56, with 1,387,528 shares traded.TWTR is scheduled to provide an earnings report on 4/28/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is -0.19 per share, which represents a 6 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +1.34 at $335.49, with 1,108,795 shares traded. This represents a 6.17% increase from its 52 Week Low.
Clarus Therapeutics Holdings, Inc. (CRXT) is -0.12 at $2.19, with 992,625 shares traded. As reported by Zacks, the current mean recommendation for CRXT is in the "buy range".
Redbox Entertainment Inc. (RDBX) is +0.08 at $3.14, with 953,818 shares traded. As reported by Zacks, the current mean recommendation for RDBX is in the "buy range".
Snap Inc. (SNAP) is +0.2586 at $29.68, with 919,873 shares traded. As reported by Zacks, the current mean recommendation for SNAP is in the "buy range".
Cleveland-Cliffs Inc. (CLF) is +2.14 at $31.72, with 822,052 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $1.47. Smarter Analyst Reports: Cleveland-Cliffs Posts Strong Q3 Results; Shares Pop 4%
Apple Inc. (AAPL) is +0.93 at $167.35, with 609,016 shares traded.AAPL is scheduled to provide an earnings report on 4/28/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is 1.44 per share, which represents a 140 percent increase over the EPS one Year Ago
AbbVie Inc. (ABBV) is -0.72 at $157.80, with 608,090 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $3.15. ABBV is scheduled to provide an earnings report on 4/29/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is 3.15 per share, which represents a 295 percent increase over the EPS one Year Ago
NIO Inc. (NIO) is +0.18 at $17.33, with 495,328 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Gap, Inc. (The) (GPS) is -2.24 at $12.05, with 323,142 shares traded. GPS's current last sale is 70.88% of the target price of $17.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV) is -0.72 at $157.80, with 608,090 shares traded. ABBV is scheduled to provide an earnings report on 4/29/2022, for the fiscal quarter ending Mar2022. Twitter, Inc. (TWTR) is +0.48 at $47.56, with 1,387,528 shares traded.TWTR is scheduled to provide an earnings report on 4/28/2022, for the fiscal quarter ending Mar2022. | AbbVie Inc. (ABBV) is -0.72 at $157.80, with 608,090 shares traded. ABBV is scheduled to provide an earnings report on 4/29/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is -0.19 per share, which represents a 6 percent increase over the EPS one Year Ago | AbbVie Inc. (ABBV) is -0.72 at $157.80, with 608,090 shares traded. ABBV is scheduled to provide an earnings report on 4/29/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is -0.19 per share, which represents a 6 percent increase over the EPS one Year Ago | AbbVie Inc. (ABBV) is -0.72 at $157.80, with 608,090 shares traded. ABBV is scheduled to provide an earnings report on 4/29/2022, for the fiscal quarter ending Mar2022. The NASDAQ 100 Pre-Market Indicator is up 19.03 to 13,739.48. |
23457.0 | 2022-04-21 00:00:00 UTC | Notable Thursday Option Activity: HEAR, ADT, ABBV | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-hear-adt-abbv | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Turtle Beach Corp (Symbol: HEAR), where a total volume of 1,811 contracts has been traded thus far today, a contract volume which is representative of approximately 181,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.9% of HEAR's average daily trading volume over the past month, of 412,895 shares. Especially high volume was seen for the $25 strike call option expiring May 20, 2022, with 1,035 contracts trading so far today, representing approximately 103,500 underlying shares of HEAR. Below is a chart showing HEAR's trailing twelve month trading history, with the $25 strike highlighted in orange:
ADT Inc (Symbol: ADT) options are showing a volume of 7,601 contracts thus far today. That number of contracts represents approximately 760,100 underlying shares, working out to a sizeable 43.8% of ADT's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $5 strike put option expiring January 20, 2023, with 7,501 contracts trading so far today, representing approximately 750,100 underlying shares of ADT. Below is a chart showing ADT's trailing twelve month trading history, with the $5 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,057 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 43.7% of ABBV's average daily trading volume over the past month, of 7.6 million shares. Especially high volume was seen for the $160 strike call option expiring April 22, 2022, with 7,815 contracts trading so far today, representing approximately 781,500 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 HEAR options, ADT 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 $160 strike call option expiring April 22, 2022, with 7,815 contracts trading so far today, representing approximately 781,500 underlying shares of ABBV. Below is a chart showing ADT's trailing twelve month trading history, with the $5 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,057 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 43.7% of ABBV's average daily trading volume over the past month, of 7.6 million shares. | That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 43.7% of ABBV's average daily trading volume over the past month, of 7.6 million shares. Below is a chart showing ADT's trailing twelve month trading history, with the $5 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,057 contracts thus far today. Especially high volume was seen for the $160 strike call option expiring April 22, 2022, with 7,815 contracts trading so far today, representing approximately 781,500 underlying shares of ABBV. | That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 43.7% of ABBV's average daily trading volume over the past month, of 7.6 million shares. Below is a chart showing ADT's trailing twelve month trading history, with the $5 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,057 contracts thus far today. Especially high volume was seen for the $160 strike call option expiring April 22, 2022, with 7,815 contracts trading so far today, representing approximately 781,500 underlying shares of ABBV. | Especially high volume was seen for the $160 strike call option expiring April 22, 2022, with 7,815 contracts trading so far today, representing approximately 781,500 underlying shares of ABBV. Below is a chart showing ADT's trailing twelve month trading history, with the $5 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,057 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 43.7% of ABBV's average daily trading volume over the past month, of 7.6 million shares. |
23458.0 | 2022-04-21 00:00:00 UTC | 2 Charts Big Pharma Investors Need to Understand | ABBV | https://www.nasdaq.com/articles/2-charts-big-pharma-investors-need-to-understand | nan | nan | For pharma investors to be worth their salt, they need to appreciate the trends that drive the industry. Change tends to be slow, and it's often necessary to hold pharma stocks for years before seeing a significant payoff -- but the winds of change are always blowing, so there's still no time to rest on your laurels.
In the next few years, I expect the major pharmaceutical businesses of tomorrow to look and act more or less like they do today, but I also expect that many of the leading players today will struggle to maintain their status relative to their peers. Let's take a look at some data which will help to clarify why that could be the case.
Image source: Getty Images.
1. Tomorrow's winners won't be the same as today's
Most of the major pharmaceutical companies compete in a slew of different areas. More successful businesses end up faring better, on average, thereby giving them a larger share of theglobal marketfor prescription medicines in general. And having more high-earning drugs on the market is a surefire way to grab a larger share.
With that in mind, take a gander at this data:
Image source: Statista.
As you can see, today's high-profile pharma companies like Pfizer (NYSE: PFE) probably aren't going to be represented in the best-seller's list in 2026. That doesn't mean they're going to go out of business, but it does indicate that they might become comparatively less powerful than they are today, and perhaps only temporarily so.
In contrast, competitors like AbbVie (NYSE: ABBV) and AstraZeneca could see their market shares grow as a result of targeting more lucrative disease areas with their development efforts which are going on today. The point is that they'll likely see their businesses strengthen throughout the next few years, and that could be an important part of an investment thesis if you're wondering which competitors' shares to buy.
2. Acquisitions will continue to be a battleground
Pharma companies and their investors are loath to accept a diminished standing in theglobal market especially if there's a chance to head it off with corrective action. But developing new medicines typically takes in the ballpark of seven years, and only 13.8% of medicines make it through the clinical trials process to reach commercialization.
So a common strategy is to push forward with as many ambitious pipeline projects as is feasible in the hopes that, eventually, a few will succeed. Beyond that, it's often convenient to buy up promising biotechs or merge with smaller, established drug developers that have a few promising drugs on the market to contribute.
In my experience, most pharma investors understand the above, but the actual scale of merger and acquisition activity in the pharma industry and the wider healthcare sector isn't as clear. Consider the chart below:
That's right, there are hundreds of mergers and acquisitions going on in most quarters.
As there's no guarantee that any individual acquisition by a pharma company is going to yield a profitable drug down the line, it shouldn't be a surprise to hear that it's a numbers game. Thus, given the trends outlined in the first chart I showed, businesses with significant cash holdings to use for acquisitions are better-positioned to maintain their share of theglobal marketfor prescription drugs.
In more concrete terms, that means drug developers like Pfizer and Johnson & Johnson will have more than enough to gobble up promising, young competitors -- especially given Pfizer's hoard of $31 billion of cash and short-term investments and J&J's $31.6 billion.
With money like that, either of the two could even potentially outbid a poorer competitor like AbbVie, which only has $9.8 billion in liquid holdings.
Time will tell whether acquisitions continue to be as popular as they have been in recent years. Either way, investors moving forward should keep an eye on cash as it's sure to be a key factor in shaping the future of the pharma industry for years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In contrast, competitors like AbbVie (NYSE: ABBV) and AstraZeneca could see their market shares grow as a result of targeting more lucrative disease areas with their development efforts which are going on today. With money like that, either of the two could even potentially outbid a poorer competitor like AbbVie, which only has $9.8 billion in liquid holdings. Acquisitions will continue to be a battleground Pharma companies and their investors are loath to accept a diminished standing in theglobal market especially if there's a chance to head it off with corrective action. | In contrast, competitors like AbbVie (NYSE: ABBV) and AstraZeneca could see their market shares grow as a result of targeting more lucrative disease areas with their development efforts which are going on today. With money like that, either of the two could even potentially outbid a poorer competitor like AbbVie, which only has $9.8 billion in liquid holdings. In the next few years, I expect the major pharmaceutical businesses of tomorrow to look and act more or less like they do today, but I also expect that many of the leading players today will struggle to maintain their status relative to their peers. | In contrast, competitors like AbbVie (NYSE: ABBV) and AstraZeneca could see their market shares grow as a result of targeting more lucrative disease areas with their development efforts which are going on today. With money like that, either of the two could even potentially outbid a poorer competitor like AbbVie, which only has $9.8 billion in liquid holdings. In my experience, most pharma investors understand the above, but the actual scale of merger and acquisition activity in the pharma industry and the wider healthcare sector isn't as clear. | In contrast, competitors like AbbVie (NYSE: ABBV) and AstraZeneca could see their market shares grow as a result of targeting more lucrative disease areas with their development efforts which are going on today. With money like that, either of the two could even potentially outbid a poorer competitor like AbbVie, which only has $9.8 billion in liquid holdings. In my experience, most pharma investors understand the above, but the actual scale of merger and acquisition activity in the pharma industry and the wider healthcare sector isn't as clear. |
23459.0 | 2022-04-21 00:00:00 UTC | Interesting ABBV Put And Call Options For June 3rd | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-june-3rd | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 3rd 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 $2.36. 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 $147.64 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $158.63/share today.
Because the $150.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.57% return on the cash commitment, or 13.36% 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 $160.00 strike price has a current bid of $4.65. If an investor was to purchase shares of ABBV stock at the current price level of $158.63/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $160.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.79% if the stock gets called away at the June 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red:
Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 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 24.88% 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 $158.63) to be 19%. 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 $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 3rd expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. 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 June 3rd 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 $160.00 strike price has a current bid of $4.65. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 3rd expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 3rd contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 3rd expiration. |
23460.0 | 2022-04-21 00:00:00 UTC | Is Teva Pharmaceuticals a Brilliant Contrarian Pick? | ABBV | https://www.nasdaq.com/articles/is-teva-pharmaceuticals-a-brilliant-contrarian-pick | nan | nan | The Israeli generic drug giant Teva Pharmaceuticals (NYSE: TEVA) isn't exactly an obvious investment suggestion. Over the last five years, its shares are down by more than 66%, while the broader S&P 500 index's total return has been around 105%. Trouble for Teva: it's barely profitable, its base of revenue may be shrinking, and it could continue to lose ground.
On the other hand, if Teva manages to make a comeback in spite of clear headwinds, it'll bring wealth to the contrarian investors who saw its potential. Let's dig into this generic pharmaceutical company and evaluate its merit as a contrarian choice for investors with an appetite for risky picks.
Image source: Getty Images.
Why you'd need to be a contrarian to invest in Teva
Many investors might shy away from Teva Pharmaceuticals because the company has a lot of legal problems pertaining to its alleged role in the opioid crisis. So far, out-of-court settlements have left Teva on the hook for hundreds of millions of dollars in damages, which the company will be paying back for a very long time. Teva owes the state of Texas alone $150 million, plus $75 million worth of the anti-opioid nasal spray Narcan. That's just one state, and more are in line: Teva has already reached similar agreements with other entities and is still defending itself from opioid-related lawsuits in others.
Considering these numbers, the settlements are likely to be a significant drag on Teva's ability to invest in growth. In 2021, Teva had free cash flow (FCF) of $2.2 billion, and cash holdings of only $2.1 billion.
Beyond that massive problem, the company's financials spell out other large issues. Teva shareholders have been short on good news over the last five years, with sales, gross profits, FCF, and even total assets shrinking at a dramatic clip.
TEVA Revenue (Annual) data by YCharts
The decline in assets is particularly concerning, as the entire business model of a generic drug manufacturer like Teva depends heavily on continuing to build out new production lines that can yield many years of revenue. If the value of its assets is declining, it means that long-term growth prospects are wilting due to a lack of fresh investment in production.
On top of all that, the company has a debt load of $23.5 billion. At first glance, that looks quite unmanageable, given Teva's razor-thin profit margins and trailing 12-month revenue of only $15.8 billion.
Why the contrarians could be correct
As challenging as Teva's current position is, there is a reasonable, albeit contrarian, investment thesis at play here that could bring riches to the daring investor. The below chart illustrates the crux of that contrarian thinking.
TEVA Normalized Diluted EPS (Quarterly) data by YCharts
Within the last three years, Teva's quarterly normalized diluted earnings per share (EPS) tumbled sharply, but have since more than recovered. During that same period, the company made steady progress in paying off and refinancing its debt, with plans to continue retiring debt at largely the same rate.
Plus, its expenses as a fraction of quarterly revenue are dropping as a result of cost-cutting efforts and site consolidations that have been going on since at least 2017. More expense reductions will further widen Teva's profit margins. With greater profit margins, management will have more leeway to reinvest in developing new generics that could grow the business' top and bottom lines. Not to mention that heightened margins will allow Teva to pay off debt at an even faster rate.
Then there's Teva's product portfolio, which could soon include a biosimilar version of the best-selling psoriatic arthritis drug Humira -- if regulators give the product a green light. AbbVie, the original developer of Humira, made $20.7 billion from sales of the drug last year. When the large-molecule drug's patent expires in 2023, Teva (along with a handful of its peers) will have a shot at taking a significant slice of that massive pie.
Teva has been sorely lacking in long-term revenue growth for some time. Its Humira biosimilar might well provide it with some.
Is a turnaround likely?
I think that the contrarian narrative about Teva is largely correct, except when it comes to one critical piece: the potential for shareholder returns.
Generic drug manufacturers aren't growth stocks, and not even Teva's improvement trajectory can change that. Right now, Teva is a perennially underperforming company, not an undervalued or misunderstood gem.
There isn't any general expectation for rapid growth in Teva's revenue or earnings. The company also isn't exposed to any positive catalysts which could drive share price appreciation. At best, Teva could navigate its current problems well enough to fix them, and then transition into a business that returns capital to shareholders slowly over the long term. Yet it's impossible to imagine this stock beating the market under most conditions, even if the company undergoes a revitalization.
Of course, having said that, it's possible that I just don't see the true brilliance of the contrarian perspective on Teva Pharmaceuticals. But to be safe, I'd avoid buying this stock anyway.
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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, the original developer of Humira, made $20.7 billion from sales of the drug last year. On the other hand, if Teva manages to make a comeback in spite of clear headwinds, it'll bring wealth to the contrarian investors who saw its potential. So far, out-of-court settlements have left Teva on the hook for hundreds of millions of dollars in damages, which the company will be paying back for a very long time. | AbbVie, the original developer of Humira, made $20.7 billion from sales of the drug last year. Teva shareholders have been short on good news over the last five years, with sales, gross profits, FCF, and even total assets shrinking at a dramatic clip. TEVA Normalized Diluted EPS (Quarterly) data by YCharts Within the last three years, Teva's quarterly normalized diluted earnings per share (EPS) tumbled sharply, but have since more than recovered. | AbbVie, the original developer of Humira, made $20.7 billion from sales of the drug last year. The Israeli generic drug giant Teva Pharmaceuticals (NYSE: TEVA) isn't exactly an obvious investment suggestion. Why you'd need to be a contrarian to invest in Teva Many investors might shy away from Teva Pharmaceuticals because the company has a lot of legal problems pertaining to its alleged role in the opioid crisis. | AbbVie, the original developer of Humira, made $20.7 billion from sales of the drug last year. I think that the contrarian narrative about Teva is largely correct, except when it comes to one critical piece: the potential for shareholder returns. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Teva Pharmaceutical Industries wasn't one of them! |
23461.0 | 2022-04-20 00:00:00 UTC | Dragonfly Therapeutics Expands Collaboration With AbbVie To Develop Novel Immunotherapies | ABBV | https://www.nasdaq.com/articles/dragonfly-therapeutics-expands-collaboration-with-abbvie-to-develop-novel-immunotherapies | nan | nan | (RTTNews) - Biotechnology company Dragonfly Therapeutics, Inc. announced Wednesday an expansion of its existing collaboration in oncology and autoimmune disease with peer AbbVie, Inc. (ABBV) to discover and develop Dragonfly's novel immunotherapies for new targets in autoimmune and fibrotic diseases using Dragonfly's proprietary Tri-specific NK cell Engager Therapy (TriNKET) platform.
AbbVie successfully licensed its first TriNKET drug candidate from Dragonfly, part of a multi-target collaboration initiated in November 2019, in January 2021.
Under the agreement, Dragonfly will grant AbbVie the option to license exclusive worldwide intellectual property rights to multiple new candidates developed using Dragonfly's TriNKET technology platform.
AbbVie will pay Dragonfly an upfront payment, future success-based milestone payments and royalties.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biotechnology company Dragonfly Therapeutics, Inc. announced Wednesday an expansion of its existing collaboration in oncology and autoimmune disease with peer AbbVie, Inc. (ABBV) to discover and develop Dragonfly's novel immunotherapies for new targets in autoimmune and fibrotic diseases using Dragonfly's proprietary Tri-specific NK cell Engager Therapy (TriNKET) platform. AbbVie successfully licensed its first TriNKET drug candidate from Dragonfly, part of a multi-target collaboration initiated in November 2019, in January 2021. Under the agreement, Dragonfly will grant AbbVie the option to license exclusive worldwide intellectual property rights to multiple new candidates developed using Dragonfly's TriNKET technology platform. | (RTTNews) - Biotechnology company Dragonfly Therapeutics, Inc. announced Wednesday an expansion of its existing collaboration in oncology and autoimmune disease with peer AbbVie, Inc. (ABBV) to discover and develop Dragonfly's novel immunotherapies for new targets in autoimmune and fibrotic diseases using Dragonfly's proprietary Tri-specific NK cell Engager Therapy (TriNKET) platform. AbbVie successfully licensed its first TriNKET drug candidate from Dragonfly, part of a multi-target collaboration initiated in November 2019, in January 2021. Under the agreement, Dragonfly will grant AbbVie the option to license exclusive worldwide intellectual property rights to multiple new candidates developed using Dragonfly's TriNKET technology platform. | (RTTNews) - Biotechnology company Dragonfly Therapeutics, Inc. announced Wednesday an expansion of its existing collaboration in oncology and autoimmune disease with peer AbbVie, Inc. (ABBV) to discover and develop Dragonfly's novel immunotherapies for new targets in autoimmune and fibrotic diseases using Dragonfly's proprietary Tri-specific NK cell Engager Therapy (TriNKET) platform. Under the agreement, Dragonfly will grant AbbVie the option to license exclusive worldwide intellectual property rights to multiple new candidates developed using Dragonfly's TriNKET technology platform. AbbVie successfully licensed its first TriNKET drug candidate from Dragonfly, part of a multi-target collaboration initiated in November 2019, in January 2021. | (RTTNews) - Biotechnology company Dragonfly Therapeutics, Inc. announced Wednesday an expansion of its existing collaboration in oncology and autoimmune disease with peer AbbVie, Inc. (ABBV) to discover and develop Dragonfly's novel immunotherapies for new targets in autoimmune and fibrotic diseases using Dragonfly's proprietary Tri-specific NK cell Engager Therapy (TriNKET) platform. AbbVie successfully licensed its first TriNKET drug candidate from Dragonfly, part of a multi-target collaboration initiated in November 2019, in January 2021. Under the agreement, Dragonfly will grant AbbVie the option to license exclusive worldwide intellectual property rights to multiple new candidates developed using Dragonfly's TriNKET technology platform. |
23462.0 | 2022-04-20 00:00:00 UTC | The Best Stocks to Invest $5,000 In Right Now | ABBV | https://www.nasdaq.com/articles/the-best-stocks-to-invest-%245000-in-right-now | nan | nan | Vaccine stocks have been a big focus over the past couple of years. But there are plenty of other players in the healthcare space that could supercharge your portfolio. They are companies with big revenue growth today -- and even bigger prospects on the horizon. That's why it's a great idea to invest $5,000 in a basket of these growth players.
Right now, I'm thinking of a biotech company that's a leader in its field, a healthcare services company that could represent the future of medical visits -- and a pharma player that's gaining in prescription drug market share. Let's take a look at each.
Image source: Getty Images.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) recently did something it hasn't done in a long time. The company's shares surpassed Wall Street's average 12-month forecast. The stock struggled from late 2020 through last year after two clinical trial failures. So why is the stock on a roll now? Something big lies ahead: Later this year, the company plans on applying for regulatory approval for its onetime curative treatment candidate for blood disorders. Success of this potential blockbuster would prove that Vertex has what it takes to expand beyond its core business of cystic fibrosis (CF) treatments.
And speaking of CF, Vertex's leadership and blockbuster revenue there is far from over. The company expects to maintain its position until at least the late 2030s. Vertex last year generated more than $5.6 billion in sales from its star CF drug. Vertex also recently reported positive news from clinical trials on a non-opioid pain candidate and a potential treatment for type 1 diabetes.
Vertex shares have climbed 28% so far this year. This still leaves Vertex at a forward price-to-earnings ratio of less than 20. And that looks reasonable considering the company's strength in CF and opportunity in blood disorders and other areas.
2. Teladoc Health
Teladoc Health (NYSE: TDOC) hasn't yet rebounded like Vertex. The stock has lost 32% so far this year. But, as I've written earlier, I think worries about risks such as competition are overdone. So, let's focus on why Teladoc is a stock to buy now. Of course, recent declines offer a buying opportunity when it comes to price. The provider of virtual medical visits today trades at less than five times sales. That's down from 24 early last year.
But what I really like about Teladoc are the company's prospects. Teladoc aims to reach more than $4 billion in revenue in 2024. That's through growth in members and in revenue per member. Teladoc already has shown that it can grow both. And Teladoc also is gaining ground in the key area of chronic care. About 4 out of 10 adults in the U.S. suffer from two or more chronic conditions. Teladoc said in its latest earnings report that the percentage of its chronic care members enrolled in multiple programs has doubled year over year.
Teladoc's revenue soared in the early days of the pandemic when people favored staying home. But it's continued to grow in the double digits in recent times. And that's evidence that the popularity of telemedicine wasn't a temporary pandemic thing. Instead, it's here to stay.
3. AbbVie
The bad news for AbbVie (NYSE: ABBV) is that competition for its star immunosuppressive drug Humira is on the horizon. The drug that generated $20 billion in 2021 could see rivals take market share as soon as next year. But there's also plenty of good news ahead. AbbVie expects its two other immunology drugs, Rinvoq and Skyrizi, together to bring in even more revenue than Humira at its peak. Right now, the company is working on adding indications for both of those drugs.
And AbbVie's story isn't only about immunology. The company has about 20 other key products in a range of indications including oncology, aesthetics, neuroscience, and eye care. Together, these products helped AbbVie generate more than $56 billion in revenue last year. That's an increase of about 22% year over year. And AbbVie has about 60 candidates in the pipeline -- some involved in trials for multiple indications. AbbVie is set to become the top pharma company by prescription drug market share by 2026, according to Evaluate Pharma.
AbbVie trades for about 11 times forward earnings. That looks cheap compared to the average of about 24 for the healthcare industry. Considering the growth ahead, AbbVie makes an ideal stock to add to your basket of long-term pharmaceutical winners.
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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 The bad news for AbbVie (NYSE: ABBV) is that competition for its star immunosuppressive drug Humira is on the horizon. AbbVie expects its two other immunology drugs, Rinvoq and Skyrizi, together to bring in even more revenue than Humira at its peak. And AbbVie's story isn't only about immunology. | AbbVie is set to become the top pharma company by prescription drug market share by 2026, according to Evaluate Pharma. AbbVie The bad news for AbbVie (NYSE: ABBV) is that competition for its star immunosuppressive drug Humira is on the horizon. AbbVie expects its two other immunology drugs, Rinvoq and Skyrizi, together to bring in even more revenue than Humira at its peak. | AbbVie The bad news for AbbVie (NYSE: ABBV) is that competition for its star immunosuppressive drug Humira is on the horizon. AbbVie expects its two other immunology drugs, Rinvoq and Skyrizi, together to bring in even more revenue than Humira at its peak. And AbbVie's story isn't only about immunology. | AbbVie The bad news for AbbVie (NYSE: ABBV) is that competition for its star immunosuppressive drug Humira is on the horizon. AbbVie expects its two other immunology drugs, Rinvoq and Skyrizi, together to bring in even more revenue than Humira at its peak. And AbbVie's story isn't only about immunology. |
23463.0 | 2022-04-20 00:00:00 UTC | AbbVie Snags Another Regulatory Approval for This Blockbuster Drug | ABBV | https://www.nasdaq.com/articles/abbvie-snags-another-regulatory-approval-for-this-blockbuster-drug | nan | nan | On March 16, the Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Rinvoq the nod to treat adult patients with moderate-to-severe ulcerative colitis who didn't respond to at least one tumor necrosis factor (TNF) blocker.
Why did the FDA approve Rinvoq for its fourth indication? And what could it mean for the pharma stock AbbVie? To answer these questions, let's examine numbers from both Rinvoq's ulcerative colitis clinical trials and the U.S. ulcerative colitis market.
Another potent treatment
Ulcerative colitis is a type of inflammatory bowel disease that harms the gastrointestinal (GI) tract. Unlike Crohn's disease, which can impact any part of the GI tract, ulcerative colitis is restricted to the rectum and large intestine.
Ulcerative colitis interferes with the capacity of the GI tract to perform its responsibilities. The symptoms often include fatigue, abdominal pain, and weight loss. If the condition is not appropriately managed by a medical specialist, blood loss can also result in anemia that requires frequent blood transfusions.
The good news for patients diagnosed with moderate-to-severe ulcerative colitis is that more treatments are researched, developed, and launched every year. Rinvoq is one treatment that has demonstrated its potential to help patients manage their condition.
Patients assigned to the group taking either 15 milligrams or 30 mg of Rinvoq once daily achieved clinical remission (meaning few or no symptoms of ulcerative colitis) at rates of 42% and 52% at week 52. This was significantly higher than the 12% of patients randomized to the placebo group who experienced clinical remission at week 52.
Image source: Getty Images.
A needle-moving indication
Rinvoq appears to be an effective treatment for moderate-to-severe ulcerative colitis patients. But what is the annual sales potential of the indication?
It's estimated that there are 907,000 ulcerative colitis patients in the U.S. And in any given year, 21% to 22% of patients experience moderate to severe activity in their condition. Taking it one step further, 60% to 70% of these patients either don't experience improvement in their condition, or relapse during the first year of therapy on TNF blockers like AbbVie's Humira. This translates into a market of approximately 127,000 patients.
AbbVie's Rinvoq faces competition from the likes of its own Humira and Johnson & Johnson's (NYSE: JNJ) Stelara, making the ulcerative colitis market a crowded one. It's also worth considering that Rinvoq is a Janus kinase (JAK) inhibitor. Since JAK inhibitors have been linked to an increased risk of adverse events like heart attacks, strokes, blood clots, and cancer, Rinvoq is unlikely to become more than a secondary treatment for patients with ulcerative colitis.
This is why I assume that the drug will seize a modest 7% share of its addressable market, which is equivalent to approximately 9,000 patients. Rinvoq has an annual list price of $68,000 per patient. But adjusting for patient assistance programs and insurance negotiations, I'll use an annual net price of $44,000 per patient.
This would work out to $400 million in annual sales potential for Rinvoq's ulcerative colitis indication in the U.S. Given the $60.4 billion in annual sales that analysts are forecasting for AbbVie in 2022, this would be a 0.7% boost to the company's total sales. But considering that Rinvoq generated $1.65 billion in sales in 2021, it would be a significant boost for the drug's overall sales.
Rinvoq could also soon be approved for this indication in other major markets like the European Union, which could be another boost for the drug.
A fairly valued Dividend King
AbbVie looks to be reasonably priced for a stock with its track record as a Dividend King: It was recently trading at a forward price-to-earnings (P/E) ratio of 11.5. For context, this is significantly lower than the 16.7 forward P/E of the S&P 500 healthcare sector. That's why AbbVie is a great pick to buy at this time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On March 16, the Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Rinvoq the nod to treat adult patients with moderate-to-severe ulcerative colitis who didn't respond to at least one tumor necrosis factor (TNF) blocker. And what could it mean for the pharma stock AbbVie? Taking it one step further, 60% to 70% of these patients either don't experience improvement in their condition, or relapse during the first year of therapy on TNF blockers like AbbVie's Humira. | On March 16, the Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Rinvoq the nod to treat adult patients with moderate-to-severe ulcerative colitis who didn't respond to at least one tumor necrosis factor (TNF) blocker. And what could it mean for the pharma stock AbbVie? Taking it one step further, 60% to 70% of these patients either don't experience improvement in their condition, or relapse during the first year of therapy on TNF blockers like AbbVie's Humira. | On March 16, the Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Rinvoq the nod to treat adult patients with moderate-to-severe ulcerative colitis who didn't respond to at least one tumor necrosis factor (TNF) blocker. AbbVie's Rinvoq faces competition from the likes of its own Humira and Johnson & Johnson's (NYSE: JNJ) Stelara, making the ulcerative colitis market a crowded one. And what could it mean for the pharma stock AbbVie? | On March 16, the Food and Drug Administration (FDA) gave AbbVie's (NYSE: ABBV) Rinvoq the nod to treat adult patients with moderate-to-severe ulcerative colitis who didn't respond to at least one tumor necrosis factor (TNF) blocker. And what could it mean for the pharma stock AbbVie? Taking it one step further, 60% to 70% of these patients either don't experience improvement in their condition, or relapse during the first year of therapy on TNF blockers like AbbVie's Humira. |
23464.0 | 2022-04-19 00:00:00 UTC | What to Expect Ahead of HCA Healthcare's (HCA) Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/what-to-expect-ahead-of-hca-healthcares-hca-q1-earnings | nan | nan | HCA Healthcare, Inc. HCA is scheduled to release first-quarter 2022 results on Apr 22, before the market opens.
In the fourth quarter of 2021, HCA reported adjusted earnings of $4.42 per share, which missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 7% year over year on higher revenues.
HCA witnessed solid patient volumes in fourth-quarter 2021. However, the same was offset by escalating expenses and decreased the same facility inpatient surgeries.
Earnings Surprise History
HCA boasts an encouraging earnings surprise record. The bottom line beat estimates in three of the trailing four quarters and missed once, the average surprise being 17.51%. This is depicted in the chart below:
HCA Healthcare, Inc. Price and EPS Surprise
HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote
Factors to Note
In the first quarter, HCA is likely to have witnessed higher patient volume, which in turn might have contributed to its revenues. HCA may have witnessed admissions similar to 2019 levels. The consensus mark for the top line stands at $14.7 billion, indicating an improvement of 5.4% from the year-ago reported figure.
HCA may have witnessed better outpatient surgeries in the to-be-reported quarter.
HCA Healthcare is likely to have benefited from a better payer mix of its commercial business in the first quarter of 2022.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $4.34, indicating growth of 4.8% from the year-earlier quarter. Improved revenues may have led to this upside.
HCA’s increased number of outpatient facilities might have provided a boost to patient admissions in the to-be-reported quarter. The consensus mark for equivalent admissions for the first quarter suggests an upside of 5.2% from the prior-year quarter.
HCA Healthcare is likely to have continued with its dividend payout and share buyback plan, both of which were resumed earlier this year. This might have cushioned its performance in the quarter to be reported.
However, elevated expenses due to higher operating costs and substantial growth-related investments may have weighed on the first-quarter performance.
What Our Quantitative Model Predicts
Our proven model doesn’t predict an earnings beat for HCA Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, as you can see below, which is not the case here.
Earnings ESP: HCA Healthcare has an Earnings ESP of -5.86%. This is because the Most Accurate Estimate of $4.09 is lower than the Zacks Consensus Estimate of $4.34. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HCA Healthcare currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in their upcoming releases:
Acadia Healthcare Company, Inc. ACHC provides behavioral health care services in the United States and the U.K. ACHC has an Earnings ESP of +0.95% and a Zacks Rank of 3, currently. ACHC will report first-quarter 2022 results on May 5.
Brookdale Senior Living Inc. BKD is a leading owner and operator of senior living facilities throughout the United States. BKD carries a Zacks Rank of 3. BKD has an Earnings ESP of +8.76%. It is slated to report first-quarter 2022 earnings on May 5.
AbbVie Inc.ABBV has emerged as one of the top-most pharma companies following its acquisition of Botox maker Allergan in a cash-and-stock deal worth $63 billion in May 2020. ABBV has a Zacks Rank #3 and an Earnings ESP of +0.48. ABBV is scheduled to report its first-quarter 2022results on Apr 29.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc.ABBV has emerged as one of the top-most pharma companies following its acquisition of Botox maker Allergan in a cash-and-stock deal worth $63 billion in May 2020. ABBV has a Zacks Rank #3 and an Earnings ESP of +0.48. ABBV is scheduled to report its first-quarter 2022results on Apr 29. | AbbVie Inc.ABBV has emerged as one of the top-most pharma companies following its acquisition of Botox maker Allergan in a cash-and-stock deal worth $63 billion in May 2020. ABBV has a Zacks Rank #3 and an Earnings ESP of +0.48. ABBV is scheduled to report its first-quarter 2022results on Apr 29. | AbbVie Inc.ABBV has emerged as one of the top-most pharma companies following its acquisition of Botox maker Allergan in a cash-and-stock deal worth $63 billion in May 2020. ABBV has a Zacks Rank #3 and an Earnings ESP of +0.48. ABBV is scheduled to report its first-quarter 2022results on Apr 29. | ABBV has a Zacks Rank #3 and an Earnings ESP of +0.48. AbbVie Inc.ABBV has emerged as one of the top-most pharma companies following its acquisition of Botox maker Allergan in a cash-and-stock deal worth $63 billion in May 2020. ABBV is scheduled to report its first-quarter 2022results on Apr 29. |
23465.0 | 2022-04-19 00:00:00 UTC | 3 Things About Abbott Laboratories That Smart Investors Know | ABBV | https://www.nasdaq.com/articles/3-things-about-abbott-laboratories-that-smart-investors-know-0 | nan | nan | Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. The fascinating part of her story was that she bought three $60 shares of the company's stock in 1935 (costing a bit over $1,200 in today's dollars) and held them until her death. After many decades of stock splits, dividends, and growth, her estate was worth more than $7 million at her passing.
Now, Abbott Labs is a much different company today than it was in 1935 or even 2010 -- but it still has a lot going for it. Here are three things smart investors know about Abbott.
1. Abbott is dividend royalty
Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. Today, the company focuses on nutrition, diagnostics, and medical devices with major shake-ups over the years, including more than $30 billion in acquisitions this past decade for St. Jude (medical devices) and Alere (diagnostics).
Image source: Getty Images.
At the same time, management has continually given cash to shareholders, regardless of assets that come and go. Abbott Labs has paid and raised its dividend for the past 50 consecutive years, making it a Dividend King, an elusive club of just 39 companies from the S&P 500.
Currently, the dividend yield is a solid 1.6%, and management has raised it an average of 10% annually over the past five years. That's a good pace but one I hesitate to call spectacular. And there are larger yields out there. However, consistency wins the war; getting steady increases for decades played a significant role in Grace Groner's success at amassing her fortune.
Perhaps most incredible is that Abbott Labs only spends about 37% of its cash flow each year on the dividend, leaving plenty of room for many future increases for long-term investors.
2. Diabetes care is an ample opportunity for growth
Abbott is innovating in large niches within healthcare to find growth. Its glucose monitoring system, FreeStyle Libre, lets diabetes patients monitor their blood sugar by wearing a small patch that transmits data to a smartphone app. The patch lasts for 10 days, which seems much more convenient than pricking your finger for every test.
The product is rapidly growing, and it's become a significant contributor to the company's total revenue growth. Sales for "diabetes care" in Abbott's Medical Devices segment (FreeStyle Libre) grew 28% year over year in 2020, and that accelerated to 32% year-over-year growth in 2021, hitting $4.3 billion.
Momentum is increasing for the product, and the U.S. market alone for diabetes care devices could grow to $49 billion by 2030, averaging 6% growth per year. The company's ability to innovate and pivot to provide great products in high-growth niches within healthcare help explain the company's long-term success.
3. An acquisition could be on the way
I've mentioned the blockbuster deals to acquire St. Jude and Alere for about $30 billion; these are reminders that Abbott's management is not afraid to make a deal. The company's track record of integrating these new assets into its broader business is a good sign that future deals are likely.
Of course, you need deep pockets to cut a big deal, and Abbott's balance sheet looks better than it has in years. The deals for St. Jude and Alere put debt on the books. You can see in this chart how Abbott Labs had about $28 billion in total debt four years ago, four times its EBITDA (earnings before interest, taxes, depreciation, and amortization).
ABT Total Long Term Debt (Quarterly) data by YCharts
But today, total debt has fallen to $18 billion, and its debt-to-EBITDA ratio has fallen by more than half to 1.6. Meanwhile, Abbott's cash and short-term investments have swollen to more than $10 billion. With less debt and more cash on hand, that money has to go somewhere. Among other options, the company could repurchase shares. I won't speculate further, but it wouldn't surprise me to see Abbott jump on another big acquisition if the right deal comes along.
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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. | Abbott is dividend royalty Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. Perhaps most incredible is that Abbott Labs only spends about 37% of its cash flow each year on the dividend, leaving plenty of room for many future increases for long-term investors. | Abbott is dividend royalty Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. Today, the company focuses on nutrition, diagnostics, and medical devices with major shake-ups over the years, including more than $30 billion in acquisitions this past decade for St. Jude (medical devices) and Alere (diagnostics). Sales for "diabetes care" in Abbott's Medical Devices segment (FreeStyle Libre) grew 28% year over year in 2020, and that accelerated to 32% year-over-year growth in 2021, hitting $4.3 billion. | Abbott is dividend royalty Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. Abbott Labs has paid and raised its dividend for the past 50 consecutive years, making it a Dividend King, an elusive club of just 39 companies from the S&P 500. Sales for "diabetes care" in Abbott's Medical Devices segment (FreeStyle Libre) grew 28% year over year in 2020, and that accelerated to 32% year-over-year growth in 2021, hitting $4.3 billion. | Abbott is dividend royalty Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. Now, Abbott Labs is a much different company today than it was in 1935 or even 2010 -- but it still has a lot going for it. At the same time, management has continually given cash to shareholders, regardless of assets that come and go. |
23466.0 | 2022-04-19 00:00:00 UTC | AbbVie: Why It’s an Excellent Recession-Resistant Stock | ABBV | https://www.nasdaq.com/articles/abbvie%3A-why-its-an-excellent-recession-resistant-stock | nan | nan | AbbVie (ABBV) is trading substantially higher than last year, and I believe that the company will continue to grow throughout the year. ABBV is a leading biotech company that has the potential to generate impressive returns and has near-term upside potential.
This company has a high degree of recession resilience, an optimistic near-term forecast, and a solid dividend yield, making it a great biotech stock. For a company that is always generously rewarding its shareholders, AbbVie has earned a high ranking among income investors.
AbbVie's stock price has hit record highs, which is great for people who own the company's shares. The issue many new investors might have is whether it would be wise to buy now or wait for a lower entry point in the future.
AbbVie shares have gone up recently, outperforming the market this year. The company has a rather impressive history and a proven track record. This makes it an attractive option for many investors.
The company's core business continues to thrive and is executing well on its strategies. For now, ABBV offers an impressive dividend yield with a reasonable valuation versus the industry.
Recession-Resistant Business
The pandemic greatly impacted many industries, such as tourism, entertainment, and hospitality. These are just a few of the many examples. However, essential retail, such as grocery stores and food vendors, did not suffer as badly. In addition, the healthcare industry grew even more during the COVID-19 crisis.
Most companies experienced a slump during the first quarter. AbbVie's success provides a lesson for many about how valuable, effective business management solutions are during times of crisis.
The company has seen success thanks to its key drugs like Humira, a top-selling drug for the last three years, and Imbruvica, a game-changing drug that is seeing positive momentum in its sales this year.
People need to go to the hospital no matter the state of the economy. The world is facing an aging population and a health care crisis. Therefore, companies like AbbVie are expected to thrive in this environment.
AbbVie is a Premium Dividend Stock
AbbVie is one of the best dividend stocks on the NYSE.
Investors can be excited about a company with a solid lineup and pipeline. Even before we look at the excellent dividend track record from AbbVie, we can't help but feel excited.
When you buy one investment, it can potentially compound into a significant income stream over time. However, this is best done with wise investments that require less risk and as little money as possible outside of your initial purchase.
AbbVie shares offer a juicy yield of 3.54%. This number is higher than the S&P 500's (SPY) yield of 1.3%, meaning that your investment in this stock can give you more income opportunities in the future. The company promises shareholders a conservative cash payout ratio of 42.65%, which means that it can continue its dividend increases for years to come.
What are the Risks for AbbVie?
If you plan to invest in AbbVie, you must consider the company's debt load. Even though the company could pay down its debts in the coming years, if it does not happen, there can be potential financial difficulties for AbbVie.
In addition, the costs of some drugs continue to rise. Some politicians are speaking out on social media against them, which could lead to pressure to reduce the costs of these drugs.
In the past few years, bears have noticed that AbbVie's global patent protection for Humira will gradually end. They are waiting for this company to announce a new patent that can capture an exclusive market.
AbbVie is preparing for this eventuality by increasing its revenue from acquisitions and developing new products. It can now face the post-Humira world confidently.
Skyrizi and Rinvoq's technology generated $4.6 billion in revenue last year, with more growth expected in the next five years, and the company's future is looking bright. AbbVie has stated that Rinvoq and Skyrizi will be able to treat all of Humira's indications and also atopic dermatitis.
AbbVie expects more than $15 billion in revenue from both products in 2025. In addition, the company has purchased Belgium-based company Syndesi Therapeutics, which will boost its neuroscience portfolio.
Overall, AbbVie has a rich pipeline of active clinical programs. We can see that the company is not just one-hit successful and has many new projects coming online.
Wall Street's Take
Among the most influential companies in the healthcare industry, ABBV stock has done very well in recent times. However, this is weighing down investor sentiment.
AbbVie holds a Moderate Buy consensus rating based on 10 Buys and five Holds assigned in the last three months. At $159.27, the average AbbVie price target implies 2.1% upside potential.
Bottom Line
AbbVie is projected to grow over the coming years and has several interesting growth strategies that can be capitalized on through synergies. These would provide long-term profits for investors.
For those looking to build a long-term portfolio that captures income, AbbVie is an attractive stock. It has an above-average dividend yield and looks like a resilient choice versus downturns.
AbbVie is a great opportunity for value and income investors despite being at all-time highs. There are still good things to come that the stock will benefit from. This is the time to buy shares, as they'll undoubtedly gain further in the future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line AbbVie is projected to grow over the coming years and has several interesting growth strategies that can be capitalized on through synergies. AbbVie (ABBV) is trading substantially higher than last year, and I believe that the company will continue to grow throughout the year. ABBV is a leading biotech company that has the potential to generate impressive returns and has near-term upside potential. | ABBV is a leading biotech company that has the potential to generate impressive returns and has near-term upside potential. For those looking to build a long-term portfolio that captures income, AbbVie is an attractive stock. AbbVie (ABBV) is trading substantially higher than last year, and I believe that the company will continue to grow throughout the year. | AbbVie (ABBV) is trading substantially higher than last year, and I believe that the company will continue to grow throughout the year. AbbVie's stock price has hit record highs, which is great for people who own the company's shares. AbbVie is a Premium Dividend Stock AbbVie is one of the best dividend stocks on the NYSE. | AbbVie's stock price has hit record highs, which is great for people who own the company's shares. AbbVie is a Premium Dividend Stock AbbVie is one of the best dividend stocks on the NYSE. AbbVie is a great opportunity for value and income investors despite being at all-time highs. |
23467.0 | 2022-04-19 00:00:00 UTC | J&J (JNJ) Beats on Q1 Earnings, Suspends COVID Jab Sales View | ABBV | https://www.nasdaq.com/articles/jj-jnj-beats-on-q1-earnings-suspends-covid-jab-sales-view | nan | nan | Johnson & Johnson’s JNJ first-quarter 2022 earnings came in at $2.67 per share, which beat the Zacks Consensus Estimate of $2.60. Earnings increased 3.1% from the year-ago period.
Adjusted earnings exclude intangible amortization and some other special items. Including these items, J&J reported first-quarter earnings of $1.93 per share, down 16.8% from the year-ago quarter.
Sales of this drug and consumer products giant came in at $23.4 billion, which missed the Zacks Consensus Estimate of $23.8 billion. Sales rose 5% from the year-ago quarter, reflecting an operational increase of 7.7% and a negative currency impact of 2.7%.
Organically, excluding the impact of acquisitions and divestitures, sales rose 7.9% on an operational basis compared with a 12.3% increase seen in the previous quarter.
First-quarter sales in the domestic market rose 2.7% to $11.4 billion. International sales rose 7.2% on a reported basis to $12.0 billion, reflecting an operational increase of 12.6% and a negative currency impact of 5.4%. Excluding the impact of all acquisitions and divestitures, on an adjusted operational basis, international sales rose 12.9% in the quarter.
Segment Details
Pharmaceutical segment sales rose 6.3% year over year to $12.9 billion, reflecting 9.3% operational growth and 3% negative currency impact. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales rose 9.3%. Pharmaceutical segment sales were short of the Zacks Consensus Estimate of $13.8 billion.
The year-over-year sales increase was led by higher penetration and new indications across key products, such as Darzalex and Stelara. Other core products like Invega Sustenna and new drugs, Erleada and Tremfya contributed significantly to sales growth. However, sales of J&J’s single-dose COVID-19 vaccine were much below expectations. The sales growth was also dampened by lower sales of key medicines, Imbruvica and Xarelto and generic/biosimilar competition to drugs like Zytiga and Remicade.
Darzalex sales rose 36% year over year to $1.86 billion in the quarter. Stelara sales grew 6.5% to $2.29 billion in the quarter. Stelara sales were below the Zacks Consensus Estimate of $2.42 billion.
Imbruvica sales declined 7.7% to $1.04 billion. J&J markets Imbruvica in partnership with AbbVie ABBV. Rising competitive pressure in the United States due to new oral competition has been hurting sales of this AbbVie partnered drug since the past few quarters.
PAH revenues of $852 million declined 1.1% year over year. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 8.6% to $1.05 billion in the quarter. Simponi/Simponi Aria sales rose 1.5% to $571 million while Prezista sales decreased 8.3% to $501 million.
Xarelto sales declined 13.8% in the quarter to $508 million while sales of Invokana/Invokamet declined 14.6% to $128 million.
Among the newer medicines, Erleada generated sales of $400 million in the quarter, up 53% year over year. Tremfya recorded sales of $590 million in the quarter, up 41.3% year over year.
Zytiga sales declined 15.6% to $539 million in the quarter due to generic competition. Sales of Remicade were down 14.7% in the quarter to $663 million.
J&J’s single-dose COVID-19 vaccine generated sales of $457 million in the first quarter compared with $1.62 billion in the fourth quarter of 2021. Please note that J&J is selling its vaccine on a not-for-profit basis.
The MedTech (previously Medical Devices) segment sales came in at $6.97 billion, up 5.9% from the year-ago period, reflecting an operational increase of 8.5% and a negative currency movement of 2.6%.
Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales rose 8.6%.
The Consumer segment recorded revenues of $3.59 billion in the reported quarter, down 1.5% year over year, reflecting a 0.8% operational increase and a 2.3% negative currency impact.
Excluding the impact of acquisitions and divestitures, adjusted operational sales rose 1.6% worldwide.
Higher sales of over-the-counter (OTC) products were offset by external supply constraints (due to raw material availability and labor shortages), which hurt sales of the skin health and beauty franchise.
2022 Outlook
J&J lowered its earnings and sales expectations for 2022. The company suspended its previously issued sales guidance for its COVID-19 vaccine and overall sales expectations, including revenues from the COVID-19 vaccine.
Excluding revenues from the COVID-19 vaccine, J&J expects to generate revenues from its base business in the range of $94.8 billion to $95.8 billion, lower than the $95.9 billion to $96.9 billion guided previously.
Excluding the COVID-19 vaccine, operational constant-currency sales are expected to increase in the range of 6.5%-7.5%.
The adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth guidance is the same as the operational constant-currency sales discussed above.
The adjusted earnings per share guidance was lowered from a range of $10.40-$10.60 per share to $10.15-$10.35.
The earnings range indicates an increase of 3.6%-5.6%, lower than 6.1%-8.2% expected previously. On an operational, constant-currency basis, adjusted earnings per share are expected to increase 8.2%-10.2%.
Earlier, including COVID-19 vaccine sales, J&J expected sales to be in the range of $98.9 billion-$100.4 billion. The guidance included $3.0 billion-$3.5 billion in revenues from the COVID-19 vaccine. This guidance now stands suspended.
Dividend Increase
J&J separately announced a 6.6% increase in the quarterly dividend, from $1.06 per share to $1.13 per share. This adds up to an annual dividend of $4.52 per share compared with the previous rate of $4.24 per share.
Our Take
J&J reported mixed first-quarter results as it beat estimates for earnings but missed the same for sales. Its Pharmaceuticals unit sales fell short of expectations. External supply constraints continue to limit sales from the Consumer segment. The MedTech segment has, however, shown some improving trends.
Its COVID-19 vaccine sales were quite low, which led management to suspend its sales guidance for the vaccine. Management said that a surplus supply and demand uncertainty coaxed it to suspend the guidance for COVID-19 vaccine sales. This probably hints that revenues from the vaccine will fall short of its earlier guided range of $3.0 billion - $3.5 billion in 2022.
Its financial guidance was also lowered. J&J’s shares were down slightly in pre-market trading. This year so far, J&J’s shares have risen 4.5% compared with the industry’s 8.4% growth.
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In November 2021, J&J announced plans to separate its Consumer Health segment into a new publicly-traded company, leaving behind a new J&J with its Pharmaceuticals and Medical Device units. The separation is expected to be executed in 2023.
Zacks Rank and Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Johnson & Johnson Price, Consensus and EPS Surprise
Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote
Some better-ranked large drug/biotech stocks are Vertex Pharmaceuticals VRTX and Eli Lilly LLY, both with a Zacks Rank #2 (Buy).
Vertex Pharmaceuticals’ stock has risen 28.8% this year. Estimates for Vertex Pharmaceuticals’ 2022 earnings have gone up from $14.52 to $14.58 per share, while those for 2023 have increased from $15.31 to $15.37 per share over the past 30 days.
Vertex Pharmaceuticals’ earnings performance has been strong, with the company beating expectations in each of the last four quarters. Vertex Pharmaceuticals has a four-quarter earnings surprise of 10.01%, on average.
Lilly’s stock has risen 8.6% this year so far. Estimates for Lilly’s 2022 earnings have gone up from $8.71 to $8.78 while those for 2023 have increased from $9.78 to $9.90 per share over the past 30 days.
Lilly’s earnings performance has been rather weak with the company missing earnings expectations in each of the last four quarters. Lilly has a four-quarter negative earnings surprise of 3.92%, 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. | J&J markets Imbruvica in partnership with AbbVie ABBV. Rising competitive pressure in the United States due to new oral competition has been hurting sales of this AbbVie partnered drug since the past few quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. Rising competitive pressure in the United States due to new oral competition has been hurting sales of this AbbVie partnered drug since the past few quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. Rising competitive pressure in the United States due to new oral competition has been hurting sales of this AbbVie partnered drug since the past few quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. Rising competitive pressure in the United States due to new oral competition has been hurting sales of this AbbVie partnered drug since the past few quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23468.0 | 2022-04-19 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-1 | nan | nan | AbbVie (ABBV) closed at $156.35 in the latest trading session, marking a -1.89% move from the prior day. This move lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the drugmaker had lost 0.43% over the past month. This has was narrower than the Medical sector's loss of 0.95% and the S&P 500's loss of 1.42% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be April 29, 2022. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. Our most recent consensus estimate is calling for quarterly revenue of $13.56 billion, up 4.22% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $14.16 per share and revenue of $60.36 billion. These results would represent year-over-year changes of +11.5% and +7.4%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.22% higher. AbbVie currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 11.26. This represents a discount compared to its industry's average Forward P/E of 13.73.
We can also see that ABBV currently has a PEG ratio of 4.44. 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 2.42 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 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $156.35 in the latest trading session, marking a -1.89% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be April 29, 2022. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. | AbbVie (ABBV) closed at $156.35 in the latest trading session, marking a -1.89% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be April 29, 2022. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. | AbbVie (ABBV) closed at $156.35 in the latest trading session, marking a -1.89% move from the prior day. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be April 29, 2022. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. | AbbVie (ABBV) closed at $156.35 in the latest trading session, marking a -1.89% move from the prior day. On that day, AbbVie is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.78%. Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be April 29, 2022. |
23469.0 | 2022-04-19 00:00:00 UTC | Is Franklin LibertyQ U.S. Equity ETF (FLQL) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-franklin-libertyq-u.s.-equity-etf-flql-a-strong-etf-right-now-1 | nan | nan | Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin LibertyQ U.S. Equity ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Franklin Templeton Investments, FLQL has amassed assets over $941.01 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. FLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses.
The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.15% for FLQL, making it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 20.50% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 1.40% of total assets, followed by Lockheed Martin Corp (LMT) and Bristol Myers Squibb Co (BMY).
FLQL's top 10 holdings account for about 12.36% of its total assets under management.
Performance and Risk
The ETF has lost about -6.06% and was up about 6.89% so far this year and in the past one year (as of 04/19/2022), respectively. FLQL has traded between $40.94 and $47.20 during this last 52-week period.
FLQL has a beta of 0.92 and standard deviation of 21.43% for the trailing three-year period. With about 257 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin LibertyQ U.S. Equity ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $318.72 billion in assets, SPDR S&P 500 ETF has $398.02 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
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Franklin LibertyQ U.S. Equity ETF (FLQL): ETF Research Reports
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
AbbVie Inc. (ABBV): Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 1.40% of total assets, followed by Lockheed Martin Corp (LMT) and Bristol Myers Squibb Co (BMY). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin LibertyQ U.S. Equity ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 1.40% of total assets, followed by Lockheed Martin Corp (LMT) and Bristol Myers Squibb Co (BMY). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin LibertyQ U.S. Equity ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 1.40% of total assets, followed by Lockheed Martin Corp (LMT) and Bristol Myers Squibb Co (BMY). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin LibertyQ U.S. Equity ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017. | Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 1.40% of total assets, followed by Lockheed Martin Corp (LMT) and Bristol Myers Squibb Co (BMY). AbbVie Inc. (ABBV): Free Stock Analysis Report Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin LibertyQ U.S. Equity ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017. |
23470.0 | 2022-04-19 00:00:00 UTC | Is First Trust Multi Cap Growth AlphaDEX ETF (FAD) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-first-trust-multi-cap-growth-alphadex-etf-fad-a-strong-etf-right-now-1 | nan | nan | The First Trust Multi Cap Growth AlphaDEX ETF (FAD) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors. FAD has been able to amass assets over $206.04 million, making it one of the average sized ETFs in the Style Box - All Cap Growth. Before fees and expenses, FAD seeks to match the performance of the Nasdaq AlphaDEX Multi Cap Growth Index.
The NASDAQ AlphaDEX Multi Cap Growth Index is an enhanced which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index, NASDAQ US 600 Mid Cap Index and NASDAQ US 700 Small Cap Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.63% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.16%.
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.
Representing 22.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Cheniere Energy, Inc. (LNG) accounts for about 0.65% of total assets, followed by Nucor Corporation (NUE) and Abbvie Inc. (ABBV).
The top 10 holdings account for about 5.39% of total assets under management.
Performance and Risk
So far this year, FAD has lost about -12.78%, and is down about -4.13% in the last one year (as of 04/19/2022). During this past 52-week period, the fund has traded between $102.79 and $131.39.
The fund has a beta of 1.10 and standard deviation of 26.37% for the trailing three-year period, which makes FAD a medium risk choice in this particular space. With about 675 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Multi Cap Growth AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID and the iShares Core S&P U.S. Growth ETF (IUSG) tracks S&P 900 Growth Index. IShares Morningstar Growth ETF has $1.87 billion in assets, iShares Core S&P U.S. Growth ETF has $12.18 billion. ILCG has an expense ratio of 0.04% and IUSG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
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First Trust Multi Cap Growth AlphaDEX ETF (FAD): ETF Research Reports
Nucor Corporation (NUE): Free Stock Analysis Report
Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): 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, Cheniere Energy, Inc. (LNG) accounts for about 0.65% of total assets, followed by Nucor Corporation (NUE) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report Representing 22.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Discretionary round out the top three. | Looking at individual holdings, Cheniere Energy, Inc. (LNG) accounts for about 0.65% of total assets, followed by Nucor Corporation (NUE) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report The NASDAQ AlphaDEX Multi Cap Growth Index is an enhanced which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index, NASDAQ US 600 Mid Cap Index and NASDAQ US 700 Small Cap Index. | Looking at individual holdings, Cheniere Energy, Inc. (LNG) accounts for about 0.65% of total assets, followed by Nucor Corporation (NUE) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report The First Trust Multi Cap Growth AlphaDEX ETF (FAD) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market. | Looking at individual holdings, Cheniere Energy, Inc. (LNG) accounts for about 0.65% of total assets, followed by Nucor Corporation (NUE) and Abbvie Inc. (ABBV). AbbVie Inc. (ABBV): Free Stock Analysis Report The First Trust Multi Cap Growth AlphaDEX ETF (FAD) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market. |
23471.0 | 2022-04-18 00:00:00 UTC | J&J (JNJ) to Set the Tone for Pharma Sector's Q1 Earnings | ABBV | https://www.nasdaq.com/articles/jj-jnj-to-set-the-tone-for-pharma-sectors-q1-earnings | nan | nan | We expect Johnson & Johnson JNJ to beat expectations when it reports first-quarter 2022 results on Apr 19, before market open. In the last-reported quarter, the company delivered an earnings surprise of 0.47%.
The healthcare bellwether’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 7.77%, on average.
Johnson & Johnson Price and EPS Surprise
Johnson & Johnson price-eps-surprise | Johnson & Johnson Quote
J&J’s stock has risen 5.8% this year so far compared with an increase of 8.4% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
J&J’s Pharma segment is expected to have continued to outperform the market led by increased penetration and new indications across key products such as Darzalex and Stelara.
The Zacks Consensus Estimate for Darzalex and Stelara is pegged at $1.71 billion and $2.43 billion, respectively.
Other core products like Invega Sustenna/Xeplion/Invega Trinza/Trevicta and new drugs, Erleada and Tremfya might have contributed significantly to sales growth. J&J’s single-dose COVID-19 vaccine is also likely to have contributed to sales growth. A booster shot of the vaccine was authorized in October 2021, which is likely to have boosted sales.
Improvement in sales of some other key drugs like Xarelto seen in the past few quarters is likely to have continued into the first quarter. The Zacks Consensus Estimate for Xarelto is $607 million.
Rising competitive pressure in the United States to new oral competition is likely to have hurt sales of key drug, Imbruvica in the first quarter. The Zacks Consensus Estimate for Imbruvica is $1.13 billion.
Generic/biosimilar competition for drugs like Zytiga, Procrit/Eprex and Remicade is likely to have hurt the top line.
The Zacks Consensus Estimate for J&J’s Pharmaceuticals unit is $13.8 billion.
With regard to the Medical Devices segment, COVID-19 headwinds and hospital staffing shortages are likely to have continued to hurt procedure volume trends in the first quarter. The Zacks Consensus Estimate for J&J’s Medical Devices segment is $6.8 billion.
In the Consumer Healthcare segment, the improving trend seen in the last couple of quarters is likely to have continued. However, external supply constraints (due to raw material availability and labor shortages) are likely to have continued to hurt sales of the skin health and beauty franchise.
The Zacks Consensus Estimate for J&J’s Consumer Healthcare segment is $3.58 billion.
J&J plans to separate its Consumer Health segment into a new publicly-traded company
Management might announce key executive leadership appointments for the new Consumer Health company on the first-quarter conference call and may also announce the new company name and headquarters location.
On the fourth-quarter conference call, its new chief executive officer (CEO) Joaquin Duato had said the company is taking a more aggressive stance on M&A activity as its strong cash position will help it pursue tuck-in M&A to grow its business. An update is expected on the first-quarter conference call.
Earnings Whispers
Our proven model predicts an earnings beat for J&J in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is the case here, as elaborated below.
Earnings ESP: J&J’s Earnings ESP is +1.14% as the Most Accurate Estimate of $2.64 is higher than the Zacks Consensus Estimate of $2.61. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: J&J has a Zacks Rank #3
Other Stocks to Consider
Here are some large drug stocks that also have the right combination of elements to beat on earnings this time around:
Merck MRK with an Earnings ESP of +4.28% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merck’s stock has risen 14.4% this year so far. Merck topped earnings estimates in two of the last four quarters. Merk has a four-quarter earnings surprise of 5.33%, on average. MRK is scheduled to release its first-quarter 2022 results on Apr 28.
Lilly LLY has an Earnings ESP of +7.38% and a Zacks Rank #3.
Lilly’s stock has rallied 9.7% this year so far. Lilly missed earnings estimates in each of the last four quarters. Lilly has a four-quarter negative earnings surprise of 3.92%, on average. LLY is scheduled to release its first-quarter 2022 results on Apr 28.
AbbVie ABBV with an Earnings ESP of +0.48% and a Zacks Rank #3.
AbbVie’s stock has surged 22.2% in the past year. AbbVie topped earnings estimates in three of the last four quarters. AbbVie has a four-quarter earnings surprise of 2.55%, on average. ABBV is scheduled to release its first-quarter 2022 results on Apr 29.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Johnson & Johnson (JNJ): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV with an Earnings ESP of +0.48% and a Zacks Rank #3. AbbVie’s stock has surged 22.2% in the past year. AbbVie topped earnings estimates in three of the last four quarters. | AbbVie ABBV with an Earnings ESP of +0.48% and a Zacks Rank #3. AbbVie’s stock has surged 22.2% in the past year. AbbVie topped earnings estimates in three of the last four quarters. | AbbVie ABBV with an Earnings ESP of +0.48% and a Zacks Rank #3. AbbVie’s stock has surged 22.2% in the past year. AbbVie topped earnings estimates in three of the last four quarters. | AbbVie topped earnings estimates in three of the last four quarters. AbbVie ABBV with an Earnings ESP of +0.48% and a Zacks Rank #3. AbbVie’s stock has surged 22.2% in the past year. |
23472.0 | 2022-04-18 00:00:00 UTC | This High-Yielding Dividend Stock Has Raised Its Payout by 120% in Just 5 Years | ABBV | https://www.nasdaq.com/articles/this-high-yielding-dividend-stock-has-raised-its-payout-by-120-in-just-5-years | nan | nan | Dividend stocks can provide investors with recurring cash flow that they can use for just about any purpose. However, inflation can chip away at the value of a dividend over time. One way investors can offset that risk is by investing in companies that regularly increase their payouts.
One of the top dividend growth stocks you can invest in right now is healthcare company AbbVie (NYSE: ABBV).
Image source: Getty Images.
AbbVie has doubled its dividend payments in just five years
Today, AbbVie pays investors a quarterly dividend of $1.41 per share (or $5.64 per share annualized), currently yielding 3.55%. That's more than twice the average S&P 500 yield, which is just under 1.4%. But if you had invested in AbbVie years earlier, your dividend income as a percentage of your initial investment would be much higher because of the increases in payouts during that time.
Data by YCharts.
In five years, the dividend has risen by 120%, meaning your dividend income would have more than doubled since then. That averages out to a compounded annual growth rate of 17.1%. If the company were to continue raising its dividend payments at that rate on an average over the next few years, then on an initial investment of $10,000, here's how much income you could be collecting over the next five years:
YEAR ANNUAL DIVIDEND % OF ORIGINAL INVESTMENT
0 $355 3.55%
1 $415.70 4.16%
2 $486.79 4.87%
3 $570.03 5.70%
4 $667.51 6.68%
5 $781.65 7.82%
Table by author.
The caveat here is that dividend payments are never guaranteed, and rate increases are even less certain. AbbVie could very well continue to make increases in the future, and its track record (it's a Dividend King) suggests that's likely to happen. But the rate increases could be more modest than the 17% it has averaged in the past five years; its most recent hike was a more modest 8.5%. But the bottom line is the same: With a dividend growth stock, you'll be collecting more on your original investment over time. Although AbbVie's dividend yield is 3.2% today, the table above shows how income can quickly rise by just hanging on to your investment.
However, one important thing investors should always consider with dividend growth stocks is how much room they have to increase their payouts in the future. If a company's cash is tapped out, investors may only be left with nominal increases moving forward.
Investors should use payout ratios when evaluating dividend growth stocks
A common way to evaluate a company's dividend is by comparing its dividend payments per share against earnings per share. Using that metric, you can arrive at its payout ratio. Here's how that ratio has looked for AbbVie in the past five years:
Data by YCharts.
The one thing you'll note is how quickly these percentages can change over time. If the company has a bad year, the payout ratio can spike, making the dividend look unsustainable. In 2020, for example, AbbVie's earnings per share plummeted from $5.28 the previous year to just $2.72. And a big part of the reason was due to one-time expenses related to its acquisition of Allergan and contingent consideration related to the monoclonal antibody drug, Skyrizi. And while the company would recover from that, an investor screening for stocks with low payout ratios could have easily overlooked AbbVie.
Another way to assess a dividend is by relying on cash flow. Using this approach, investors can see that, over the years, AbbVie has reported more than sufficient free cash flow to cover its dividend payments (even during years where accounting profits declined):
Data by YCharts.
At an average buffer of more than $8 billion, it's easy to see that there has been ample room for the company to raise its dividend payments over the years, and it remains in a strong position today.
Is AbbVie stock a buy?
AbbVie is a top drugmaker with more than $56 billion in revenue last year, a solid 23% over the previous year. Its financials look strong and safe enough to not just cover but increase its dividend payment in the future. The increases may not be as generous as they have been in the past, but odds are the company will continue to boost its dividend payments.
For income investors, this is definitely a top dividend stock worth hanging on to for not just years but potentially decades.
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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. | Although AbbVie's dividend yield is 3.2% today, the table above shows how income can quickly rise by just hanging on to your investment. And while the company would recover from that, an investor screening for stocks with low payout ratios could have easily overlooked AbbVie. One of the top dividend growth stocks you can invest in right now is healthcare company AbbVie (NYSE: ABBV). | AbbVie has doubled its dividend payments in just five years Today, AbbVie pays investors a quarterly dividend of $1.41 per share (or $5.64 per share annualized), currently yielding 3.55%. One of the top dividend growth stocks you can invest in right now is healthcare company AbbVie (NYSE: ABBV). But if you had invested in AbbVie years earlier, your dividend income as a percentage of your initial investment would be much higher because of the increases in payouts during that time. | AbbVie has doubled its dividend payments in just five years Today, AbbVie pays investors a quarterly dividend of $1.41 per share (or $5.64 per share annualized), currently yielding 3.55%. One of the top dividend growth stocks you can invest in right now is healthcare company AbbVie (NYSE: ABBV). But if you had invested in AbbVie years earlier, your dividend income as a percentage of your initial investment would be much higher because of the increases in payouts during that time. | AbbVie has doubled its dividend payments in just five years Today, AbbVie pays investors a quarterly dividend of $1.41 per share (or $5.64 per share annualized), currently yielding 3.55%. One of the top dividend growth stocks you can invest in right now is healthcare company AbbVie (NYSE: ABBV). But if you had invested in AbbVie years earlier, your dividend income as a percentage of your initial investment would be much higher because of the increases in payouts during that time. |
23473.0 | 2022-04-15 00:00:00 UTC | 3 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/3-top-dividend-kings-to-buy-for-the-long-haul-0 | nan | nan | When it comes to finding stocks that pay a dividend, it's important for investors to focus on companies with strong business fundamentals. This helps ensure the dividend will be around for years to come. A good place to look for dividend stocks is the list of Dividend Kings. This title is bestowed upon any company that has increased its dividend for at least 50 consecutive years.
As of early 2022, only 39 stocks qualified as Dividend Kings. Among those, there are three companies I think are great investments for the long haul. Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. However, their long-standing dividends are not the only reasons to add these stocks to your portfolio.
Image source: Getty Images.
1. Johnson & Johnson
Johnson & Johnson (J&J) is one of the oldest companies in the healthcare space, incorporated in 1887. While the company currently operates in three segments, it plans to spin off its consumer health business into its own publicly traded company, leaving the pharmaceutical and medical device segments with the original company. These remaining segments accounted for approximately 84% of total revenue in 2021, so the bulk of J&J's sales remain with the company.
In 2021, J&J grew its revenue by 14% and net income by 42% compared to 2020. The bulk of the revenue came from the pharmaceutical division, which has several drugs on the market that treat a variety of diseases. However, the medical devices segment had the highest year-over-year sales growth due to the uptick in medical procedures after elective surgeries were largely put on hold during the height of the pandemic.
Management sees continued growth for the pharmaceutical business over the next few years, targeting $60 billion in sales by 2025, which would be a 15% increase over 2021 revenue.
The company generated $20 billion in free cash flow in 2021, easily providing enough cash to cover its dividend and raise it again to remain a Dividend King. J&J is one of those stable, foundational stocks that can anchor any portfolio while its dividend yields a healthy 2.4%.
2. Abbott Labs
Not quite as old as Johnson & Johnson, Abbott Labs was incorporated in 1900. It develops, manufactures, and sells a broad range of pharmaceuticals, diagnostic products, nutritional products, and medical devices. Abbott was in the spotlight recently because it is a provider of rapid COVID-19 tests, but the company also produces many well-known consumer products such as Similac baby formula and Ensure protein drinks.
2021 saw strong results for Abbott, with revenue increasing 25% compared to 2020. This growth was driven significantly by the diagnostics segment, which grew 45% year over year and includes the COVID-testing revenue. While the company expects this COVID-related revenue to remain strong in the near future, it's important to note that excluding COVID-related sales, the diagnostics segment still grew revenue by 13% in 2021.
With a dividend yield of 1.5%, Abbott slightly outpaces the S&P 500's 1.4% yield. Perhaps more importantly for potential investors, Abbott currently trades at five times sales, near its mid-2020 multiple. This provides an attractive entry point for potential investors.
3. AbbVie
AbbVie gets to claim its Dividend King status because of its history as part of Abbott Labs. That said, the company has continued to raise its dividend annually since it was spun off from Abbott in 2013. Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff.
In 2021, AbbVie increased revenue by 23% and adjusted earnings per share (EPS) by 20%. This was driven by AbbVie's blockbuster drug Humira which brought in over $20 billion in sales in 2021. Unfortunately, AbbVie will face competition for Humira as it loses its patent exclusivity in 2023. Luckily, the recent acquisition of Allergan brings Botox into the fold. Botox cosmetic revenue grew 98% in 2021, and Botox therapeutic revenue increased 75%.
AbbVie's price-to-sales ratio is 5, similar to the multiple for Johnson & Johnson and Abbott Labs. However, unlike those two, it's been trending upward and is now the highest it's been since mid-2018. On the other hand, over the past three years, AbbVie has been growing revenue at the fastest pace of the three, making the current valuation seem more like a steal than a concern.
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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. | Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff. On the other hand, over the past three years, AbbVie has been growing revenue at the fastest pace of the three, making the current valuation seem more like a steal than a concern. Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. AbbVie AbbVie gets to claim its Dividend King status because of its history as part of Abbott Labs. Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. AbbVie AbbVie gets to claim its Dividend King status because of its history as part of Abbott Labs. Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. AbbVie AbbVie gets to claim its Dividend King status because of its history as part of Abbott Labs. Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff. |
23474.0 | 2022-04-14 00:00:00 UTC | Sandoz Launches Generic Version Of Eyedrop In U.S. For Patients With Ocular Hypertension | ABBV | https://www.nasdaq.com/articles/sandoz-launches-generic-version-of-eyedrop-in-u.s.-for-patients-with-ocular-hypertension | nan | nan | (RTTNews) - Sandoz Inc., a generic and biosimilar medicines unit of French drug major Novartis AG(NVS), said that it has launched generic brimonidine tartrate/timolol maleate eyedrop in US for patients with ocular hypertension or high eye pressure. It is an AB-rated generic equivalent to AbbVie's COMBIGAN.
Brimonidine tartrate/timolol maleate combination eyedrop is used to treat elevated eye pressure in patients with ocular hypertension. Ocular hypertension affects over 5% of all adults; The eye does not properly drain fluid, causing eye pressure to build up.
Anyone can develop ocular hypertension, but certain groups are at higher risk, including but not limited to African Americans and Hispanics, people over age 40, people living with diabetes or high blood pressure, people who are very myopic (near-sighted) and people who take long-term steroid medicines.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is an AB-rated generic equivalent to AbbVie's COMBIGAN. (RTTNews) - Sandoz Inc., a generic and biosimilar medicines unit of French drug major Novartis AG(NVS), said that it has launched generic brimonidine tartrate/timolol maleate eyedrop in US for patients with ocular hypertension or high eye pressure. Brimonidine tartrate/timolol maleate combination eyedrop is used to treat elevated eye pressure in patients with ocular hypertension. | It is an AB-rated generic equivalent to AbbVie's COMBIGAN. (RTTNews) - Sandoz Inc., a generic and biosimilar medicines unit of French drug major Novartis AG(NVS), said that it has launched generic brimonidine tartrate/timolol maleate eyedrop in US for patients with ocular hypertension or high eye pressure. Brimonidine tartrate/timolol maleate combination eyedrop is used to treat elevated eye pressure in patients with ocular hypertension. | It is an AB-rated generic equivalent to AbbVie's COMBIGAN. (RTTNews) - Sandoz Inc., a generic and biosimilar medicines unit of French drug major Novartis AG(NVS), said that it has launched generic brimonidine tartrate/timolol maleate eyedrop in US for patients with ocular hypertension or high eye pressure. Anyone can develop ocular hypertension, but certain groups are at higher risk, including but not limited to African Americans and Hispanics, people over age 40, people living with diabetes or high blood pressure, people who are very myopic (near-sighted) and people who take long-term steroid medicines. | It is an AB-rated generic equivalent to AbbVie's COMBIGAN. (RTTNews) - Sandoz Inc., a generic and biosimilar medicines unit of French drug major Novartis AG(NVS), said that it has launched generic brimonidine tartrate/timolol maleate eyedrop in US for patients with ocular hypertension or high eye pressure. Brimonidine tartrate/timolol maleate combination eyedrop is used to treat elevated eye pressure in patients with ocular hypertension. |
23475.0 | 2022-04-14 00:00:00 UTC | Noteworthy ETF Inflows: HDV, ABBV, MRK, PEP | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-hdv-abbv-mrk-pep | 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 $211.3 million dollar inflow -- that's a 2.3% increase week over week in outstanding units (from 83,600,000 to 85,550,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Merck & Co Inc (Symbol: MRK) is off about 0.3%, and PepsiCo Inc (Symbol: PEP) is lower by about 0.2%. 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 $109.73 as the 52 week high point — that compares with a last trade of $108.41. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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 1.2%, Merck & Co Inc (Symbol: MRK) is off about 0.3%, and PepsiCo Inc (Symbol: PEP) is lower by about 0.2%. 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 $109.73 as the 52 week high point — that compares with a last trade of $108.41. 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 1.2%, Merck & Co Inc (Symbol: MRK) is off about 0.3%, and PepsiCo Inc (Symbol: PEP) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $211.3 million dollar inflow -- that's a 2.3% increase week over week in outstanding units (from 83,600,000 to 85,550,000). 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 $109.73 as the 52 week high point — that compares with a last trade of $108.41. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Merck & Co Inc (Symbol: MRK) is off about 0.3%, and PepsiCo Inc (Symbol: PEP) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $211.3 million dollar inflow -- that's a 2.3% increase week over week in outstanding units (from 83,600,000 to 85,550,000). 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 $109.73 as the 52 week high point — that compares with a last trade of $108.41. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Merck & Co Inc (Symbol: MRK) is off about 0.3%, and PepsiCo Inc (Symbol: PEP) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $211.3 million dollar inflow -- that's a 2.3% increase week over week in outstanding units (from 83,600,000 to 85,550,000). 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 $109.73 as the 52 week high point — that compares with a last trade of $108.41. |
23476.0 | 2022-04-14 00:00:00 UTC | Best Biotech Stocks To Buy Now? 5 To Know | ABBV | https://www.nasdaq.com/articles/best-biotech-stocks-to-buy-now-5-to-know | nan | nan | 5 Top Biotech Stocks To Watch Today
The stock market offers plenty of opportunities for investors. Some industries would still catch the attention of investors regardless of the broader market sentiment. A prime example would be biotech stocks. Now, why is that so? For starters, this is a high-risk, high-reward industry. Biotech stocks’ performance would often rely on clinical trials and regulatory approvals. A positive result would likely send the stock sky-high, while an underwhelming one may cause a dent in the stock. What’s more, the industry often has interesting developments.
For example, Seagen Inc. (NASDAQ: SGEN) and Astellas Pharma announced that the European Commission has approved PADCEV™ as a monotherapy for the treatment of adult patients with locally advanced or metastatic urothelial cancer. This approval is only possible after positive data from its global phase 3 EV-301 trial. Elsewhere, Regeneron (NASDAQ: REGN) and Sanofi (NASDAQ: SNY) also recently announced that the European Commission has expanded the marketing authorization for Dupixent. Hence, the drug is now approved in children aged 6 to 11 years as an add-on maintenance treatment for severe asthma with type 2 inflammation. Overall, biotech stocks may not fit everyone’s investing appetite. However, with proper due diligence, it could be a lucrative sector to invest in. Here are some of the top biotech stocks to watch in the stock market today.
Biotech Stocks To Watch Right Now
Turning Point Therapeutics Inc (NASDAQ: TPTX)
Sierra Oncology Inc (NASDAQ: SRRA)
AbbVie Inc (NYSE: ABBV)
Halozyme Therapeutics, Inc. (NASDAQ: HALO)
Crinetics Pharmaceuticals Inc (NASDAQ: CRNX)
Turning Point Therapeutics
Firstly, we have the clinical-stage biopharmaceutical company, Turning Point Therapeutics. Essentially, the company engages in the design and development of therapies that target genetic drivers of cancer. Its macrocycle platform is used to design its pipeline of small, compact tyrosine kinase inhibitors (TKIs). Lately, TPTX stock has been showing signs of promise, rising more than 25% over the past month. Now, its recent positive developments are likely one of the contributing factors.
Earlier this week, the company announced positive topline results from the registrational TRIDENT-1 study across all four ROS1-positive advanced non-small cell lung cancer (NSCLC) cohorts. In a total of 71 TKI-naive patients, there was a confirmed objective response rate of 79%. Meanwhile, for those with approximately 10 months of follow-up, the initial estimated durability of response and progression-free survival is 85% and 82% at 12-month landmarks respectively. All in all, the company is confident that its repotrectinib will potentially be the best-in-class drug candidate for patients with ROS1-positive advanced NSCLC. Considering that, should you add TPTX stock to your watchlist?
Source: TD Ameritrade TOS
Sierra Oncology
Another trending biotech company today is Sierra. In detail, this is a late-stage drug development company that focuses on advancing targeted therapeutics. For most parts, it targets the treatment of patients with unmet medical needs in hematology and oncology. The company is also developing a portfolio of deoxyribonucleic acid damage response assets, consisting of SRA737 and SRA141. Investors following the industry would notice that SRRA stock soared by 38.54% on Wednesday’s closing bell.
Well, this spike is largely driven by the recent announcement made by Sierra and GlaxoSmithKline (NYSE: GSK). Both companies have entered into an agreement under which GSK will acquire Sierra Oncology for $55 per share of common stock in cash. GSK believes that this will be the best opportunity for Sierra to realize its potential of delivering targeted therapies while providing value to its stockholders. As such, will you be watching SRRA stock?
Source: TD Ameritrade TOS
[Read More] Best Stocks To Invest In Right Now? 3 Consumer Staples Stocks To Know
AbbVie
AbbVie is among the leading research-based biopharmaceutical companies. Its mission is to discover and deliver innovative medicines that would solve serious health issues today while addressing the medical challenges of tomorrow. The company offers its products in various therapeutic categories, including Immunology, Oncology, Aesthetics, and many more. ABBV stock has had a decent start to the year, climbing more than 16% this year.
On Wednesday, the company along with Genmab (NASDAQ: GMAB) announced topline results for epcoritamab (DuoBody®-CD3xCD20) from the Phase 1/2 trial in patients with relapsed/refractory large B-cell lymphoma (LBCL). Based on this, both companies have agreed to engage global regulatory authorities. After all, there are approximately 150,000 new LBCL cases each year around the globe. Unfortunately, there are very few treatment options that are currently available. Thus, should this prove to be a success, it will be a huge boost for patients with these hematological malignancies. With that said, do you believe that ABBV stock will have more room to run?
Source: TD Ameritrade TOS
Halozyme
Following that, we will be looking at the biopharma technology platform company, Halozyme. Unlike most biotech companies, Halozyme licenses its technology to other pharmaceutical companies to collaboratively develop products that combine its ENHANZE drug delivery technology with their compounds. For instance, its rHuPH20 lead enzyme is often used to facilitate the delivery of injected drugs and fluids. Well, Halozyme is yet another company that has announced an agreement of acquisition.
Recently, the company entered into a definitive agreement under which Halozyme will acquire Antares for $5.60 per share. The value of the transaction will be approximately $960 million and approval from both companies’ Board of Directors has been obtained. Overall, the acquisition makes sense as it will further strengthen Halozyme’s position as a leading drug delivery company. Specifically, with Antares’ best-in-class auto-injector platform and specialty commercial business. Given this exciting development, is HALO stock among the top biotech stocks to watch right now?
Source: TD Ameritrade TOS
[Read More] Top Stock Market News For Today April 14, 2022
Crinetics Pharmaceuticals
Finally, we have another clinical-stage pharmaceutical company, Crinetics Pharmaceuticals. The company’s primary focus is on therapeutics for rare endocrine diseases and endocrine-related tumors. Thus far, it has discovered a pipeline of oral nonpeptide chemical entities that target peptide G protein-coupled receptors to treat rare endocrine diseases. Despite trading sideways since the start of the year, CRNX stock has gained some momentum over the past month. The stock has risen more than 45% within the period.
By and large, this momentum can be attributed to its recent fourth-quarter and full-year 2021 business update. To say the least, 2021 was a transformative year for the company as it achieved multiple key milestones in its discovery and clinical programs. Furthermore, Crinetics also recently announced positive top-line results from its multiple-ascending dose (MAD) cohorts of healthy volunteers in a first-in-human Phase 1 clinical study of CRN04777. The results showed a rapid and sustained reduction in insulin secretion. Hence, Crinetics is confident that the company will be able to carry this momentum into 2022. All things considered, should CRNX stock have a spot on your biotech 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. | Biotech Stocks To Watch Right Now Turning Point Therapeutics Inc (NASDAQ: TPTX) Sierra Oncology Inc (NASDAQ: SRRA) AbbVie Inc (NYSE: ABBV) Halozyme Therapeutics, Inc. (NASDAQ: HALO) Crinetics Pharmaceuticals Inc (NASDAQ: CRNX) Turning Point Therapeutics Firstly, we have the clinical-stage biopharmaceutical company, Turning Point Therapeutics. 3 Consumer Staples Stocks To Know AbbVie AbbVie is among the leading research-based biopharmaceutical companies. ABBV stock has had a decent start to the year, climbing more than 16% this year. | Biotech Stocks To Watch Right Now Turning Point Therapeutics Inc (NASDAQ: TPTX) Sierra Oncology Inc (NASDAQ: SRRA) AbbVie Inc (NYSE: ABBV) Halozyme Therapeutics, Inc. (NASDAQ: HALO) Crinetics Pharmaceuticals Inc (NASDAQ: CRNX) Turning Point Therapeutics Firstly, we have the clinical-stage biopharmaceutical company, Turning Point Therapeutics. 3 Consumer Staples Stocks To Know AbbVie AbbVie is among the leading research-based biopharmaceutical companies. ABBV stock has had a decent start to the year, climbing more than 16% this year. | Biotech Stocks To Watch Right Now Turning Point Therapeutics Inc (NASDAQ: TPTX) Sierra Oncology Inc (NASDAQ: SRRA) AbbVie Inc (NYSE: ABBV) Halozyme Therapeutics, Inc. (NASDAQ: HALO) Crinetics Pharmaceuticals Inc (NASDAQ: CRNX) Turning Point Therapeutics Firstly, we have the clinical-stage biopharmaceutical company, Turning Point Therapeutics. 3 Consumer Staples Stocks To Know AbbVie AbbVie is among the leading research-based biopharmaceutical companies. ABBV stock has had a decent start to the year, climbing more than 16% this year. | Biotech Stocks To Watch Right Now Turning Point Therapeutics Inc (NASDAQ: TPTX) Sierra Oncology Inc (NASDAQ: SRRA) AbbVie Inc (NYSE: ABBV) Halozyme Therapeutics, Inc. (NASDAQ: HALO) Crinetics Pharmaceuticals Inc (NASDAQ: CRNX) Turning Point Therapeutics Firstly, we have the clinical-stage biopharmaceutical company, Turning Point Therapeutics. ABBV stock has had a decent start to the year, climbing more than 16% this year. 3 Consumer Staples Stocks To Know AbbVie AbbVie is among the leading research-based biopharmaceutical companies. |
23477.0 | 2022-04-14 00:00:00 UTC | Is Trending Stock AbbVie Inc. (ABBV) a Buy Now? | ABBV | https://www.nasdaq.com/articles/is-trending-stock-abbvie-inc.-abbv-a-buy-now | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this drugmaker have returned +1.9% over the past month versus the Zacks S&P 500 composite's +5.9% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 11% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.14 per share, indicating a change of +6.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
The consensus earnings estimate of $14.16 for the current fiscal year indicates a year-over-year change of +11.5%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.46 indicates a change of -12% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $13.55 billion for the current quarter points to a year-over-year change of +4.2%. The $60.36 billion and $56.93 billion estimates for the current and next fiscal years indicate changes of +7.4% and -5.7%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $14.89 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $3.31 for the same period compares with $2.92 a year ago.
Compared to the Zacks Consensus Estimate of $15.03 billion, the reported revenues represent a surprise of -0.94%. The EPS surprise was +0.61%.
Over the last four quarters, AbbVie surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 11% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 11% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 11% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has gained 11% over this period. |
23478.0 | 2022-04-14 00:00:00 UTC | Genmab (GMAB), AbbVie's Epcoritamab Successful in LBCL Study | ABBV | https://www.nasdaq.com/articles/genmab-gmab-abbvies-epcoritamab-successful-in-lbcl-study | nan | nan | Genmab A/S GMAB and AbbVie ABBV announced top-line data from the first cohort of a phase I/II study — EPCORE NHL-1 — evaluating its subcutaneous bispecific antibody candidate, epcoritamab (DuoBody-CD3xCD20), as a potential treatment for relapsed/refractory (r/r) large B-cell lymphoma (LBCL).
The phase I/II study evaluated epcoritamab in r/r LBCL patients who have received at least two prior lines of systemic therapy, including chimeric antigen receptor (CAR) T-cell therapy. Data from the first cohort of the study demonstrated that treatment with the candidate achieved a confirmed overall response rate (ORR) of 63.1%, as assessed by an independent review committee. The candidate achieved a mean duration of response of 12 months.
This cohort of the study included patients who have received 2 to 11 prior therapies. Based on the data from this cohort, AbbVie and Genmab are planning to engage with global regulatory authorities.
Shares of Genmab have declined 6.3% so far this year compared with the industry’s decrease of 14%.
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AbbVie and Genmab are developing epcoritamab as part of their broad oncology collaboration signed in 2020. The companies are evaluating the candidate as monotherapy or in combination regimens for treating hematologic malignancies including non-Hodgkin’s lymphoma, in patients who have received multiple prior lines of therapy.
Per the terms of the collaboration agreement, AbbVie should pay $750 million in upfront payments along with potential milestone payments of up to $3.15 billion.
We note that epcoritamab has been developed using Genmab’s proprietary DuoBody technology platform. Apart from AbbVie, the company’s technology platform has also attracted J&J JNJ to sign an agreement. In 2012, J&J and Genmab entered into a partnership for developing bispecific antibodies using the latter’s proprietary DuoBody technology platform. In May 2021, J&J received FDA approval for Rybrevant, developed using Genmab’s DuoBody technology platform, for treating adult patients with non-small cell lung cancer with EGFR mutations. J&J’s Darzalex and Darzalex Faspro have also been developed in partnership with Genmab.
Last year, Genmab’s partner Seagen SGEN announced that the FDA had granted accelerated approval to their investigational antibody-drug conjugate, Tivdak (tisotumab vedotin-tftv). Seagen received approval for Tivdak for recurrent/metastatic cervical cancer in adult patients whose disease progressed on or after chemotherapy. Seagen and Genmab continue to evaluate Tivdak as a potential treatment for cervical cancer and other solid tumors in different clinical studies.
Genmab AS Sponsored ADR Price
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Zacks Rank
Genmab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Genmab A/S GMAB and AbbVie ABBV announced top-line data from the first cohort of a phase I/II study — EPCORE NHL-1 — evaluating its subcutaneous bispecific antibody candidate, epcoritamab (DuoBody-CD3xCD20), as a potential treatment for relapsed/refractory (r/r) large B-cell lymphoma (LBCL). Based on the data from this cohort, AbbVie and Genmab are planning to engage with global regulatory authorities. Image Source: Zacks Investment Research AbbVie and Genmab are developing epcoritamab as part of their broad oncology collaboration signed in 2020. | Genmab A/S GMAB and AbbVie ABBV announced top-line data from the first cohort of a phase I/II study — EPCORE NHL-1 — evaluating its subcutaneous bispecific antibody candidate, epcoritamab (DuoBody-CD3xCD20), as a potential treatment for relapsed/refractory (r/r) large B-cell lymphoma (LBCL). Based on the data from this cohort, AbbVie and Genmab are planning to engage with global regulatory authorities. Image Source: Zacks Investment Research AbbVie and Genmab are developing epcoritamab as part of their broad oncology collaboration signed in 2020. | Genmab A/S GMAB and AbbVie ABBV announced top-line data from the first cohort of a phase I/II study — EPCORE NHL-1 — evaluating its subcutaneous bispecific antibody candidate, epcoritamab (DuoBody-CD3xCD20), as a potential treatment for relapsed/refractory (r/r) large B-cell lymphoma (LBCL). Based on the data from this cohort, AbbVie and Genmab are planning to engage with global regulatory authorities. Image Source: Zacks Investment Research AbbVie and Genmab are developing epcoritamab as part of their broad oncology collaboration signed in 2020. | Genmab A/S GMAB and AbbVie ABBV announced top-line data from the first cohort of a phase I/II study — EPCORE NHL-1 — evaluating its subcutaneous bispecific antibody candidate, epcoritamab (DuoBody-CD3xCD20), as a potential treatment for relapsed/refractory (r/r) large B-cell lymphoma (LBCL). Image Source: Zacks Investment Research AbbVie and Genmab are developing epcoritamab as part of their broad oncology collaboration signed in 2020. Apart from AbbVie, the company’s technology platform has also attracted J&J JNJ to sign an agreement. |
23479.0 | 2022-04-13 00:00:00 UTC | AbbVie Announces Positive Results For Epcoritamab From Phase 1/2 Trial In Blood Cancer | ABBV | https://www.nasdaq.com/articles/abbvie-announces-positive-results-for-epcoritamab-from-phase-1-2-trial-in-blood-cancer | nan | nan | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced topline results for Epcoritamab (DuoBody-CD3xCD20) from phase 1/2 trial in patients with Relapsed/Refractory Large B-cell Lymphoma. Epcoritamab is an an investigational subcutaneous bispecific antibody.
The study cohort included 157 patients with relapsed/refractory large B-cell lymphoma or LBCL who received at least two prior lines of systemic therapy, including 38.9 percent who received prior treatment with chimeric antigen receptor (CAR) T-cell therapy. Based on the topline results, the companies will engage global regulatory authorities.
LBCL is a fast-growing type of non-Hodgkin's lymphoma (NHL) - a cancer that develops in the lymphatic system - that affects B-cell lymphocytes, a type of white blood cell.
The topline results from the cohort demonstrated a confirmed overall response rate of 63.1 percent by an independent review committee. The observed median duration of response was 12 months. The mean lines of prior therapy in this cohort were 3.5 (2 to 11 lines of therapy).
The most common treatment-emergent adverse events of any grade included cytokine release syndrome, pyrexia, fatigue, neutropenia, and diarrhea.
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 DLBCL.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced topline results for Epcoritamab (DuoBody-CD3xCD20) from phase 1/2 trial in patients with Relapsed/Refractory Large B-cell Lymphoma. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. The topline results from the cohort demonstrated a confirmed overall response rate of 63.1 percent by an independent review committee. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced topline results for Epcoritamab (DuoBody-CD3xCD20) from phase 1/2 trial in patients with Relapsed/Refractory Large B-cell Lymphoma. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. The study cohort included 157 patients with relapsed/refractory large B-cell lymphoma or LBCL who received at least two prior lines of systemic therapy, including 38.9 percent who received prior treatment with chimeric antigen receptor (CAR) T-cell therapy. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced topline results for Epcoritamab (DuoBody-CD3xCD20) from phase 1/2 trial in patients with Relapsed/Refractory Large B-cell Lymphoma. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. The study cohort included 157 patients with relapsed/refractory large B-cell lymphoma or LBCL who received at least two prior lines of systemic therapy, including 38.9 percent who received prior treatment with chimeric antigen receptor (CAR) T-cell therapy. | (RTTNews) - AbbVie (ABBV) and Genmab A/S (GMAB) announced topline results for Epcoritamab (DuoBody-CD3xCD20) from phase 1/2 trial in patients with Relapsed/Refractory Large B-cell Lymphoma. Epcoritamab is being co-developed by AbbVie and Genmab as part of the companies' broad oncology collaboration. The study cohort included 157 patients with relapsed/refractory large B-cell lymphoma or LBCL who received at least two prior lines of systemic therapy, including 38.9 percent who received prior treatment with chimeric antigen receptor (CAR) T-cell therapy. |
23480.0 | 2022-04-13 00:00:00 UTC | Halozyme to buy Antares Pharma in $960 mln deal | ABBV | https://www.nasdaq.com/articles/halozyme-to-buy-antares-pharma-in-%24960-mln-deal-0 | nan | nan | Adds details on deal, background
April 13 (Reuters) - Halozyme Therapeutics Inc HALO.O will buy specialty pharmaceutical company Antares Pharma Inc ATRS.O in a $960 million all-cash deal, the companies said on Wednesday.
Halozyme will pay $5.60 for each share of Antares Pharma, a premium of 49.7% to the company's last closing price.
San Diego-based Halozyme offers a delivery technology that enables high volumes of a drug to be injected under the skin, potentially reducing the need for multiple injections.
The company has in the past licensed its technology, called Enhanze, to several major drugmakers including Pfizer PFE.N and AbbVie ABBV.N for drug development.
The acquisition of Antares would give Halozyme access to a range of medicines, such as testosterone therapy Xyosted, that have been approved by the U.S. Food and Drug Administration.
Xyosted brought in sales of $62.2 million in 2021.
"The addition of Antares, particularly with its best-in-class auto injector platform and specialty commercial business ... further strengthens our position as a leading drug delivery company," said Halozyme Chief Executive Helen Torley.
The deal is expected to immediately add to Halozyme's 2022 revenue and adjusted profit, the companies said.
(Reporting by Amruta Khandekar; Editing by Aditya Soni)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has in the past licensed its technology, called Enhanze, to several major drugmakers including Pfizer PFE.N and AbbVie ABBV.N for drug development. The acquisition of Antares would give Halozyme access to a range of medicines, such as testosterone therapy Xyosted, that have been approved by the U.S. Food and Drug Administration. "The addition of Antares, particularly with its best-in-class auto injector platform and specialty commercial business ... further strengthens our position as a leading drug delivery company," said Halozyme Chief Executive Helen Torley. | The company has in the past licensed its technology, called Enhanze, to several major drugmakers including Pfizer PFE.N and AbbVie ABBV.N for drug development. Adds details on deal, background April 13 (Reuters) - Halozyme Therapeutics Inc HALO.O will buy specialty pharmaceutical company Antares Pharma Inc ATRS.O in a $960 million all-cash deal, the companies said on Wednesday. Halozyme will pay $5.60 for each share of Antares Pharma, a premium of 49.7% to the company's last closing price. | The company has in the past licensed its technology, called Enhanze, to several major drugmakers including Pfizer PFE.N and AbbVie ABBV.N for drug development. Adds details on deal, background April 13 (Reuters) - Halozyme Therapeutics Inc HALO.O will buy specialty pharmaceutical company Antares Pharma Inc ATRS.O in a $960 million all-cash deal, the companies said on Wednesday. The acquisition of Antares would give Halozyme access to a range of medicines, such as testosterone therapy Xyosted, that have been approved by the U.S. Food and Drug Administration. | The company has in the past licensed its technology, called Enhanze, to several major drugmakers including Pfizer PFE.N and AbbVie ABBV.N for drug development. Adds details on deal, background April 13 (Reuters) - Halozyme Therapeutics Inc HALO.O will buy specialty pharmaceutical company Antares Pharma Inc ATRS.O in a $960 million all-cash deal, the companies said on Wednesday. Halozyme will pay $5.60 for each share of Antares Pharma, a premium of 49.7% to the company's last closing price. |
23481.0 | 2022-04-12 00:00:00 UTC | Curis (CRIS) Down on FDA Partial Clinical Hold on Lymphoma Study | ABBV | https://www.nasdaq.com/articles/curis-cris-down-on-fda-partial-clinical-hold-on-lymphoma-study | nan | nan | Shares of Curis, Inc. CRIS were down 8.3% on Monday after the FDA placed a partial clinical hold on its TakeAim lymphoma study evaluating its IRAK4 kinase inhibitor, emavusertib (CA-4948).
The open-label, dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with J&J JNJ /AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib).
AbbVie markets Imbruvica in partnership with J&J.
Imbruvica is currently approved for treating various hematologic cancers. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. The drug has multi-billion-dollar potential.
With this partial clinical hold, the FDA requested additional safety, efficacy and other data on emavusertib, including data related to rhabdomyolysis and the likely recommended phase II dose for emavusertib.
Concurrently, enrollment of new patients has been stopped in the TakeAim lymphoma study as a result of the FDA’s partial clinical hold.
The company remains focused on resuming the study soon following appropriate review by the regulatory body.
Curis’ stock has plunged 72.3% so far this year compared with the industry’s decrease of 12.1%.
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Earlier this month, the FDA placed a partial clinical hold on Curis’ phase I/II TakeAim leukemia study, which is evaluating emavusertib for treating patients with relapsed or refractory acute myeloid leukemia or high-risk myelodysplastic syndrome.
Back then, Curis decided to voluntarily pause enrollment of new patients in the TakeAim lymphoma study after the FDA placed a partial clinical hold on the TakeAim leukemia study.
Curis currently has no approved product in its portfolio. Therefore, the successful development of emavusertib, along with other pipeline candidates, remains a key focus for the company.
Zacks Rank & Stock to Consider
Curis currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Voyager Therapeutics, Inc. VYGR, which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Voyager Therapeutics’ loss per share estimates have narrowed 38.6% for 2022 and 29% for 2023 over the past 60 days. The VYGR stock has skyrocketed 203.7% year to date.
Earnings of Voyager Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The open-label, dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with J&J JNJ /AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib). AbbVie markets Imbruvica in partnership with J&J. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. | The open-label, dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with J&J JNJ /AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib). AbbVie markets Imbruvica in partnership with J&J. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. | The open-label, dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with J&J JNJ /AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib). AbbVie markets Imbruvica in partnership with J&J. AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. | AbbVie and J&J are conducting several studies on Imbruvica to evaluate the drug alone or in combination in different patient segments. The open-label, dose-escalating phase I/II study is evaluating emavusertib for treating patients with B-cell malignancies, both as a monotherapy and in combination with J&J JNJ /AbbVie’s ABBV BTK inhibitor, Imbruvica (ibrutinib). AbbVie markets Imbruvica in partnership with J&J. |
23482.0 | 2022-04-12 00:00:00 UTC | BeiGene (BGNE) Brukinsa Superior to Imbruvica in Leukemia Study | ABBV | https://www.nasdaq.com/articles/beigene-bgne-brukinsa-superior-to-imbruvica-in-leukemia-study | nan | nan | BeiGene, Ltd. BGNE announced that the phase III study — ALPINE — evaluating its BTK inhibitor drug, Brukinsa (zanubrutinib), for treating relapsed or refractory (R/R) chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL), met its primary endpoint of superiority compared to AbbVie’s ABBV popular cancer drug, Imbruvica (ibrutinib).
Per the final response data from the ALPINE study, as assessed by an Independent Review Committee (IRC), Brukinsa demonstrated superiority over AbbVie’s Imbruvica in treating R/R CLL or SLL patients, measured by objective response rate (“ORR”). Data from the study, as determined by the IRC, showed that Brukinsa achieved an ORR of 80.4% versus 72.9% for AbbVie’s Imbruvica. The response data were based on patients in the study who were followed for a median of 24.2 months.
Data from a previously completed interim analysis of the ALPINE data had demonstrated that Brukinsa was superior to AbbVie’s Imbruvica as measured by the investigator-assessed overall response rate.
BeiGene also stated that the safety profile of Brukinsa was consistent with previous studies. The safety profile of Brukinsa seemed to be better than AbbVie’s Imbruvica. In a pre-specified safety analysis following a follow-up of a median of 24.2 months, the rate of atrial fibrillation or flutter was 4.6% for Brukinsa compared to 12% for AbbVie’s Imbruvica. Moreover, 13% of patients in the Brukinsa arm discontinued treatment due to adverse events compared to 17.6% for patients receiving Imbruvica. However, the occurrence of most commonly reported grade 3 or higher adverse events was lower for Brukinsa for pneumonia compared to Imbruvica. In contrast, neutropenia, hypertension, decreased neutrophil count and COVID-19 pneumonia were higher in the Brukinsa arm.
The ALPINE study will continue to follow up patients for measuring progression-free survival (“PFS”) as the final analysis of the study. The potential superiority of Brukinsa over Imbruvica in PFS, coupled with the ORR superiority, will boost the prospect of the drug to receive an FDA approval for treating R/R CLL or SLL.
Shares of BeiGene have declined 31.9% so far this year compared with the industry’s decrease of 12%.
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BeiGene’s Brukinsa was first approved in 2019 for treating mantle cell lymphoma (“MCL”) followed by label expansion to include Waldenström’s macroglobulinemia (“WM”) and marginal zone lymphoma (“MZL”) in 2021.
We note that AbbVie’s Imbruvica is an FDA-approved therapy for treating R/R CLL or SLL. The drug is also approved for treating WM and MZL. BeiGene’s Brukinsa is likely to provide good competition to AbbVie’s Imbruvica going forward as both drugs target similar indications.
Apart from Brukinsa, BeiGene has an anti-PD-1 antibody drug in its portfolio, tislelizumab, which is currently approved in China only. Tislelizumab is available in China for treating advanced squamous non-small cell lung cancer, classical Hodgkin’s lymphoma and locally advanced or metastatic urothelial carcinoma with PD-L1 high expression. BeiGene is seeking approval for the drug as a treatment for patients with unresectable recurrent locally advanced or metastatic esophageal squamous cell carcinoma in the United States. A decision from the FDA is expected on Jul 12, 2022.
BeiGene’s promising oncology candidates and drugs and its presence in a growing market like China have attracted big pharma companies including Amgen AMGN and Novartis NVS for partnerships.
In 2021, Novartis signed two agreements to gain rights to BeiGene’s pipeline candidates. Novartis signed a strategic collaboration agreement for in-licensing BeiGene’s tislelizumab in major markets outside of China. Novartis inked an option, collaboration and license agreement with BeiGene to obtain the development and commercialization rights to TIGIT inhibitor, ociperlimab, in the United States, Europe and a few other countries.
Amgen and BeiGene had signed an oncology collaboration agreement in 2019. Amgen also made an investment of approximately $421 million in BeiGene in 2020. The company believes that the oncology collaboration is likely to generate enough potential for the company in China.
BeiGene, Ltd. Price
BeiGene, Ltd. price | BeiGene, Ltd. Quote
Zacks Rank
BeiGene currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BeiGene, Ltd. BGNE announced that the phase III study — ALPINE — evaluating its BTK inhibitor drug, Brukinsa (zanubrutinib), for treating relapsed or refractory (R/R) chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL), met its primary endpoint of superiority compared to AbbVie’s ABBV popular cancer drug, Imbruvica (ibrutinib). Per the final response data from the ALPINE study, as assessed by an Independent Review Committee (IRC), Brukinsa demonstrated superiority over AbbVie’s Imbruvica in treating R/R CLL or SLL patients, measured by objective response rate (“ORR”). Data from the study, as determined by the IRC, showed that Brukinsa achieved an ORR of 80.4% versus 72.9% for AbbVie’s Imbruvica. | Per the final response data from the ALPINE study, as assessed by an Independent Review Committee (IRC), Brukinsa demonstrated superiority over AbbVie’s Imbruvica in treating R/R CLL or SLL patients, measured by objective response rate (“ORR”). BeiGene, Ltd. BGNE announced that the phase III study — ALPINE — evaluating its BTK inhibitor drug, Brukinsa (zanubrutinib), for treating relapsed or refractory (R/R) chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL), met its primary endpoint of superiority compared to AbbVie’s ABBV popular cancer drug, Imbruvica (ibrutinib). Data from the study, as determined by the IRC, showed that Brukinsa achieved an ORR of 80.4% versus 72.9% for AbbVie’s Imbruvica. | BeiGene, Ltd. BGNE announced that the phase III study — ALPINE — evaluating its BTK inhibitor drug, Brukinsa (zanubrutinib), for treating relapsed or refractory (R/R) chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL), met its primary endpoint of superiority compared to AbbVie’s ABBV popular cancer drug, Imbruvica (ibrutinib). Per the final response data from the ALPINE study, as assessed by an Independent Review Committee (IRC), Brukinsa demonstrated superiority over AbbVie’s Imbruvica in treating R/R CLL or SLL patients, measured by objective response rate (“ORR”). Data from the study, as determined by the IRC, showed that Brukinsa achieved an ORR of 80.4% versus 72.9% for AbbVie’s Imbruvica. | Data from a previously completed interim analysis of the ALPINE data had demonstrated that Brukinsa was superior to AbbVie’s Imbruvica as measured by the investigator-assessed overall response rate. The safety profile of Brukinsa seemed to be better than AbbVie’s Imbruvica. BeiGene, Ltd. BGNE announced that the phase III study — ALPINE — evaluating its BTK inhibitor drug, Brukinsa (zanubrutinib), for treating relapsed or refractory (R/R) chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL), met its primary endpoint of superiority compared to AbbVie’s ABBV popular cancer drug, Imbruvica (ibrutinib). |
23483.0 | 2022-04-12 00:00:00 UTC | AbbVie: Great Company, Future Upside Likely Weakened | ABBV | https://www.nasdaq.com/articles/abbvie%3A-great-company-future-upside-likely-weakened | nan | nan | AbbVie (ABBV) is a diversified research-based biopharmaceutical company operating globally. AbbVie's comprehensive product portfolio of therapies aims to cure some of the most complex and severe diseases in the world.
Following AbbVie’s acquisition of Allergan in 2020, the company further enriched its biopharmaceutical portfolio, solidifying its leading position in critical therapeutic areas such as aesthetics, neuroscience, eye care, women’s health, immunology, and hematologic oncology.
I am particularly keen on AbbVie's persistent efforts to maximize profitability backed by its high-margin business model. The company should keep driving steady margin expansion over time through the continued realization of cost synergies from the Allergan acquisition, economies of scale from revenue growth, production initiatives in the supply chain, and lasting efficiency schedules to optimize manufacturing.
In my view, AbbVie checks all the boxes when it comes to growth, moat and competitive advantages, profitability prospects, and growing capital returns.
Despite the company retaining all of its underlying qualities, with the stock rallying by close to 30% year-to-date, I believe that much of AbbVie's “easy” upside has already been realized.
Accordingly, I am neutral.
Latest Results: Strong Bottom Line Profits
AbbVie’s latest results illustrated the company's ability to generate robust cash flows and a rich bottom line once again.
Revenues came in at $14.9 billion during the quarter, a 7.4% increase year-over-year. Revenue growth was powered by increased sales in several of its drugs, including Humira, Skyrizi, and Rinvoq. Specifically, each of these three drugs saw its sales increase by 3.5%, 70.5%, and 84.4%, respectively.
Driven by AbbVie's profit-maximization catalysts mentioned earlier, adjusted earnings per share came in at $3.31, 13.3% higher compared to the prior-year period.
With AbbVie's biopharmaceutical sales retaining a strong growth trajectory, management's Fiscal 2022 outlook included adjusted diluted EPS estimates in the range of $14 to $14.20, implying growth of 11% at the midpoint compared to Fiscal 2021.
The fact that AbbVie continues to target double-digit EPS growth despite how mature its portfolio has already evolved is nothing short of impressive.
Dividend Growth Prospects
Fused with its dividend growth track record prior to its spin-off from Abbot Laboratories, AbbVie has “unofficially” hiked its dividend annually for 50 successive years.
Despite such an extended track record which would otherwise suggest Abbvie is a very mature business, the company's five-year dividend per share CAGR currently stands at a remarkable 17.9%.
The latest DPS hike back in October was by a slightly softer 8.5% to a quarterly rate of $1.41, implying a modest slowdown in dividend growth.
However, considering the strong Fiscal 2022 outlook, I wouldn't be surprised to see the DPS growth pace returning to double-digits. After all, the current DPS run rate and AbbVie's adjusted EPS outlook indicate a healthy payout ratio of 40%.
Note that while some investors have been wary about Humira’s sales decompressing in the mid-2020s following AbbVie's patent expiry, management has reassured investors by forecasting that company-wide revenues in 2025 will be higher than last year's.
This illustrates how robust and diversified AbbVie’s portfolio is, with Allergan's acquisition once again proven very beneficial and timely. Hence, the case for double-digit DPS growth over the medium-term remains quite conceivable, in my view.
Valuation
Following the stock's strong rally year-to-date, AbbVie's short-to-medium-term upside could be limited.
Back in December, AbbVie was trading at a forward P/E close to 9.2. Today, this multiple has expanded to 12.2, despite AbbVie's strong Fiscal 2022 guidance.
Indeed, this multiple still appears rather attractive, and I wouldn't be surprised if a further valuation expansion were to occur. However, with the “easy” money on AbbVie having already been made, I would feel more comfortable booking some profits at this stage.
As a result of the recent valuation expansion, AbbVie's yield has declined from just under 5% near December to around 3.1% currently, despite another robust DPS hike during the period.
Again, it's not a bad yield to grab, considering AbbVie's dividend growth prospects. However, the overall margin of safety and predictability of future total returns previously offered by the dividend has certainly softened.
Wall Street’s Take
Turning to Wall Street, AbbVie has a Moderate Buy consensus rating based on 11 Buys and five Holds assigned in the past three months. At $155.47, the average AbbVie price target implies 9.3% downside potential.
Takeaway
AbbVie is one of the most reliable and investor-friendly companies in the healthcare sector. Its capital-return track record, including 50 years of consecutive annual dividend hikes whose growth rate continues to be quite strong, is rather remarkable.
AbbVie should continue to see its bottom line expanding rapidly over the medium term, driven by a robust sales growth outlook through 2025 and the company's profit maximization initiatives and catalysts. Its dividend growth prospects remain vigorous.
However, following the stock's valuation expansion over the past several months, current investors are buying into a feebler dividend yield and a less appealing upside potential, in my view.
Thus, while AbbVie could be quite investable still, its investment case has certainly been diluted to some extent.
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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. | Following AbbVie’s acquisition of Allergan in 2020, the company further enriched its biopharmaceutical portfolio, solidifying its leading position in critical therapeutic areas such as aesthetics, neuroscience, eye care, women’s health, immunology, and hematologic oncology. AbbVie should continue to see its bottom line expanding rapidly over the medium term, driven by a robust sales growth outlook through 2025 and the company's profit maximization initiatives and catalysts. AbbVie (ABBV) is a diversified research-based biopharmaceutical company operating globally. | Latest Results: Strong Bottom Line Profits AbbVie’s latest results illustrated the company's ability to generate robust cash flows and a rich bottom line once again. With AbbVie's biopharmaceutical sales retaining a strong growth trajectory, management's Fiscal 2022 outlook included adjusted diluted EPS estimates in the range of $14 to $14.20, implying growth of 11% at the midpoint compared to Fiscal 2021. AbbVie (ABBV) is a diversified research-based biopharmaceutical company operating globally. | With AbbVie's biopharmaceutical sales retaining a strong growth trajectory, management's Fiscal 2022 outlook included adjusted diluted EPS estimates in the range of $14 to $14.20, implying growth of 11% at the midpoint compared to Fiscal 2021. Dividend Growth Prospects Fused with its dividend growth track record prior to its spin-off from Abbot Laboratories, AbbVie has “unofficially” hiked its dividend annually for 50 successive years. AbbVie should continue to see its bottom line expanding rapidly over the medium term, driven by a robust sales growth outlook through 2025 and the company's profit maximization initiatives and catalysts. | This illustrates how robust and diversified AbbVie’s portfolio is, with Allergan's acquisition once again proven very beneficial and timely. AbbVie (ABBV) is a diversified research-based biopharmaceutical company operating globally. AbbVie's comprehensive product portfolio of therapies aims to cure some of the most complex and severe diseases in the world. |
23484.0 | 2022-04-12 00:00:00 UTC | AbbVie : Phase 2 Study Of Navitoclax Combination Shows Anti-Fibrosis Activity In Rare Blood Cancer | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-phase-2-study-of-navitoclax-combination-shows-anti-fibrosis-activity-in-rare | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) announced new data from a phase 2 trial of navitoclax in combination with ruxolitinib in patients with myelofibrosis.
The company said it was pleased about early results of navitoclax in combination with ruxolitinib that indicate its novel mechanism of action of inducing cell death may cause reversal of bone marrow fibrosis and extend survival for patients who respond to treatment.
Myelofibrosis is a rare, difficult-to-treat blood cancer that results in excessive scar tissue formation (fibrosis) in the bone marrow. Anti-fibrosis activity, measured by reversal of bone marrow fibrosis (BMF) and reduction in driver gene variant allele frequency (VAF) have been suggested as potential biomarkers to measure disease modification in myelofibrosis, but their association with a survival benefit have not been widely described.
The results were from an exploratory analysis of 34 myelofibrosis patients who received at least one dose of navitoclax in combination with ruxolitinib after suboptimal response or disease progression with ruxolitinib monotherapy.
AbbVie said it is currently recruiting for two Phase 3 trials of navitoclax in combination with ruxolitinib for the treatment of myelofibrosis that will enroll more than 500 patients. The company anticipates pivotal trial readouts and regulatory submission for navitoclax in 2023.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie Inc. (ABBV) announced new data from a phase 2 trial of navitoclax in combination with ruxolitinib in patients with myelofibrosis. AbbVie said it is currently recruiting for two Phase 3 trials of navitoclax in combination with ruxolitinib for the treatment of myelofibrosis that will enroll more than 500 patients. The company said it was pleased about early results of navitoclax in combination with ruxolitinib that indicate its novel mechanism of action of inducing cell death may cause reversal of bone marrow fibrosis and extend survival for patients who respond to treatment. | (RTTNews) - AbbVie Inc. (ABBV) announced new data from a phase 2 trial of navitoclax in combination with ruxolitinib in patients with myelofibrosis. AbbVie said it is currently recruiting for two Phase 3 trials of navitoclax in combination with ruxolitinib for the treatment of myelofibrosis that will enroll more than 500 patients. Anti-fibrosis activity, measured by reversal of bone marrow fibrosis (BMF) and reduction in driver gene variant allele frequency (VAF) have been suggested as potential biomarkers to measure disease modification in myelofibrosis, but their association with a survival benefit have not been widely described. | AbbVie said it is currently recruiting for two Phase 3 trials of navitoclax in combination with ruxolitinib for the treatment of myelofibrosis that will enroll more than 500 patients. (RTTNews) - AbbVie Inc. (ABBV) announced new data from a phase 2 trial of navitoclax in combination with ruxolitinib in patients with myelofibrosis. The company said it was pleased about early results of navitoclax in combination with ruxolitinib that indicate its novel mechanism of action of inducing cell death may cause reversal of bone marrow fibrosis and extend survival for patients who respond to treatment. | AbbVie said it is currently recruiting for two Phase 3 trials of navitoclax in combination with ruxolitinib for the treatment of myelofibrosis that will enroll more than 500 patients. (RTTNews) - AbbVie Inc. (ABBV) announced new data from a phase 2 trial of navitoclax in combination with ruxolitinib in patients with myelofibrosis. The company said it was pleased about early results of navitoclax in combination with ruxolitinib that indicate its novel mechanism of action of inducing cell death may cause reversal of bone marrow fibrosis and extend survival for patients who respond to treatment. |
23485.0 | 2022-04-12 00:00:00 UTC | 3 Soaring Pharma Stocks -- Can They Keep Climbing? | ABBV | https://www.nasdaq.com/articles/3-soaring-pharma-stocks-can-they-keep-climbing | nan | nan | Are you hungry for stocks that can produce market-beating gains? If so, there are some increasingly popular entrees on the biopharmaceutical industry's menu that deserve your attention.
Each for reasons of their own, shares of Bristol Myers Squibb (NYSE: BMY), Vertex Pharmaceuticals (NASDAQ: VRTX), and AbbVie (NYSE: ABBV) keep soaring to new all-time highs. Here's how they could keep their prices moving in the right direction for years to come.
Image source: Getty Images.
Bristol Myers Squibb
Bristol Myers Squibb shares have risen 25% this year to reach an all-time high water mark for this well-established pharmaceutical giant. New safety and efficacy results from a clinical trial with an experimental drug for patients with abnormally thick hearts called mavacamten have been pushing the stock higher this month.
Hypertrophic cardiomyopathy (HCM) is one of the most commonly inherited heart conditions. It causes hearts to swell and limits their ability to pump blood.
Heart reduction surgery is a drastic intervention that HCM patients might be able to avoid with mavacamten if it earns approval as expected. During the phase 3 Valor trial, 82% of HCM patients treated with mavacamten had not proceeded with the surgery and were no longer eligible because their hearts slimmed down. That was 257% better than the group of patients who were randomized to receive a placebo.
If approved, mavacamten could become one of Bristol Myers Squibb's top-selling drugs, which is really saying something. Among the world's 10 best-selling pharmaceutical brands three are marketed by Bristol Myers Squibb.
Vertex Pharmaceuticals
Over the past three months, shares of Vertex Pharmaceuticals stock have soared around 26% to a new all-time high. Investors have plenty of reasons to buy and hold shares of this innovative drugmaker. In addition to blockbuster cystic fibrosis treatments already on the market, there are some compelling new drug candidates in the company's development pipeline.
Vertex recently delighted the medical community with clinical trial results involving an experimental pain reliever called VX-548. Pain intensity reported by patients who received VX-548 after surgery fell significantly compared to a placebo.
Pain is so difficult to measure that clear signs of success like the ones VX-548 produced are rare. The company will begin pivotal studies with VX-548 in the second half of the year and an application for approval could be in front of the FDA by the end of 2023.
Vertex also has an experimental diabetes therapy designed to replace damaged insulin-producing islet cells in the pancreas. The first patient treated with a single administration showed measurable improvements. It's too early to claim victory, but there's a good chance this program could eventually morph into the first effective cure for over 1 million Americans living with type-1 diabetes.
With a potential cure for diabetes and a new pain reliever on deck, this drugmaker could keep hitting home runs.
AbbVie
Shares of this pharma stock reached a new all-time high last fall and it's been climbing ever since. AbbVie shares have climbed 29% this year and could keep climbing higher.
AbbVie's stock price has been on the way up because efforts to diversify away from its top-selling drug, Humira, are working. Humira's an inflammation-preventing drug for rheumatoid arthritis and psoriasis that generated $20.7 billion in sales last year.
A slew of FDA-approved biosimilars will hammer Humira sales next year. Luckily, AbbVie has a pair of relatively new drugs aimed at most of Humira's addressable patient population. Rinvoq is an increasingly popular arthritis treatment and Skyrizi is a popular new psoriasis injection. AbbVie expects combined sales of Rinvoq and Skyrizi to exceed $15 billion in 2025.
A couple of years ago, AbbVie acquired Allergan and its Botox franchise. Fourth-quarter Botox sales rose 22% year over year to an annualized $5.2 billion. With Rinvoq and Skyrizi to offset upcoming Humira losses, AbbVie's Botox franchise could go a long way to lift its stock price over the next several years.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bristol Myers Squibb and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With Rinvoq and Skyrizi to offset upcoming Humira losses, AbbVie's Botox franchise could go a long way to lift its stock price over the next several years. Each for reasons of their own, shares of Bristol Myers Squibb (NYSE: BMY), Vertex Pharmaceuticals (NASDAQ: VRTX), and AbbVie (NYSE: ABBV) keep soaring to new all-time highs. AbbVie Shares of this pharma stock reached a new all-time high last fall and it's been climbing ever since. | Each for reasons of their own, shares of Bristol Myers Squibb (NYSE: BMY), Vertex Pharmaceuticals (NASDAQ: VRTX), and AbbVie (NYSE: ABBV) keep soaring to new all-time highs. AbbVie Shares of this pharma stock reached a new all-time high last fall and it's been climbing ever since. AbbVie shares have climbed 29% this year and could keep climbing higher. | Each for reasons of their own, shares of Bristol Myers Squibb (NYSE: BMY), Vertex Pharmaceuticals (NASDAQ: VRTX), and AbbVie (NYSE: ABBV) keep soaring to new all-time highs. AbbVie Shares of this pharma stock reached a new all-time high last fall and it's been climbing ever since. AbbVie shares have climbed 29% this year and could keep climbing higher. | Each for reasons of their own, shares of Bristol Myers Squibb (NYSE: BMY), Vertex Pharmaceuticals (NASDAQ: VRTX), and AbbVie (NYSE: ABBV) keep soaring to new all-time highs. AbbVie Shares of this pharma stock reached a new all-time high last fall and it's been climbing ever since. AbbVie shares have climbed 29% this year and could keep climbing higher. |
23486.0 | 2022-04-12 00:00:00 UTC | Will AbbVie Stock Continue To Make New Highs? | ABBV | https://www.nasdaq.com/articles/will-abbvie-stock-continue-to-make-new-highs | nan | nan | The price of AbbVie stock (NYSE: ABBV) reached its all-time high of around $174 yesterday. It is up over 12% in a month, while it rose a stellar 63% over the last twelve months. This marks a significant outperformance over the broader markets, with the S&P 500 rising 10%. The recent spike can be attributed to upward revisions to the stock rating by some Wall Street analysts citing solid diversification plans given Humira’s patent expiry. In our previous updates on AbbVie, we maintained that the concerns around Humira patent expiry are overblown. Although Humira’s sales will be impacted by biosimilar competition, we believe that the company will likely be able to offset that decline from growth in its Allergan portfolio (acquired in 2020), as well as growth in some of AbbVie’s in-house drugs, including Venclexta, Skyrizi, Rinvoq, and Orilissa. In fact, Skyrizi and Rinvoq combined are likely to garner annual sales of over $15 billion by 2025.
A couple of days back, AbbVie announced positive data from late-stage clinical trials of Vuity to treat blurry near vision. Vuity’s peak sales are pegged north of $1.5 billion. Venclexta and Orilissa can see combined peak sales of over $4 billion. Overall, AbbVie has a great portfolio of drugs to counter the biosimilar competition for Humira going forward, and this is now being recognized by the markets, evident from the price appreciation. Our dashboard on AbbVie Revenues has more details on the company’s top-line growth. AbbVie’s operating margins have widely fluctuated over recent years. The current 28% figure compares with 39% levels seen in 2019, before the pandemic. Although the company may have to spend more to defend Humira’s sales, with steady revenue growth from new drugs, it should be able to improve its operating margins in the future.
While there are positives to look forward to for AbbVie, now that it has seen a rise of 12% over the last month, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a good chance of a rise in ABBV stock over the next month. Of 148 instances in the last nine years that ABBV stock saw a twenty-one-day increase of 12% or more, 101 resulted in ABBV stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 101 out of 148, or about a 68% chance of a rise in ABBV stock over the coming month. See our analysis on AbbVie Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last nine years’ data
After moving 3.2% or more over five days, the stock rose on 55% of the occasions in the next five days.
After moving 4.4% or more over ten days, the stock rose on 58% of the occasions in the next ten days.
After moving 12.4% or more over a twenty-one-day period, the stock rose on 68% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in ABBV stock over the next five days, next ten days, and next month, likely resulting in new highs for the stock.
AbbVie (ABBV) Stock Return (Recent) Comparison With Peers
Five-Day Return: AMGN highest at 3.7%; BMY lowest at 1.9%
Ten-Day Return: AMGN highest at 5.8%; BMY lowest at 2.8%
Twenty-One Day Return: ABBV highest at 12.4%; GILD lowest at 3.2%
may have moved, 2020 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 Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While ABBV stock may see higher levels, 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 Allscripts Healthcare Solutions vs. NortonLifeLock.
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 Apr 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABBV Return 3% 24% 167%
S&P 500 Return -1% -6% 101%
Trefis Multi-Strategy Portfolio 0% -8% 262%
[1] Month-to-date and year-to-date as of 4/8/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A couple of days back, AbbVie announced positive data from late-stage clinical trials of Vuity to treat blurry near vision. Overall, AbbVie has a great portfolio of drugs to counter the biosimilar competition for Humira going forward, and this is now being recognized by the markets, evident from the price appreciation. The price of AbbVie stock (NYSE: ABBV) reached its all-time high of around $174 yesterday. | AbbVie (ABBV) Stock Return (Recent) Comparison With Peers Five-Day Return: AMGN highest at 3.7%; BMY lowest at 1.9% Ten-Day Return: AMGN highest at 5.8%; BMY lowest at 2.8% Twenty-One Day Return: ABBV highest at 12.4%; GILD lowest at 3.2% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While ABBV stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] ABBV Return 3% 24% 167% S&P 500 Return -1% -6% 101% Trefis Multi-Strategy Portfolio 0% -8% 262% [1] Month-to-date and year-to-date as of 4/8/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of 148 instances in the last nine years that ABBV stock saw a twenty-one-day increase of 12% or more, 101 resulted in ABBV stock rising over the subsequent one-month period (twenty-one trading days). This pattern suggests a higher chance of a rise in ABBV stock over the next five days, next ten days, and next month, likely resulting in new highs for the stock. AbbVie (ABBV) Stock Return (Recent) Comparison With Peers Five-Day Return: AMGN highest at 3.7%; BMY lowest at 1.9% Ten-Day Return: AMGN highest at 5.8%; BMY lowest at 2.8% Twenty-One Day Return: ABBV highest at 12.4%; GILD lowest at 3.2% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | This pattern suggests a higher chance of a rise in ABBV stock over the next five days, next ten days, and next month, likely resulting in new highs for the stock. AbbVie (ABBV) Stock Return (Recent) Comparison With Peers Five-Day Return: AMGN highest at 3.7%; BMY lowest at 1.9% Ten-Day Return: AMGN highest at 5.8%; BMY lowest at 2.8% Twenty-One Day Return: ABBV highest at 12.4%; GILD lowest at 3.2% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. The price of AbbVie stock (NYSE: ABBV) reached its all-time high of around $174 yesterday. |
23487.0 | 2022-04-11 00:00:00 UTC | Can AbbVie (ABBV) Keep the Earnings Surprise Streak Alive? | ABBV | https://www.nasdaq.com/articles/can-abbvie-abbv-keep-the-earnings-surprise-streak-alive | nan | nan | Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering AbbVie (ABBV), which belongs to the Zacks Large Cap Pharmaceuticals industry.
When looking at the last two reports, this drugmaker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 1.85%, on average, in the last two quarters.
For the most recent quarter, AbbVie was expected to post earnings of $3.29 per share, but it reported $3.31 per share instead, representing a surprise of 0.61%. For the previous quarter, the consensus estimate was $3.23 per share, while it actually produced $3.33 per share, a surprise of 3.10%.
Price and EPS Surprise
For AbbVie, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
AbbVie has an Earnings ESP of +0.48% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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. | It is worth considering AbbVie (ABBV), which belongs to the Zacks Large Cap Pharmaceuticals industry. For the most recent quarter, AbbVie was expected to post earnings of $3.29 per share, but it reported $3.31 per share instead, representing a surprise of 0.61%. Price and EPS Surprise For AbbVie, estimates have been trending higher, thanks in part to this earnings surprise history. | It is worth considering AbbVie (ABBV), which belongs to the Zacks Large Cap Pharmaceuticals industry. For the most recent quarter, AbbVie was expected to post earnings of $3.29 per share, but it reported $3.31 per share instead, representing a surprise of 0.61%. Price and EPS Surprise For AbbVie, estimates have been trending higher, thanks in part to this earnings surprise history. | It is worth considering AbbVie (ABBV), which belongs to the Zacks Large Cap Pharmaceuticals industry. For the most recent quarter, AbbVie was expected to post earnings of $3.29 per share, but it reported $3.31 per share instead, representing a surprise of 0.61%. Price and EPS Surprise For AbbVie, estimates have been trending higher, thanks in part to this earnings surprise history. | It is worth considering AbbVie (ABBV), which belongs to the Zacks Large Cap Pharmaceuticals industry. For the most recent quarter, AbbVie was expected to post earnings of $3.29 per share, but it reported $3.31 per share instead, representing a surprise of 0.61%. Price and EPS Surprise For AbbVie, estimates have been trending higher, thanks in part to this earnings surprise history. |
23488.0 | 2022-04-11 00:00:00 UTC | Top Analyst Reports for Alphabet, Amazon & AbbVie | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-alphabet-amazon-abbvie | nan | nan | Monday, April 11, 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 Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and AbbVie Inc. (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Alphabet have outperformed the Zacks Internet - Services industry over the past year (+18.8% vs. +2.8%) on the back of the search giant's leverage to ad spending and strong cloud division. Alphabet's expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.
The Zacks analyst believes that Google’s mobile search is gaining solid momentum. Also, a strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on the wearables category remains a tailwind.
The company’s growing efforts to gain a foothold in the healthcare industry are other positives. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well. However, its growing litigation issues and increasing expenses are concerns.
(You can read the full research report on Alphabet here >>>)
Amazon shares have gained lagged the broader market over the past year (-10.4% vs +9%) on persistent worries that the company's Covid outperformance was at the expense of future results. There is also the issue of growth stocks in the Fed tightening cycle. These are reasonable issues, but the Zacks analyst sees the company well positioned for the long run given solid Prime momentum and solid positioning the cloud space (Amazon Web Services or AWS). Further, robust Alexa skills and expanding smart home products portfolio are positives.
The Zacks analyst believes that a strong global presence and solid momentum among the small and medium businesses remain tailwinds. However, growing expenses associated with supply-chain constraints and labor supply shortages remain concerns.
(You can read the full research report on Amazon here >>>)
Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+69.1% vs. +38.7%). The Zacks analyst believes that Humira has been performing well in the United States based on strong demand trends. AbbVie has several new drugs in its portfolio, which can drive revenues once Humira loses U.S. exclusivity in 2023. Skyrizi and Rinvoq are going strong. It has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential.
Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic area. However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
(You can read the full research report on Abbvie here >>>)
Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Eli Lilly and Company (LLY), and Toyota Motor Corporation (TM).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
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New Upgrades
Hess (HES) to Gain From Liza Phase 2 Development in Guyana
The Zacks analyst is impressed with Hess (HES) commencing production from the second phase of the Liza development, which will improve its cash flow and boost shareholders' returns.
Focus on Permian Basin, Cost Management Aid Occidental (OXY)
Per the Zacks analyst Occidental's efficient cost management and expansion of its operation Permian Basin through acquisition of Anadarko will drive its performance over the long run.
Multi-basin Portfolio, Low Cost Asset Aid Murphy Oil (MUR)
Per the Zacks analyst Murphy Oil's maintenance of a multi-basin portfolio boosts production and low cost operating assets in North America will drive operation.
New Downgrades
Pricing Pressure & Stiff Competition Hurt Perrigo (PRGO) Sales
The Zacks Analyst is concerned about the stiff competition faced by Perrigo in the OTC market. The pricing pressure and changing dynamics in the U.S. market are also hurting the company's sales.
Higher Input Costs, Chip Shortage Hurt DuPont (DD)
Per the Zacks analyst, higher raw material costs due to supply-chain disruptions will weigh on DuPont's margins. The semiconductor shortage is also affecting volumes in its Mobility & Materials unit.
Envestnet (ENV) Grapples With Expenses and High Debt
The Zacks Analyst believes that rising expenses resulting from increases in website and systems development costs are likely to weigh on Envestnet's bottom line.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Featured Reports Walmart (WMT) Gains on E-Commerce Efforts, Hurt by Cost Woes Per the Zacks analyst, Walmart's top line has been gaining on its robust e-commerce initiatives, especially grocery delivery. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and AbbVie Inc. (ABBV). (You can read the full research report on Amazon here >>>) Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+69.1% vs. +38.7%). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Featured Reports Walmart (WMT) Gains on E-Commerce Efforts, Hurt by Cost Woes Per the Zacks analyst, Walmart's top line has been gaining on its robust e-commerce initiatives, especially grocery delivery. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and AbbVie Inc. (ABBV). (You can read the full research report on Amazon here >>>) Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+69.1% vs. +38.7%). | (You can read the full research report on Abbvie here >>>) Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Eli Lilly and Company (LLY), and Toyota Motor Corporation (TM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth Featured Reports Walmart (WMT) Gains on E-Commerce Efforts, Hurt by Cost Woes Per the Zacks analyst, Walmart's top line has been gaining on its robust e-commerce initiatives, especially grocery delivery. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and AbbVie Inc. (ABBV). | Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and AbbVie Inc. (ABBV). (You can read the full research report on Amazon here >>>) Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+69.1% vs. +38.7%). AbbVie has several new drugs in its portfolio, which can drive revenues once Humira loses U.S. exclusivity in 2023. |
23489.0 | 2022-04-11 00:00:00 UTC | Walgreens trial over its part in Florida opioid crisis set to begin | ABBV | https://www.nasdaq.com/articles/walgreens-trial-over-its-part-in-florida-opioid-crisis-set-to-begin | nan | nan | By Dietrich Knauth
April 11 (Reuters) - A jury trial accusing Walgreens Boots Alliance WBA.O of contributing to Florida's opioid addiction epidemic was set to begin on Monday after the pharmacy chain opted not to join a multimillion-dollar settlement by other defendants.
The state accuses Walgreens of poor oversight in its dispensing and distributing opioids in Florida, allowing the drugs to be diverted to illegal use and causing an increase in addiction. Walgreens has denied the allegations.
Jury selection began on April 5, with opening statements by attorneys set for Monday before Judge Kimberly Sharpe Byrd in Pasco County Circuit Court.
The pharmacy chain has argued it should be immune from the current litigation based on a mere $3,000 settlement reached with Florida in 2012 following an investigation into its record-keeping policies and efforts to prevent the diversion of opioid drugs.
Under the previously-announced settlements by Walgreens' prior co-defenants in the Florida trial, pharmacy chain rival CVS Health Corp CVS.N will pay $484 million. In addition, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA agreed to will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O $65 million. L2N2VX2DY
Walgreens argued that the 2012 deal released it from future opioid claims in the state, even if Florida regretted those terms as a "bad bargain," according to court transcripts.
Florida in the same court transcript called the Walgreens' position "absurd," saying the earlier deal addressed only a single record-keeping violation. The settlements from the other previous defendants in the litigation totaled $878 million.
Florida has collected more than $3 billion in opioid litigation against drugmakers, distributors and pharmacies, according to attorney general Ashley Moody. Most of the money will be spent on efforts to mitigate the opioid crisis in the state.
There has been a wave of recent settlements by companies facing allegations over their part in the opioid crisis, which has led to more than 500,000 U.S. deaths from overdoses in the past two decades, according to the Centers for Disease Control and Prevention. More than 3,300 lawsuits have been filed against drugmakers, distributors and pharmacies over the crisis.
(Reporting by Dietrich Knauth; Editing by Bill Berkrot)
((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. | In addition, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA agreed to will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O $65 million. By Dietrich Knauth April 11 (Reuters) - A jury trial accusing Walgreens Boots Alliance WBA.O of contributing to Florida's opioid addiction epidemic was set to begin on Monday after the pharmacy chain opted not to join a multimillion-dollar settlement by other defendants. The pharmacy chain has argued it should be immune from the current litigation based on a mere $3,000 settlement reached with Florida in 2012 following an investigation into its record-keeping policies and efforts to prevent the diversion of opioid drugs. | In addition, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA agreed to will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O $65 million. By Dietrich Knauth April 11 (Reuters) - A jury trial accusing Walgreens Boots Alliance WBA.O of contributing to Florida's opioid addiction epidemic was set to begin on Monday after the pharmacy chain opted not to join a multimillion-dollar settlement by other defendants. Under the previously-announced settlements by Walgreens' prior co-defenants in the Florida trial, pharmacy chain rival CVS Health Corp CVS.N will pay $484 million. | In addition, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA agreed to will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O $65 million. By Dietrich Knauth April 11 (Reuters) - A jury trial accusing Walgreens Boots Alliance WBA.O of contributing to Florida's opioid addiction epidemic was set to begin on Monday after the pharmacy chain opted not to join a multimillion-dollar settlement by other defendants. The pharmacy chain has argued it should be immune from the current litigation based on a mere $3,000 settlement reached with Florida in 2012 following an investigation into its record-keeping policies and efforts to prevent the diversion of opioid drugs. | In addition, drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA agreed to will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O $65 million. By Dietrich Knauth April 11 (Reuters) - A jury trial accusing Walgreens Boots Alliance WBA.O of contributing to Florida's opioid addiction epidemic was set to begin on Monday after the pharmacy chain opted not to join a multimillion-dollar settlement by other defendants. Under the previously-announced settlements by Walgreens' prior co-defenants in the Florida trial, pharmacy chain rival CVS Health Corp CVS.N will pay $484 million. |
23490.0 | 2022-04-11 00:00:00 UTC | Walgreens fed opioid addiction, Florida says as trial starts | ABBV | https://www.nasdaq.com/articles/walgreens-fed-opioid-addiction-florida-says-as-trial-starts | nan | nan | By Dietrich Knauth
April 11 (Reuters) - Walgreens Boots Alliance Inc WBA.O supplied billions of opioid pills to drug addicts and criminals, contributing to an addiction epidemic in Florida, a lawyer for the state said on Monday as a civil trial against the pharmacy chain got underway.
Walgreens filled one in four opioid prescriptions in Florida between 1999 and 2020, and failed to investigate red flags that could have prevented drugs from being diverted for illegal use, the state's lawyer Jim Webster told jurors.
"Walgreens was the last line of defense in preventing improper distribution of opioids," Webster said. "It was the entity that actually put the opioids in the hands of people addicted to opioids and the hands of criminals."
The company has denied the allegations, saying it filled prescriptions written by doctors.
Walgreens is the final remaining defendant in the trial taking place before Judge Kimberly Sharpe Byrd in Pasco County Circuit Court, after the state reached $878 million in settlements with four others.
Pharmacy chain rival CVS Health Corp CVS.N agreed to pay $484 million, while drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million. L2N2VX2DY
Walgreens has argued it was immune from being sued based on a mere $3,000 settlement it reached with Florida in 2012, following an investigation into its record-keeping policies and efforts to prevent the diversion of opioid drugs.
The company has said Florida was bound by that accord even if it now regretted the terms as a "bad bargain."
Florida has called Walgreens' position "absurd," saying the settlement addressed only a single record-keeping violation.
Florida has collected more than $3 billion in opioid litigation against drugmakers, distributors and pharmacies, according to Attorney General Ashley Moody. Most will be spent on efforts to mitigate the opioid crisis in the state.
The nationwide opioid crisis has included more than 500,000 U.S. deaths from overdoses in the past two decades, according to the U.S. Centers for Disease Control and Prevention.
(Reporting by Dietrich Knauth; Editing by Bill Berkrot)
((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. | Pharmacy chain rival CVS Health Corp CVS.N agreed to pay $484 million, while drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million. Walgreens filled one in four opioid prescriptions in Florida between 1999 and 2020, and failed to investigate red flags that could have prevented drugs from being diverted for illegal use, the state's lawyer Jim Webster told jurors. Walgreens is the final remaining defendant in the trial taking place before Judge Kimberly Sharpe Byrd in Pasco County Circuit Court, after the state reached $878 million in settlements with four others. | Pharmacy chain rival CVS Health Corp CVS.N agreed to pay $484 million, while drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million. By Dietrich Knauth April 11 (Reuters) - Walgreens Boots Alliance Inc WBA.O supplied billions of opioid pills to drug addicts and criminals, contributing to an addiction epidemic in Florida, a lawyer for the state said on Monday as a civil trial against the pharmacy chain got underway. Walgreens is the final remaining defendant in the trial taking place before Judge Kimberly Sharpe Byrd in Pasco County Circuit Court, after the state reached $878 million in settlements with four others. | Pharmacy chain rival CVS Health Corp CVS.N agreed to pay $484 million, while drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million. By Dietrich Knauth April 11 (Reuters) - Walgreens Boots Alliance Inc WBA.O supplied billions of opioid pills to drug addicts and criminals, contributing to an addiction epidemic in Florida, a lawyer for the state said on Monday as a civil trial against the pharmacy chain got underway. Walgreens filled one in four opioid prescriptions in Florida between 1999 and 2020, and failed to investigate red flags that could have prevented drugs from being diverted for illegal use, the state's lawyer Jim Webster told jurors. | Pharmacy chain rival CVS Health Corp CVS.N agreed to pay $484 million, while drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million. Walgreens filled one in four opioid prescriptions in Florida between 1999 and 2020, and failed to investigate red flags that could have prevented drugs from being diverted for illegal use, the state's lawyer Jim Webster told jurors. L2N2VX2DY Walgreens has argued it was immune from being sued based on a mere $3,000 settlement it reached with Florida in 2012, following an investigation into its record-keeping policies and efforts to prevent the diversion of opioid drugs. |
23491.0 | 2022-04-10 00:00:00 UTC | 3 No-Brainer Warren Buffett Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now | nan | nan | You don't earn the nickname "Oracle of Omaha" without doing some serious thinking along the way. Warren Buffett has studied businesses for decades. He's been highly successful doing so, amassing a multibillion-dollar fortune along the way.
With that kind of track record, it seems reasonable to expect that Buffett's portfolio includes some great ideas for investors who aren't billionaires. And it does. Here are three no-brainer Buffett stocks to buy right now.
Image source: Getty Images.
1. Berkshire Hathaway
I'd put Buffett's own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) at the top of the list. After all, most of the legendary investor's personal fortune is in Berkshire stock. There's also the tiny detail that Berkshire has trounced the overall stock market over the years. The stock even recently hit its all-time high while the S&P 500 was floundering.
Perhaps the best reason to buy Berkshire Hathaway shares, though, is the tremendous diversification that it provides. Berkshire is really a company of companies. Its list of subsidiaries includes more than 60 different businesses spanning multiple industries.
Berkshire also owns equity positions in around 40 publicly traded companies. In some cases, it's the largest shareholder in those businesses.
Could Berkshire's share price sink if Buffett was no longer able to remain at the helm? Maybe. However, Buffett has built an incredibly strong management team, both on the operational side and in managing the conglomerate's investments. Berkshire seems likely to remain a winner over the long term.
2. Bank of America
Buffett has historically loved bank stocks. His favorite in the group, though, is without question Bank of America (NYSE: BAC). The big bank ranks as Berkshire's second-largest holding.
But you don't need to buy Bank of America shares just because Buffett likes it. There's a clear and compelling reason why investing in this stock makes sense right now -- rising interest rates.
Bank of America is well-positioned to benefit from rising interest rates. The company's profitability should increase as the spread between the interest it charges on loans grows faster than the interest it pays on deposits. BofA's return on equity also correlates with the federal funds rate.
Even if interest rates weren't going up, though, I think Bank of America would be a solid Buffett stock to buy. The company's investments in technology continue to pay off. Some banks might find their businesses disrupted by fintech innovations, but Bank of America is likely to survive and thrive.
3. AbbVie
Admittedly, Buffett isn't as big a fan of pharmaceutical stocks as he once was. However, Berkshire still owns positions in several drugmakers. AbbVie (NYSE: ABBV) looks like the best of the bunch.
My view is that the main reason to buy AbbVie right now is its valuation. The stock trades at less than 11.5 times expected earnings. That's much cheaper than the S&P 500's forward earnings multiple and below the pharmaceutical industry average as well.
AbbVie sports this attractive valuation even though its share price has soared nearly 30% year to date. Investors seem to like the stability that the company offers. And they almost certainly love its dividend, which currently yields close to 3.5%. This dividend is about as dependable as they come: AbbVie is a Dividend King with 50 consecutive years of dividend increases.
You should be aware that AbbVie's top-selling drug, Humira, will face biosimilar competition in the U.S. beginning next year. However, the company still expects to deliver solid growth throughout this decade thanks to its strong product lineup and pipeline.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights owns AbbVie, Bank of America, and Berkshire Hathaway (B shares). The Motley Fool owns and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Admittedly, Buffett isn't as big a fan of pharmaceutical stocks as he once was. AbbVie (NYSE: ABBV) looks like the best of the bunch. My view is that the main reason to buy AbbVie right now is its valuation. | AbbVie Admittedly, Buffett isn't as big a fan of pharmaceutical stocks as he once was. AbbVie (NYSE: ABBV) looks like the best of the bunch. My view is that the main reason to buy AbbVie right now is its valuation. | AbbVie Admittedly, Buffett isn't as big a fan of pharmaceutical stocks as he once was. AbbVie (NYSE: ABBV) looks like the best of the bunch. My view is that the main reason to buy AbbVie right now is its valuation. | Keith Speights owns AbbVie, Bank of America, and Berkshire Hathaway (B shares). AbbVie Admittedly, Buffett isn't as big a fan of pharmaceutical stocks as he once was. AbbVie (NYSE: ABBV) looks like the best of the bunch. |
23492.0 | 2022-04-08 00:00:00 UTC | Best Stocks To Buy Now? 3 Health Care Stocks For Your List | ABBV | https://www.nasdaq.com/articles/best-stocks-to-buy-now-3-health-care-stocks-for-your-list | nan | nan | Are These The Best Health Care Stocks To Invest In This Month?
With growing geopolitical unrest, a hawkish Federal Reserve, and a shaky global economy, stocks seem to be under pressure. In theory, this would see health care stocks among other defensive stock market areas come into focus now. By and large, the current movement in stocks is not all that surprising. As the Fed looks to address rapidly rising inflation by raising interest rates accordingly, investors could be reconsidering their strategies. This would be where more essential industries like health care come into play.
For one thing, it is also important to remember that the coronavirus pandemic is still impacting the globe. Along with this comes the additional reliance on global health care systems. Because of this, governments across the world continue to pour resources into the industry. Just this week, Senate Republicans and Democrats reached a deal on additional pandemic funding. This round of funding consists of a whopping $10 billion. It will be going towards buying therapeutics and vaccines while maintaining testing capacities. This could see more support go towards biotech stocks that are linked to the fight against coronavirus.
At the same time, there remains plenty of activity among alternative health care players as well. On one hand, biotech giants like AbbVie (NYSE: ABBV) remain hard at work expanding their portfolios. This week, the company revealed positive top-line results from its presbyopia treatment pilocarpine in adults. On the other hand, UnitedHealth (NYSE: UNH) is extending its $8 billion acquisition of Change Healthcare as it irons out regulatory hurdles. Not to mention, cannabis stocks are also gaining traction as a federal legalization bill makes its way to the Senate floor. With all this in mind, here are three top health care stocks to note in the stock market today.
Health Care Stocks To Buy [Or Sell] Today
Tilray Inc. (NASDAQ: TLRY)
Merck & Company Inc. (NYSE: MRK)
BioXcel Therapeutics Inc. (NASDAQ: BTAI)
Tilray
Tilray is a medical cannabis company that is a leader in the cannabis lifestyle and consumer packaged goods. It has operations around the globe and continues to empower worldwide communities. It is a pioneer in cannabis research, cultivation, and distribution. In fact, Tilray’s unprecedented production platform supports over 20 brands that include comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages. This week, TLRY reported its third-quarter earnings.
Diving in, the company posted a profitable quarter with a net income of $52.5 million. Net revenue also increased by 23% year-over-year to $152 million. Gross profit, on the other hand, rose by 31% compared to a year earlier to $39.8 million. The company continues to maintain its medical market share leader position in Europe and is also leading in Germany with a revenue growth of over 4,000%. Besides, it has maintained its No. 1 leading marketing share in Canada.
Irwin D. Simon, Tilray’s Chairman, and Chief Executive Officer stated, “Our third-quarter results reflect progress and momentum across all of our key business segments and geographies, setting the stage to achieve our target for $4B in revenue by the end of fiscal 2024. Tilray Medical – which now operates under a cohesive strategy and mission – has a near 20% share in Germany, providing clear benefits in its own right as well as a first-mover advantage that we will leverage as Germany and the EU move towards broader adult-use and medical use legalization.” Throughout the quarter, the company has also announced a slew of partnerships and acquisitions. All things considered, is TLRY stock worth investing in today?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Open Mixed; WD-40 Up On Strong Earnings
Merck & Co.
Another health care firm to consider now would be Merck, a multinational pharmaceutical company. With over 130 years of experience, the company has been bringing life-saving medicines and vaccines for many of the world’s most challenging diseases. Today, it continues to be at the forefront of research to treat and prevent diseases that threaten people and animals. This includes cancer, infectious diseases, and also emerging animal diseases.
On Monday, the company reaffirmed its commitment to enable broad equitable access to the company’s HPV vaccines. To further support this, the company has invested significantly in manufacturing, and recently expanded its vaccines manufacturing facility located in Elkton, VA, completing the construction of a 120,000 square feet facility and adding 150 new jobs at the site. This will help further increase the capacity and supply of the company’s HPV vaccines, following regulatory reviews and approvals.
On April 1, 2022, the company announced that the U.S. Food and Drug Administration (FDA) has extended the Prescription Drug User Fee Act (PDUFA) date of the supplemental biologics license application (sBLA) for Vaxneuvance in infants and children to July 1, 2022. Vaxneuvance is a pneumococcal 15-valent conjugate vaccine and will help prevent invasive pneumococcal disease in children 6 weeks through 17 years of age and was granted priority review in December 2021. With that in mind, is MRK stock a buy today?
Source: TD Ameritrade TOS
[Read More] Top Stock Market News For Today April 8, 2022
BioXcel Therapeutics Inc.
Last but not least, we have BioXcel Therapeutics. In essence, it is a biopharmaceutical firm that employs artificial intelligence (AI) to develop transformative medicines in neuroscience and immuno-oncology. According to BioXcel, its drug re-innovation strategy “leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms.” In doing so, the company can identify and study new therapeutic indicators.
Notably, BioXcel provided some massive news on the operational front this week. This would be revolving its flagship drug candidate for the treatment of schizophrenia and bipolar I or II disorder, dexmedetomidine. Namely, the FDA has approved dexmedetomidine for the acute treatment of agitation associated with the aforementioned mental illnesses in adults. To put things into perspective, this would make it the first and only FDA-approved orally administered treatment in this field.
According to BioXcel, clinical trial findings suggest that the drug demonstrates an onset of action as early as 20 minutes. Worth mentioning, U.S. patient populations in these two categories experience up to 25 million agitation episodes annually. With a considerably fast-acting drug and a vast addressable market, BioXcel would have its work cut out for it. The company is currently expecting a U.S. commercial launch in the current quarter. Would all this make BTAI stock a top pick in your books?
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. | On one hand, biotech giants like AbbVie (NYSE: ABBV) remain hard at work expanding their portfolios. In fact, Tilray’s unprecedented production platform supports over 20 brands that include comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages. Irwin D. Simon, Tilray’s Chairman, and Chief Executive Officer stated, “Our third-quarter results reflect progress and momentum across all of our key business segments and geographies, setting the stage to achieve our target for $4B in revenue by the end of fiscal 2024. | On one hand, biotech giants like AbbVie (NYSE: ABBV) remain hard at work expanding their portfolios. Health Care Stocks To Buy [Or Sell] Today Tilray Inc. (NASDAQ: TLRY) Merck & Company Inc. (NYSE: MRK) BioXcel Therapeutics Inc. (NASDAQ: BTAI) Tilray Tilray is a medical cannabis company that is a leader in the cannabis lifestyle and consumer packaged goods. Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Open Mixed; WD-40 Up On Strong Earnings Merck & Co. Another health care firm to consider now would be Merck, a multinational pharmaceutical company. | On one hand, biotech giants like AbbVie (NYSE: ABBV) remain hard at work expanding their portfolios. With all this in mind, here are three top health care stocks to note in the stock market today. Health Care Stocks To Buy [Or Sell] Today Tilray Inc. (NASDAQ: TLRY) Merck & Company Inc. (NYSE: MRK) BioXcel Therapeutics Inc. (NASDAQ: BTAI) Tilray Tilray is a medical cannabis company that is a leader in the cannabis lifestyle and consumer packaged goods. | On one hand, biotech giants like AbbVie (NYSE: ABBV) remain hard at work expanding their portfolios. Health Care Stocks To Buy [Or Sell] Today Tilray Inc. (NASDAQ: TLRY) Merck & Company Inc. (NYSE: MRK) BioXcel Therapeutics Inc. (NASDAQ: BTAI) Tilray Tilray is a medical cannabis company that is a leader in the cannabis lifestyle and consumer packaged goods. The company continues to maintain its medical market share leader position in Europe and is also leading in Germany with a revenue growth of over 4,000%. |
23493.0 | 2022-04-08 00:00:00 UTC | 3 Things About Pfizer That Smart Investors Know | ABBV | https://www.nasdaq.com/articles/3-things-about-pfizer-that-smart-investors-know | nan | nan | As one of the world's most discussed businesses, Pfizer (NYSE: PFE) needs little introduction. Thanks to sales of its coronavirus vaccine, Comirnaty, and its antiviral drug for coronavirus infections, Paxlovid, Pfizer's top line has positively exploded, with its trailing 12-month revenue popping by more than 99% over the last three years, reaching a total of $81.2 billion.
But smart investors probably don't rate the chances of it repeating that performance very highly over the next three years. Still, there is (at least) one factor that might encourage them to hold on to their shares anyway. Let's investigate.
Image source: Getty Images.
1. Revenue is likely to recede in the next few years
As the pandemic (hopefully) resides in the near future, demand for Paxlovid and Comirnaty will start to fall off too.
And that's why smart investors will recognize the importance of this chart, derived from a composite of professional analysts' estimates.
PFE Annual Revenue Estimates data by YCharts
In a nutshell, the company is anticipated to bring in even more revenue next year than it did in 2021 -- and maybe even more than this year's projected sum of up to $102 billion -- but that's expected to be the high-water mark for a while.
This is, of course, unless the ongoing need for its coronavirus medicines ends up being higher or more persistent than expected, which could result in another run of tremendous growth. At this point, however, the best approach is to assume that the heyday of coronavirus product sales will eventually come to an end.
2. Its share of the global prescription drug market may shrink
As a major pharmaceutical business, Pfizer doesn't make medicines in a vacuum. Its competitors often develop products that target the same conditions as Pfizer's drugs, which leads to a fight for market share.
And canny investors understand that its presence in the global drug market is slated to become less powerful over the next few years, as seen in the chart.
The drop in market share might put the company in a slightly weaker position when it comes to attracting talent or financing acquisitions, but it probably isn't an existential threat.
Nonetheless, smart investors also know that it's entirely possible for shareholders to get what they're looking for out of their investment, regardless of this trend. After all, earnings (and share prices) can continue to grow, even if competing companies are expanding their prescription drug revenue faster.
3. The dividend will keep growing
While it isn't exactly the company with the fastest-growing dividend payout, smart investors doubtlessly factor in Pfizer's rising dividend when they're evaluating the stock.
Over the last three years, its payment has risen by 11.1%, reaching $1.56 on an annual basis as of its latest distribution.
And, given that its annual free cash flow (FCF) has risen by 183% since the start of 2020, there's little reason to suspect that management will find cause to stop hiking the dividend anytime soon.
But smart investors also know that the tiny bumps preferred by management aren't going to get them rich anytime soon, so be sure to keep things in perspective. On the other hand, slow and steady wins the race in the sense that Pfizer can likely continue to raise its payment even when facing the other two (largely detrimental) trends discussed here.
So in the long run, investors should continue to get mileage out of their shares in Pfizer.
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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 drop in market share might put the company in a slightly weaker position when it comes to attracting talent or financing acquisitions, but it probably isn't an existential threat. And, given that its annual free cash flow (FCF) has risen by 183% since the start of 2020, there's little reason to suspect that management will find cause to stop hiking the dividend anytime soon. On the other hand, slow and steady wins the race in the sense that Pfizer can likely continue to raise its payment even when facing the other two (largely detrimental) trends discussed here. | PFE Annual Revenue Estimates data by YCharts In a nutshell, the company is anticipated to bring in even more revenue next year than it did in 2021 -- and maybe even more than this year's projected sum of up to $102 billion -- but that's expected to be the high-water mark for a while. Its share of the global prescription drug market may shrink As a major pharmaceutical business, Pfizer doesn't make medicines in a vacuum. The dividend will keep growing While it isn't exactly the company with the fastest-growing dividend payout, smart investors doubtlessly factor in Pfizer's rising dividend when they're evaluating the stock. | Thanks to sales of its coronavirus vaccine, Comirnaty, and its antiviral drug for coronavirus infections, Paxlovid, Pfizer's top line has positively exploded, with its trailing 12-month revenue popping by more than 99% over the last three years, reaching a total of $81.2 billion. The dividend will keep growing While it isn't exactly the company with the fastest-growing dividend payout, smart investors doubtlessly factor in Pfizer's rising dividend when they're evaluating the stock. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! | Its share of the global prescription drug market may shrink As a major pharmaceutical business, Pfizer doesn't make medicines in a vacuum. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! |
23494.0 | 2022-04-08 00:00:00 UTC | Here's Why a Drop in Moderna's Revenue Wouldn't Be Catastrophic | ABBV | https://www.nasdaq.com/articles/heres-why-a-drop-in-modernas-revenue-wouldnt-be-catastrophic | nan | nan | The one big concern investors have about coronavirus-vaccine giant Moderna (NASDAQ: MRNA) is this: a potential drop in revenue. Moderna's only commercialized product right now is its coronavirus vaccine. The worry is that, eventually, when the pandemic shifts to endemic, people won't rush to be vaccinated. And as a result, the company's sales will decline.
But before you rush to sell your Moderna shares or vow to never buy shares of the company, hold on. First, let's take a look at the following two charts. They can help to understand why even a drop in Moderna's vaccine revenue wouldn't be catastrophic.
Image source: Getty Images.
Generating $10 billion or more
First, let's have a look at a chart showing drugs that have generated $10 billion or more in worldwide annual sales, as of last year. This chart below shows Moderna's coronavirus vaccine makes the list in the fourth spot.
The vaccine has brought in a total of $18.4 billion, according to the data. Moderna recently said it expects this-year's vaccine revenue to total at least $21 billion.
Image source: Statista.
Why is this important? This level of revenue gives Moderna the funds it needs to advance its pipeline.
Moderna reported net income on a GAAP basis of $12.2 billion last year and a cash position of $17.6 billion. All of that is thanks to the coronavirus vaccine. By advancing its pipeline, Moderna is likely to bring more products to market down the road. So even if Moderna only has a couple of years of revenue around the 2021 level, it may be enough to ensure a bright future for the biotech company.
Moderna's future
The second chart gives us a look at what the future might bring for Moderna. It shows forecasted mRNA product revenue from today through 2035. This includes all companies working on mRNA products.
But considering the depth of Moderna's mRNA pipeline, the company could carve out a big share of the market. This chart shows mRNA product revenue rising from 2029 through the mid-2030s.
Image source: Statista.
This indicates that Moderna -- and others in the mRNA space -- could see a wave of revenue gains as products make it to market.
It's still not clear exactly how much Moderna's coronavirus vaccine sales may decline in the next few years. The chart above indicates that all mRNA products may represent $21 billion in sales by 2024.
In any case, it's very possible Moderna's coronavirus-vaccine revenue may remain at blockbuster levels. And these couple of years at sky-high levels may be enough to satisfy investors today -- and prepare the terrain for more product revenue in the future.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bristol Myers Squibb. The Motley Fool recommends Gilead Sciences and Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The one big concern investors have about coronavirus-vaccine giant Moderna (NASDAQ: MRNA) is this: a potential drop in revenue. So even if Moderna only has a couple of years of revenue around the 2021 level, it may be enough to ensure a bright future for the biotech company. And these couple of years at sky-high levels may be enough to satisfy investors today -- and prepare the terrain for more product revenue in the future. | This chart below shows Moderna's coronavirus vaccine makes the list in the fourth spot. This chart shows mRNA product revenue rising from 2029 through the mid-2030s. It's still not clear exactly how much Moderna's coronavirus vaccine sales may decline in the next few years. | Moderna recently said it expects this-year's vaccine revenue to total at least $21 billion. Moderna's future The second chart gives us a look at what the future might bring for Moderna. This indicates that Moderna -- and others in the mRNA space -- could see a wave of revenue gains as products make it to market. | Moderna's only commercialized product right now is its coronavirus vaccine. The chart above indicates that all mRNA products may represent $21 billion in sales by 2024. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
23495.0 | 2022-04-08 00:00:00 UTC | These 3 Dividend ETFs Are a Retiree's Best Friend | ABBV | https://www.nasdaq.com/articles/these-3-dividend-etfs-are-a-retirees-best-friend-2 | nan | nan | Investing in exchange-traded funds can help retirees solve two challenges they might face in the golden years. Markets change, innovations bring new companies to the forefront, and the profitable companies of today may not be the profitable companies of tomorrow. First, it can ease the pain that comes from researching individual stocks and stressing over which choices to make.
The second challenge to solve is how to generate consistent income in order to replace the once-timely paychecks. Dividend ETFs that pay a monthly dividend, such as the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD), can help retirees enjoy a well-managed budget. Let's take a look at that one, plus two others, each with something different to offer retirees looking for a best friend in their investment portfolio.
Image source: Getty Images.
1. Invesco S&P 500 High Dividend Low Volatility ETF
As its name implies, this ETF aims to track an index that focuses on the S&P 500 stocks that deliver the highest dividends with the lowest volatility. It limits the reliance on specific sectors, spreading out the balance. A higher asset weight targeting utilities and consumer non-durables, combined with a broader spectrum of stock holdings, provides for more consistency and lower volatility. Rebalancing by the fund's management team twice a year helps adjust for changing market conditions.
The expense ratio is on the higher side at 0.30%, and a somewhat low 45% total annual return -- compared to the S&P 500's 80% -- total annual return over the past five years could be a turnoff, but the trade-off is that the low volatility aspect can help during a challenging market, as noted by the 5.3% gain year to date, compared to the 4% loss experienced by the S&P 500 index. It also offers the primary benefit of timely and more abundant income from monthly dividend payouts -- as opposed to the more common quarterly schedule -- making it easier to manage a budget when the years of timely paychecks are a thing of the past.
Among the top holdings in the ETF's bucket of 51 stocks are a few Dividend Aristocrats -- including Warren Buffett favorites AbbVie, Chevron, and Kraft Heinz -- helping the fund deliver an annual dividend of $1.60 per share at a dividend yield of 3.65%, which is three times that of the S&P 500's 1.3% yield. That $1.60 equates to an extra $13 per month if you own 100 shares; this may not seem like much but can sure help during times of inflation, like right now.
2. Vanguard High Dividend Yield ETF
There certainly seems to be no secrecy when it comes to the naming convention for dividend ETFs. The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is a good fit for retirees wanting to get the most out of their dividend while benefiting from a low cost to do so -- at a ground-level 0.06% expense rate. The primary goal of this fund is to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of stocks delivering high dividend yields.
There is a heavy focus on large-cap value companies in stable industries such as healthcare, financials, consumer, energy, and industrials. Companies within those segments provide consistency due to the essential nature of the products being sold, leading to recurring purchases regardless of market conditions. The ETF casts a wide net capturing over 400 stocks that it tracks, while providing some risk management by only having an asset weight of 23.4% in its top 10 holdings.
Among the top 10 holdings are multiple Dividend Kings, including Johnson & Johnson, Procter & Gamble, and Coca-Cola. These companies have been increasing dividends for over 50 consecutive years, helping lead to continued dividend growth for the ETF, which now stands at an annual dividend of $3.10 per share -- an average quarterly payout of $0.78 per share, to go along with a 2.79% dividend yield which doubles the S&P 500's 1.3%, and tops the long-term average of the S&P 500 dividend of 1.86%.
What makes that dividend even better is the low expense ratio of 0.06% -- just a fraction of the ratios for the other two ETFs discussed. And at a total return of 70% over the past five years, the growth of the ETF share price falls in the middle of the three ETFs and tops the Factset segment average of 42%.
3. Wisdom Tree U.S. LargeCap Dividend Fund
Last but certainly not least is the WisdomTree LargeCap Dividend Fund (NYSEMKT: DLN), providing exposure to large-cap equities, based on a benchmark that uses dividends to determine asset weighting. Its total of 300 holdings is more than double the average number of stocks ETFs in this segment have, and a 37% weighting toward the top 15 holdings falls below the Factset segment average of 58%. So although more than a third of its asset weight is allocated toward the top, it does provide more diversification and a safety net against risk for retirees who might have more reliance on consistency.
Where this ETF sets itself apart from the other two is that it has 50% of its top holdings in stocks belonging to the elite group of dividend aristocrats or kings. Not only does it generate dividends, but its top holdings focus on established companies paying the strongest and most consistent dividends. This has helped the ETF deliver the highest five-year total returns of the ETFs discussed -- at 81% -- which crushes the segment average of 22% and is in line with the S&P 500.
Those higher total returns do come at a price though, in the way of a 0.28% expense ratio compared to the 0.06% ratio of Vanguard's ETF. But for investors who are willing to pay a little extra in expenses to have a fund that focuses on dividend weighting more so than market-cap weighting, the total return potential, depending on the size of your investment, can make up for a smaller dividend and a higher expense.
If you're a retiree, or knocking on the door of retirement, one of these three ETFs could answer and end up being one of your best friends throughout your golden years.
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Jeff Little owns Chevron. The Motley Fool owns and recommends Vanguard High Dividend Yield ETF. The Motley Fool recommends Johnson & Johnson and Kraft Heinz. 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. | Among the top holdings in the ETF's bucket of 51 stocks are a few Dividend Aristocrats -- including Warren Buffett favorites AbbVie, Chevron, and Kraft Heinz -- helping the fund deliver an annual dividend of $1.60 per share at a dividend yield of 3.65%, which is three times that of the S&P 500's 1.3% yield. A higher asset weight targeting utilities and consumer non-durables, combined with a broader spectrum of stock holdings, provides for more consistency and lower volatility. Companies within those segments provide consistency due to the essential nature of the products being sold, leading to recurring purchases regardless of market conditions. | Among the top holdings in the ETF's bucket of 51 stocks are a few Dividend Aristocrats -- including Warren Buffett favorites AbbVie, Chevron, and Kraft Heinz -- helping the fund deliver an annual dividend of $1.60 per share at a dividend yield of 3.65%, which is three times that of the S&P 500's 1.3% yield. Dividend ETFs that pay a monthly dividend, such as the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD), can help retirees enjoy a well-managed budget. The primary goal of this fund is to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of stocks delivering high dividend yields. | Among the top holdings in the ETF's bucket of 51 stocks are a few Dividend Aristocrats -- including Warren Buffett favorites AbbVie, Chevron, and Kraft Heinz -- helping the fund deliver an annual dividend of $1.60 per share at a dividend yield of 3.65%, which is three times that of the S&P 500's 1.3% yield. Dividend ETFs that pay a monthly dividend, such as the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD), can help retirees enjoy a well-managed budget. These companies have been increasing dividends for over 50 consecutive years, helping lead to continued dividend growth for the ETF, which now stands at an annual dividend of $3.10 per share -- an average quarterly payout of $0.78 per share, to go along with a 2.79% dividend yield which doubles the S&P 500's 1.3%, and tops the long-term average of the S&P 500 dividend of 1.86%. | Among the top holdings in the ETF's bucket of 51 stocks are a few Dividend Aristocrats -- including Warren Buffett favorites AbbVie, Chevron, and Kraft Heinz -- helping the fund deliver an annual dividend of $1.60 per share at a dividend yield of 3.65%, which is three times that of the S&P 500's 1.3% yield. Not only does it generate dividends, but its top holdings focus on established companies paying the strongest and most consistent dividends. The Motley Fool owns and recommends Vanguard High Dividend Yield ETF. |
23496.0 | 2022-04-08 00:00:00 UTC | Best Stocks for 2022: Up 20% This Year, AbbVie Is Doing Great | ABBV | https://www.nasdaq.com/articles/best-stocks-for-2022%3A-up-20-this-year-abbvie-is-doing-great | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: This column is part of InvestorPlace.com’s Best Stocks for 2021 contest. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock.
Heading into 2022, I recommended investors take a closer look at pharmaceutical giant AbbVie (NYSE:ABBV) because the stock possessed several key factors that could make for a good investment. First, AbbVie’s earnings growth was strong and poised to continue due to its high-quality product portfolio.
Source: InvestorPlace
Next, AbbVie stock was notably undervalued. Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings.
Fast forward to today, and AbbVie shareholders are sitting on a year-to-date total return of 20% as of the end of the quarter (March 31), compared with a 4.9% total loss for the broader S&P 500 index over the same period. AbbVie has trounced the market so far this year. And while AbbVie stock is not as cheap as it was entering the year, it can still offer satisfactory returns to investors.
ABBV Stock Quarterly Earnings
The company has continued to execute on its strategic priorities. To that end, AbbVie released another strong quarterly report on Feb. 2. The company reported quarterly revenue of $14.9 billion, up 7% year-over-year. Revenue growth was positively impacted by increases from Skyrizi and Rinvoq, two of its top growth products. Earnings per share came to $3.31 for the quarter, a 13% year-over-year increase.
7 Safe Stocks to Buy to Guard Against a Recession
AbbVie saw broad-based growth across its portfolio. Fourth-quarter global net revenues from the immunology portfolio rose 13% from the same quarter last year as global Humira sales increased 3.5%.
Meanwhile, global net revenues from the hematologic oncology portfolio increased 4.7% operationally, led by Venclexta which grew revenue by 34% for the quarter.
Elsewhere, AbbVie’s global neuroscience revenue increased 19%. Net Venclexta revenues were $488 million, an increase of 33%. Lastly, AbbVie’s global aesthetics portfolio grew revenue by 23% for the fourth quarter, due to 27% growth in global Botox revenue. The aesthetics portfolio was the foundation of AbbVie’s massive acquisition of Allergan in 2020.
2021 was an even stronger performance. For the full year, revenue of $56.2 billion rose 23%, while adjusted earnings-per-share of $12.70, increased 20% from 2020. The company expects 2022 to be another year of strong growth. For 2022, AbbVie expects adjusted earnings-per-share in a range of $14.00 – $14.20, which would represent 11% growth at the midpoint.
AbbVie Is Still Modestly Priced
To be sure, the recent rise in AbbVie share price means the stock is not as cheap as it once was. But ABBV stock is still modestly valued. Based on expected EPS of $14.10 for this year, shares ended the quarter at a 2022 P/E ratio of 11.5. This is still quite a low valuation multiple for a company with AbbVie’s leading position in the healthcare industry.
However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. We expect AbbVie to grow its earnings-per-share by 2%-3% per year. The stock also has a 3.5% current dividend yield, leading to total expected returns in the mid-single-digit range.
This is by no means an exceptional rate of return, but still qualifies AbbVie as a strong holding for dividend growth investors. On that point, the company continues to hike its dividend payout at a high rate. Last October, AbbVie increased its dividend by 9%. It has now increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT).
And, with a dividend payout ratio projected to be just 40% for 2022, there is plenty of room for ABBV stock to continue growing its dividend.
On the date of publication, Bob Ciura was LONG ABBV stock. He did not have (either directly or indirectly) any positions in the other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post Best Stocks for 2022: Up 20% This Year, AbbVie Is Doing Great 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. | Heading into 2022, I recommended investors take a closer look at pharmaceutical giant AbbVie (NYSE:ABBV) because the stock possessed several key factors that could make for a good investment. However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock. | Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings. Lastly, AbbVie’s global aesthetics portfolio grew revenue by 23% for the fourth quarter, due to 27% growth in global Botox revenue. However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. | Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings. Lastly, AbbVie’s global aesthetics portfolio grew revenue by 23% for the fourth quarter, due to 27% growth in global Botox revenue. However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. | Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings. However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock. |
23497.0 | 2022-04-07 00:00:00 UTC | 2 Great Dividend Stocks to Buy Now to Help Tackle Inflation | ABBV | https://www.nasdaq.com/articles/2-great-dividend-stocks-to-buy-now-to-help-tackle-inflation | nan | nan | Wall Street turned its focus back to the possibility of higher interest rates as the Fed is indicating a more hawkish turn to help combat 40-year high inflation. The recently-released Fed minutes showed that it is leaning toward a 0.50% rate hike at its next meeting, while shrinking its balance sheet.
The yield on the benchmark 10-year U.S. Treasury is back up at three-year highs and approaching 2.7%. The market was initially pleased by the Fed’s decision to lift its core rate by just 0.25%. The Fed opted for a small first hike amid the ongoing uncertainty caused by the Russian invasion of Ukraine. But the Fed minutes and recent comments by Fed governor Lael Brainard and St. Louis Fed President James Bullard appear to telegraph bigger rate hikes to come.
For instance, Bullard said Thursday that he thinks the federal funds rate should probably be at 3.5% right now, and not its current rage of 0.25% and 0.50%. The need to tamp down 8% inflation amid continued supply chain bottlenecks, which could be made worse by renewed covid lockdowns in China, appears paramount.
The recent drop has sent the S&P 500 back down below its 200-day moving average and the Nasdaq has continued to meet resistance at this crucial level. That said, bond yields are still historically low, and the outlook for S&P 500 earnings, margins, and revenues remains strong despite the setbacks (also read: Are Earnings Estimates Going Down).
Investors might want to remain in stocks in order to beat 8% inflation, while adding strong dividend yields that top U.S. Treasuries. Here are few stocks to consider buying to do just that.
VICI Properties Inc. VICI
VICI Properties is a real estate investment trust focused on gaming, hospitality, and entertainment. The firm’s diverse portfolio of casinos and resorts includes nearly 30 gaming facilities around the U.S., as well as over 250 restaurants, bars, nightclubs, and sportsbooks, and 25K hotel rooms.
VICI’s properties are leased to top operators, including Caesars, Hard Rock, Penn National Gaming, The Venetian Las Vegas, and many others. VICI also has investments in four championship golf courses, as well as 34 acres of undeveloped land next to the Las Vegas Strip, and beyond.
VICI Properties last August agreed to buy MGM Growth Properties in a deal that values the casino real-estate owner at $17.2 billion. That acquisition is projected to close in the first half of 2022 and would bring seven top-end Las Vegas resorts into VICI’s portfolio, as well as locations around the U.S. The deal will transform the already massive entertainment and hotel REIT into a true giant in the casino, resorts, and convention world.
VICI’s 2021 revenue surged 23% to $1.5 billion, with its adjusted FFO, which investors can view as earnings, popped 11%. Zacks estimates call for its revenue to surge 32% higher in 2022 to $1.99 billion and then climb another 18% in 2023. Meanwhile, its adjusted FFOs are projected to pop 8% this year and 7% in 2023. And these projections don’t include the pending MGM deal.
Image Source: Zacks Investment Research
VICI’s stagnant earnings revisions activity helps it land a Zacks Rank #3 (Hold) at the moment. The company has, however, consistently beaten our bottom-line estimates. On top of that, 11 of the 13 brokerage recommendations Zacks has for VICI are “Strong Buys.”
VICI shares have climbed 25% in the last three years to roughly match its industry, which includes a 75% run over the last two years. The stock is down 5% in the past 12 months, following its massive surge off its covid selloff lows.
At around $27.90 per share, VICI trades 17% below its records. VICI’s current Zacks consensus price target also represents 29% upside to Thursday’s levels. And the stock is trading right at its three-year median at 14.4X forward 12-month earnings and at a 30% discount compared to its industry.
The company’s current quarterly dividend of $0.36 per share is up 9% compared to its last payout. The payout helps VICI yield 5.04% at the moment to blow away its industry’s 3.12% average and destroy the 10-year U.S. Treasury’s 2.65%. The yield helps make VICI even more attractive, considering its solid valuation and strong outlook within an industry that’s roaring back as many people return to their normal, pre-pandemic lives.
AbbVie ABBV
AbbVie stock is in the midst of a gigantic run that began to kick into high gear last fall. Despite its 30% climb in 2022, investors with longer-term outlooks shouldn’t really be worried that they ‘missed out’ on the pharmaceutical giant for a number of reasons. ABBV is more diversified than ever and far less exposed to the success of one of the world’s top-selling drugs, which is crucial since Humira biosimilars are already available outside of the U.S.
AbbVie acquired Allergan for $63 billion in 2020. The deal brought Botox and other popular drugs into a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. The company’s revenue went on to soar 38% in FY20 and another 23% in fiscal 2021 to hit $56 billion. The jump came even though international Humira revenue dropped nearly 10%. ABBV’s adjusted earnings also jumped 20% last year.
Zacks estimates call for its adjusted FY22 earnings to jump another 11% on 7.4% higher sales that would see it pull in $60.4 billion. AbbVie lands a Zacks Rank #3 (Hold) right now and has seen its FY22 and FY23 consensus earnings estimates pop since its release. And ABBV has consistently topped our quarterly EPS estimates.
Image Source: Zacks Investment Research
ABBV stock is up 165% in the last five years, which includes a significant rough patch, to blow away the Large-Cap Pharma’s 75% and the S&P 500’s 100%. Wall Street really began to gravitate to ABBV stock as the tech and growth trade began to unwind in the fall of 2021, with the stock now up around 60% in the past six months vs. the benchmark’s 2% climb the Nasdaq’s 5% decline. ABBV stock popped again on Thursday to hit fresh records at around $175 per share.
Even with it trading at new all-time highs, AbbVie still offers solid value, trading at a 30% discount to its five-year highs at 12.4X forward 12-month earnings. This also marks an 18% discount to the Large Cap Pharma’s 14.9X and 37% value compared to the S&P 500.
Despite its strong run and outperformance, AbbVie’s 3.25% dividend yield crushes its industry’s 2.42% average and the 10-year U.S. Treasury’s 2.65%. ABBV has also continually lifted its payout, with its dividend up 250% since its inception in 2013. Wall Street remains bullish on ABBV, with 10 of the 14 brokerage recommendations Zacks has at “Strong Buys” or “Buys.”
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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 AbbVie stock is in the midst of a gigantic run that began to kick into high gear last fall. ABBV is more diversified than ever and far less exposed to the success of one of the world’s top-selling drugs, which is crucial since Humira biosimilars are already available outside of the U.S. AbbVie acquired Allergan for $63 billion in 2020. ABBV’s adjusted earnings also jumped 20% last year. | Image Source: Zacks Investment Research ABBV stock is up 165% in the last five years, which includes a significant rough patch, to blow away the Large-Cap Pharma’s 75% and the S&P 500’s 100%. AbbVie ABBV AbbVie stock is in the midst of a gigantic run that began to kick into high gear last fall. ABBV is more diversified than ever and far less exposed to the success of one of the world’s top-selling drugs, which is crucial since Humira biosimilars are already available outside of the U.S. AbbVie acquired Allergan for $63 billion in 2020. | AbbVie ABBV AbbVie stock is in the midst of a gigantic run that began to kick into high gear last fall. ABBV is more diversified than ever and far less exposed to the success of one of the world’s top-selling drugs, which is crucial since Humira biosimilars are already available outside of the U.S. AbbVie acquired Allergan for $63 billion in 2020. ABBV’s adjusted earnings also jumped 20% last year. | AbbVie ABBV AbbVie stock is in the midst of a gigantic run that began to kick into high gear last fall. ABBV is more diversified than ever and far less exposed to the success of one of the world’s top-selling drugs, which is crucial since Humira biosimilars are already available outside of the U.S. AbbVie acquired Allergan for $63 billion in 2020. ABBV’s adjusted earnings also jumped 20% last year. |
23498.0 | 2022-04-07 00:00:00 UTC | May 27th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/may-27th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 27th contracts and identified one put and one call contract of particular interest.
The put contract at the $165.00 strike price has a current bid of $3.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $165.00, but will also collect the premium, putting the cost basis of the shares at $161.40 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $171.60/share today.
Because the $165.00 strike represents an approximate 4% 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 71%. 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 2.18% return on the cash commitment, or 15.93% 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 $165.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $175.00 strike price has a current bid of $3.35. If an investor was to purchase shares of ABBV stock at the current price level of $171.60/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $175.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.93% if the stock gets called away at the May 27th 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 $175.00 strike highlighted in red:
Considering the fact that the $175.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.95% boost of extra return to the investor, or 14.25% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 27%, while the implied volatility in the call contract example is 23%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 254 trading day closing values as well as today's price of $171.60) to be 18%. 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 $175.00 strike highlighted in red: Considering the fact that the $175.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 27th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $175.00 strike highlighted in red: Considering the fact that the $175.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 27th 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 $165.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $175.00 strike price has a current bid of $3.35. Below is a chart showing ABBV's trailing twelve month trading history, with the $175.00 strike highlighted in red: Considering the fact that the $175.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 27th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 27th 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 $175.00 strike highlighted in red: Considering the fact that the $175.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 27th expiration. |
23499.0 | 2022-04-06 00:00:00 UTC | Is AbbVie Still a Buy After Its 50% Run-Up? | ABBV | https://www.nasdaq.com/articles/is-abbvie-still-a-buy-after-its-50-run-up | nan | nan | Pharmaceutical giant AbbVie (NYSE: ABBV) has been one of the market's hottest stocks, rising more than 50% over the past year. It should raise eyebrows, considering the S&P 500 is up just 13% in that time. Why has AbbVie done so well and is it too late to benefit from buying shares?
Fear not -- AbbVie's rise has been a long time coming, and it's something that could have the legs to continue. However, there are some important details you need to be aware of. Here's why AbbVie could keep delivering excellent returns to long-term investors.
The stock is soaring; what gives?
AbbVie sells Humira, the world's top-selling pharmaceutical drug, which generated $20 billion in sales in 2021. It's the crown jewel of AbbVie's business and accounts for roughly 36% of total revenue. Humira is obviously important, but the drug's patent, which blocks competitors from creating a similar product, expires next year.
Image source: Getty Images.
This has long been on investors' minds, going back to the fall of 2021 when I covered AbbVie's share-price struggles and pointed the finger at fears over looming competition for Humira as a primary reason investors had cooled on the stock.
But AbbVie's business has continued growing in the meantime, which has steadily made the stock's valuation less expensive. AbbVie's price-to-earnings ratio (P/E) fell to the 8 to 10 range, well below the stock's median P/E ratio of 21 over the past decade. A valuation can sometimes be like a coiled spring, and when something happens to "unleash" that spring, it can have a remarkably strong effect on the stock.
Unleashing AbbVie's coiled spring
By this "coiled spring" analogy, I mean that sometimes the market gets it wrong. Investors viewed the loss of Humira as a potentially company-ruining event; you can see the market's sentiment reflected in shares selling off to such a depressed valuation. But the market then said, "Wait a minute, it's not as bad as it looks." Once this realization occurred, investors realized what a bargain the stock was and flocked to buy shares. The more depressed the valuation, the sharper the reversion back up will be, which is probably why AbbVie's been on such a tear.
So what happened to suddenly make the market love AbbVie again? The market is irrational in the short term, and you can't always explain the timing of things. However, AbbVie's management has been steadily preparing for life after Humira's patent expiration, evidenced by numerous developments in the business.
The company's massive $63 billion acquisition of Allergan in 2020 diversified AbbVie by adding several new products to its portfolio, including cosmetic surgery brand Botox. More recently, AbbVie acquired Syndesi Therapeutics for up to $1 billion, depending on product milestones. The acquisition bolsters AbbVie's pipeline of neuroscience products.
Internally, AbbVie has also made progress; its up-and-coming products Skyrizi and Rinvoq totaled $4.5 billion in revenue in 2021, growing more than 80% year over year. These drugs treat some of the same conditions as Humira. Don't forget that AbbVie will still sell Humira; the loss of patent protection means generic brands will enter the market, but Humira has an established brand that doctors and patients trust.
Analyst estimates expect an initial 6% drop in revenue for AbbVie next year, and then for the company to begin growing again in 2024 and beyond. In this light, Humira's patent expiration doesn't seem like some existential crisis at all.
Is there room to run?
This initial drop in business means that profits could fall next year. Analysts are looking for 2022 earnings-per-share (EPS) of $14.14 but expect that to decline to $12.23 in 2023. Even if we use next year's (lower) EPS estimates, the stock's current valuation is still just over 13, still well below that median P/E of 21.
The likely drop in Humira sales could create a drag on profit growth for the next several years. The company has grown EPS by an 11.5% annual average rate over the past decade, but analyst projections for the next three to five years call for just 2.5% per year. It's reasonable that the stock would see its valuation on the market fall in response to this slowdown.
So if you're looking for a quick buck, AbbVie may not be your stock. Shares could, of course, keep running higher, but there may be some uncertainty until investors see how the company performs once Humira's patent expires next year. For long-term investors, AbbVie's a proven blue-chip winner with a growing pipeline and a management intent on building for its next growth phase. I see Humira as an opportunity to buy shares while the company sets itself up for the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's massive $63 billion acquisition of Allergan in 2020 diversified AbbVie by adding several new products to its portfolio, including cosmetic surgery brand Botox. For long-term investors, AbbVie's a proven blue-chip winner with a growing pipeline and a management intent on building for its next growth phase. Pharmaceutical giant AbbVie (NYSE: ABBV) has been one of the market's hottest stocks, rising more than 50% over the past year. | Don't forget that AbbVie will still sell Humira; the loss of patent protection means generic brands will enter the market, but Humira has an established brand that doctors and patients trust. Analyst estimates expect an initial 6% drop in revenue for AbbVie next year, and then for the company to begin growing again in 2024 and beyond. Pharmaceutical giant AbbVie (NYSE: ABBV) has been one of the market's hottest stocks, rising more than 50% over the past year. | This has long been on investors' minds, going back to the fall of 2021 when I covered AbbVie's share-price struggles and pointed the finger at fears over looming competition for Humira as a primary reason investors had cooled on the stock. Don't forget that AbbVie will still sell Humira; the loss of patent protection means generic brands will enter the market, but Humira has an established brand that doctors and patients trust. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | Pharmaceutical giant AbbVie (NYSE: ABBV) has been one of the market's hottest stocks, rising more than 50% over the past year. Why has AbbVie done so well and is it too late to benefit from buying shares? Fear not -- AbbVie's rise has been a long time coming, and it's something that could have the legs to continue. |
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