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23600.0 | 2022-02-16 00:00:00 UTC | Amgen Snags Another Approval for This Promising Cancer Drug | ABBV | https://www.nasdaq.com/articles/amgen-snags-another-approval-for-this-promising-cancer-drug | nan | nan | Late last month, Japan's Ministry of Health, Labour and Welfare (MHLW) approved Amgen's (NASDAQ: AMGN) Lumakras to treat advanced non-small cell lung cancer (NSCLC) adult patients with the KRAS G12C mutation that worsened after prior therapy.
The MHLW gave Lumakras the nod just days after the European Commission approved it for the same indication. Let's dive into the clinical results for Lumakras to understand why regulatory bodies are approving the drug, as well as the lung cancer market in Japan to estimate the sales potential of the indication.
Image source: Getty Images.
A pioneering targeted therapy
Before going over the clinical results for Lumakras in treating NSCLC patients with the KRAS G12C mutation, let's dig into the terminology.
According to Amgen, NSCLC is a type of lung cancer that makes up 85% to 90% of lung cancer cases. NSCLC is then further classified as either non-squamous (approximately 70% of cases) or squamous (30% of cases).
The five-year survival rate for patients with stage 4 NSCLC in Japan is only 10.8%. For context, stage 4 NSCLC means that the cancer has spread from the initial site in the lungs to other organs like the bones, brain, or liver.
Approximately 4.5% of non-squamous NSCLC patients in Japan have the KRAS G12C mutation. This has a particularly poor prognosis because there were no effective targeted therapies to treat the disease prior to the approval of Lumakras.
The good news is that adults with the KRAS G12C mutation now have a solid treatment option if other therapies don't stop disease progression or improve the condition.
Amgen entered 124 patients into its phase 2 clinical trials of Lumakras whose disease didn't improve with immunotherapy and/or chemotherapy. These patients took a 960-milligram dose of Lumakras orally once daily.
The objective response rate of Lumakras was 37.1%, which is quite high considering these patients had no other viable therapies. For context, the objective response rate is the percentage of patients whose cancer disappears (goes into remission) or shrinks after treatment.
An incremental revenue increase for Amgen
Lumakras looks like it will be a potent treatment for KRAS G12C mutation patients. But what level of sales will this indication in Japan translate into for pharma stock Amgen?
It's estimated that there are 169,000 patients with lung cancer in Japan. Factoring in that 85% of these cases are NSCLC, that equates to 144,000 patients. Next, 70%, or 101,000 patients, have non-squamous NSCLC. Third, 4.5% of patients with non-squamous NSCLC have the KRAS G12C mutation. This works out to nearly 5,000 patients.
Because Lumakras is the first and only approved targeted therapy for this condition, I believe it's reasonable to expect it to seize 50% of the market in Japan. This comes out to roughly 2,300 patients.
The annual list price of Lumakras in the U.S. is $215,000. But because drugs are almost 50% less expensive in Japan compared to the U.S., I'll use an annual list price of $110,000. Due to negotiations with health insurers and patient assistance programs, I'll revise Lumakras' annual list price of $110,000 down further to a net annual price of $75,000 per patient.
This comes out to just short of $200 million in annual sales potential for the indication in Japan. This would be a 0.7% boost to the $26.1 billion in revenue that analysts are expecting Amgen to record this year. But the approval is made more impressive by the fact that this sales potential is for just one of the major markets in the world. Putting all of the approvals in recent months together, Lumakras is well on its way to becoming a blockbuster for Amgen.
A quality dividend growth stock
While the approvals for Lumakras are encouraging, the company has even more going for it. That's because Amgen has 40 compounds in various phases of clinical trials. These include biosimilars for blockbuster drugs like Johnson & Johnson's (NYSE: JNJ) Stelara and AstraZeneca's (NASDAQ: AZN) rare disease drug Soliris in phase 3 clinical trials.
If approved, each biosimilar could siphon hundreds of millions of dollars in annual sales from J&J and AstraZeneca. And Amgen's biosimilar for AbbVie's (NYSE: ABBV) Humira, known as Amjevita, will launch in the U.S. next January, which could generate significant revenue for the company.
That's why analysts anticipate that Amgen will produce 7% annual earnings growth through the next five years. Amgen's dividend payout ratio was only 41.2% last year, which explains why the company was confident enough to announce a 10.2% increase in its payout for this year last December.
Investors can buy Amgen's market-beating 3.3% dividend yield at a current price-to-earnings ratio of 13.1, which is a sensible valuation for the company's growth potential.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And Amgen's biosimilar for AbbVie's (NYSE: ABBV) Humira, known as Amjevita, will launch in the U.S. next January, which could generate significant revenue for the company. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Kody Kester owns AbbVie, Amgen, and Johnson & Johnson. Late last month, Japan's Ministry of Health, Labour and Welfare (MHLW) approved Amgen's (NASDAQ: AMGN) Lumakras to treat advanced non-small cell lung cancer (NSCLC) adult patients with the KRAS G12C mutation that worsened after prior therapy. | And Amgen's biosimilar for AbbVie's (NYSE: ABBV) Humira, known as Amjevita, will launch in the U.S. next January, which could generate significant revenue for the company. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Kody Kester owns AbbVie, Amgen, and Johnson & Johnson. Late last month, Japan's Ministry of Health, Labour and Welfare (MHLW) approved Amgen's (NASDAQ: AMGN) Lumakras to treat advanced non-small cell lung cancer (NSCLC) adult patients with the KRAS G12C mutation that worsened after prior therapy. | And Amgen's biosimilar for AbbVie's (NYSE: ABBV) Humira, known as Amjevita, will launch in the U.S. next January, which could generate significant revenue for the company. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Kody Kester owns AbbVie, Amgen, and Johnson & Johnson. Late last month, Japan's Ministry of Health, Labour and Welfare (MHLW) approved Amgen's (NASDAQ: AMGN) Lumakras to treat advanced non-small cell lung cancer (NSCLC) adult patients with the KRAS G12C mutation that worsened after prior therapy. | And Amgen's biosimilar for AbbVie's (NYSE: ABBV) Humira, known as Amjevita, will launch in the U.S. next January, which could generate significant revenue for the company. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Kody Kester owns AbbVie, Amgen, and Johnson & Johnson. Late last month, Japan's Ministry of Health, Labour and Welfare (MHLW) approved Amgen's (NASDAQ: AMGN) Lumakras to treat advanced non-small cell lung cancer (NSCLC) adult patients with the KRAS G12C mutation that worsened after prior therapy. |
23601.0 | 2022-02-15 00:00:00 UTC | Biohaven (BHVN) Migraine Drug Meets Study Goals in China | ABBV | https://www.nasdaq.com/articles/biohaven-bhvn-migraine-drug-meets-study-goals-in-china | nan | nan | Biohaven Pharmaceutical Holding Company Ltd. BHVN, along with partner Pfizer Inc. PFE, announced positive top-line data from a phase III study evaluating the safety and efficacy of the orally dissolving tablet (“ODT”) formulation of rimegepant for the acute treatment of migraine in China and South Korea.
The study met the co-primary endpoints of freedom from pain and from the most bothersome migraine–induced symptoms after two-hours of an oral dose of rimegepant.
Data from the study showed that treatment with rimegepant (75 mg) offered significant relief from migraine symptoms and return to normal function at two hours and delivered sustained efficacy that lasted up to 48 hours for many patients.
The above-mentioned study is the first to be conducted in Asia Pacific to investigate rimegepant for the acute treatment of migraine. This is the fourth positive phase III study of rimegepant for the given indication.
Shares of Biohaven have rallied 64.4% in the past year against the industry’s decrease of 40.4%.
Image Source: Zacks Investment Research
Biohaven currently markets rimegepant ODT under the trade name — Nurtec ODT — an oral anti-CGRP drug, in the United States. The drug was approved for treating acute migraine in the United States in February 2020. The FDA also approved a label expansion of Nurtec ODT as a preventive treatment for migraine.
In the first nine months of 2021, Nurtec ODT generated sales worth $272.5 million. The drug is the only marketed product in the company’s portfolio.
In November 2021, Biohaven signed a strategic agreement with Pfizer for the commercialization of Nurtec ODT in ex-U.S. markets. Pfizer has commercialization rights to rimegepant outside the UNited States while Biohaven leads research and development globally and retains marketing rights in the country.
Nurtec ODT is the only oral CGRP receptor antagonist approved for both the acute and preventive treatments of migraine in adults. However, Nurtec ODT faces stiff competition from other anti-CGRP drugs for similar indications.
AbbVie’s ABBV oral CGRP, Ubrelvy, is approved for treating acute migraine. In September 2021, the FDA approved AbbVie’s another oral CGRP receptor antagonist, Qulipta, as a preventive treatment of episodic migraine in adults.
AbbVie believes that Ubrelvy and Qulipta represent a $1-billion-plus peak sales opportunity each.
Eli Lilly’s LLY Emgality is another CGRP medicine approved for preventive treatment of migraine. The drug has become a key contributor to Eli Lilly’s sales growth since its approval.
Eli Lilly is conducting a head-to-head study comparing once-monthly Emgality injection to Bohaven’s Nurtec ODT for the preventive treatment of episodic migraine in adults.
Zacks Rank
Biohaven currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In September 2021, the FDA approved AbbVie’s another oral CGRP receptor antagonist, Qulipta, as a preventive treatment of episodic migraine in adults. AbbVie’s ABBV oral CGRP, Ubrelvy, is approved for treating acute migraine. AbbVie believes that Ubrelvy and Qulipta represent a $1-billion-plus peak sales opportunity each. | In September 2021, the FDA approved AbbVie’s another oral CGRP receptor antagonist, Qulipta, as a preventive treatment of episodic migraine in adults. AbbVie’s ABBV oral CGRP, Ubrelvy, is approved for treating acute migraine. AbbVie believes that Ubrelvy and Qulipta represent a $1-billion-plus peak sales opportunity each. | AbbVie’s ABBV oral CGRP, Ubrelvy, is approved for treating acute migraine. In September 2021, the FDA approved AbbVie’s another oral CGRP receptor antagonist, Qulipta, as a preventive treatment of episodic migraine in adults. AbbVie believes that Ubrelvy and Qulipta represent a $1-billion-plus peak sales opportunity each. | AbbVie’s ABBV oral CGRP, Ubrelvy, is approved for treating acute migraine. In September 2021, the FDA approved AbbVie’s another oral CGRP receptor antagonist, Qulipta, as a preventive treatment of episodic migraine in adults. AbbVie believes that Ubrelvy and Qulipta represent a $1-billion-plus peak sales opportunity each. |
23602.0 | 2022-02-15 00:00:00 UTC | Abbvie Inc Shares Climb 0.2% Past Previous 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-climb-0.2-past-previous-52-week-high-market-mover-0 | nan | nan | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $252B. The stock is currently up 6.7% year-to-date, up 43.3% over the past 12 months, and up 195.9% over the past five years. This week, the Dow Jones Industrial Average fell 1.4%, and the S&P 500 fell 1.8%.
Trading Activity
Trading volume this week was 13.6% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -220.6%
The company's stock price performance over the past 12 months beats the peer average by 496.6%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 5.8% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $252B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $252B. This week, the Dow Jones Industrial Average fell 1.4%, and the S&P 500 fell 1.8%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -220.6% The company's stock price performance over the past 12 months beats the peer average by 496.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 5.8% higher than the average peer. | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $252B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -220.6% The company's stock price performance over the past 12 months beats the peer average by 496.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 5.8% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $252B. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -220.6% The company's stock price performance over the past 12 months beats the peer average by 496.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 5.8% higher than the average peer. |
23603.0 | 2022-02-15 00:00:00 UTC | XLV, ABBV, TMO, MRK: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-abbv-tmo-mrk%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $341.6 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 259,120,000 to 261,770,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Merck & Co Inc (Symbol: MRK) is higher by about 1.9%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $109.93 per share, with $141.975 as the 52 week high point — that compares with a last trade of $130.50. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Merck & Co Inc (Symbol: MRK) is higher by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $341.6 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 259,120,000 to 261,770,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Merck & Co Inc (Symbol: MRK) is higher by about 1.9%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $109.93 per share, with $141.975 as the 52 week high point — that compares with a last trade of $130.50. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Merck & Co Inc (Symbol: MRK) is higher by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $341.6 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 259,120,000 to 261,770,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $109.93 per share, with $141.975 as the 52 week high point — that compares with a last trade of $130.50. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.2%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Merck & Co Inc (Symbol: MRK) is higher by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $341.6 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 259,120,000 to 261,770,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $109.93 per share, with $141.975 as the 52 week high point — that compares with a last trade of $130.50. |
23604.0 | 2022-02-14 00:00:00 UTC | 4 Top Stock Trades for Tuesday: SE, ABBV, TD, CAR | ABBV | https://www.nasdaq.com/articles/4-top-stock-trades-for-tuesday%3A-se-abbv-td-car | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks were hit overnight, finding their footing near the open but coming under more selling pressure thanks to the escalating geopolitical tensions in Eastern Europe. Here are a few top stock trades to focus on going into the week.
Top Stock Trades for Tomorrow No. 1: Sea Ltd.
Click to Enlarge
Source: Chart courtesy of TrendSpider
Sea Ltd. (NYSE:SE) is getting demolished on the day, down almost 20% during Monday’s trading session. It’s hard to believe given how good of a stock this was before, but here we are.
With today’s big gap down, SE stock is trying to find its footing. If it can, look to see how it handles Monday’s high at $139.70.
Above that level and this stock can begin to fill today’s gap and potentially trade up to the 10-day and 21-day moving averages. Above that and it can completely fill this gap up at $155.76.
7 Defensive Growth Stocks to Buy for February
On the downside, keep an eye on last month’s low at $119.41. That level comes into play near the 200-week moving average and it’s possible we get some kind of undercut of this level and a reversal. Stay open-minded with Sea.
Top Stock Trades for Tomorrow No. 2: AbbVie
Click to Enlarge
Source: Chart courtesy of TrendSpider
AbbVie (NYSE:ABBV) is a name I flagged this morning, as it has been one of the only strong stocks in the market lately. It didn’t live up to that observation in the opening 90 minutes of trading on Monday, but it’s been trading well since it found its footing.
The stock bounced nicely from the 10-day moving average and last week’s low. Today’s low now becomes our stop-loss point on the trade. A break of that likely puts the $138 level on deck, as well as the 21-day moving average.
From here, I’m looking for the $143.50 to $144 area on the upside, followed by the recent high at $144.42. New highs open the door to the 261.8% extension near $147.25.
Top Stock Trades for Tomorrow No. 3: Toronto-Dominion Bank
Click to Enlarge
Source: Chart courtesy of TrendSpider
Another stock we’ve had tremendous success with lately? Toronto-Dominion Bank (NYSE:TD).
This stock gave us a powerful weekly-up rotation two weeks ago and that paved the way for a move to new highs. Those highs were greeted by profit-takers — naturally — so we were waiting for a dip.
That dip presented itself this morning as TD tested a number of key areas, including the 10-day moving average, the $83.08 breakout area and last week’s low at $83.03.
7 Industrial Stocks to Buy As Tech Stocks Tumble
On the upside, I would like to see a move to the $84.20 to the $84.50 area. Above that could put $85.50 to $86 in play. I know that’s a fickle range, but that’s what we’re trading right now in a tough environment.
On the downside, a break of today’s low deals a blow to the bulls’ case.
Top Trades for Tomorrow No. 4: Avis Budget Group
Click to Enlarge
Source: Chart courtesy of TrendSpider
Last but not least we have Avis Budget (NASDAQ:CAR).
I don’t like trading these setups much — I prefer the TD and ABBV’s of the world — but CAR has investors’ attention with its giant, volatile moves.
If CAR can going weekly-up over $203.50, then it could create a powerful squeeze to the upside. That could put the $235 to $240 area in play, which is the 50% retracement of the recent low to the $320 area.
On the flip side, a weekly-down rotation below $177 could put last month’s low in play at $157.28, along with the 200-day moving average.
On the date of publication, Bret Kenwell 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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Tuesday: SE, ABBV, TD, CAR 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. | Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) is a name I flagged this morning, as it has been one of the only strong stocks in the market lately. I don’t like trading these setups much — I prefer the TD and ABBV’s of the world — but CAR has investors’ attention with its giant, volatile moves. 2: AbbVie | Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) is a name I flagged this morning, as it has been one of the only strong stocks in the market lately. The post 4 Top Stock Trades for Tuesday: SE, ABBV, TD, CAR appeared first on InvestorPlace. 2: AbbVie | 2: AbbVie Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) is a name I flagged this morning, as it has been one of the only strong stocks in the market lately. I don’t like trading these setups much — I prefer the TD and ABBV’s of the world — but CAR has investors’ attention with its giant, volatile moves. | The post 4 Top Stock Trades for Tuesday: SE, ABBV, TD, CAR appeared first on InvestorPlace. 2: AbbVie Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) is a name I flagged this morning, as it has been one of the only strong stocks in the market lately. |
23605.0 | 2022-02-14 00:00:00 UTC | 7 Dividend Aristocrats That Could Outpace This Volatile Market | ABBV | https://www.nasdaq.com/articles/7-dividend-aristocrats-that-could-outpace-this-volatile-market | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend aristocrats are companies that have raised their dividend payments at least once a year for the past 25 years. Many of these names move on to become dividend kings that have increased payouts for 50 consecutive years. Investors who want sustainable passive income as well as capital appreciation usually look at such dividend stocks, especially in volatile markets.
According to the U.S. Bureau of Labor Statistics, producer prices in 2021 saw the greatest year-over-year (YOY) increase on record at 9.7%. Meanwhile, consumer prices soared 7%, the highest rate in four decades. In a period of rising inflation, investors have their eyes on the reliability of dividend stocks to get them through a volatile stock market.
Analysts highlight that dividend aristocrats typically offer the safest yields on Wall Street. There are currently around 65 companies that meet the qualifications. Regardless of whether you’re a growth or income investor, there’s a coveted dividend stock that can fit most retail portfolios.
In 2021, Hartford Funds released a report revealing the performance of the S&P 500 with and without dividends since 1930. Metrics show dividend-paying stocks accounted for 41% of the index’s total return over the past nine decades.
Dividends also accounted for an impressive 84% of the index’s total return since 1970. Therefore, you might want to research these shares for your portfolio.
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With that information, here are seven dividend aristocrats that could outperform today’s volatile market:
AbbVie (NYSE:ABBV)
Caterpillar (NYSE:CAT)
Exxon Mobil (NYSE:XOM)
Johnson & Johnson (NYSE:JNJ)
Lowe’s (NYSE:LOW)
NextEra Energy (NYSE:NEE)
Nucor (NYSE:NUE)
Dividend Aristocrats: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
52 week range: $102.05 – $144.42
Dividend yield: 4%
Pharmaceutical group AbbVie has a strong exposure to immunology and oncology. Humira, its top-selling drug, currently accounts for around half of revenues. But in 2023, AbbVie will lose its U.S. patent exclusivity for Humira, which is prescribed for numerous inflammatory conditions.
Understandably, the imminent development could restrain ABBV stock’s valuation. But the pharma group boasts a strong pipeline of new products. For example, Skyrizi and Rinvoq have seen more than 70% and 80% YOY growth, respectively. Management anticipates the combined sales from both names could surpass Humira’s peak revenue.
Abbvie announced Q4 2021 results on Feb. 2. Revenue surged 7.4% YOY to $14.9 billion. Adjusted diluted earnings per share came in at $5.92 billion, or $3.31 per diluted share, up from $2.92 per diluted share in the prior-year quarter. For 2022, the company forecast its adjusted earnings will grow to at least $14 per share.
With 49 consecutive years of dividend increases, ABBV stock seems to be as reliable as income investments get. The Dividend Aristocrat currently offers a juicy 4% dividend yield.
ABBV stock hovers around $140, up almost 30% over the past 12 months. Shares are also trading at a bargain valuation at just 10 times forward earnings. Its price-to-sales (P/S) ratio stands at 4.5x. The 12-month median price forecast for Abbvie stock stands at $153.
Caterpillar (CAT)
Source: astudio / Shutterstock.com
52-week range: $186.98 – $246.69
Dividend yield: 2.2%
Deerfield, Illinois-based Caterpillar manufactures heavy equipment and construction machinery. With its extensive dealer network worldwide, it is one of the most important construction equipment manufacturers worldwide.
Analysts also note Caterpillar is one of the leading names of the next industrial revolution known as the Industry 4.0. The company highlights that the term “stands for the close interaction of the industrial production with modern information and communication technology. While intelligent, digitally networked systems represent the technical basis, enterprises are called upon to implement new products, efficient processes, and innovative business models.”
Caterpillar announced Q4 2021 results on Jan. 28. Revenue increased 23% YOY to $13.8 billion. Adjusted income per share stood at $2.69, compared with $2.12 in the prior-year quarter. Liquidity remained strong, with a cash balance of $9.3 billion at the end of 2021.
During fiscal 2021, the company repurchased $2.7 billion of CAT stock and paid dividends of $2.3 billion. This dividend aristocrat currently yields 2.2%.
It looks like Caterpillar may be on the brink of a multi-year cyclical rally. Full-year earnings of $11.83 per diluted share were the highest in the company’s history.
Wall Street has been excited about the anticipated acceleration in infrastructure spending. As a result, CAT stock has seen significant momentum. However, ongoing supply chain issues have been concerning. In addition, construction sales in China have been sluggish.
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CAT changes hands around $200 per share, up 3% over the past 12 months. Shares look attractive at 16.5 times forward earnings and 2.2 times trailing sales. The 12-month median price forecast for Caterpillar stock stands at $241.
Dividend Aristocrats: Exxon Mobil (XOM)
Source: Ken Wolter / Shutterstock.com
52-week range: $51.62 – $83.08
Dividend yield: 4.4%
Oil major Exxon Mobil has benefited from a solid recovery in demand and rising crude oil prices in recent months. At the start of 2021, prices were around $50. Now, they’re over $90 per barrel. Wall Street has also been excited to hear Exxon plans to increase onshore energy production in the Permian Basin by 25%.
Exxon Mobil issued Q4 2021 results on Feb. 1. Revenue surged 83% YOY to $85 billion. Net income came in at $8.9 billion, or $2.08 per diluted share, compared to a net loss of $20 billion, or a $4.70 loss per diluted share, a year ago.
XOM stock has increased payouts for 39 straight years, and currently generates a 4.3% dividend yield. The company also announced a $10 billion stock buyback plan that should materialize over the next 12 to 24 months.
The stock hit a 52-week high of $83.08 on Feb. 7 and is up 50% over the past year. Shares are trading at 12.4 times forward earnings and 1.2 times trailing sales.
However, the 12-month median price forecast for Exxon Mobil stock stands at $81. Therefore, potential investors could consider waiting for a pullback in XOM shares.
Johnson & Johnson (JNJ)
Source: Niloo / Shutterstock.com
52-week range: $151.47 – $179.92
Dividend yield: 2.48%
Johnson & Johnson is one of the largest global healthcare conglomerates. It offers a wide range of pharmaceutical drugs, consumer products and medical device. Most recently, its Covid-19 vaccine has received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA).
Management announced Q4 2021 results on Jan. 25. Sales increased 10.4% YOY to $24.8 billion. Wall Street noted the consumer health segment was the slowest-growing segment during the quarter, up just 1% YOY.
Meanwhile, adjusted net earnings soared 14.4% YOY to $5.68 billion, or $2.13 per diluted share. These metrics were up from $4.97 billion, or $1.86 per diluted share, in the prior-year quarter.
Recently, J&J announced plans to spin off its slower-growing consumer health business. The company is shifting its focus to its higher-margin pharmaceuticals and medical devices businesses. The pharma business soared 16.5% YOY to $14.3 billion thanks to a $1.6 billion boost from Covid-19 vaccine revenue.
JNJ is a dividend king stock offering a 2.5% yield. In addition, it is one of the only two publicly traded firms with the highest possible AAA credit rating issued by S&P Global (NYSE:SPGI). The other company is Microsoft (NASDAQ:MSFT).
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Shares exchange hands around $165 per share, effectively flat over the past 12 months. They are trading at 16.2 times forward earnings and 4.8 times trailing sales. The 12-month median price forecast for Johnson & Johnson stock stands at $180. A potential decline toward $165 would improve the margin of safety.
Dividend Aristocrats: Lowe’s (LOW)
Source: Helen89 / Shutterstock.com
52-week range: $150.84 – $263.31
Dividend yield: 1.4%
Mooresville, North Carolina-based Lowe’s is the nation’s second-biggest home improvement retailer chain by revenue. The group operates around 2,400 home improvement and hardware stores in North America. Its online sales are also growing rapidly.
Lowe released Q3 2021 results on Nov. 17. Revenue increased 2.2% YOY to $22.9 billion. Net earnings came in at $1.9 billion, or $2.73 per diluted share, up from $692 million, or 91 cents per diluted share, in the prior-year quarter. Cash and equivalents ended the period at $6.1 billion.
On the metrics, CEO Marvin R. Ellison remarked, “Our momentum continued this quarter, with U.S. sales comps up nearly 34% on a two-year basis … In the quarter, we drove over 16% growth in Pro and 25% on Lowes.com.”
Over the past two years, the retailer was well-positioned to benefit from the booming housing market. However, in December, seasonally-adjusted home sales declined 3.6%, the most significant single-month drop since May 2020. Now, Wall Street is debating whether such a cooling in house sales or prices could affect stocks like LOW.
LOW stock is priced at $227, up 30% over the past year. Shares are trading at 18.2 times forward earnings and 1.7 times trailing sales. The 12-month median price forecast for Lowe’s stock stands at $282.50.
Nextera Energy (NEE)
Source: madamF / Shutterstock.com
52-week range: $68.33 – $93.73
Dividend Yield: 2.1%
Our next entry in this list of dividend aristocrats is Juno Beach, Florida-based NextEra Energy. It is one of the largest utility companies worldwide with 45,500 megawatts of net generating capacity as of March 2020. It is also a leading name in renewable solar and wind energy generation as well as battery storage.
NextEra issued Q4 2021 results on Jan. 25. Revenue soared 15% YOY to $5.05 billion. Adjusted net income stood at $814 million, or 41 cents per share, up from $785 million in the prior-year quarter. Cash and equivalents ended the period at $639 million.
After the announcement, CEO Jim Robo said in an earnings call, “NextEra Energy achieved full year adjusted earnings per share of $2.55, up more than 10% from 2020 … In 2021, we delivered a total shareholder return of more than 23%, significantly outperforming the S&P 500 Utilities Index.”
The utility giant continues to secure new renewable energy development projects, including those involve green hydrogen and water as alternative energy sources. NextEra plans to invest $50 billion to $55 billion in American infrastructure projects through 2022.
Management forecasts double-digit earnings growth in 2022. Profits should also grow at a 6% to 8% annual rate between 2023 and 2025.
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NEE changes hands for $74, down 21% year-to-date (YTD). Thus, compared to last year, shares now offer better value at 27.3 times forward earnings and 8.7 times trailing sales. The 12-month median price forecast for Nextera Energy stock stands at $91.
Dividend Aristocrats: Nucor (NUE)
Source: Shutterstock
52-week range: $56.08 – $128.81
Dividend yield: 1.7%
Charlotte, North Carolina-based Nucor is the largest steelmaker in North America. It has a diversified product portfolio, including carbon and alloy steel in plates, bars or sheets.
Nucor announced Q4 2021 results on Jan. 27. Revenue surged 97% YOY to $10.36 billion. Net earnings came in at $2.25 billion, or $7.97 per diluted share, compared to $399 million, or $1.30 per diluted share, in the previous year. Cash and equivalents ended the period at $2.76 billion.
Over the past year, the global economic recovery has created strong demand for steel products. Automakers and other industrial buyers continue to support overall steel use.
The Street also expects increased infrastructure spending to boost revenue. In addition, President Joe Biden’s administration has made it a priority to “buy American,” which provides Nucor with a critical competitive advantage.
NUE stock is priced at $117, up 106% over the past 12 months. Shares are trading at 5.7 times forward earnings and 1 times trailing sales. The 12-month median price forecast for Nucor stock stands at $109. Given the recent runup in price, interested readers could wait for a pullback toward $105 before hitting the “buy” button.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
The post 7 Dividend Aristocrats That Could Outpace This Volatile Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 7 Industrial Stocks to Buy As Tech Stocks Tumble With that information, here are seven dividend aristocrats that could outperform today’s volatile market: AbbVie (NYSE:ABBV) Caterpillar (NYSE:CAT) Exxon Mobil (NYSE:XOM) Johnson & Johnson (NYSE:JNJ) Lowe’s (NYSE:LOW) NextEra Energy (NYSE:NEE) Nucor (NYSE:NUE) Dividend Aristocrats: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $102.05 – $144.42 Dividend yield: 4% Pharmaceutical group AbbVie has a strong exposure to immunology and oncology. But in 2023, AbbVie will lose its U.S. patent exclusivity for Humira, which is prescribed for numerous inflammatory conditions. Understandably, the imminent development could restrain ABBV stock’s valuation. | 7 Industrial Stocks to Buy As Tech Stocks Tumble With that information, here are seven dividend aristocrats that could outperform today’s volatile market: AbbVie (NYSE:ABBV) Caterpillar (NYSE:CAT) Exxon Mobil (NYSE:XOM) Johnson & Johnson (NYSE:JNJ) Lowe’s (NYSE:LOW) NextEra Energy (NYSE:NEE) Nucor (NYSE:NUE) Dividend Aristocrats: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $102.05 – $144.42 Dividend yield: 4% Pharmaceutical group AbbVie has a strong exposure to immunology and oncology. But in 2023, AbbVie will lose its U.S. patent exclusivity for Humira, which is prescribed for numerous inflammatory conditions. Understandably, the imminent development could restrain ABBV stock’s valuation. | 7 Industrial Stocks to Buy As Tech Stocks Tumble With that information, here are seven dividend aristocrats that could outperform today’s volatile market: AbbVie (NYSE:ABBV) Caterpillar (NYSE:CAT) Exxon Mobil (NYSE:XOM) Johnson & Johnson (NYSE:JNJ) Lowe’s (NYSE:LOW) NextEra Energy (NYSE:NEE) Nucor (NYSE:NUE) Dividend Aristocrats: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $102.05 – $144.42 Dividend yield: 4% Pharmaceutical group AbbVie has a strong exposure to immunology and oncology. But in 2023, AbbVie will lose its U.S. patent exclusivity for Humira, which is prescribed for numerous inflammatory conditions. Understandably, the imminent development could restrain ABBV stock’s valuation. | 7 Industrial Stocks to Buy As Tech Stocks Tumble With that information, here are seven dividend aristocrats that could outperform today’s volatile market: AbbVie (NYSE:ABBV) Caterpillar (NYSE:CAT) Exxon Mobil (NYSE:XOM) Johnson & Johnson (NYSE:JNJ) Lowe’s (NYSE:LOW) NextEra Energy (NYSE:NEE) Nucor (NYSE:NUE) Dividend Aristocrats: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $102.05 – $144.42 Dividend yield: 4% Pharmaceutical group AbbVie has a strong exposure to immunology and oncology. But in 2023, AbbVie will lose its U.S. patent exclusivity for Humira, which is prescribed for numerous inflammatory conditions. Understandably, the imminent development could restrain ABBV stock’s valuation. |
23606.0 | 2022-02-14 00:00:00 UTC | Got $1,000? 5 Buffett Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever | nan | nan | Warren Buffett's investing savvy through his holding company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has made more millionaires than almost every other company in history. For instance, a $1,000 investment made in the stock when Buffett stepped in as CEO in 1965 would now be worth $18 million.
Though Buffett's investing objectives may not perfectly align with yours, it's still worth tracking his portfolio because of his record for picking long-term winners. Here are five stocks from the Oracle of Omaha's portfolio that you should consider buying and holding forever.
Image source: The Motley Fool.
1. AbbVie
The first stock in Berkshire Hathaway's portfolio to buy is the pharma stock AbbVie (NYSE: ABBV), with Berkshire's stake in AbbVie currently valued at $2 billion. AbbVie's dividend yield of 4% is triple the S&P 500's 1.3%.
And based on AbbVie's dividend payout ratio of 40.9% last year, the company has plenty of room to continue upping its dividend. That explains why the most recent dividend increase was a robust 8.5%.
Even with its top-selling drug in the world called Humira set to face biosimilar competition in the U.S. starting next year, AbbVie should be fine. That's because AbbVie has several dozen indications in its pipeline at various stages of development. Recent approvals like Rinvoq's eczema indication in the U.S. should help AbbVie to quickly bounce back from Humira's U.S. patent expiration while earlier-stage drugs in development should secure the company's long-term future.
This helps to explain why analysts expect AbbVie will produce a 5% annual earnings growth over the next five years. And at a forward price-to-earnings (P/E) ratio of 11.8, the stock is a solid value pick. This is despite the fact that the general drug manufacturer industry average forward P/E ratio is 10.6. AbbVie's track record justifies a slightly higher valuation multiple compared to its industry.
2. Bristol Myers Squibb
The next Buffett stock to think about purchasing is pharma stock Bristol Myers Squibb (NYSE: BMY). Berkshire Hathaway's position in Bristol Myers Squibb is worth $1.4 billion.
Bristol Myers Squibb's dividend yield is an enticing 3.2%. Given the company's 26.1% dividend payout ratio last year, there is tons of flexibility to keep growing the dividend. That's probably why the company recently hiked its quarterly dividend 10.2% to $0.54 per share.
Despite each of its top three selling drugs set to have patents expire sometime this decade (Revlimid, Opdivo, and Eliquis), Bristol Myers Squibb is well prepared. This is evidenced by the 50+ compounds that it currently has under development.
At a forward P/E ratio of 8.1, the risks of Bristol Myers Squibb's upcoming patent expirations look to be more than priced in at this time. That's because this is well below the general drug manufacturer industry average of 10.6. This creates an attractive buying opportunity for income and value investors.
3. Visa
The third stock in Berkshire Hathaway's portfolio to consider buying is the payments processing stock Visa (NYSE: V), with Berkshire's stake in Visa valued at $2.2 billion. Visa's 0.7% dividend yield is approximately half of the S&P 500's yield. But with a payout ratio of 21.7% in its previous fiscal year, there appear to be many years of dividend growth in Visa's future. The most recent 17.5% dividend increase supports this argument.
Visa looks positioned to come out of the COVID-19 pandemic stronger than ever. According to research released last year, 59% of North Americans and Europeans tried a new payment method in the last 12 months. Visa has the size and scale to expand into the payment methods of the future, which is why analysts anticipate the company will deliver 18% annual earnings growth in the next five years.
At the current $228 share price, Visa is priced at a forward P/E ratio of 26.5. While this is well above the credit services industry average of 15.6, this premium is deserved because Visa doesn't carry the credit risk of its peers. This is an appealing price to pay for the stock's growth prospects over the long haul.
4. Mastercard
Another Buffett stock to contemplate purchasing is the payments processing stock Mastercard (NYSE: MA). Berkshire Hathaway's position in the stock is worth $1.6 billion. Mastercard's 0.5% dividend yield isn't going to turn any heads, but it's still about as much as a high-yield savings account offers. Given that Mastercard's dividend payout ratio was 21% last year, the stock's dividend should grow like a weed. Mastercard's recent 11.4% payout increase is proof of this argument.
And just like Visa, Mastercard should benefit from recent interest in new payment methods. That spells out why analysts are forecasting 25% annual earnings growth through the next five years. The superior growth to Visa arguably justifies the higher forward P/E ratio of 29. And like Visa, Mastercard doesn't extend credit to customers, which translates into a lower-risk business model and makes it a great buy for growth investors.
5. Verizon
The fifth stock in Berkshire Hathaway's portfolio to ponder buying is the telecom stock Verizon (NYSE: VZ), with Berkshire's stake in Verizon valued at $8.4 billion. Verizon yields a massive 4.8% at the current share price. And investors can count on the payout to continue growing because the company's payout ratio last year was 46.8%.
This low payout ratio leaves Verizon with the capital necessary to roll out 5G in the markets that don't yet have the next generation of wireless communications. As a result, analysts are expecting Verizon will produce a 4% earnings growth each year over the next five years. Since Verizon is trading at a current P/E ratio of less than 10, the stock looks to be an appealing value and income play. Income investors looking for a slow and steady grower would do well to consider buying Verizon.
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Kody Kester owns AbbVie, Bristol Myers Squibb, Verizon Communications, and Visa. The Motley Fool owns and recommends Berkshire Hathaway (B shares), Bristol Myers Squibb, Mastercard, and Visa. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Recent approvals like Rinvoq's eczema indication in the U.S. should help AbbVie to quickly bounce back from Humira's U.S. patent expiration while earlier-stage drugs in development should secure the company's long-term future. AbbVie The first stock in Berkshire Hathaway's portfolio to buy is the pharma stock AbbVie (NYSE: ABBV), with Berkshire's stake in AbbVie currently valued at $2 billion. AbbVie's dividend yield of 4% is triple the S&P 500's 1.3%. | AbbVie The first stock in Berkshire Hathaway's portfolio to buy is the pharma stock AbbVie (NYSE: ABBV), with Berkshire's stake in AbbVie currently valued at $2 billion. AbbVie's dividend yield of 4% is triple the S&P 500's 1.3%. And based on AbbVie's dividend payout ratio of 40.9% last year, the company has plenty of room to continue upping its dividend. | AbbVie The first stock in Berkshire Hathaway's portfolio to buy is the pharma stock AbbVie (NYSE: ABBV), with Berkshire's stake in AbbVie currently valued at $2 billion. AbbVie's dividend yield of 4% is triple the S&P 500's 1.3%. And based on AbbVie's dividend payout ratio of 40.9% last year, the company has plenty of room to continue upping its dividend. | AbbVie The first stock in Berkshire Hathaway's portfolio to buy is the pharma stock AbbVie (NYSE: ABBV), with Berkshire's stake in AbbVie currently valued at $2 billion. AbbVie's dividend yield of 4% is triple the S&P 500's 1.3%. And based on AbbVie's dividend payout ratio of 40.9% last year, the company has plenty of room to continue upping its dividend. |
23607.0 | 2022-02-14 00:00:00 UTC | Zacks Industry Outlook Highlights: Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex Pharmaceuticals | ABBV | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-sanofi-abbvie-bristol-myers-amgen-and-vertex | nan | nan | For Immediate Release
Chicago, IL – February 14, 2022 – Today, Zacks Equity Research discusses Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX.
Industry: Big Pharma
Link: https://www.zacks.com/stock/news/1866486/will-the-rally-of-these-5-big-drugmakers-continue-in-2022
The broader market index, S&P 500, has been declining since the beginning of 2022 as the economy reels under the pressure of uncertainty related to macro factors, including interest rate hike, supply chain constraints and higher inflation.
The uncertainty around the macro factors has hurt the majority of medical sector indices more than the wider market index. While S&P 500 is down 3.7% so far this year, the Medical sector has declined 6.3%. Within the Medical sector, the Large Cap Pharmaceuticals industry has declined 2.9%. The Biomedical and Genetics industry has declined 10.9% while the Drugs industry has declined 9.5% year to date.
Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex Pharmaceuticals — that have outperformed their sector index as well as the wider Medical and S&P 500 indices.
We note that the Federal Reserve kept the federal interest rate target range unchanged in its recently-concluded meeting last month. However, the monetary policymakers for the United States have hinted at increasing the federal interest rate target range soon amid a high inflation rate.
Moreover, the COVID-19 pandemic had disrupted the supply chain for companies across the globe in the past two years, hurting the delivery of raw materials as well as finished products. The supply-chain issues have resulted in lower revenues for several companies. Although the supply-chain constraint seems to ease as COVID-19 vaccines and drugs are helping to restrict the spread of infection cases, the uncertainty still lingers.
All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022.
While Vertex carries a Zacks Rank #2 (Buy), Sanofi, AbbVie, Bristol-Myers and Amgen carry a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sanofi
Demand for Sanofi’s key drug, Dupixent was robust in 2021 driven by continued growth in atopic dermatitis and rapid uptake in asthma and chronic rhinosinusitis with nasal polyposis indications. The strong performance of the drug is likely to continue as it gains market share despite COVID-related fewer physician visits. Moreover, multiple approvals for new indications are expected in the near future.
Sanofi also possesses a leading vaccine operation, another key driver for the company’s top line.
Sanofi has several promising candidates in its pipeline with several of them in late-stage development. Study data readouts lined up for 2022 will be one of the factors driving the company’s share price. Potential approval to new drugs from Sanofi’s pipeline will boost revenues.
The company’s new products are now delivering revenues greater than the loss of exclusivity impact. Moreover, Sanofi’s cost savings come from the simplification of its organization, enhanced manufacturing productivity, streamlining of product portfolio and alignment of the sales force.
Shares of SNY have gained 5.6% so far this year.
Sanofi price | Sanofi Quote
AbbVie
AbbVie has several drivers that are likely to help it deliver a robust performance going forward. First, AbbVie has been successful in expanding the labels of its cancer drugs, Imbruvica and Venclexta.
These two oncology drugs have been witnessing strong demand across the majority of their approved indications, which is expected to continue in 2022, driving sales of these drugs further. Second, the company has been successfully developing two immunology drugs — Skyrizi and Rinvoq — and expanding their targeted patient population through label expansions.
These two drugs are being built as a replacement for its biggest drug, Humira — which is set to lose patent exclusivity in the United States next year. The loss of exclusivity for Humira in the United States will likely dent AbbVie’s top line significantly.
However, Skyrizi and Rinvoq will likely help cushion the loss. The company is also confident that these two drugs along with other key drugs will help it return to growth in 2024 following Humira’s patent loss in 2023.
Moreover, the addition of Botox with the acquisition of Allergan created a significant revenue stream for AbbVie with strong growth potential. Other key drugs like Juvederm added with the Allergan acquisition are also benefiting the company well. The rise in sales of Allergan’s drugs is likely to continue in 2022 on the back of strong demand.
Shares of ABBV have gained 5.4% so far this year.
AbbVie Inc. price | AbbVie Inc. Quote
Bristol-Myers
Bristol-Myers witnessed a recovery in 2021 as Opdivo sales returned to growth after a slowdown in 2020. The recovery in Opdivo sales is likely to continue in 2022 with a likely improvement in physician visits as well as its recent label expansion in lung cancer, renal cancer and gastric cancer.
The stellar performance of key drugs, namely Revlimid and Eliquis, should sustain their strong momentum in 2022. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share. Revlimid continues to gain from demand for triple-based therapies and increasing treatment duration.
The company has also been boosting its commercial portfolio by gaining approvals for new drugs. These new drugs are also slated to bring additional revenues for the company in 2022.
Shares of BMY have gained 6.7% so far this year.
Bristol Myers Squibb Company price | Bristol Myers Squibb Company Quote
Amgen
Amgen’s newer drugs like Prolia, Evenity and Xgeva have been witnessing an increase in sales on the back of incremental market share or label expansions. Moreover, the company reported higher sales from its biosimilar portfolio in 2021. The growth of key drugs and biosimilars is likely to continue in 2022.
Moreover, Amgen has several interesting candidates in its pipeline, which represent significant commercial potential. A promising drug, Lumakras, was approved by the FDA in May 2021 followed by the European Commission last month for treating advanced non-small cell lung cancer. This drug has the potential to bring significant revenues for the company as it targets the lucrative lung cancer market.
Recently, Amgen provided a robust outlook for the decade ending 2030. Amgen estimates its revenues to increase by mid-single-digit percentage points every year till 2030. The adjusted earnings are expected to exhibit a compound annual growth rate in the range of high single-digit to low double-digit percentage points in the same timeframe.
The company expects its biosimilar revenues to more than double by 2030 compared with 2021 sales. The company not only has the potential to boost investors’ wealth in 2022 but can also grow wealth throughout the decade.
Shares of AMGN have gained 1.7% so far this year.
Amgen Inc. price | Amgen Inc. Quote
Vertex
Vertex’s cystic franchise (“CF”) has demonstrated strong growth despite the impact of the pandemic, mainly driven by its triple therapy, Trikafta/Kaftrio. Consistent positive regulatory approvals have led to the strong growth in revenues. Moreover, Vertex faces only minimal competition in its core CF franchise. We expect the company’s CF franchise performance to be stronger as the negative impacts of COVID-19 gradually wither away.
Meanwhile, Vertex has a broad clinical non-CF pipeline across six disease areas, which are progressing rapidly with data from multiple programs expected in 2022. Any positive non-CF pipeline updates will drive the company’s share price as it will create an opportunity to diversify its revenue stream.
Shares of VRTX have gained 7.5% so far this year.
Vertex Pharmaceuticals Incorporated price | Vertex Pharmaceuticals Incorporated Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – February 14, 2022 – Today, Zacks Equity Research discusses Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX. Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex Pharmaceuticals — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. | For Immediate Release Chicago, IL – February 14, 2022 – Today, Zacks Equity Research discusses Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX. Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex Pharmaceuticals — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. | Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex Pharmaceuticals — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. For Immediate Release Chicago, IL – February 14, 2022 – Today, Zacks Equity Research discusses Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. | For Immediate Release Chicago, IL – February 14, 2022 – Today, Zacks Equity Research discusses Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX. Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex Pharmaceuticals — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. |
23608.0 | 2022-02-14 00:00:00 UTC | Buffett's Berkshire bought Activision Blizzard before deal | ABBV | https://www.nasdaq.com/articles/buffetts-berkshire-bought-activision-blizzard-before-deal | nan | nan | Adds Daniel Loeb purchase
Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nloaded up on shares in video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company, according to a regulatory filing.
Microsoft announced its acquisition of "Call of Duty" maker Activision Blizzard on Jan. 18, sending Activision's shares surging. It is up more than 20% year-to-date.
Berkshire said in a regulatory filing on Monday it added nearly 14.7 million shares of Activision in the fourth quarter while hedge fund Third Point, run by Daniel Loeb, added a new position, buying 2 million shares in the fourth quarter.
Investors monitor Berkshire's investments closely to see where Buffett and his investment managers Todd Combs and Ted Weschler see value.
The filings do not say who bought and sold what, though Buffett generally handles larger investments.
Monday's filing suggests that Berkshire remains resistant to buying stocks, after having been a net seller throughout much of 2021.
The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December.
The sales and Buffett's six-year drought in buying large whole companies have contributed to Berkshire's boosting its cash holdings as of Sept. 30, 2021, to a record $149.2 billion, despite at least $21.9 billion of stock buybacks.
Berkshire is expected to disclose more about its stock purchases, buybacks and cash on Feb. 26 when it releases year-end results and Buffett's widely read annual shareholder letter.
Berkshire is based in Omaha, Nebraska. It also owns dozens of businesses including the BNSF railroad, Geico BRKGE.UL auto insurance and Dairy Queen ice cream.
(Reporting by David Randall, Svea Herbst-Bayliss and Jonathan Stempel in New York Editing by Megan Davies, Matthew Lewis and Jane Wardell)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. Adds Daniel Loeb purchase Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nloaded up on shares in video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company, according to a regulatory filing. Berkshire is expected to disclose more about its stock purchases, buybacks and cash on Feb. 26 when it releases year-end results and Buffett's widely read annual shareholder letter. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. Adds Daniel Loeb purchase Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nloaded up on shares in video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company, according to a regulatory filing. Microsoft announced its acquisition of "Call of Duty" maker Activision Blizzard on Jan. 18, sending Activision's shares surging. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. Adds Daniel Loeb purchase Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nloaded up on shares in video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company, according to a regulatory filing. Berkshire said in a regulatory filing on Monday it added nearly 14.7 million shares of Activision in the fourth quarter while hedge fund Third Point, run by Daniel Loeb, added a new position, buying 2 million shares in the fourth quarter. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. Adds Daniel Loeb purchase Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nloaded up on shares in video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company, according to a regulatory filing. Berkshire said in a regulatory filing on Monday it added nearly 14.7 million shares of Activision in the fourth quarter while hedge fund Third Point, run by Daniel Loeb, added a new position, buying 2 million shares in the fourth quarter. |
23609.0 | 2022-02-14 00:00:00 UTC | Buffett's Berkshire buys Activision Blizzard, cuts healthcare positions | ABBV | https://www.nasdaq.com/articles/buffetts-berkshire-buys-activision-blizzard-cuts-healthcare-positions | nan | nan | By David Randall
Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it added nearly 14.7 million shares of video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company.
The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December.
The changes were disclosed in a regulatory filing detailing Berkshire's U.S.-listed holdings at the end of the year.
Microsoft announced its acquisition of "Call of Duty" maker Activision Blizzard on Jan. 18.
Investors monitor Berkshire's investments closely to see where Buffett and his investment managers Todd Combs and Ted Weschler see value.
The filings do not say who bought and sold what, though Buffett generally handles larger investments.
Monday's filing suggests that Berkshire remains resistant to buying stocks, after having been a net seller throughout much of 2021.
The sales and Buffett's six-year drought in buying large whole companies have contributed to Berkshire's boosting its cash holdings as of Sept. 30, 2021, to a record $149.2 billion, despite at least $21.9 billion of stock buybacks.
Berkshire is expected to disclose more about its stock purchases, buybacks and cash on Feb. 26 when it releases year-end results and Buffett's widely read annual shareholder letter.
Berkshire is based in Omaha, Nebraska. It also owns dozens of businesses including the BNSF railroad, Geico BRKGE.UL auto insurance and Dairy Queen ice cream.
(Reporting by David Randall and Jonathan Stempel in New York Editing by Matthew Lewis)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. By David Randall Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it added nearly 14.7 million shares of video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company. Berkshire is expected to disclose more about its stock purchases, buybacks and cash on Feb. 26 when it releases year-end results and Buffett's widely read annual shareholder letter. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. By David Randall Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it added nearly 14.7 million shares of video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company. Microsoft announced its acquisition of "Call of Duty" maker Activision Blizzard on Jan. 18. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. By David Randall Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it added nearly 14.7 million shares of video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company. The sales and Buffett's six-year drought in buying large whole companies have contributed to Berkshire's boosting its cash holdings as of Sept. 30, 2021, to a record $149.2 billion, despite at least $21.9 billion of stock buybacks. | The company also added to its position in energy giant Chevron Corp CVX.N while slicing its position in healthcare names including Bristol-Myers Squibb Co and Abbvie Inc ABBV.N during the quarter that ended in December. By David Randall Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it added nearly 14.7 million shares of video game maker Activision Blizzard Inc ATVI.O ahead of Microsoft Corp's MSFT.O $68.7 billion deal to buy the company. The sales and Buffett's six-year drought in buying large whole companies have contributed to Berkshire's boosting its cash holdings as of Sept. 30, 2021, to a record $149.2 billion, despite at least $21.9 billion of stock buybacks. |
23610.0 | 2022-02-12 00:00:00 UTC | Is the FDA's Partial Hold Bad News for Gilead Investors? | ABBV | https://www.nasdaq.com/articles/is-the-fdas-partial-hold-bad-news-for-gilead-investors | nan | nan | With Gilead Sciences' (NASDAQ: GILD) drug magrolimab now under a partial clinical hold with the U.S. Food and Drug Administration, how big of a setback could it be for the company? In this segment from "This Week in Healthcare," recorded on Jan. 31, Motley Fool contributors Brian Orelli and Keith Speights discuss what's at stake for investors as more news comes in on magrolimab.
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Brian Orelli: The FDA put Gilead Sciences' magrolimab on partial clinical hold. This is a drug that targets CD47 that it got from its acquisition of a company called Forty Seven. How big of a deal is this for Gilead? Then there are a ton of other companies that are also developing drugs that target CD47. How do you think this might affect Gilead's competition?
Keith Speights: Brian, what's happened here is that there seems to be an imbalance between the numbers of suspected unexpected adverse serious adverse reactions that were reported by investigators in different arms of Gilead's clinical trials of magrolimab. This partial clinical hold by the FDA means that patients in the studies who are already receiving this experimental drug can continue doing so. However, Gilead will not screen or enroll any new patients while this partial hold remains in effect.
I think it's really just too soon to know how big of a deal this might be for Gilead. Investors as a whole seem to realize that as well, Gilead's shares fell 2 percent or so after this news broke last week, but it rebounded within a couple of days. I think investors know that. We just don't know yet on how big of a story this is for the company. If there are serious issues with magrolimab though, I think it'll be a big setback for Gilead. The company paid $4.9 billion to acquire Forty Seven in 2020. magrolimab was the crown jewel in that deal. If this drug just doesn't pan out for whatever reason, then that's a big setback for Gilead Sciences.
Then of course, if magrolimab has big problems, there's at least a reasonable chance that other anti-CD47 therapies could also, you mentioned that there are quite a few out there just some that come to mind that are developing similar therapies, Pfizer bought Trillium Therapeutics last year for nearly 2.3 billion dollars to get its anti-CD47 program added to its pipeline. AbbVie and Boehringer Ingelheim are a couple of other big drugmakers without anti-CD47 programs that they forward through licensing deals. Of course, there are quite a few others. If Gilead has bad news, that bad news could ripple throughout the industry.
Brian Orelli: Yeah, it's disappointing that we don't know what the serious adverse events are. Because that would maybe take some stabs at whether it's a class effect or not. But at this point, we just don't know.
Keith Speights: Yeah, I think the only reading between the tea leaves here, the only thing we can look at as a positive is that it was a partial clinical hold instead of a full clinical hold, so that at least, to me, gives a hint anyway that it may not be too terribly bad if the FDA is still OK with existing patients continuing to receive treatment.
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Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Pfizer. The Motley Fool recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie and Boehringer Ingelheim are a couple of other big drugmakers without anti-CD47 programs that they forward through licensing deals. Keith Speights owns AbbVie and Pfizer. In this segment from "This Week in Healthcare," recorded on Jan. 31, Motley Fool contributors Brian Orelli and Keith Speights discuss what's at stake for investors as more news comes in on magrolimab. | AbbVie and Boehringer Ingelheim are a couple of other big drugmakers without anti-CD47 programs that they forward through licensing deals. Keith Speights owns AbbVie and Pfizer. With Gilead Sciences' (NASDAQ: GILD) drug magrolimab now under a partial clinical hold with the U.S. Food and Drug Administration, how big of a setback could it be for the company? | AbbVie and Boehringer Ingelheim are a couple of other big drugmakers without anti-CD47 programs that they forward through licensing deals. Keith Speights owns AbbVie and Pfizer. With Gilead Sciences' (NASDAQ: GILD) drug magrolimab now under a partial clinical hold with the U.S. Food and Drug Administration, how big of a setback could it be for the company? | AbbVie and Boehringer Ingelheim are a couple of other big drugmakers without anti-CD47 programs that they forward through licensing deals. Keith Speights owns AbbVie and Pfizer. In this segment from "This Week in Healthcare," recorded on Jan. 31, Motley Fool contributors Brian Orelli and Keith Speights discuss what's at stake for investors as more news comes in on magrolimab. |
23611.0 | 2022-02-11 00:00:00 UTC | 2 Dividend Stocks That Are Better Investments Than AT&T | ABBV | https://www.nasdaq.com/articles/2-dividend-stocks-that-are-better-investments-than-att | nan | nan | Investors in AT&T (NYSE: T) are likely down on the news that they will be collecting less in dividends from the telecom giant. An adjustment, however, wasn't a surprise given that the company was spinning off WarnerMedia and hinted last year that it would need to "resize" its dividend.
However, there are arguably better dividend stocks out there than AT&T. Two high-yielding ones that investors might want to pivot to instead are Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV). Over the past three years, their total returns (including dividends) have eclipsed those from AT&T:
ABBV total return level. Data by YCharts.
1. Innovative Industrial Properties
Innovative Industrial Properties (IIP) is a relatively new kid on the block in terms of dividends. That's because the stock only went public back in late 2016. But since then, the cannabis-focused real estate investment trust (REIT) has been on a tear, not only growing its revenue but also significantly raising its dividend income along the way.
Today, its quarterly dividend payment of $1.50 yields 3.1%, which is more than double the S&P 500 average of 1.3%. And early investors are collecting much more on their initial investments. When the company started paying dividends in 2017, it paid just $0.15 per quarter.
The business doesn't wait a whole year to raise its payouts, either. The longest that investors have had the same payout was three quarters in a row; IIP normally makes multiple hikes a year. The $1.50 payment it is making now is 21% higher than the $1.24 it was paying just a year earlier.
And the business itself is growing. As more marijuana companies look for space to rent or raise cash through sale-and-leaseback agreements, IIP will continue to find ways to expand. In the last three quarters, revenue of $145.6 million has nearly doubled from the $79.8 million it reported over the same period a year earlier. And its funds from operations for the three-month period ending Sept. 30, 2021, of $1.70 per share are sufficient to cover its dividend. But with more growth still likely on the horizon, it's likely that IIP's earnings, along with its dividend payments, will continue to rise.
Investors in IIP get not just a good dividend stock, but also a fast-growing one that can deliver superior returns, unlike AT&T.
Image source: Getty Images.
2. AbbVie
Drugmaker AbbVie pays a higher yield than IIP today at just over 4%. Admittedly, its growth isn't nearly as impressive. However, AbbVie is a Dividend King and has an impressive track record for raising its dividend payments. Its most recent hike was an 8.5% increase from $1.30 to $1.41 per quarter.
The company is also coming off a strong quarterly result for the period ending Dec. 31, 2021, during which sales of $14.9 billion grew by 7.4% year over year. Revenue from many of its top products rose at rates of more than 30%, including those it acquired from Botox-maker Allergan in 2020.
And there is likely more growth ahead as the company anticipates $24 billion in adjusted free cash flow this year, with $2 billion of that going toward strengthening its pipeline. This year, AbbVie expects to generate diluted per-share earnings between $9.26 and $9.46, which would put its payout ratio at 60%, leaving plenty of room for more rate hikes.
With AbbVie, investors are getting a solid investment that in the past year generated a profit margin of 20% and is likely to remain a top growth stock to own for the foreseeable future. Its impressive high-yielding dividend just makes it an even better buy, and a more well-rounded investment than AT&T.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This year, AbbVie expects to generate diluted per-share earnings between $9.26 and $9.46, which would put its payout ratio at 60%, leaving plenty of room for more rate hikes. With AbbVie, investors are getting a solid investment that in the past year generated a profit margin of 20% and is likely to remain a top growth stock to own for the foreseeable future. Two high-yielding ones that investors might want to pivot to instead are Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV). | Two high-yielding ones that investors might want to pivot to instead are Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV). AbbVie Drugmaker AbbVie pays a higher yield than IIP today at just over 4%. Over the past three years, their total returns (including dividends) have eclipsed those from AT&T: ABBV total return level. | However, AbbVie is a Dividend King and has an impressive track record for raising its dividend payments. With AbbVie, investors are getting a solid investment that in the past year generated a profit margin of 20% and is likely to remain a top growth stock to own for the foreseeable future. Two high-yielding ones that investors might want to pivot to instead are Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV). | Two high-yielding ones that investors might want to pivot to instead are Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV). Over the past three years, their total returns (including dividends) have eclipsed those from AT&T: ABBV total return level. AbbVie Drugmaker AbbVie pays a higher yield than IIP today at just over 4%. |
23612.0 | 2022-02-11 00:00:00 UTC | Will the Rally of These 5 Big Drugmakers Continue in 2022? | ABBV | https://www.nasdaq.com/articles/will-the-rally-of-these-5-big-drugmakers-continue-in-2022 | nan | nan | The broader market index, S&P 500, has been declining since the beginning of 2022 as economy reel under the pressure of uncertainty related to macro factors, including interest rate hike, supply chain constraints and higher inflation.
The uncertainty around the macro factors has hurt the majority of medical sector indices more than the wider market index. While S&P 500 is down 3.7% so far this year, the Medical sector has declined 6.3%. Within the Medical sector, the Large Cap Pharmaceuticals industry has declined 2.9%. The Biomedical and Genetics industry has declined 10.9% while the Drugs industry has declined 9.5% year to date.
Image Source: Zacks Investment Research
Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX — that have outperformed their sector index as well as the wider Medical and S&P 500 indices.
We note that the Federal Reserve kept the federal interest rate target range unchanged in its recently-concluded meeting last month. However, the monetary policymakers for the United States have hinted at increasing the federal interest rate target range soon amid a high inflation rate. Moreover, the COVID-19 pandemic had disrupted the supply chain for companies across the globe in the past two years, hurting the delivery of raw materials as well as finished products. The supply-chain issues have resulted in lower revenues for several companies. Although the supply-chain constraint seems to ease as COVID-19 vaccines and drugs are helping to restrict the spread of infection cases, the uncertainty still lingers.
All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022.
While Vertex carries a Zacks Rank #2 (Buy), Sanofi, AbbVie, Bristol-Myers and Amgen carry a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sanofi
Demand for Sanofi’s key drug, Dupixent was robust in 2021 driven by continued growth in atopic dermatitis and rapid uptake in asthma and chronic rhinosinusitis with nasal polyposis indications. The strong performance of the drug is likely to continue as it gains market share despite COVID-related fewer physician visits. Moreover, multiple approvals for new indications are expected in the near future.
Sanofi also possesses a leading vaccine operation, another key driver for the company’s top line.
Sanofi has several promising candidates in its pipeline with several of them in late-stage development. Study data readouts lined up for 2022 will be one of the factors driving the company’s share price. Potential approval to new drugs from Sanofi’s pipeline will boost revenues. The company’s new products are now delivering revenues greater than the loss of exclusivity impact. Moreover, Sanofi’s cost savings come from the simplification of its organization, enhanced manufacturing productivity, streamlining of products portfolio and alignment of the sales force.
Shares of SNY have gained 5.6% so far this year.
Sanofi Price
Sanofi price | Sanofi Quote
AbbVie
AbbVie has several drivers that are likely to help it deliver a robust performance going forward. First, AbbVie has been successful in expanding the labels of its cancer drugs, Imbruvica and Venclexta. These two oncology drugs have been witnessing strong demand across the majority of their approved indications, which is expected to continue in 2022, driving sales of these drugs further. Second, the company has been successfully developing two immunology drugs — Skyrizi and Rinvoq — and expanding their targeted patient population through label expansions. These two drugs are being built as a replacement for its biggest drug, Humira — which is set to lose patent exclusivity in the United States next year. The loss of exclusivity for Humira in the United States will likely dent AbbVie’s top line significantly. However, Skyrizi and Rinvoq will likely help cushion the loss. The company is also confident that these two drugs along with other key drugs will help it return to growth in 2024 following Humira’s patent loss in 2023.
Moreover, the addition of Botox with the acquisition of Allergan created a significant revenue stream for AbbVie with strong growth potential. Other key drugs like Juvederm added with the Allergan acquisition are also benefiting the company well. The rise in sales of Allergan’s drugs is likely to continue in 2022 on the back of strong demand.
Shares of ABBV have gained 5.4% so far this year.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Bristol-Myers
Bristol-Myers witnessed a recovery in 2021 as Opdivo sales returned to growth after a slowdown in 2020. The recovery in Opdivo sales is likely to continue in 2022 with a likely improvement in physician visits as well as its recent label expansion in lung cancer, renal cancer and gastric cancer. The stellar performance of key drugs, namely Revlimid and Eliquis, should sustain their strong momentum in 2022. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share. Revlimid continues to gain from demand for triple-based therapies and increasing treatment duration.
The company has also been boosting its commercial portfolio by gaining approvals for new drugs. These new drugs are also slated to bring additional revenues for the company in 2022.
Shares of BMY have gained 6.7% so far this year.
Bristol Myers Squibb Company Price
Bristol Myers Squibb Company price | Bristol Myers Squibb Company Quote
Amgen
Amgen’s newer drugs like Prolia, Evenity and Xgeva have been witnessing an increase in sales on the back of incremental market share or label expansions. Moreover, the company reported higher sales from its biosimilar portfolio in 2021. The growth of key drugs and biosimilars is likely to continue in 2022.
Moreover, Amgen has several interesting candidates in its pipeline, which represent significant commercial potential. A promising drug, Lumakras, was approved by the FDA in May 2021 followed by the European Commission last month for treating advanced non-small cell lung cancer. This drug has the potential to bring significant revenues for the company as it targets the lucrative lung cancer market.
Recently, Amgen provided a robust outlook for the decade ending 2030. Amgen estimates its revenues to increase by mid-single-digit percentage points every year till 2030. The adjusted earnings are expected to exhibit a compound annual growth rate in the range of high single-digit to low double-digit percentage points in the same timeframe. The company expects its biosimilar revenues to more than double by 2030 compared with 2021 sales. The company not only has the potential to boost investors’ wealth in 2022 but can also grow wealth throughout the decade.
Shares of AMGN have gained 1.7% so far this year.
Amgen Inc. Price
Amgen Inc. price | Amgen Inc. Quote
Vertex
Vertex’s cystic franchise (“CF”) has demonstrated strong growth despite the impact of the pandemic, mainly driven by its triple therapy, Trikafta/Kaftrio. Consistent positive regulatory approvals have led to the strong growth in revenues. Moreover, Vertex faces only minimal competition in its core CF franchise. We expect the company’s CF franchise performance to be stronger as the negative impacts of COVID-19 gradually wither away.
Meanwhile, Vertex has a broad clinical non-CF pipeline across six disease areas, which are progressing rapidly with data from multiple programs expected in 2022. Any positive non-CF pipeline updates will drive the company’s share price as it will create an opportunity to diversify its revenue stream.
Shares of VRTX have gained 7.5% so far this year.
Vertex Pharmaceuticals Incorporated Price
Vertex Pharmaceuticals Incorporated price | Vertex Pharmaceuticals Incorporated Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. While Vertex carries a Zacks Rank #2 (Buy), Sanofi, AbbVie, Bristol-Myers and Amgen carry a Zacks Rank of 3 (Hold). | Image Source: Zacks Investment Research Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. While Vertex carries a Zacks Rank #2 (Buy), Sanofi, AbbVie, Bristol-Myers and Amgen carry a Zacks Rank of 3 (Hold). | Image Source: Zacks Investment Research Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. While Vertex carries a Zacks Rank #2 (Buy), Sanofi, AbbVie, Bristol-Myers and Amgen carry a Zacks Rank of 3 (Hold). | Image Source: Zacks Investment Research Amid this turmoil, investors can place their bets on these five big pharma and biotech companies — Sanofi SNY, AbbVie ABBV, Bristol-Myers BMY, Amgen AMGN and Vertex Pharmaceuticals VRTX — that have outperformed their sector index as well as the wider Medical and S&P 500 indices. All the five companies — Sanofi, AbbVie, Bristol-Myers, Amgen and Vertex — are still in positive territory on the back of strong fundamentals, which are likely to help them thrive going forward in 2022. While Vertex carries a Zacks Rank #2 (Buy), Sanofi, AbbVie, Bristol-Myers and Amgen carry a Zacks Rank of 3 (Hold). |
23613.0 | 2022-02-11 00:00:00 UTC | 2 Green Flags For Gilead Sciences' Future | ABBV | https://www.nasdaq.com/articles/2-green-flags-for-gilead-sciences-future | nan | nan | Biotech giant Gilead Sciences (NASDAQ: GILD) has encountered its share of headwinds in the past two years. For instance, in late 2020 the company lost patent exclusivity in the U.S. for Truvada and Atripla -- both of which are HIV treatments -- leading to lower sales for both drugs.
Also, the drugmaker's much-anticipated rheumatoid arthritis drug filgotinib failed to earn regulatory approval in the U.S. in 2020 because regulators had concerns regarding its safety profile. Those issues, combined with the negative impact of the coronavirus pandemic, have harmed Gilead Sciences' business.
But there is yet hope for the company. Here are two reasons to be enthusiastic regarding the drugmaker's future.
GILD data by YCharts.
1. A leading COVID-19 therapy
Gilead's Veklury was one of the first treatments for COVID-19 to earn emergency-use authorization -- and then full approval -- in the U.S. This medicine, which is administered by way of intravenous infusion, has played an important role in the fight against this devastating disease. And even as new variants of the coronavirus emerge, Veklury's efficacy persists and it continues to be in use.
The U.S. Food and Drug Administration (FDA) recently restricted use of several COVID-19 therapies because they were unlikely to work against the omicron variant. Veklury wasn't one of those treatments targeted by the agency. According to some reports, Veklury became the medicine that hospitals in the U.S. spent the most money on last year, taking that spot away from AbbVie's Humira. Further, the COVID-19 therapy could retain that number-one spot through mid-2023.
While the past two years haven't been great for Gilead Sciences, they would have been substantially worse, financially speaking, had it not been for the impact of Veklury on its top and bottom lines. And the way it looks, this product will continue to contribute somewhat to the company's results for a bit longer.
Image source: Getty Images.
2. Still a major player in the HIV market
Although some of Gilead's products are losing ground, the company remains one of the undisputed leaders in the HIV therapeutic area. Its Biktarvy is the top regimen of its kind in the U.S. with a 42% share of the market. In addition, Gilead's Descovy is the number-one prescribed HIV prep treatment in the U.S. with a 45% slice of that market.
Gilead has continued to innovate in this area. Last year, the drugmaker submitted lenacapavir to regulatory authorities in the U.S. and Europe for review. Management has high hopes for this drug candidate, saying recently that "if successful, lenacapavir will become the first available six-month, long-acting subcutaneous injection for the treatment of HIV." Gilead expects a regulatory decision to come during the first half of the year.
Meanwhile, the company boasts nearly a dozen other HIV-focused programs in addition to many other pipeline candidates in other therapeutics areas.
Is Gilead Sciences a buy?
For 2021, Gilead Sciences recorded revenue of $27.3 billion, 11% higher than the previous year. Veklury played a vital role in this performance with sales of the COVID-19 therapy coming in at $5.6 billion, 98% higher than in 2020.
However, the company expects sales of this medicine to decline in 2022 -- potentially to $2 billion -- as the recent surge in cases due to omicron dies down. As a result, Gilead thinks its total revenue for this year will come in at $23.8 billion to $24.3 billion.
Still, there is reason to be hopeful. As the negative impact of Truvada and Atripla's loss of exclusivity subsides -- and if the company can add lenacapavir to its HIV portfolio -- Gilead's top line should return to growth eventually. Further, Gilead is trading at a price-to-earnings ratio of just 9.7 compared to the industry's average of 11.
So while the company may continue to face headwinds in the near future, investors focused on the long game should find Gilead Sciences a strong biotech stock to consider, especially at current levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to some reports, Veklury became the medicine that hospitals in the U.S. spent the most money on last year, taking that spot away from AbbVie's Humira. While the past two years haven't been great for Gilead Sciences, they would have been substantially worse, financially speaking, had it not been for the impact of Veklury on its top and bottom lines. As the negative impact of Truvada and Atripla's loss of exclusivity subsides -- and if the company can add lenacapavir to its HIV portfolio -- Gilead's top line should return to growth eventually. | According to some reports, Veklury became the medicine that hospitals in the U.S. spent the most money on last year, taking that spot away from AbbVie's Humira. Biotech giant Gilead Sciences (NASDAQ: GILD) has encountered its share of headwinds in the past two years. A leading COVID-19 therapy Gilead's Veklury was one of the first treatments for COVID-19 to earn emergency-use authorization -- and then full approval -- in the U.S. | According to some reports, Veklury became the medicine that hospitals in the U.S. spent the most money on last year, taking that spot away from AbbVie's Humira. While the past two years haven't been great for Gilead Sciences, they would have been substantially worse, financially speaking, had it not been for the impact of Veklury on its top and bottom lines. Still a major player in the HIV market Although some of Gilead's products are losing ground, the company remains one of the undisputed leaders in the HIV therapeutic area. | According to some reports, Veklury became the medicine that hospitals in the U.S. spent the most money on last year, taking that spot away from AbbVie's Humira. Biotech giant Gilead Sciences (NASDAQ: GILD) has encountered its share of headwinds in the past two years. Is Gilead Sciences a buy? |
23614.0 | 2022-02-10 00:00:00 UTC | Notable Thursday Option Activity: DRI, GM, ABBV | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-dri-gm-abbv | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Darden Restaurants, Inc. (Symbol: DRI), where a total of 5,161 contracts have traded so far, representing approximately 516,100 underlying shares. That amounts to about 45.2% of DRI's average daily trading volume over the past month of 1.1 million shares. Particularly high volume was seen for the $110 strike put option expiring July 15, 2022, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of DRI. Below is a chart showing DRI's trailing twelve month trading history, with the $110 strike highlighted in orange:
General Motors Co (Symbol: GM) options are showing a volume of 104,412 contracts thus far today. That number of contracts represents approximately 10.4 million underlying shares, working out to a sizeable 44.1% of GM's average daily trading volume over the past month, of 23.7 million shares. Particularly high volume was seen for the $57.50 strike call option expiring January 20, 2023, with 16,474 contracts trading so far today, representing approximately 1.6 million underlying shares of GM. Below is a chart showing GM's trailing twelve month trading history, with the $57.50 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 38,012 contracts, representing approximately 3.8 million underlying shares or approximately 43.1% of ABBV's average daily trading volume over the past month, of 8.8 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,564 contracts trading so far today, representing approximately 856,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange:
For the various different available expirations for DRI options, GM options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,564 contracts trading so far today, representing approximately 856,400 underlying shares of ABBV. Below is a chart showing GM's trailing twelve month trading history, with the $57.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 38,012 contracts, representing approximately 3.8 million underlying shares or approximately 43.1% of ABBV's average daily trading volume over the past month, of 8.8 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for DRI options, GM options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing GM's trailing twelve month trading history, with the $57.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 38,012 contracts, representing approximately 3.8 million underlying shares or approximately 43.1% of ABBV's average daily trading volume over the past month, of 8.8 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,564 contracts trading so far today, representing approximately 856,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for DRI options, GM options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing GM's trailing twelve month trading history, with the $57.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 38,012 contracts, representing approximately 3.8 million underlying shares or approximately 43.1% of ABBV's average daily trading volume over the past month, of 8.8 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,564 contracts trading so far today, representing approximately 856,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for DRI options, GM options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing GM's trailing twelve month trading history, with the $57.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 38,012 contracts, representing approximately 3.8 million underlying shares or approximately 43.1% of ABBV's average daily trading volume over the past month, of 8.8 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,564 contracts trading so far today, representing approximately 856,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for DRI options, GM options, or ABBV options, visit StockOptionsChannel.com. |
23615.0 | 2022-02-10 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, The Boeing Company, Infosys Limited, Ford Motor Company and Public Storage | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-the-boeing-company-infosys-limited-ford-motor | nan | nan | For Immediate Release
Chicago, IL – February 10, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, The Boeing Company BA, Infosys Limited INFY, Ford Motor Company F and Public Storage PSA.
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for AbbVie, Boeing and Infosys
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 AbbVie Inc., The Boeing Company, and Infosys Limited. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Shares of AbbVie have outperformed the Large-Cap Pharmaceuticals over the past year (+44.4% vs. +20.6%). The Zacks analyst believes that AbbVie has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
AbbVie has also been successfully expanding the labels of its cancer drugs, Imbruvica and Venclexta. Allergan’s acquisition has diversified AbbVie’s revenue base and enhanced its long-term growth potential. Sales erosion due to direct biosimilar competition to Humira in international markets remains a major concern, though.
(You can read the full research report on AbbVie here >>>)
Boeing shares have gained +6% in the year to date period against the Zacks Aerospace & Defense industry’s rise of +3.2%. The Zacks analyst believes that long-term prospects of the global services unit and increasing fiscal defense budget are expected to boost Boeing's growth.
Keeping up with the trend witnessed in the past couple of quarters, in the fourth quarter, Boeing witnessed solid recovery in its commercial business, particularly in domestic air traffic, which rebounded to around 90% of pre-pandemic levels in countries such as the United States and Brazil. Risks related to supply chain shortages due to COVID-19 pandemic and lower deliveries compared to Airbus raise concerns, though.
(You can read the full research report on Boeing here >>>)
Shares of Infosys have gained +1.3% in the last six months against the Zacks Computers - IT Services industry’s loss of -10.5%. The Zacks analyst believes that Infosys has been benefiting from large deal wins and fast-growing digital services.
Focus on Agile Digital and artificial intelligence-driven Core services is a tailwind. Strong demand for its services in cloud, Internet of Things, cyber security, data and analytics remains a key driver. Infosys is, however, suffering from increasing anti-outsourcing sentiments in certain parts of the world. Higher subcontractor costs and INFY’s revised compensation that includes higher variable pay and incentives have also been weighing on margins.
(You can read the full research report on Infosys here >>>)
Other noteworthy reports we are featuring today include Ford Motor Company and Public Storage .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (You can read the full research report on AbbVie here >>>) Boeing shares have gained +6% in the year to date period against the Zacks Aerospace & Defense industry’s rise of +3.2%. Stocks recently featured in the blog include: AbbVie Inc. ABBV, The Boeing Company BA, Infosys Limited INFY, Ford Motor Company F and Public Storage PSA. Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Boeing and Infosys The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, The Boeing Company BA, Infosys Limited INFY, Ford Motor Company F and Public Storage PSA. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc., The Boeing Company, and Infosys Limited. Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Boeing and Infosys The Zacks Research Daily presents the best research output of our analyst team. | Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Boeing and Infosys 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 AbbVie Inc., The Boeing Company, and Infosys Limited. Stocks recently featured in the blog include: AbbVie Inc. ABBV, The Boeing Company BA, Infosys Limited INFY, Ford Motor Company F and Public Storage PSA. | The Zacks analyst believes that AbbVie has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. Stocks recently featured in the blog include: AbbVie Inc. ABBV, The Boeing Company BA, Infosys Limited INFY, Ford Motor Company F and Public Storage PSA. Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Boeing and Infosys The Zacks Research Daily presents the best research output of our analyst team. |
23616.0 | 2022-02-10 00:00:00 UTC | Interesting ABBV Put And Call Options For April 14th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-april-14th | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the April 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new April 14th contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $4.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $136.00 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $142.50/share today.
Because the $140.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. 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 2.86% return on the cash commitment, or 16.56% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $3.50. If an investor was to purchase shares of ABBV stock at the current price level of $142.50/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.21% if the stock gets called away at the April 14th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red:
Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. 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 2.46% boost of extra return to the investor, or 14.24% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 25%, while the implied volatility in the call contract example is 20%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $142.50) 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 $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the April 14th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the April 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new April 14th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $140.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $3.50. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the April 14th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new April 14th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the April 14th expiration. |
23617.0 | 2022-02-09 00:00:00 UTC | Abbvie Inc Shares Approach 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-approach-52-week-high-market-mover-4 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.3% below its 52 week high of $143.60, giving the company a market cap of $253B. The stock is currently up 7.1% year-to-date, up 40.6% over the past 12 months, and up 198.5% over the past five years. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 fell 0.4%.
Trading Activity
Trading volume this week was 14.9% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -271.8%
The company's stock price performance over the past 12 months beats the peer average by 309.4%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 36.3% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 0.3% below its 52 week high of $143.60, giving the company a market cap of $253B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 fell 0.4%. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4. | Abbvie Inc (ABBV) shares closed today at 0.3% below its 52 week high of $143.60, giving the company a market cap of $253B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 fell 0.4%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.3% below its 52 week high of $143.60, giving the company a market cap of $253B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -271.8% The company's stock price performance over the past 12 months beats the peer average by 309.4% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 36.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.3% below its 52 week high of $143.60, giving the company a market cap of $253B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 fell 0.4%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23618.0 | 2022-02-09 00:00:00 UTC | Amgen (AMGN) Provides Strong Long-Term Outlook, Shares Up | ABBV | https://www.nasdaq.com/articles/amgen-amgn-provides-strong-long-term-outlook-shares-up | nan | nan | Amgen AMGN announced an attractive outlook for the company’s business through the end of this decade. Amgen estimates its revenues to increase by mid-single-digit percentage points every year till 2030. The adjusted earnings are expected to exhibit a compound annual growth rate in the range of high single-digit to low double-digit percentage points in the same timeframe. The company expects its biosimilar revenues to more than double by 2030 compared with 2021 sales.
The company expects its current portfolio of interesting marketed drugs and novel pipeline candidates with strong potential to drive its revenues during this decade. The biosimilar portfolio is estimated to add significantly to the top line. Loss of exclusivity for one of the leading revenue generators — AbbVie’s ABBV Humira — in 2023 presents a significant opportunity for Amgen’s biosimilar drug refrencing Humira — Amjevita.
We note that AbbVie has garnered more than $16 billion from the United States in 2021 from the sales of Humira. Several companies can launch their biosimilar products including Amgen’s Amjevita in 2023.
The high-margin novel products along with an efficient capital structure are estimated to improve adjusted margins and earnings significantly till 2030. Moreover, Amgen management plans to return an average of 60% of its adjusted net income to shareholders during this period through dividend payments and share repurchases. Amgen plans to buy back shares worth up to $6 billion in the first quarter of 2022.
Amgen’s strong outlook for the decade seemed attractive to investors. Shares rose 7.8% on Feb 8, following the announcement. So far this year, Amgen’s shares have gained 7.2% against the industry’s decrease of 12.9%.
Image Source: Zacks Investment Research
Although the company has painted an attractive picture for the long term, the pricing pressure seems to continue and is likely to restrict growth in 2022. The company expects its revenues and adjusted earnings to be in the range of $25.4 billion to $26.5 billion and $17.00 per share to $18.00 per share, respectively. This suggests revenues to be flat at the mid-point of the guided range. The adjusted earnings are expected to be flat to up more than 5% year over year.
Amgen’s pipeline candidates target diverse diseases including lung cancer, cardiovascular diseases and hematology-oncology diseases. These novel candidates are likely to boost the top line going forward, following potential approvals. The company is expected to launch three new drugs in 2022.
Amgen Inc. Price
Amgen Inc. price | Amgen Inc. Quote
Zacks Rank & Stocks to Consider
Amgen currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Vir Biotechnology VIR and Gamida Cell GMDA. While Vir sports a Zacks Rank #1 (Strong Buy), Gamida carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Vir have improved from earnings per share of $4.77 to $6.53 for 2023 over the past 30 days.
Vir delivered an earnings surprise of 12.95%, on average, in the last four quarters.
Gamida’s loss estimates have narrowed from $1.83 to $1.35 for 2022 over the past 30 days.
Gamida delivered an earnings miss of 22.6%, on average, in the last four quarters. Shares of GMDA have gained 21.7% so far this year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Loss of exclusivity for one of the leading revenue generators — AbbVie’s ABBV Humira — in 2023 presents a significant opportunity for Amgen’s biosimilar drug refrencing Humira — Amjevita. We note that AbbVie has garnered more than $16 billion from the United States in 2021 from the sales of Humira. AbbVie Inc. (ABBV): Free Stock Analysis Report | Loss of exclusivity for one of the leading revenue generators — AbbVie’s ABBV Humira — in 2023 presents a significant opportunity for Amgen’s biosimilar drug refrencing Humira — Amjevita. We note that AbbVie has garnered more than $16 billion from the United States in 2021 from the sales of Humira. AbbVie Inc. (ABBV): Free Stock Analysis Report | Loss of exclusivity for one of the leading revenue generators — AbbVie’s ABBV Humira — in 2023 presents a significant opportunity for Amgen’s biosimilar drug refrencing Humira — Amjevita. We note that AbbVie has garnered more than $16 billion from the United States in 2021 from the sales of Humira. AbbVie Inc. (ABBV): Free Stock Analysis Report | Loss of exclusivity for one of the leading revenue generators — AbbVie’s ABBV Humira — in 2023 presents a significant opportunity for Amgen’s biosimilar drug refrencing Humira — Amjevita. We note that AbbVie has garnered more than $16 billion from the United States in 2021 from the sales of Humira. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23619.0 | 2022-02-08 00:00:00 UTC | 3 Top Healthcare Stocks to Buy for February | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-to-buy-for-february | nan | nan | According to Verified Market Research, the global healthcare industry is worth $3.3 trillion today and could grow to $6.6 trillion by 2028. So you might want to consider having healthcare stocks in your portfolio, especially if you're a long-term investor.
The good news is that these companies come in all sorts of flavors, whether you're craving rapid growth or a big, fat dividend check. There seem to be a lot of good deals in the market these days. Here are three different types of healthcare stocks that stand out from the rest.
Growth stock: InMode
InMode (NASDAQ: INMD) builds medical equipment for minimally invasive, aesthetic medical procedures. The devices use a proprietary radio frequency (RF) technology to dissolve body fat under the face and skin. InMode's technology prevents many patients from undergoing plastic surgery, which is typically more expensive and can involve scarring or lengthy recovery.
Image Source: Getty Images
The company sells worldwide and has an installed device base of 10,350 units. InMode makes about 90% of its revenue from selling the equipment itself and another 10% in consumable products and machine servicing. Recurring revenue could become a more significant contributor over time as InMode's installment base grows.
InMode is also growing while maintaining profitability. In Q3 2021, the company expanded revenue 58% year over year (YOY) to $94 million and had a net income of $44.7 million. That's an impressive 47% net profit margin. Meanwhile, the stock's price-to-earnings ratio looks pretty reasonable at 27 for a profitable business growing this quickly. In the recent market correction, the stock has pulled back roughly 50% from its highs, giving investors a solid shot to acquire shares.
Dividend growth stock: Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a healthcare conglomerate that offers investors a "little bit of everything" in the industry. It sells pharmaceutical drugs, medical devices, and consumer products. Revenue has grown at an average of 3% annually over the past decade; it's not a rapidly growing business, but it does enough to keep increasing its dividend.
Investors can take comfort in that dividend, which is one of the most reliable of any public company. Johnson & Johnson is a Dividend King, a stock that's paid and increased its dividend for 59 consecutive years. The company's balance sheet is rated AAA from the major credit bureaus, one of only two with that rating higher than even the U.S. government!
While there are no guarantees in life, Johnson & Johnson's 2.5% dividend yield comes pretty close. At the same time, investors should be aware that J&J is still dealing with lawsuits surrounding its role in the opioid epidemic as well as cancer claims in relation to its talcum powder.
The stock itself trades at a P/E ratio of 22, which might not be cheap considering InMode trades at a modest premium to that while growing far more rapidly. However, investors have often placed a more expensive valuation on Johnson & Johnson for its blue-chip quality and strong financials. The company is also planning to spin-off its consumer products business, which could unlock more value for shareholders as an independent company.
High dividend yield stock: AbbVie
AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). AbbVie's nearly $250 billion market cap makes it one of the pharmaceutical industry's biggest companies. Having size and deep pockets on its side can be an advantage in pharmaceuticals, where drugs cost many millions to develop and could fizzle out in the FDA approval process. AbbVie has an extensive pipeline that gives it many shots at finding that next "blockbuster" like Humira that brings in billions in revenue.
The company also has a long dividend history, going back to the days when it was a part of Abbott Labs before it was spun off in 2012. AbbVie's dividend yield is 4%, beating most bonds and savings account rates, and has also been raised aggressively by management, growing an average of 18% annually over the past five years. This combination of yield and growth makes AbbVie a dividend investor's potential dream stock.
Humira contributed 35% of the revenue in AbbVie's Q4 2021 and loses patent protection in 2023, allowing copycat generic drugs to enter the market. AbbVie's been working to make up for what will be an eventual drop in Humira sales, but the market has still discounted the stock ahead of this challenge. The shares trade at a P/E ratio of just 11, which seems cheap considering that AbbVie's 2021 earnings per share grew 20% over the prior year. If AbbVie's emerging drug products can eventually make up most of Humira's losses, the current valuation could be a great entry point for a long-term position.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends InMode Ltd. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's dividend yield is 4%, beating most bonds and savings account rates, and has also been raised aggressively by management, growing an average of 18% annually over the past five years. If AbbVie's emerging drug products can eventually make up most of Humira's losses, the current valuation could be a great entry point for a long-term position. High dividend yield stock: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). | High dividend yield stock: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). AbbVie's nearly $250 billion market cap makes it one of the pharmaceutical industry's biggest companies. AbbVie has an extensive pipeline that gives it many shots at finding that next "blockbuster" like Humira that brings in billions in revenue. | High dividend yield stock: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). AbbVie's nearly $250 billion market cap makes it one of the pharmaceutical industry's biggest companies. AbbVie has an extensive pipeline that gives it many shots at finding that next "blockbuster" like Humira that brings in billions in revenue. | This combination of yield and growth makes AbbVie a dividend investor's potential dream stock. High dividend yield stock: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). AbbVie's nearly $250 billion market cap makes it one of the pharmaceutical industry's biggest companies. |
23620.0 | 2022-02-08 00:00:00 UTC | Allergan Aesthetics: FDA Approves JUVÉDERM VOLBELLA XC For Improvement Of Infraorbital Hollows | ABBV | https://www.nasdaq.com/articles/allergan-aesthetics%3A-fda-approves-juvederm-volbella-xc-for-improvement-of-infraorbital | nan | nan | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced the FDA approval of JUVÉDERM VOLBELLA XC for improvement of infraorbital hollows in adults over the age of 21. JUVÉDERM VOLBELLA XC was first approved in 2016 for use in the lips and perioral rhytids. The latest approval marks the sixth approved indication in the U.S.
"This additional indication for JUVÉDERM VOLBELLA XC demonstrates Allergan Aesthetics' continued commitment to innovation. The eye area, including the undereye hollow, is a top concern among patients," said Carrie Strom, President, Global Allergan Aesthetics and Senior Vice President, AbbVie.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced the FDA approval of JUVÉDERM VOLBELLA XC for improvement of infraorbital hollows in adults over the age of 21. The eye area, including the undereye hollow, is a top concern among patients," said Carrie Strom, President, Global Allergan Aesthetics and Senior Vice President, AbbVie. The latest approval marks the sixth approved indication in the U.S. "This additional indication for JUVÉDERM VOLBELLA XC demonstrates Allergan Aesthetics' continued commitment to innovation. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced the FDA approval of JUVÉDERM VOLBELLA XC for improvement of infraorbital hollows in adults over the age of 21. The eye area, including the undereye hollow, is a top concern among patients," said Carrie Strom, President, Global Allergan Aesthetics and Senior Vice President, AbbVie. The latest approval marks the sixth approved indication in the U.S. "This additional indication for JUVÉDERM VOLBELLA XC demonstrates Allergan Aesthetics' continued commitment to innovation. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced the FDA approval of JUVÉDERM VOLBELLA XC for improvement of infraorbital hollows in adults over the age of 21. The eye area, including the undereye hollow, is a top concern among patients," said Carrie Strom, President, Global Allergan Aesthetics and Senior Vice President, AbbVie. The latest approval marks the sixth approved indication in the U.S. "This additional indication for JUVÉDERM VOLBELLA XC demonstrates Allergan Aesthetics' continued commitment to innovation. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV), announced the FDA approval of JUVÉDERM VOLBELLA XC for improvement of infraorbital hollows in adults over the age of 21. The eye area, including the undereye hollow, is a top concern among patients," said Carrie Strom, President, Global Allergan Aesthetics and Senior Vice President, AbbVie. JUVÉDERM VOLBELLA XC was first approved in 2016 for use in the lips and perioral rhytids. |
23621.0 | 2022-02-07 00:00:00 UTC | Notable ETF Inflow Detected - IWF, ADBE, ABBV, AVGO | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-iwf-adbe-abbv-avgo | 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 Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $317.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 254,450,000 to 255,600,000). Among the largest underlying components of IWF, in trading today Adobe Inc (Symbol: ADBE) is down about 0.1%, AbbVie Inc (Symbol: ABBV) is up about 0.4%, and Broadcom Inc (Symbol: AVGO) is higher by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $226.77 per share, with $311.95 as the 52 week high point — that compares with a last trade of $277.27. 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 IWF, in trading today Adobe Inc (Symbol: ADBE) is down about 0.1%, AbbVie Inc (Symbol: ABBV) is up about 0.4%, and Broadcom Inc (Symbol: AVGO) is higher by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $226.77 per share, with $311.95 as the 52 week high point — that compares with a last trade of $277.27. 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 IWF, in trading today Adobe Inc (Symbol: ADBE) is down about 0.1%, AbbVie Inc (Symbol: ABBV) is up about 0.4%, and Broadcom Inc (Symbol: AVGO) is higher by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $226.77 per share, with $311.95 as the 52 week high point — that compares with a last trade of $277.27. 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 IWF, in trading today Adobe Inc (Symbol: ADBE) is down about 0.1%, AbbVie Inc (Symbol: ABBV) is up about 0.4%, and Broadcom Inc (Symbol: AVGO) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $317.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 254,450,000 to 255,600,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $226.77 per share, with $311.95 as the 52 week high point — that compares with a last trade of $277.27. | Among the largest underlying components of IWF, in trading today Adobe Inc (Symbol: ADBE) is down about 0.1%, AbbVie Inc (Symbol: ABBV) is up about 0.4%, and Broadcom Inc (Symbol: AVGO) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $317.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 254,450,000 to 255,600,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $226.77 per share, with $311.95 as the 52 week high point — that compares with a last trade of $277.27. |
23622.0 | 2022-02-07 00:00:00 UTC | These 2 Mega-Cap Stalwart Stocks Just Hit All-Time Highs | ABBV | https://www.nasdaq.com/articles/these-2-mega-cap-stalwart-stocks-just-hit-all-time-highs | nan | nan | The stock market had another up-and-down day on Monday, as investors tried to get used to volatile conditions. Important questions like whether inflation will prove to be fleeting or how much the Federal Reserve might act to boost interest rates won't get answers in the immediate term. But market participants are still looking to figure out how best to invest for whatever may come. The Dow Jones Industrial Average (DJINDICES: ^DJI) eked out the tiniest of gains, but the Nasdaq Composite (NASDAQINDEX: ^IXIC) and the S&P 500 (SNPINDEX: ^GSPC) finished lower.
INDEX
DAILY PERCENTAGE CHANGE (DECLINE)
DAILY POINT CHANGE
Dow
+0.004%
+1
S&P 500
(0.37%)
(17)
Nasdaq
(0.58%)
(82)
Data source: Yahoo! Finance.
Even as the market continues to trade well below its record levels from several months ago, the same isn't true for certain individual stocks. Indeed, a pair of mega-cap stocks not only posted gains on the day but also managed to hit new all-time highs on Monday. Below, we'll take a closer look at what sent Chevron (NYSE: CVX) and AbbVie (NYSE: ABBV) to new heights.
Chevron keeps climbing
Shares of Chevron were up nearly 2% on the day. That brought the gains over the past year to nearly 50%, as the oil giant's fundamental business prospects have become a lot more attractive.
Image source: Getty Images.
Obviously, the recent rise in oil prices has played a key role in Chevron's turnaround. Crude oil prices were actually down on Monday, but they remained well above $90 per barrel. That's a big boon for Chevron, given its impressive slate of energy assets across the globe.
Moreover, in a market in which many investors are growing increasingly defensive, Chevron's valuation hasn't yet gotten out of hand. The stock currently trades at about 17 times its earnings over the past 12 months. If oil prices stay high, moreover, then earnings are likely to grow considerably. Some analysts already believe that the company could earn as much as $15 per share in the coming year, which would put the stock's current value at less than 10 times forward estimates.
Investors have had high expectations for the company, so it can't afford to coast on its past success. Nevertheless, if energy markets remain favorable, Chevron has more gas in the tank to generate further gains.
AbbVie stays healthy
Elsewhere, shares of AbbVie also moved higher, gaining more than 1% on the day. The drugmaker's roughly 37% gains over the past year aren't quite as strong as Chevron's, but AbbVie has plenty of opportunities to keep growing.
It has worked hard to keep its pipeline robust, and that's generated success recently. Back in January, for instance, the company earned approval from the Food and Drug Administration for its Rinvoq for eczema, expanding the drug's indication to go beyond its initial treatment for moderate to severe rheumatoid arthritis or psoriatic arthritis.
More broadly, investors like AbbVie because of its long history of dividend growth. The stock currently yields 4%, and it has delivered annual dividend increases ever since it was spun off from former parent Abbott Labs.
Pharma stocks are traditionally seen as defensive, making them attractive in today's turbulent markets. That's one key reason AbbVie has been moving higher, and odds are good that the shares could keep gaining ground in the years ahead.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below, we'll take a closer look at what sent Chevron (NYSE: CVX) and AbbVie (NYSE: ABBV) to new heights. AbbVie stays healthy Elsewhere, shares of AbbVie also moved higher, gaining more than 1% on the day. The drugmaker's roughly 37% gains over the past year aren't quite as strong as Chevron's, but AbbVie has plenty of opportunities to keep growing. | AbbVie stays healthy Elsewhere, shares of AbbVie also moved higher, gaining more than 1% on the day. Below, we'll take a closer look at what sent Chevron (NYSE: CVX) and AbbVie (NYSE: ABBV) to new heights. The drugmaker's roughly 37% gains over the past year aren't quite as strong as Chevron's, but AbbVie has plenty of opportunities to keep growing. | Below, we'll take a closer look at what sent Chevron (NYSE: CVX) and AbbVie (NYSE: ABBV) to new heights. AbbVie stays healthy Elsewhere, shares of AbbVie also moved higher, gaining more than 1% on the day. The drugmaker's roughly 37% gains over the past year aren't quite as strong as Chevron's, but AbbVie has plenty of opportunities to keep growing. | AbbVie stays healthy Elsewhere, shares of AbbVie also moved higher, gaining more than 1% on the day. Below, we'll take a closer look at what sent Chevron (NYSE: CVX) and AbbVie (NYSE: ABBV) to new heights. The drugmaker's roughly 37% gains over the past year aren't quite as strong as Chevron's, but AbbVie has plenty of opportunities to keep growing. |
23623.0 | 2022-02-07 00:00:00 UTC | Abbvie Inc Shares Near 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-near-52-week-high-market-mover-3 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.2% below its 52 week high of $142.80, giving the company a market cap of $248B. The stock is currently up 5.0% year-to-date, up 35.4% over the past 12 months, and up 191.9% over the past five years. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.5%.
Trading Activity
Trading volume this week was 22.7% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -198.8%
The company's stock price performance over the past 12 months beats the peer average by 268.5%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 35.1% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 0.2% below its 52 week high of $142.80, giving the company a market cap of $248B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -198.8% The company's stock price performance over the past 12 months beats the peer average by 268.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 35.1% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.2% below its 52 week high of $142.80, giving the company a market cap of $248B. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.5%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.2% below its 52 week high of $142.80, giving the company a market cap of $248B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -198.8% The company's stock price performance over the past 12 months beats the peer average by 268.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 35.1% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.2% below its 52 week high of $142.80, giving the company a market cap of $248B. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.5%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23624.0 | 2022-02-07 00:00:00 UTC | Does AbbVie (NYSE:ABBV) Have A Healthy Balance Sheet? | ABBV | https://www.nasdaq.com/articles/does-abbvie-nyse%3Aabbv-have-a-healthy-balance-sheet | nan | nan | The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that AbbVie Inc. (NYSE:ABBV) does use debt in its business. But should shareholders be worried about its use of debt?
When Is Debt Dangerous?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
How Much Debt Does AbbVie Carry?
The image below, which you can click on for greater detail, shows that AbbVie had debt of US$80.7b at the end of September 2021, a reduction from US$86.1b over a year. However, because it has a cash reserve of US$12.2b, its net debt is less, at about US$68.5b.
NYSE:ABBV Debt to Equity History February 7th 2022
How Strong Is AbbVie's Balance Sheet?
According to the last reported balance sheet, AbbVie had liabilities of US$28.5b due within 12 months, and liabilities of US$106.7b due beyond 12 months. Offsetting this, it had US$12.2b in cash and US$9.28b in receivables that were due within 12 months. So it has liabilities totalling US$113.8b more than its cash and near-term receivables, combined.
AbbVie has a very large market capitalization of US$248.7b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
With a debt to EBITDA ratio of 2.4, AbbVie uses debt artfully but responsibly. And the fact that its trailing twelve months of EBIT was 8.2 times its interest expenses harmonizes with that theme. Also relevant is that AbbVie has grown its EBIT by a very respectable 24% in the last year, thus enhancing its ability to pay down debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if AbbVie can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Happily for any shareholders, AbbVie actually produced more free cash flow than EBIT over the last three years. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.
Our View
The good news is that AbbVie's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler. But, on a more sombre note, we are a little concerned by its level of total liabilities. Taking all this data into account, it seems to us that AbbVie takes a pretty sensible approach to debt. While that brings some risk, it can also enhance returns for shareholders. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 3 warning signs for AbbVie you should be aware of.
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our View The good news is that AbbVie's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler. We can see that AbbVie Inc. (NYSE:ABBV) does use debt in its business. How Much Debt Does AbbVie Carry? | According to the last reported balance sheet, AbbVie had liabilities of US$28.5b due within 12 months, and liabilities of US$106.7b due beyond 12 months. We can see that AbbVie Inc. (NYSE:ABBV) does use debt in its business. How Much Debt Does AbbVie Carry? | We can see that AbbVie Inc. (NYSE:ABBV) does use debt in its business. How Much Debt Does AbbVie Carry? The image below, which you can click on for greater detail, shows that AbbVie had debt of US$80.7b at the end of September 2021, a reduction from US$86.1b over a year. | We can see that AbbVie Inc. (NYSE:ABBV) does use debt in its business. How Much Debt Does AbbVie Carry? The image below, which you can click on for greater detail, shows that AbbVie had debt of US$80.7b at the end of September 2021, a reduction from US$86.1b over a year. |
23625.0 | 2022-02-07 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, Merck, Eli Lilly, Novartis and Pfizer | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-merck-eli-lilly-novartis-and-pfizer | nan | nan | For Immediate Release
Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie ABBV, Merck MRK, Eli Lilly LLY, Novartis NVS and Pfizer PFE.
Here are highlights from Friday’s Analyst Blog:
Pharma Stock Roundup: Q4 Earnings Edition
This week, AbbVie, Merck, Eli Lilly and Novartis announced fourth-quarter and full-year 2021 results. Pfizer stopped clinical development of vupanorsen, which was being evaluated in cardiovascular risk reduction and severe hypertriglyceridemia indications and returned development rights to partner Ionis.
Recap of the Week’s Most Important Stories
Earnings Update: Merck’s fourth-quarter results were better than expected as it beat estimates for both earnings and sales. Sales of its blockbuster medicine, Keytruda, rose 15% in the quarter. Its newly authorized COVID-19 antiviral pill, molnupiravir generated sales of $952 million during the fourth quarter.
Sales of its key vaccine, Gardasil and Gardasil 9, surged 53% year over year. Merck issued its financial guidance for 2022. It expects revenues to be in the range of $56.1 billion to $57.6 billion in 2022. Adjusted earnings per share are expected to be between $7.12 and $7.27
Lilly missed estimates for earnings while beating the same for sales. Lilly’s sales were aided by revenues from its COVID-19 cocktail antibody medicine, which generated $1.06 billion in revenues. Among the key products, Trulicity sales rose 25% year over year, while Taltz was up 31%. Lilly reiterated the financial guidance for 2022, which it had provided in December 2021.
AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. Sales of key drug Humira rose 3.5% while that of Botox Cosmetic was up 26.6% on an operational basis. Sales of new inflammatory drugs, Rinvoq and Skyrizi, are growing strong. AbbVie issued EPS guidance for 2022. The company expects adjusted EPS to be in the range of $14.00-$14.20, suggesting year-over-year growth of 10.2%-11.8%.
Novartis missed estimates for both earnings and sales in the fourth quarter. Sales in Innovative Medicines rose 7% at constant currency driven by the strong performance of drugs like Entresto, Cosentyx, Kesimpta, and Zolgensma, which made up for generic erosion. Sales in the Sandoz division rose 2%. The company expects sales and core operating income to grow in the mid-single digit range in 2022.
Pfizer Ends Vupanorsen Development; Returns Rights to Ionis: Pfizer and Ionis announced that they are discontinuing their partnered program for vupanorsen, which was being developed for cardiovascular (CV) risk reduction and severe hypertriglyceridemia (SHTG). The study met its primary endpoint. Though the study achieved statistically significant reductions in non-high-density lipoprotein cholesterol (non-HDL-C) in triglycerides (TG) and angiopoietin-like 3 (ANGPTL3), the magnitude of reductions in non-HDL-C and TG observed does not support the continuation of the program for the abovementioned indications.
In the study, treatment with vupanorsen led to dose-dependent increases in liver fat. Higher doses of the medicine caused elevations in the liver enzymes alanine aminotransferase (ALT) and aspartate aminotransferase (AST). Pfizer has decided to return development rights to vupanorsen to Ionis. Pfizer bought rights to the candidate from Ionis in November 2019.
The European Commission approved Pfizer’s tyrosine kinase inhibitor (“TKI”) cancer drug, Lorviqua for ALK-positive advanced non-small cell lung cancer (NSCLC) in adults previously not treated with an ALK inhibitor. Presently, Lorviqua is approved to treat ALK-positive NSCLC in patients previously treated with another ALK TKI therapy. Lorviqua is available as Lorbrena in the United States and is also approved for the treatment of ALK-positive NSCLC in the first-line setting.
Pfizer and BioNTech initiated a rolling submission, seeking approval to expand their COVID-19 vaccine’s Emergency Use Authorization (EUA) to allow their use in children 6 months through 4 years of age. The companies have submitted available data on the safety and efficacy of two 3 µg doses as part of a three-dose primary series for this age group.
Lilly Ends Olumiant Lupus Phase III Studies: Lilly said it was discontinuing the phase III development program on it and Incyte’s drug, Olumiant (baricitinib) for systemic lupus erythematosus. While one of the two pivotal phase III studies evaluating baricitinib 4-mg oral dose for SLE met the primary endpoint of SRI-4 response, the second study failed to meet the same. Neither of the studies met the key secondary endpoints.
Lilly also said the FDA may issue a complete response letter to its regulatory application seeking approval of Olumiant for moderate-to-severe atopic dermatitis as the company does not have alignment with the FDA on the indicated population. Olumiant is already approved for the disease in Japan and Europe. Olumiant is presently approved to treat rheumatoid arthritis and COVID-19 in hospitalized patients (emergency use).
The NYSE ARCA Pharmaceutical Index rose 2% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
In the last five trading sessions, AbbVie rose the most (3.5%), while AstraZeneca declined the most (3.7%).
In the past six months, AbbVie has recorded the maximum gain (25%), while Lilly declined the most (6.8%)
(See the last pharma stock roundup here: J&J Q4 Earnings, FDA’s Rejection of PFE, MRK Pipeline Drugs)
What's Next in the Pharma World?
Watch out for Pfizer, AstraZeneca and Glaxo’s Q4 and 2021 results and regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: AbbVie ABBV, Merck MRK, Eli Lilly LLY, Novartis NVS and Pfizer PFE. Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Q4 Earnings Edition This week, AbbVie, Merck, Eli Lilly and Novartis announced fourth-quarter and full-year 2021 results. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. | Stocks recently featured in the blog include: AbbVie ABBV, Merck MRK, Eli Lilly LLY, Novartis NVS and Pfizer PFE. Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Q4 Earnings Edition This week, AbbVie, Merck, Eli Lilly and Novartis announced fourth-quarter and full-year 2021 results. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. | Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Q4 Earnings Edition This week, AbbVie, Merck, Eli Lilly and Novartis announced fourth-quarter and full-year 2021 results. In the past six months, AbbVie has recorded the maximum gain (25%), while Lilly declined the most (6.8%) (See the last pharma stock roundup here: J&J Q4 Earnings, FDA’s Rejection of PFE, MRK Pipeline Drugs) What's Next in the Pharma World? Stocks recently featured in the blog include: AbbVie ABBV, Merck MRK, Eli Lilly LLY, Novartis NVS and Pfizer PFE. | Here are highlights from Friday’s Analyst Blog: Pharma Stock Roundup: Q4 Earnings Edition This week, AbbVie, Merck, Eli Lilly and Novartis announced fourth-quarter and full-year 2021 results. Stocks recently featured in the blog include: AbbVie ABBV, Merck MRK, Eli Lilly LLY, Novartis NVS and Pfizer PFE. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. |
23626.0 | 2022-02-05 00:00:00 UTC | Could This New Indication Create a Blockbuster for Pfizer? | ABBV | https://www.nasdaq.com/articles/could-this-new-indication-create-a-blockbuster-for-pfizer | nan | nan | In mid-January, Pfizer (NYSE: PFE) announced that the U.S. Food and Drug Administration (FDA) gave the nod to Cibinqo as a treatment for patients with moderate to severe atopic dermatitis (eczema) whose disease wasn't adequately controlled with other treatments.
Why did the FDA approve Cibinqo for moderate to severe eczema patients? And what could this mean for pharma stock Pfizer's revenue? Let's take a look at the clinical trial results for Cibinqo and the U.S. eczema market to address these two questions.
Image source: Getty Images.
An impactful treatment option for a challenging condition
Eczema is a common inflammatory skin condition with symptoms including redness, dryness, and itching. If eczema is left untreated, it can result in sleep issues and lower a patient's quality of life.
That's why it's important for patients to establish a treatment plan with a doctor. Initial treatment options generally include steroid creams and ointments or light therapy. Unfortunately, 55% of patients with moderate to severe eczema report inadequate disease control.
The good news is that with Cibinqo now approved as a treatment in the U.S. (not to mention Japan and the U.K.), more patients may be able to finally get their moderate to severe eczema under control. So, what data is behind the most recent approval in the U.S.?
Two phase 3 clinical trials randomized patients to receive either 100 mg or 200 mg once-daily oral Cibinqo pills (abrocitinib) or placebo. Cibinqo was demonstrated to be far superior in helping a greater proportion of patients achieve clearer skin than placebo. Eczema can be measured using the Eczema Area and Severity Index (EASI), which examines the surface area and severity of eczema. A significant improvement from a patient's pre-treatment baseline during treatment signals that a treatment is effectively managing the condition. The gold standard of whether a treatment is effective is the amount of patients whose skin clears at least 75% as measured by EASI during treatment, which is referred to as EASI75.
Patients receiving the lower dose of Cibinqo achieved at least 75% clearer skin (or EASI75) at a maximum rate of 44.5% across the two clinical trials, whereas placebo patients topped out at just 11.8% of patients attaining EASI75. Patients were able to achieve EASI75 at a much higher rate on the 200 mg dose, which topped out at 62.7% across the two clinical trials.
An indication with blockbuster potential
There are 6.6 million adults in the U.S. with moderate to severe eczema. While 55% of those adult patients report that their condition isn't appropriately controlled on their current treatment, I'll estimate that 20% would be eligible to start treatment with Cibinqo, to err on the side of caution. This would equate to a patient pool of approximately 1.3 million.
Since there are other drugs on the market like Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq, I'll conservatively assume that Cibinqo can start by capturing 5% of these patients, or 66,000 individuals.
The reason for my lowball forecast of Cibinqo's potential market share has to do with the fact that the drug is part of the Janus kinase (JAK) inhibitor drug class along with Rinvoq. Because this drug class carries a heightened risk for cancer, serious heart-related events, and blood clots, the FDA could restrict the higher dose of Cibinqo in a worst-case scenario. A restriction to only a lower dose of Cibinqo would take away the competitive advantage of the drug in a crowded market.
While pricing information for Cibinqo in the U.S. isn't yet publicly available, the Institute for Clinical and Economic Review recommends an annual list price of between $30,000 and $40,000 for the drug. I'll use an annual list price of $30,000. And adjusting for patient assistance programs and health insurance negotiations over the price of the drug, I'll predict an annual net price of $15,000 per patient for Cibinqo.
This works out to essentially $1 billion in annual sales potential for Cibinqo in the U.S. Even though Pfizer is expecting $81.5 billion in revenue for 2021 at the midpoint, $1 billion in additional sales is enough to move the needle. That's especially the case when considering that this would be a 2.2% bump in non-COVID vaccine revenue for the company.
Pfizer is a strong buy for 2022
Pfizer is down 6% year to date as a result of the downturn in the broader market. This begs the question: Is Pfizer a buy right now?
Pfizer is trading at a forward P/E ratio of 7.8, which is well below other drug manufacturers -- the general industry average is 11. This is despite the fact that Pfizer's forecasted annual earnings growth rate of 19% through the next five years is much higher than the 10% industry average.
Pfizer offers investors above-average growth at a below-average price. And if that wasn't enough, investors can get paid a 3% dividend yield while they wait for the stock to go higher.
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Kody Kester owns AbbVie and Pfizer. 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. | Since there are other drugs on the market like Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq, I'll conservatively assume that Cibinqo can start by capturing 5% of these patients, or 66,000 individuals. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Kody Kester owns AbbVie and Pfizer. The good news is that with Cibinqo now approved as a treatment in the U.S. (not to mention Japan and the U.K.), more patients may be able to finally get their moderate to severe eczema under control. | Since there are other drugs on the market like Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq, I'll conservatively assume that Cibinqo can start by capturing 5% of these patients, or 66,000 individuals. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Kody Kester owns AbbVie and Pfizer. Why did the FDA approve Cibinqo for moderate to severe eczema patients? | Since there are other drugs on the market like Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq, I'll conservatively assume that Cibinqo can start by capturing 5% of these patients, or 66,000 individuals. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Kody Kester owns AbbVie and Pfizer. In mid-January, Pfizer (NYSE: PFE) announced that the U.S. Food and Drug Administration (FDA) gave the nod to Cibinqo as a treatment for patients with moderate to severe atopic dermatitis (eczema) whose disease wasn't adequately controlled with other treatments. | Since there are other drugs on the market like Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq, I'll conservatively assume that Cibinqo can start by capturing 5% of these patients, or 66,000 individuals. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Kody Kester owns AbbVie and Pfizer. And what could this mean for pharma stock Pfizer's revenue? |
23627.0 | 2022-02-05 00:00:00 UTC | Is AbbVie Stock a Buy Now? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-a-buy-now-0 | nan | nan | Drugmaker AbbVie (NYSE: ABBV) has historically been a safe, market-beating stock to own. Over the past five years, its total returns (which include dividend income) of 191% have eclipsed the S&P 500, which has increased by 113% when factoring in its distributions.
But there have been question marks about the future of AbbVie, especially with the company losing patent protection for its top-selling drug, Humira, next year. However, it has made moves, such as the acquisition of Botox-maker Allergan in 2020, to help diversify and grow its business. Should investors be worried about the stock, or is AbbVie likely to continue outperforming the market?
Image source: Getty Images.
The company is growing in many areas of its business
AbbVie released its fourth-quarter earnings earlier this month. And for the last three months of 2021, the company's net revenue of $14.9 billion rose 7.4% year over year, while its operating profit of $5.1 billion increased by 35%.
The company generated strong sales growth across many segments, with its aesthetics business leading the way and rising by 23% year over year to $1.4 billion. Its core immunology segment also grew by more than 13% to $6.7 billion in revenue. Those are encouraging growth numbers, especially with Humira generating a modest $5.3 billion in revenue for Q4, increasing by just 3.5%.
The acquisition of Allergan gave AbbVie a promising new aesthetics business to help make up the inevitable loss of revenue from Humira in the future. New drugs Skyrizi and Rinvoq have also been bolstering the company's top line, generating year-over-year growth of 71% and 84%, respectively, this past quarter.
Profitability and cash flow also look strong
The healthcare company's diluted per-share earnings of $2.26 in Q4 were back to more normal levels after last year. Other expenses (mainly due to changes in fair value of contingent consideration) weighed down its bottom line by $4.6 billion, leaving AbbVie with just a $0.01 per-share profit. For 2022, the company anticipates that its adjusted earnings will be at least $14 per share, rising by 11% as it expects to achieve expense synergies of $2.5 billion related to its Allergan acquisition.
AbbVie also anticipates that it will generate $24 billion in adjusted free cash flow during the year, which it will use to pay down debt, invest into its already robust pipeline (which features more than a dozen late-stage trials), and support its dividend, which has doubled in just five years.
Is the stock too attractive to pass up?
The big question mark around AbbVie's business is about Humira and the big drop in revenue that is inevitable once more competition swoops in as the patent expires. But there are plenty of positives from the company's most recent earnings report, suggesting that it's going to be more than OK.
Its biggest growth catalysts weren't from Humira, and other drugs are picking up the slack, including a promising aesthetics business. Analysts from Grand View Research project that the global aesthetic medicine market will grow at a compounded annual growth rate of 9.6% until 2030.
AbbVie also projects that the combined peak sales for Skyrizi and Rinvoq will ultimately exceed Humira's peak revenue. Plus, with all the free cash flow the company is generating, it's possible that AbbVie may end up acquiring more assets to help accelerate its revenue growth.
The stock's not just for growth investors either, as it pays a fairly high yield of over 4% per year, which is well above the S&P 500 average of just 1.3%. And to sweeten the deal, AbbVie's stock currently trades at a forward price-to-earnings multiple of just 10. This is incredibly cheap when compared to drugmaker Eli Lilly, where investors are paying nearly 30 times its future profits.
AbbVie is a solid healthcare stock to own, and this latest earnings report confirms that there isn't much of anything for long-term investors to worry about.
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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. | Drugmaker AbbVie (NYSE: ABBV) has historically been a safe, market-beating stock to own. But there have been question marks about the future of AbbVie, especially with the company losing patent protection for its top-selling drug, Humira, next year. Should investors be worried about the stock, or is AbbVie likely to continue outperforming the market? | AbbVie also anticipates that it will generate $24 billion in adjusted free cash flow during the year, which it will use to pay down debt, invest into its already robust pipeline (which features more than a dozen late-stage trials), and support its dividend, which has doubled in just five years. Drugmaker AbbVie (NYSE: ABBV) has historically been a safe, market-beating stock to own. But there have been question marks about the future of AbbVie, especially with the company losing patent protection for its top-selling drug, Humira, next year. | AbbVie also anticipates that it will generate $24 billion in adjusted free cash flow during the year, which it will use to pay down debt, invest into its already robust pipeline (which features more than a dozen late-stage trials), and support its dividend, which has doubled in just five years. Drugmaker AbbVie (NYSE: ABBV) has historically been a safe, market-beating stock to own. But there have been question marks about the future of AbbVie, especially with the company losing patent protection for its top-selling drug, Humira, next year. | Drugmaker AbbVie (NYSE: ABBV) has historically been a safe, market-beating stock to own. But there have been question marks about the future of AbbVie, especially with the company losing patent protection for its top-selling drug, Humira, next year. Should investors be worried about the stock, or is AbbVie likely to continue outperforming the market? |
23628.0 | 2022-02-04 00:00:00 UTC | Abbvie Inc Shares Approach 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-approach-52-week-high-market-mover-3 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.7% below its 52 week high of $141.71, giving the company a market cap of $248B. The stock is currently up 5.0% year-to-date, up 37.7% over the past 12 months, and up 192.0% over the past five years. This week, the Dow Jones Industrial Average rose 2.8%, and the S&P 500 rose 3.6%.
Trading Activity
Trading volume this week was 14.8% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
The stock closed at 1.3% higher than its 5-day moving average, 3.5% higher than its 20-day moving average, and 14.7% higher than its 90-day moving average.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -208.7%
The company's stock price performance over the past 12 months beats the peer average by 236.7%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.7% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 0.7% below its 52 week high of $141.71, giving the company a market cap of $248B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -208.7% The company's stock price performance over the past 12 months beats the peer average by 236.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.7% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.7% below its 52 week high of $141.71, giving the company a market cap of $248B. This week, the Dow Jones Industrial Average rose 2.8%, and the S&P 500 rose 3.6%. The stock closed at 1.3% higher than its 5-day moving average, 3.5% higher than its 20-day moving average, and 14.7% higher than its 90-day moving average. | Abbvie Inc (ABBV) shares closed today at 0.7% below its 52 week high of $141.71, giving the company a market cap of $248B. The stock closed at 1.3% higher than its 5-day moving average, 3.5% higher than its 20-day moving average, and 14.7% higher than its 90-day moving average. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -208.7% The company's stock price performance over the past 12 months beats the peer average by 236.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.7% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.7% below its 52 week high of $141.71, giving the company a market cap of $248B. Trading Activity Trading volume this week was 14.8% higher than the 20-day average. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23629.0 | 2022-02-04 00:00:00 UTC | Viatris (VTRS) Gets FDA Nod for Generic Drug in Dry Eye Disease | ABBV | https://www.nasdaq.com/articles/viatris-vtrs-gets-fda-nod-for-generic-drug-in-dry-eye-disease | nan | nan | Viatris VTRS announced that the FDA has approved the abbreviated new drug application filed by Mylan Pharmaceuticals, a subsidiary of Viatris, which sought approval for a generic version of Restasis (cyclosporine ophthalmic emulsion 0.05%).
We note that Restasis was initially developed by Allergan, an AbbVie ABBV company, to increase the natural ability of eyes to produce tears in patients whose tear production is presumed to be suppressed due to ocular inflammation associated with keratoconjunctivitis sicca (commonly known as dry eye).
Shares of Viatris have declined 15.5% in the trailing 12 months in comparison with the industry’s 60.5% decline.
Image Source: Zacks Investment Research
Following FDA’s nod to the generic version of Restasis, Viatris’ subsidiary became the first to receive approval for a generic version of this drug. Viatris indicated that Mylan Pharmaceuticals plans to launch the drug immediately as a more affordable medication.
We note that Allergan received FDA approval for Restasis in 2003. In May 2020, AbbVie announced that it completed the acquisition of Allergan in a cash-and-stock deal for $63 billion. AbbVie recorded $1.2 billion as revenues from Restasis sales for full-year 2021. As part of the deal, AbbVie also acquired well-established brands like Botox Cosmetic and Juvederm as part of the transaction.
Currently, Viatris is the only company that has secured approval of a generic Restasis version. The approval of a complex generic drug like Restasis will boost Viatris' generics division. For the third quarter, Viatris’ Complex generics and biosimilars product category declined 6% year over year to $332 million. This decline was attributed to anticipated competition in select complex generics products. In fact, this decline offset the 14% growth in biosimilars.
Viatris Inc. Price
Viatris Inc. price | Viatris Inc. Quote
Zacks Rank & Key Picks
Viatris currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the biotech include Axsome Therapeutics AXSM and Vir Biotechnology VIR. While Vir Biotechnology sports a Zacks Rank #1 (Strong Buy), Axsome Therapeutics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vir Biotechnology’s earnings per share estimates for 2022 have increased from $4.77 to $6.53 in the past 30 days.
Earnings of Vir Biotechnology beat estimates in two of the last four quarters and missed the mark on the other two occasions, with the average surprise being 13%.
Axsome Therapeutics’ loss per share estimates for 2022 have narrowed from $3.66 to $3.64 in the past 30 days.
Earnings of Axsome Therapeutics beat estimates in three of the last four quarters while missed the mark on one occasion, with the average surprise being 0.6%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that Restasis was initially developed by Allergan, an AbbVie ABBV company, to increase the natural ability of eyes to produce tears in patients whose tear production is presumed to be suppressed due to ocular inflammation associated with keratoconjunctivitis sicca (commonly known as dry eye). In May 2020, AbbVie announced that it completed the acquisition of Allergan in a cash-and-stock deal for $63 billion. AbbVie recorded $1.2 billion as revenues from Restasis sales for full-year 2021. | We note that Restasis was initially developed by Allergan, an AbbVie ABBV company, to increase the natural ability of eyes to produce tears in patients whose tear production is presumed to be suppressed due to ocular inflammation associated with keratoconjunctivitis sicca (commonly known as dry eye). In May 2020, AbbVie announced that it completed the acquisition of Allergan in a cash-and-stock deal for $63 billion. AbbVie recorded $1.2 billion as revenues from Restasis sales for full-year 2021. | We note that Restasis was initially developed by Allergan, an AbbVie ABBV company, to increase the natural ability of eyes to produce tears in patients whose tear production is presumed to be suppressed due to ocular inflammation associated with keratoconjunctivitis sicca (commonly known as dry eye). In May 2020, AbbVie announced that it completed the acquisition of Allergan in a cash-and-stock deal for $63 billion. AbbVie recorded $1.2 billion as revenues from Restasis sales for full-year 2021. | AbbVie Inc. (ABBV): Free Stock Analysis Report We note that Restasis was initially developed by Allergan, an AbbVie ABBV company, to increase the natural ability of eyes to produce tears in patients whose tear production is presumed to be suppressed due to ocular inflammation associated with keratoconjunctivitis sicca (commonly known as dry eye). In May 2020, AbbVie announced that it completed the acquisition of Allergan in a cash-and-stock deal for $63 billion. |
23630.0 | 2022-02-04 00:00:00 UTC | Pharma Stock Roundup: MRK, LLY, ABBV Post Q4 Earnings, PFE Ends Vupanorsen Program | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-mrk-lly-abbv-post-q4-earnings-pfe-ends-vupanorsen-program | nan | nan | This week, AbbVie ABBV, Merck MRK, Eli Lilly LLY and Novartis NVS announced fourth-quarter and full-year 2021 results. Pfizer PFE stopped clinical development of vupanorsen, which was being evaluated in cardiovascular risk reduction and severe hypertriglyceridemia indications and returned development rights to partner Ionis.
Recap of the Week’s Most Important Stories
Earnings Update: Merck’s fourth-quarter results were better than expected as it beat estimates for both earnings and sales. Sales of its blockbuster medicine, Keytruda, rose 15% in the quarter. Its newly authorized COVID-19 antiviral pill, molnupiravir generated sales of $952 million during the fourth quarter. Sales of its key vaccine, Gardasil and Gardasil 9, surged 53% year over year. Merck issued its financial guidance for 2022. It expects revenues to be in the range of $56.1 billion to $57.6 billion in 2022. Adjusted earnings per share are expected to be between $7.12 and $7.27
Lilly missed estimates for earnings while beating the same for sales. Lilly’s sales were aided by revenues from its COVID-19 cocktail antibody medicine, which generated $1.06 billion in revenues. Among the key products, Trulicity sales rose 25% year over year, while Taltz was up 31%. Lilly reiterated the financial guidance for 2022, which it had provided in December 2021.
AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. Sales of key drug Humira rose 3.5% while that of Botox Cosmetic was up 26.6% on an operational basis. Sales of new inflammatory drugs, Rinvoq and Skyrizi, are growing strong. AbbVie issued EPS guidance for 2022. The company expects adjusted EPS to be in the range of $14.00-$14.20, suggesting year-over-year growth of 10.2%-11.8%.
Novartis missed estimates for both earnings and sales in the fourth quarter. Sales in Innovative Medicines rose 7% at constant currency driven by the strong performance of drugs like Entresto, Cosentyx, Kesimpta, and Zolgensma, which made up for generic erosion. Sales in the Sandoz division rose 2%. The company expects sales and core operating income to grow in the mid-single digit range in 2022.
Pfizer Ends Vupanorsen Development; Returns Rights to Ionis: Pfizer and Ionis announced that they are discontinuing their partnered program for vupanorsen, which was being developed for cardiovascular (CV) risk reduction and severe hypertriglyceridemia (SHTG). The study met its primary endpoint. Though the study achieved statistically significant reductions in non-high-density lipoprotein cholesterol (non-HDL-C) in triglycerides (TG) and angiopoietin-like 3 (ANGPTL3), the magnitude of reductions in non-HDL-C and TG observed does not support the continuation of the program for the abovementioned indications. In the study, treatment with vupanorsen led to dose-dependent increases in liver fat. Higher doses of the medicine caused elevations in the liver enzymes alanine aminotransferase (ALT) and aspartate aminotransferase (AST). Pfizer has decided to return development rights to vupanorsen to Ionis. Pfizer bought rights to the candidate from Ionis in November 2019.
The European Commission approved Pfizer’s tyrosine kinase inhibitor (“TKI”) cancer drug, Lorviqua for ALK-positive advanced non-small cell lung cancer (NSCLC) in adults previously not treated with an ALK inhibitor. Presently, Lorviqua is approved to treat ALK-positive NSCLC in patients previously treated with another ALK TKI therapy. Lorviqua is available as Lorbrena in the United States and is also approved for the treatment of ALK-positive NSCLC in the first-line setting.
Pfizer and BioNTech initiated a rolling submission, seeking approval to expand their COVID-19 vaccine’s Emergency Use Authorization (EUA) to allow their use in children 6 months through 4 years of age. The companies have submitted available data on the safety and efficacy of two 3 µg doses as part of a three-dose primary series for this age group.
Lilly Ends Olumiant Lupus Phase III Studies: Lilly said it was discontinuing the phase III development program on it and Incyte’s drug, Olumiant (baricitinib) for systemic lupus erythematosus. While one of the two pivotal phase III studies evaluating baricitinib 4-mg oral dose for SLE met the primary endpoint of SRI-4 response, the second study failed to meet the same. Neither of the studies met the key secondary endpoints.
Lilly also said the FDA may issue a complete response letter to its regulatory application seeking approval of Olumiant for moderate-to-severe atopic dermatitis as the company does not have alignment with the FDA on the indicated population. Olumiant is already approved for the disease in Japan and Europe. Olumiant is presently approved to treat rheumatoid arthritis and COVID-19 in hospitalized patients (emergency use).
The NYSE ARCA Pharmaceutical Index rose 2% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AbbVie rose the most (3.5%), while AstraZeneca declined the most (3.7%).
In the past six months, AbbVie has recorded the maximum gain (25%), while Lilly declined the most (6.8%)
(See the last pharma stock roundup here: J&J Q4 Earnings, FDA’s Rejection of PFE, MRK Pipeline Drugs)
What's Next in the Pharma World?
Watch out for Pfizer, AstraZeneca and Glaxo’s Q4 and 2021 results and regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This week, AbbVie ABBV, Merck MRK, Eli Lilly LLY and Novartis NVS announced fourth-quarter and full-year 2021 results. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. AbbVie issued EPS guidance for 2022. | This week, AbbVie ABBV, Merck MRK, Eli Lilly LLY and Novartis NVS announced fourth-quarter and full-year 2021 results. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. AbbVie issued EPS guidance for 2022. | This week, AbbVie ABBV, Merck MRK, Eli Lilly LLY and Novartis NVS announced fourth-quarter and full-year 2021 results. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. AbbVie issued EPS guidance for 2022. | This week, AbbVie ABBV, Merck MRK, Eli Lilly LLY and Novartis NVS announced fourth-quarter and full-year 2021 results. AbbVie’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. AbbVie issued EPS guidance for 2022. |
23631.0 | 2022-02-03 00:00:00 UTC | AbbVie (ABBV) Q4 2021 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q4-2021-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q4 2021 Earnings Call
Feb 02, 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 fourth quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations.
Liz Shea -- Vice President and Head 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; Michael Severino, vice chairman and president; Rob Michael, vice chairman, finance and commercial operations and chief financial officer; and Jeff Stewart, executive vice president, chief commercial officer. Joining us for the Q&A portion of the call is Laura Schumacher, vice chairman, external affairs, chief legal officer, and corporate secretary. 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 our website. Unless otherwise noted, our commentary on sales growth is on a comparable basis, which includes full current year and historical results for Allergan. For this comparison of underlying performance, all historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and exclude the divestitures of Zenpep and Viokace. References to operational growth further excludes the impact of exchange.
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 provide perspective on our overall performance and outlook. And then Jeff, Mike, and Rob will review our quarterly business highlights, pipeline progress, financial results, and guidance for 2022 in more detail.
Our performance this quarter tops off another excellent year for AbbVie, with results well above our initial expectations. We delivered full year 2021 adjusted earnings per share of $12.70, representing growth of more than 20% versus the prior year. Full year adjusted net revenues were more than $56 billion, up 10.5% on a comparable operational basis. These results demonstrate balanced performance across each of our major growth franchises, including double-digit comparable operational revenue growth from immunology, aesthetics, and neuroscience.
I'm extremely pleased with our momentum, and we've entered this year in a strong position, which is reflected in our guidance. We anticipate 2022 adjusted earnings per share of $14 to $14.20, representing growth of 11% at the midpoint. Longer term, we remain well-positioned with an impressive set of diversified growth assets. In immunology, Skyrizi and Rinvoq are already contributing meaningful revenue, including $4.6 billion in combined sales last year with substantial growth anticipated in 2022 and beyond.
Over the next few months, we expect to add several new indications to the list of approved uses for these two assets. At which point, Skyrizi and Rinvoq will be commercialized across all of Humira's major indications plus atopic dermatitis. With the strong performance that we're seeing in their initial indications and the robust data we've demonstrated across our broad development programs, we expect combined peak sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira. In hematological oncology, we've established a leading position with Imbruvica and Venclexta, which are both expected to remain important revenue contributors through the decade.
To support our next wave of growth, we also have an exciting and diverse pipeline of promising new therapies to address critical unmet needs in both blood cancers and solid tumors. Notable opportunities from our mid- to late-stage oncology pipeline include: navitoclax for myelofibrosis, which has the potential to provide disease modification in a market where current treatments only address symptoms; epcoritamab, a potentially best-in-class CD3xCD20 for B-cell malignancies, including DLBCL and follicular lymphoma; ABBV-383, our BCMA CD3 bispecific, which has the potential to become a best-in-class treatment in multiple myeloma; and Teliso-V, our promising c-Met ADC being studied for nonsquamous non-small cell lung cancer, which was recently granted Breakthrough Therapy Designation. In neuroscience, we have a portfolio of compelling and differentiated therapies to support robust long-term growth in migraine, Parkinson's disease, and psychiatric conditions. Ubrelvy and QULIPTA are both demonstrating strong launch trajectories in migraine, with each treatment expected to contribute more than $1 billion in peak sales.
Vraylar continues to have a significant opportunity with currently approved indications with peak sales expected to approach $4 billion. An approval in major depressive disorder represents upside to our current projections. In 951, a potentially transformative improvement to our current treatment options for patients with advanced Parkinson's disease with peak sales also anticipated to be more than $1 billion. Our leading aesthetics portfolio represents another extremely attractive growth opportunity.
This business is performing well above expectations, delivering full year 2021 sales of more than $5.2 billion, $700 million higher than our initial guidance. AbbVie's increased promotional investments are driving accelerated category growth, especially in toxins and fillers, where there is substantial room for additional market penetration globally. Dedicated resources are also focused on delivering new product innovation within aesthetics with several exciting R&D programs internally, including both short-acting and long-acting toxins, as well as novel fillers, with biostimulatory or regenerative features. And we remain active with business development to pursue promising external technologies and complementary opportunities, including the recently closed Soliton acquisition, which further expands our body contouring portfolio.
Given this focused investment, we expect our aesthetics franchise to deliver high single-digit revenue growth through the end of the decade, including sales of more than $9 billion in 2029. Lastly, we've developed a robust pipeline, including numerous attractive late-stage programs, novel early stage therapies, and a growing range of potential platform technologies, which we expect will collectively contribute to our growth through the decade. With the actions that we've taken to diversify our sources of growth, we remain very confident in the long-term outlook for our business. Following the U.S.
Humira LOE event in 2023, we expect to quickly return to growth in 2024 and deliver a high single-digit growth from 2025 to the end of the decade. This is a testament to the strength of AbbVie's broad and balanced portfolio. In summary, this is an exciting time for our company. We're demonstrating excellent execution across our portfolio, and our long-term growth prospects remain very strong.
With that, I'll turn the call over to Jeff. Jeff?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Thank you, Rick. Looking at our quarterly results, we continue to demonstrate excellent commercial execution across our therapeutic portfolio. I'll start with immunology, which delivered global revenues of more than $6.7 billion, reflecting growth of 13.3% on an operational basis. Global Humira sales were $5.3 billion, up 3.5%, with 6% revenue growth in the U.S., offset by biosimilar competition across the international markets where revenues were down 8.8% on an operational basis.
Skyrizi is performing extremely well. Global sales of nearly $900 million were up 12.4% on a sequential basis, reflecting continued market share gains. Skyrizi has now surpassed Humira as the leader for total prescriptions in the U.S. psoriasis biological market with share of approximately 20%.
We are also now leading the market in several international geographies, including Japan. Total in-play share, which includes both new and switching patients, remains very strong and now reflects roughly 37% patient share in the U.S., as well as leadership in nearly 20 key countries around the world. Skyrizi is also now approved for its second major indication, to treat adults with active psoriatic arthritis, further enhancing its compelling profile in dermatology. Field promotion is now active globally, and early feedback from physicians has been very positive, given Skyrizi's demonstrated skin clearance and joint efficacy in our PsA clinical program.
With nearly 30% of patients visiting dermatologists having both skin and joint involvement, this new approval will sustain Skyrizi's strong momentum. In addition, we are preparing for the launch of Skyrizi in Crohn's disease, an indication with very meaningful long-term revenue potential, with regulatory approvals in both the U.S. and Europe anticipated this year. Rinvoq also continues to demonstrate robust growth.
Global sales of more than $500 million were up 14% on a sequential basis. Prescriptions in RA remain strong, with a total market share of more than 5.5% in the U.S. and nearly 5% across key international markets. We're very pleased with the competitive labels for both PsA and atopic dermatitis, where we are making excellent progress with their launches globally.
In atopic dermatitis, dermatologists appreciate key elements of Rinvoq's new label, including the incorporation of stringent skin and itch end points, reflective of the performance in our registrational trials, as well as an adolescent indication and dosing flexibility. Managed care access is expected to ramp fairly quickly for both atopic dermatitis and PsA in the U.S. We are also preparing for the launches of Rinvoq in ulcerative colitis and axial SpA, with regulatory approvals for both indications anticipated this year as well. Overall, we continue to feel very good about the performance and progress we are making with both Rinvoq and Skyrizi, which are expected to contribute more than $15 billion in combined risk-adjusted global sales in 2025.
In hematologic oncology, global revenues were nearly $1.9 billion, up 4.7% on an operational basis. Venclexta once again delivered robust growth. Sales were up 34% on an operational basis with strong share performance across all approved indications. Imbruvica global revenues were down 2.7%, reflecting a slower-than-anticipated market recovery in CLL and increased share pressure from newer therapies.
In neuroscience, revenues were more than $1.6 billion, up 19% on an operational basis, including robust double-digit growth for both Vraylar and Botox Therapeutic. I'm also very pleased with our performance in migraine, where we have a portfolio of multiple distinct therapies to address the full spectrum of this disease. This includes our two leading oral CGRP therapies: Ubrelvy for acute migraine, which delivered total sales of $183 million, up 13% on a sequential basis. We anticipate robust sales growth again this year based on Ubrelvy's competitive profile, continued strong new patient starts and a rapidly expanding CGRP segment.
And we also have QULIPTA, the only oral CGRP treatment specifically developed for the prevention of episodic migraine. The launch is going extremely well. When considering both paid and bridge volume, QULIPTA is already capturing nearly 20% of the new-to-brand share in the preventative CGRP class. Roughly three months post launch, this is an incredible accomplishment, and it's a testament to QULIPTA's demonstrated efficacy, including rapid and meaningful reduction in migraine days.
We expect commercial access for QULIPTA to ramp quickly in the first half of this year. In eye care, revenues of $960 million were up 3.9% on an operational basis, including $364 million in sales from Restasis. Lastly, Mavyret sales were $427 million, down 10.1% on an operational basis as treated patient volumes remain suppressed compared to pre-COVID levels. Overall, I'm very pleased with the performance and the momentum across the therapeutic portfolio.
And with that, I'll turn the call over to Mike for additional comments on our R&D programs. Mike?
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
Thank you, Jeff. We made significant advancement across all stages of our pipeline in 2021, and we expect continued progress again this year. In immunology, we had several recent important regulatory updates. We implemented safety and indication updates to our RA label for Rinvoq and also received FDA approval in psoriatic arthritis and atopic dermatitis, securing strong labels that highlight Rinvoq's favorable benefit-risk profile in both new indications.
In atopic dermatitis, we received approval for both the 15- and 30-milligram doses. And based on the impressive levels of skin clearance and itch reduction demonstrated in our development program, we believe Rinvoq will be an important new treatment option for adult and adolescent patients with moderate-to-severe atopic dermatitis who have not responded well to other systemic agents such as cyclosporine, methotrexate, azathioprine or biologics. We also have regulatory applications under review for Rinvoq in ulcerative colitis, ankylosing spondylitis, and non-radiographic axial SpA. We expect an FDA approval decision next month for ulcerative colitis, in the second quarter for ankylosing spondylitis, and in the fourth quarter for non-radiographic axial SpA.
In Europe, we anticipate approval decisions for ulcerative colitis and non-radiographic axial SpA in the second half of the year. We're nearing completion of Rinvoq's registrational program in Crohn's disease, which is the last major indication expansion program for Rinvoq. We recently announced positive top-line results from the first Phase 3 Crohn's induction study, where Rinvoq demonstrated a very strong impact on clinical remission and endoscopic response in a difficult-to-treat refractory patient population. We expect to see results from the second Phase 3 Crohn's induction study and from the maintenance study in the first half of this year with regulatory submissions anticipated in the second half of 2022.
Also in immunology, we recently received FDA approval for Skyrizi in psoriatic arthritis, an important indication expansion for this asset. Based on the strong joint efficacy and the high level of skin clearance that Skyrizi provided in our registrational trials, we believe Skyrizi will be very competitively positioned as an effective new treatment option for psoriatic arthritis patients. We also have regulatory applications under review for Skyrizi in Crohn's disease with approval decisions expected in the U.S. next month and in Europe later this year.
We've seen impressive results in our Crohn's disease program, and we believe Skyrizi has the potential to become an important new therapy in this market where there continues to be considerable unmet need. We're making very good progress with our early stage immunology pipeline as well, where we are developing novel agents with the goal of significantly advancing the standard of care across our core areas by providing deeper and more durable responses. Our anti-TNF steroid ADC, ABBV-154, is a novel approach for delivering a potent steroid that has the potential to provide durable remission in diseases such as RA, PMR, and Crohn's disease. We expect to see preliminary data from our Phase 2 dose-ranging study in RA in the fourth quarter of this year.
We also expect to see Phase 2 proof-of-concept data in PMR and Crohn's disease in 2023. In dermatology, our early stage efforts are focused on developing oral agents that can provide clear skin with durable responses. Our RORgamma t inverse agonist, ABBV-157, is designed to more effectively inhibit IL-17 production compared to pure antagonists, which has the potential to result in a greater impact on skin inflammation. We recently began a Phase 2 dose-ranging study for 157 in psoriasis.
Moving to oncology, where we continue to make good progress across all stages of our pipeline. We recently received an FDA Breakthrough Therapy Designation for Teliso-V and second-line-plus advanced or metastatic nonsquamous non-small cell lung cancer based on the encouraging results we've seen to date in our clinical program. Treatment options for patients who have exhausted platinum-based chemotherapy, immunotherapy, and targeted therapy are limited to single-agent chemo, which typically provides response rates of only 15% to 20% with a median overall survival of less than one year. Prognosis for these patients is very poor.
While targeted therapies have been approved by the FDA for the 3% to 4% of non-small cell lung cancer patients harboring MET exon 14 skipping mutations, there are currently no therapies approved, specifically for the much larger group of patients who exhibit c-Met protein overexpression. Patients with overexpressed c-Met represent about 25% to 30% of the advanced or metastatic nonsquamous non-small cell lung cancer population with wild-type EGFR, which corresponds to an incidence of approximately 35,000 patients each year in the U.S. In Stage 1 of our Phase 2 study, we saw promising efficacy in heavily pretreated patients who received Teliso-V, including a 54% objective response rate in those with highly expressed c-Met. The second stage of the Phase 2 study is ongoing and has the potential to support an accelerated approval in second-line-plus advanced metastatic nonsquamous non-small cell lung cancer.
We expect to see additional data from this study next year. We also recently began the clinical program for our next-generation c-Met ADC, ABBV-400, which utilizes a more potent topoisomerase inhibitor payload to potentially drive deeper tumor responses in patients with both intermediate and high levels of c-Met expression. We also expect to see data this year from several important indication expansion programs for Venclexta, including results from the Phase 3 CANOVA trial in relapsed/refractory multiple myeloma patients with a t(11;14) mutation, as well as results from our program for Venclexta in previously untreated higher-risk MDS patients, where we received a Breakthrough Therapy Designation. We plan to submit our regulatory applications to the FDA in the first half of this year for an accelerated approval in MDS and late in '22 or early '23 for multiple myeloma.
Both indications represent important expansion opportunities for Venclexta and will help drive long-term growth for our oncology portfolio. We are also making very good progress with epcoritamab, where we continue to generate strong data in early stage studies to support our view that epcoritamab has the potential to become a differentiated and best-in-class CD3xCD20 bispecific across several B-cell malignancies, including diffuse B cell and follicular lymphomas. We'll see monotherapy data in the third quarter from the Phase 2 expansion cohort in DLBCL, which has the potential to support a submission for accelerated approval in the second half of this year. We also have a Phase 3 study ongoing in third-line relapsed/refractory DLBCL, and we plan to initiate several additional Phase 3 trials this year, including studies in earlier lines of therapy for diffuse B-cell lymphoma in multiple combinations, as well as in follicular lymphoma in combination with rituximab and Revlimid.
This year, we'll also see additional data maturing from our cohort expansion studies for ABBV-383, both as a monotherapy and in combinations with standard of care and novel agents in multiple myeloma. We believe our BCMA CD3 bispecific has the potential to be differentiated on efficacy, safety and dosing interval and can be best-in-class across multiple lines of therapy. We plan to initiate Phase 3 studies later this year in relapsed/refractory multiple myeloma. We also continue to make good progress with navitoclax in myelofibrosis, where we've seen strong mid-stage data supporting our view that navitoclax has the potential to provide disease modification, which we believe will lead to improved and durable clinical outcomes for patients.
We expect a Phase 3 data readout and regulatory submissions in the first half of next year, with approval anticipated near the end of 2023. Moving to neuroscience, where we expect several important pipeline events in 2022 as well. We recently completed discussions with the FDA and are preparing to submit our application for Vraylar as an adjunctive treatment for major depressive disorder. Based on the totality of the data and the strong benefit-risk profile demonstrated in our clinical program, we believe Vraylar has the potential to be competitively positioned as an adjunctive treatment for major depressive disorder.
We expect a submission in the first quarter and an approval decision by the end of the year. We've also completed our registration-enabling program for ABBV-951, our novel subcutaneous levodopa/carbidopa delivery system for treatment of advanced Parkinson's disease. In our Phase 3 studies, 951 proved superior to oral levodopa/carbidopa in reducing motor fluctuations in this advanced population, and we believe our innovative new delivery system represents a potentially transformative improvement to current treatment options. We remain on track to submit our regulatory applications in the first half of this year in the U.S.
and Europe, with both approval decisions anticipated in early 2023. And we expect to see Phase 3 data for QULIPTA in chronic migraine prevention later in the first quarter and plan to submit our regulatory applications in both the U.S. and Europe this summer, with approval decisions expected in the first half of 2023. So in summary, we remain focused on continuing to execute on our pipeline programs and anticipate numerous important regulatory and clinical milestones across all stages of our pipeline in 2022.
This includes important indication expansion for on-market drugs and data readouts and regulatory actions for key late-stage assets, as well as proof-of-concept data from several early stage NME programs. With that, I'll turn the call over to Rob for additional comments on our fourth quarter performance and our 2022 financial outlook. Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Thank you, Mike. AbbVie once again delivered outstanding performance while also advancing our strategic priorities. The strong results across our portfolio continue to support AbbVie's long-term growth outlook. Starting with fourth quarter results.
We reported adjusted earnings per share of $3.31, up 13.4% compared to prior year and $0.05 above our guidance midpoint. Total adjusted net revenues were $14.9 billion, up 7.5% on an operational basis, excluding a 0.1% unfavorable impact from foreign exchange. The adjusted operating margin ratio was 49.3% of sales, an improvement of 240 basis points versus the prior year. This includes adjusted gross margin of 83.6% of sales, adjusted R&D investment of 12.1% of sales, and adjusted SG&A expense of 22.2% of sales.
Net interest expense was $571 million, and the adjusted tax rate was 12.5%. Shifting to 2022. Our full year adjusted earnings per share guidance is between $14 and $14.20, reflecting growth of 11% at the midpoint. Excluded from this guidance is $4.74 of known intangible amortization and specified items.
We expect adjusted net revenue of approximately $60 billion. At current rates, we expect foreign exchange to have a 0.8% unfavorable impact on full year sales growth. This revenue forecast comprehends the following approximate assumptions for our key products and therapeutic areas. We expect immunology global sales to grow double digits, including U.S.
Humira growth of 8%, international Humira revenue of $2.6 billion at current exchange rates, Skyrizi global sales of $4.4 billion, and Rinvoq global sales of $2.7 billion. In hematologic oncology, we expect Venclexta global sales of $2.3 billion and Imbruvica global revenue of $5.4 billion. The Imbruvica forecast assumes market recovery in CLL, offset by share erosion from increased competition. For aesthetics, we expect global sales of $5.9 billion, including $2.6 billion for Botox Cosmetic and $1.7 billion from Juvederm.
For neuroscience, we expect global revenue of $6.9 billion, including Botox Therapeutic sales of $2.7 billion, Vraylar sales of $2.2 billion, Ubrelvy sales of $800 million, and QULIPTA sales up $200 million with commercial access increasing rapidly in the first half of the year. For eye care, we expect global sales of $2.9 billion, including $700 million from Restasis, which assumes no generic competition in the first half of 2022. Lastly, we expect Mavyret global revenue of $1.7 billion. Looking at the P&L for 2022.
We are forecasting full year adjusted gross margin of approximately 84% of sales, adjusted R&D investment of approximately $6.8 billion, and adjusted SG&A expense of approximately $12.7 billion. This guidance includes approximately $2.5 billion in expense synergies from the Allergan acquisition. We are forecasting the adjusted operating margin ratio to expand by 120 basis points to approximately 51.5% of sales. We expect adjusted net interest expense approaching $2.2 billion, our non-GAAP tax rate to be approximately 12.7%, and our share count to be roughly flat to 2021.
Turning to the first quarter. We anticipate net revenue approaching $13.5 billion. At current rates, we expect foreign exchange to have a 1.3% unfavorable impact on sales growth. This revenue forecast comprehends the following approximate assumptions for our key therapeutic areas: immunology sales of $6.2 billion, hem/onc revenue of $1.7 billion, aesthetic sales of $1.3 billion, neuroscience revenue of $1.5 billion and eye care sales of $900 million.
We are forecasting an adjusted operating margin ratio of approximately 51% of sales, and we model a non-GAAP tax rate of 12.4%. We expect adjusted earnings per share between $3.10 and $3.14, excluding approximately $1.22 of known intangible amortization and specified items. Finally, AbbVie's strong business performance and outlook continue to support our capital allocation priorities. We expect to generate adjusted free cash flow of approximately $24 billion in 2022, which is net of roughly $1 billion in Skyrizi royalty payments.
This cash flow will fully support a strong and growing dividend, which we have increased by more than 250% since inception; continued debt repayment, where we expect to pay down just above $12 billion of debt in 2022 and estimate a net leverage ratio of 1.8 times by the end of the year. Our strong cash flow also allows for continued business development, with approximately $2 billion allocated annually to augment our pipeline with the most promising external technologies and innovative therapies. In closing, we are very pleased with AbbVie's strong results in 2021. And we expect to deliver robust performance in 2022 and over the long term.
With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Rob. We will now open the call for questions. [Operator instructions] Operator, we'll take the first question.
Questions & Answers:
Operator
Our first question comes from Chris Schott with JPMorgan. Your line is open.
Chris Schott -- JPMorgan Chase and Company -- Analyst
Great. Thanks so much for the questions. I just have a couple here digging into Rinvoq in a little bit more detail. I guess, first in rheumatoid arthritis, can you just -- it looks like volumes have plateaued a little bit.
It's probably not hugely surprising given label revision, but just elaborate a little bit more on the feedback you're getting from physicians there and when you anticipate you'll start to see sequential growth again in that indication. The second question I had on Rinvoq was then on atopic derm. Just elaborate again a little bit more on the ramp you're expecting here. Is this something that's going to take some time? Or do you view that there's some low-hanging fruit maybe with some of the dupi failures? I'm really just trying to get to with all of these is, I guess, the $2.7 billion guidance, how much of that's RA? How much of it is new indication? Just a little bit more color on that front.
Thanks so much.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Thanks. It's Jeff. I'll give you some sense on what's happening with RA.
So the RA market after the drug safety and label is progressing as we anticipated. So I'll give you some sense, and I'll refer to sort of in-play share because you have to be a little bit careful in the December, January time frame with overall volumes in the market. But right before the Drug Safety Communication, we had about a 16% in-play share in RA, which was just right behind Humira. So very, very strong.
If we look at where that's trended over the fourth quarter, it's dropped about 20%, OK? So it's about 14% reported in October, just over 13% in November, very consistent with what we thought would happen. So about a 20% shift in new-to-brand starts over that time period. And what we see from the market is it's exactly as we would expect, very, very stable, no change really in second-line plus and doctors start to suppress their starts in first-line consistent with the label. So what we're going to see is that as basically the promotion kicks back in here after December in the first quarter, we're going to see that type of stability, which we can see is very, very clear from our overall share in our weeklies and start to progress as we shift and pivot toward that second line plus.
So the market is responding very similar to our expectations that we've been talking about in terms of overall RA. Obviously, PsA is going to help build upon that RA dynamic and then ultimately, later in the year, the big axial approvals as well. So everything is progressing as we thought it would progress from a market perspective. In terms of atopic dermatitis, listen, I said in my prepared remarks, we're very pleased with the label.
We have those stringent end points of the EASI 90, the high skin clearance. Very powerful itch reduction are reflected in our label. We obviously have both doses approved. The market, I can tell you, has been very pleasantly surprised about the adolescent indication, which is -- it's very important.
So that's basically -- we're going to start to see that ramp. It won't -- we don't think it's going to be slow. And to your point, in terms of our ability to start to capture patients, it's happening already. We obviously haven't reported any of the TRxs yet, but we can see it in the market.
And typically, it's falling into a couple of areas. First, dupi failures, not a surprise, and there's a reasonably significant number of people after four or five years that just have failed and exited the market. They're going to come back in. We have reports from our research and our teams over partial responders to dupi that just aren't doing well, in particular with the itch.
We see some early starts there. And then, of course, challenging patients in general, we are seeing starts there as well with those higher levels of skin involvement. So the market seems to be progressing as we expected. It's not surprising that as we look at the development of the second-line market, we're going to see initially most of the starts in the dupi partial responders or the nonresponders, which is a fairly significant population.
Also, as I mentioned, that we will start to see our access ramp fairly quickly here over the first part of the year. So we're encouraged. Maybe I can turn it over to Rob to give a sense over the relative magnitude of the sales.
Rob Michael -- Executive Vice President and Chief Financial Officer
Thanks, Jeff. Chris, this is Rob. So of the Rinvoq guidance of $2.7 billion, the AD and spine indications will each contribute a couple of hundred million dollars, while UC will contribute around $100 million. You need to keep in mind -- in terms of sequential growth, keep in mind, in the U.S., you tend to see from Q4 to Q1, it's a sequential decline.
So that's just a seasonal dynamic that we see across the business. So you would see sequential growth resume in Q2 and beyond.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Chris. Operator, next question, please.
Operator
Thank you. Our next question comes from Ronny Gal from Bernstein. Your line is open.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Good morning, everybody, and thank you for taking my questions, and nice quarter. First question is around Humira. I was wondering if you guys will be in a position to give us some sort of a floor number in 2023 based on payer contracts. Sometimes this year, obviously, the market is looking for that.
And then when I talk to payers, it seems a lot of the decisions about what product they would use longer term will not happen in 2023. That will happen in 2024. You kind of talked about kind of like a decline and then a quick ramp-up. Do you see the floor here in 2023? Or do you see it in 2024? And then if I could sneak one more.
You have one of the largest differences between GAAP and non-GAAP earnings in the industry because of that Allergan acquisition. As you look at the amortization period and so forth, when do you think this thing will begin to narrow in a significant way just because that's a concern for some investors?
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Ronny, this is Rick Gonzalez. I'll take the Humira questions. I think if you look at the guidance we provided thus far, I mean, I think that's consistent with how we see the market playing out overall.
We've said basically you should be thinking about 45% erosion, plus or minus 10%, that's probably a reasonable range. Nothing has really given us any indication that it should be different than that at this point. I think we will be in a position as we move later on this year to potentially be able to provide some more specificity around that. We should be through all of the contracting at that point, in a better position to be able to understand the ramp and the change that will occur over that period of time, and we certainly want to provide guidance when we have confidence that we can give you a high degree of specificity of what that guidance looks like.
As it relates to your question about will the floor for Humira -- I think your question is, what will the floor for Humira be in '23 or '24? And I believe you'll see further erosion from '23 to '24 on the Humira business alone. But what we have described is we returned to growth on the overall business. So you have to think about it from the perspective of this underlying growth engine that gets suppressed in '23 by the significant erosion that you see around Humira, both price and some volume. And then as that continues, it continues at a slower pace when we get into '24.
So the overall business has the ability to be able to drive growth for the total company. But yes, Humira would continue to decline in '24. And then Rob, why don't you cover the third one?
Rob Michael -- Executive Vice President and Chief Financial Officer
Sure. Ronny, this is Rob. So when you look at our adjustments to specified intangible amortization, I'd say intangible amortization is like 70% of it. This is on the $4.74 guidance that we've given this year.
And that will continue. Obviously, those things fall off over a number of years. But I would say that's probably a level that I would assume would be present for the next several years. Another big component is Skyrizi contingent consideration given that we're -- that's purchase accounting, and we record that accretion as such.
That will certainly fluctuate over time. But I'd say those are the two biggest components of the guide this year. And certainly, integration costs are starting to wind down. So you would expect to see those come down.
But it is going down from last year. And so you would expect it potentially trend down. But overall, I think you can model this level going forward.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Thanks.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Ronny. Operator, next question, please.
Operator
Thank you. Our next question comes from Andrew Baum with Citi. Your line is open.
Andrew Baum -- Citi -- Analyst
Thank you. A couple of questions. Firstly, on Imbruvica. As we move into 2022 and the COVID dynamic shakes out, we'll be able to see the impact of competition versus COVID.
Assuming that a significant chunk of the U.S. slowing growth rate or decline is due to competition, what can be done to recoup the momentum against the narrative, particularly of Calquence? And then second, in terms of your aesthetics business, you terminated your contract with Medytox in your liquid formulation. There are competitive products coming to market, as well as increasing price competition. How much of that is concerned -- or is your franchise and the breadth of the portfolio enough to minimize any impact of novel formulations? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. It's Jeff. So thanks. And you're right that we still have the continuing lingering effect with COVID, and Rob addressed that in his comments.
So we still see the market versus '19 levels down about 10% and even marginally down from 2020 in Q4. So we anticipate that that will moderate go forward. And then we're left to manage the competitive impact. So we are seeing competitive BTKs have some impact on Imbruvica, but we're also seeing the competitive impact from our own Venclexta.
So we have to start to think about looking at the combination of the AbbVie position, which is still very, very strong. To give you some sense in second line, we have 45% share of the market, and it's even higher in third line, and it's in the 30s for front line. So we have to continue, which is our strategy, to highlight where we have a lot of distinction, which is the strength of our data across every comparator in CLL, the overall survival benefit and then also bring the strength of our overall portfolio. So that's how we plan to mitigate it.
As Rob mentioned, we see market recovery offset by some share pressure on Imbruvica, mitigated by positive ven impact. So that's how we see the market develop as we go into 2022. We also are seeing some pricing pressure in some select segments that are also contributing to the share loss for Imbruvica. And obviously, we -- as much as we can, we keep the pricing discipline in the market moving forward.
So I hope that context helps.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Hey, Andrew. This is Rick. I'll cover the aesthetics questions for you. Certainly, as you look at Botox, both here in the U.S.
and internationally, it competes today against a significant number of competitive alternatives that are available. I think it's a pretty impressive position that Botox has in the market. When you look at the brand equity that it has, when you look at the confidence that injectors have in using the product, they tend to describe it as the most forgiving of all the toxins that they have experience with. And then there's obviously a fairly significant customer loyalty aspect to Botox with the loyalty programs, and Allergan has a very significant loyalty program that offers patients incentives to be able to use the product and to go back and get repeat procedures.
Having said all of that, we feel confident in the position that we have competitively against the competitive alternatives that we see out there and those that we see coming. We have a very active R&D effort in the aesthetics R&D group now that's looking at next-generation toxins. Two in particular that we highlighted in the comments earlier are we had a short-acting toxin that's in development that's progressing very nicely, and we have a true long-acting toxin that's in development as well. And we believe that those will help grow the market.
But if I look at the market now, obviously, we've seen significant acceleration in the market since we've activated many of the strategies that we put in place after acquiring Allergan. But if I look at our overall share, overall share has stayed very steady, in fact, might have ticked up 1 point in the latest set of data. So that tells you that we're not only growing the market very rapidly, but we're continuing to compete quite effectively against the alternatives that are out there. So I'm not overly concerned about what I see on the horizon.
I think we have the opportunity to build the market even larger with some of the next-generation toxins that we're working on when we bring those to the marketplace. So I feel good about our position in toxins and in fillers as we move forward.
Liz Shea -- Vice President and Head of Investor Relations
Thank you, Andrew. 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. Thank so much for taking my questions. So a couple -- I always appreciate all the guidance you guys give, both near term and longer term. Just a couple of questions I have related to more of the longer-term guidance you've given.
In the past, you had talked about your hem/onc franchise sort of in peak sales or sales, I guess, in 2025 of around $13 billion. When you updated some of your numbers earlier last month, I don't think you updated that one. So I'm just curious if you still think that that's a reasonable sort of 2025 expectation. And then the other one is around Ubrelvy, where you've sort of stayed with this guidance of sort of more than $1 billion in peak sales.
But you're already guiding to $800 million of sales just in this current year pretty early in the launch. So I'm just wondering if you can maybe give a little better sense of how you're viewing sort of the longer-term opportunity for Ubrelvy. And maybe if you want to mention QULIPTA, although I know that's early, but at least for Ubrelvy, if you think there's significant upside to that $1 billion number you've mentioned before. Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Hey, Vamil. This is Rick. So I'll cover the first one, and then I'm going to have Jeff cover the Ubrelvy question that you've asked. So it's a good question.
Obviously, the hem/onc market, in the areas that we participate in, in particular, I would say, CLL, has changed over the last several years. I think one of the -- certainly, one of the things that was not ever anticipated in that guidance was the impact that COVID would have on the market and the reduction that we saw in the number of new patients, which was quite sizable and obviously wasn't contemplated in it. And the second thing is we are seeing certainly more competitive pressure, both from price and some volume, than we anticipated in that time frame. Having said all of that and -- well, I'd say a third item is, certainly, Venclexta is performing well as well.
And I'd say it's tended to exceed some of our expectations, at least at this point, within the launch trajectory of the brand. So all of those have factors in what we're describing here. I'd also say we have done a nice job of building out our hem/onc portfolio from an R&D standpoint. When I look at some of those assets that I described in my opening comments, I think they're going to have a very significant opportunity.
As an example, one that I didn't mention there would be Venclexta and the t(11;14) multiple myeloma population. That could be a very significant opportunity. We feel good about that. We should get a readout on that.
And we think that could be a significant contributor to both improvement in patient therapy, but also a significant improvement in the overall revenue in the franchise. And then you have things like navitoclax and epcoritamab and 383, those are all significant opportunities to be able to drive growth. So I still feel confident in the overall ability for us to grow our hem/onc franchise. Having said that, I would say Imbruvica is under more pressure than we anticipated when we put that guidance out.
At that point, we didn't even contemplate follow-on BTKs in any meaningful way. But we do see more competitive pressure there. But overall, I'd say I still feel very confident in our ability to be able to grow that that it will be a growth franchise for the company over the long term.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Hi, Vamil. It's Jeff. So just to answer your question on Ubrelvy in the overall market.
Certainly, we're very pleased, as I mentioned in my remarks, over the momentum on Ubrelvy. We continue to lead in that acute space. And the early results for QULIPTA are also very strong. Now a lot of it is going to depend on how that CGRP market develops.
So if you think about it in this way, and this is how we think about it is, it's about -- in terms of new patient capture for the total Ubrelvy market, where we also compete with another player from Biohaven, it's about 18% to 19% of the market. And the market is also with the expanded triptan market, of course. So if you look at that, the payers certainly like you to step through one or more triptans. When you look at the population that may not be eligible for a triptan or fails a triptan, the estimates are typically up to 30% to 35%.
And so the market has potential room to sort of double into that epidemiology. So you can kind of run the numbers there. I mean we often get the question, is it over $1 billion? Is it closer to $1 billion? Or is it closer to a higher number? But nonetheless, we're pleased. Certainly, it's exceeded our expectations so far, and QULIPTA has as well.
So I think there's more room for the market to run, but we'll have to see. I mean there are payer pressures in the market, as I mentioned, in terms of the step-through therapy.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Vamil. Operator, next question, please.
Operator
Thank you. Our next question comes from Steve Scala from Cowen. Your line is open.
Steve Scala -- Cowen and Company -- Analyst
Thank you. I have a couple of questions. At a high level, I struggle to understand why 2022 won't be a stronger year than the guide on the earnings line. Skyrizi and Botox are doing phenomenally.
Rinvoq is holding its own. Humira will still be exclusive in the U.S. for the whole year and should be at peak profitability and the pandemic, less an obstacle. So why won't 2022 look more like or even better than 2021 in terms of earnings power? And secondly, there was no mention of the CF program even in the upcoming milestones.
Any thoughts on the timing of the triplet data? In the past, I would describe AbbVie confidence as being no more than moderate. Has it changed one way or the other? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Hey, Steve. This is Rick. Maybe Rob and I will tag-team your first question, and then Michael will cover your second question. I think if I look at 2022 and I look at our overall performance coming off of a strong year in 2021, it's pretty impressive performance.
When I look at the EPS growth, certainly, do we have an opportunity to drive it harder? I can tell you, every year, we endeavor to drive it as hard as we can drive it. And when I look at all of the businesses individually and I look at their ability to be able to perform, I'm extremely confident in the trajectory that we have going forward. Specifically, we're assuming, as an example, in HCV -- that there's still a COVID impact in HCV. So I wouldn't say the pandemic is completely gone in 2022.
And -- but I'd say overall, the brands are performing well. We're investing in the business to ensure that we continue to be able to drive long-term performance. And so certainly, that obviously drives some expectations around what the EPS growth will be year over year. I don't know, Rob, anything you'd like to add?
Rob Michael -- Executive Vice President and Chief Financial Officer
I mean, I think it's a good point and that we are fully investing to support the long-term growth. If you think about -- we're launching -- AD, that's a new area for us. QULIPTA and Vuity, we're also going to fully invest there. Aesthetics, we've seen that -- the strength of the investment in aesthetics, the way we've been able to grow the market.
So that's really important. At the same time, we're expanding operating margin. We're exceeding our expectations for synergies. And so you're seeing us deliver another year of operating margin expansion.
So I'd say we're top tier in operating margin, very healthy P&L profile. And then the other thing that you probably have to factor in here is that we've assumed half-year Restasis as well. We don't really have visibility to the generic until we make an assumption every time we update guidance six months out. So that's something that as you look at year over year that you should figure into your comparisons.
But overall, we're very pleased with delivering double-digit growth in earnings and seeing another year of very strong operating margin expansion while fully investing to support the growth of the business.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
And this is Mike. I'll take the question on CF. I think it's important to keep in mind that this is a pre proof-of-concept program that doesn't contribute in any meaningful way to our long-term outlook and doesn't factor into our thinking about the long-term potential in the pipeline. And the way we have discussed it is consistent with that view.
We've always said that it represents significant upside if it were to hit, but it's an early program. With respect to the timing of the data, we continue to track toward the timing that we've described previously. We would expect to have data from the triple, sufficient to enable a go/no-go decision later on this quarter.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Steve. Operator, next question, please.
Operator
Thank you. Our next question comes from Tim Anderson with Wolfe Research. Your line is open.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. A couple of questions. I'm guessing that as we move through 2022, investors are going to start to have some concerns about 2023 earnings, what the impact from Humira could be, and you talked about having more visibility on Humira contracting later this year. My question is, is it possible you'll actually give us 2023 earnings guidance sometime this year, like at Q3 results as an example? And then my second question, just going back to CF data.
You said in mid-November that you would actually have that data in-house by the end of the year. So here we are four weeks later, we haven't really seen anything. My question is, do you actually have that data in-house? Did you hit that time line of end of year. If not, what's going on? What changed in that short window?
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Tim, this is Rick. I'll cover your first question. Mike can address the second one.
We certainly are in a position now to be able to commit that we would give earnings guidance in the third quarter. I think clearly, we'll be able to give a better feel for what that erosion curve looks like. And could that ultimately end up being at least a pretty good perspective for us to be able to build off of what earnings guidance would look like? It might. I think if we're in a position where we can confidently provide that guidance, we would provide it.
But I certainly think we'll be in a position where we have very good visibility as to what that erosion curve will look like. And at that point, we can tighten it a bit and be able to provide a higher level of specificity. We understand it's an important issue for investors. As far as EPS is concerned, in 2023 -- we have said that we expect EPS to decline in 2023.
So I don't think any investor is -- that would be a surprise to any investor. But obviously, it's important for us to be able to frame it as accurately as we can for the investment community and be able to provide direction around that. And at the point at which we think we can do that in a reliable way, we're committed to be able to do that. So let's see how it plays out.
And certainly, as we get to the third quarter call, that would be the position at -- the point at which, I think, we'd be in a position to be able to provide more clarity. Mike?
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
So on CF, what we said toward the end of last year is that data would begin to come in-house around the end of the year, and we would have sufficient data to make a go/no-go in the first quarter. And we're still tracking to that overall time line. There were some challenges toward the end of the year, where a number of patients were expected from Australia, for example, and Australia shut down because of COVID and we had to shift that enrollment. So we perhaps have slightly less data than we would have hoped to have had at this point in the year.
But again, we're still tracking to be able to make that go/no-go decision by the end of the year because it's important to keep in mind that these are short studies. And so once you get those patients in, you can turn the data around and make a decision pretty quickly. But the overall timing hasn't changed substantially from what we described at the end of last year.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Tim. Operator, next question, please.
Operator
Thank you. Our next question comes from Mohit Bansal from Wells Fargo. Your line is open.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Great. Thanks for taking the question. Congrats on the quarter. Maybe a question on Rinvoq and other oral competitions in -- competitors in IBD.
Where do you see Rinvoq fitting versus other orals such as SNP inhibitor? I mean now they are more than -- there could be more than one. And KOLs, I mean, they kind of suggested some kind of induction with one drug and maintenance with other drug, a kind of treatment paradigm in IBD. Do you think it is even a possibility in any of these diseases? Thank you.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
I think if -- this is Mike. I'll take that question. If you look at the performance of Rinvoq in inflammatory bowel diseases, both in UC where we have the full data set and in Crohn's disease, where we have an important component of the induction data set, the performance across the board is very, very strong. Not only in terms of just overall response rates that are measured, but particularly when one looks at deeper measures of response, clinical remission, mucosal healing, major clinical response, which is the combination of remission and endoscopic improvement.
And across the board, we're driving very high levels of disease control. And we think that feature of the drug, combined with the overall benefit/risk, position us to compete very effectively against not only oral competitors but many competitors, all competitors in the field. When we look at those data, to our eye, given the limitations of cross-study comparisons, we see response rates that just aren't paralleled in the field. And so we think that there is a very real opportunity for Rinvoq, and our view of its role in IBD reflects that.
With respect to mixed induction and maintenance regimens, it's important to keep in mind that there are no data to support those sorts of regimens. All of the programs look at induction, followed by maintenance, which is usually a step-down in dose from the induction dose. And that's the data set that physicians will have. Now it's important to keep in mind that in the long term, patients often lose control, and then they need to be reinduced with a new agent.
And one of the very strong features of Rinvoq and quite frankly, Skyrizi also shares this characteristic, is it has very durable response. So it does maintain response for a very long period of time in the studies that we have continued to follow, including our long-term extensions from Phase 2 and our Phase 3 program. So we think those are also very strong attributes to the products.
Mohit Bansal -- Wells Fargo Securities -- Analyst
That's all. Thank you very much.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Mohit. Operator, next question, please.
Operator
Thank you. Our next question comes from Gary Nachman from BMO Capital Markets. Your line is open.
Gary Nachman -- BMO Capital Markets -- Analyst
Hi. Good morning. Aesthetics has been a big source of upside in 2021. So I'm curious, did you see any real impact from omicron in the fourth quarter? Do you see a tailwind maybe from that further recovery this year? Is that baked into the aesthetics guidance of $5.9 billion that you have for 2022? And you've talked about high single-digit long-term aesthetics guidance, but this year should be double digits.
So should we be thinking more along the lines of double-digit growth maybe for the next few years if you're still investing a lot in that space? And then just one other quick one on QULIPTA for the chronic migraine prevention indication. That data is coming soon sometime this quarter. So just talk about how meaningful you think that indication will be and how that's factored into the peak targets that you talked about. Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Gary, it's a good question on omicron in aesthetics because it is something we track very carefully in every major geography around the world, as well as by state here in the United States. And I will tell you that, at least as far as the U.S. is concerned, there has not been much of an impact on aesthetic volume, unlike what we saw when there was an actual shutdown. And obviously, you would think shutdown, you're going to see the volume go down.
But I'd say here, we're seeing very little impact on the volume. So we have factored in that we don't expect a major disruption going forward. And I think the data would clearly support that that's a reasonable position to take. And as far as the business overall, I mean, I can tell you, we're very pleased with how the business is performing.
I think that group is executing at a very high level. And certainly, the resourcing and the dedicated structure that we put in place, I think, are helping a lot in major geographies like the U.S. and China. We're obviously comfortable with the guide that we provided.
It is an area that we're going to continue to invest in and continue to drive. And I think it's a market that, I think, is extremely attractive. And it's going to require both us to continue to execute and invest in it appropriately to grow the market, but also to build out more assets that meet patients' needs to be able to expand the market. And so we've almost doubled the R&D investment that we have in aesthetics since we took it over.
And we have a number of programs that, I think, are very exciting programs. Some of the biostimulatory and regenerative fillers that we're working on now, I think, could be exciting opportunities like tropoelastin. To be able to stimulate tropoelastin in patients using fillers is an exciting program that continues to advance. And so it's going to require both.
It's something that we're absolutely committed to continue to drive. And I think this can be -- as we indicated in our comments, I think this can be a strong business for AbbVie over the long term. Jeff, do you want to cover QULIPTA?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Thanks, Gary, for your question on QULIPTA. It's an important new indication if we see -- when we see the data and it were to be approved. And I'll give you some perspective.
Obviously, we've talked about how much we really like our portfolio of migraine. You got Botox on chronic with the injectors. Obviously, you have QULIPTA right now in episodic and, of course, Ubrelvy in acute. So the QULIPTA chronic gives us quite a bit of flexibility, and it's a nice catalyst.
Even though episodic is a bigger market in terms of patients, obviously, chronic patients do consume a lot of medication. Largely, if you think about the market structure, you've got injectors, meaning they inject Botox, or you have noninjectors. So to bring in the first oral that -- for people that don't choose to have a Botox-injectable practice, that's quite attractive. And we think it builds in our story over the strength of QULIPTA first-in-class designed specifically for these indications.
So it's a very nice catalyst if it were to be approved. And so we're anxiously looking forward to that. The other thing I would note, which is further off, and it's obviously something that would have to play out through the studies in Mike's organization, was chronic migraine is so difficult that the potential for patients to have combination treatment, so in other words, a Botox Therapeutic plus a simple oral drug like QULIPTA, could bring this concept to that segment of the market called migraine freedom where you're really trying to get the headaches down to as low as possible. And so again, it's further off, but it shows you the flexibility that we have as we continue to build out QULIPTA across our migraine portfolio.
So we're pretty excited about the potential for CM.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Gary. Operator, next question, please.
Operator
Thank you. Our next question is from Geoff Meacham from Bank of America. Your line is open.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Hey, guys. Good morning. Thanks so much for the question. Just had a couple of quick ones for Rick or for Rob.
The first one is when you look at your our modified 2025 guidance for Skyrizi and Rinvoq, were there any changes to your assumptions on duration of therapy or the pricing environment? I'm just thinking about the payer landscape with many more biosimilars coming up and what impact that could have on switching or price increases. And then the second question is on the BD front, we've obviously seen valuations come down quite a bit in SMID-cap biotech in the past six months. And I know you've usually talked about $2 billion earmarked for BD, but does the current environment make things like bringing new TAs or newer technologies in-house more attractive? Thanks so much.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Yeah. Thanks, Geoff. So obviously, when we go through our long-range plan, we consider the various dynamics of the pricing environment. So we factor that into our 2025 guidance.
I would not say that there's really been an assumption change for duration of therapy. But we did -- we certainly took into account the impact of label on RA, AD, and SpA, but then that was offset by the stronger performance OUS, as well as the stronger IBD data that we saw for Rinvoq and just the overall performance of Skyrizi in psoriasis. It was all factored into that updated guidance, but we did not make an assumption change for duration of therapy, and we certainly factor in various pricing assumptions as we go through our long-range plan.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And maybe Mike and I will tag-team number two. I mean, certainly, as we -- you've seen us pay down debt at a very significant pace. We're continuing to commit to pay down significant debt this year. And we'll certainly be in a position where we could do larger opportunities, if that was something that we desired and we thought it was the right kind of opportunity, as we move forward in '23 and '24.
Certainly, the $2 billion that we've allocated has been sufficient to be able to cover the things that we're looking for. Mike has responsibility for business development so I think he's probably a little closer to the valuation question. Mike?
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
Well, what I would say is that valuations have certainly come down, and that brings opportunities into the focus that might previously been outside of that range of $2 billion a year that we had contemplated. And as Rick said, as we pay down debt, we have some more flexibility. But we're going to continue to look at BD in the same way that we always have, which is that it is an important component of adding innovation to our pipeline and needs to be coupled with our internal innovation. So we're going to match what's out there.
The innovation we see, the therapeutic areas that are most promising with what's going on in our early pipeline, and use that to make sure that, overall, we have a very strong and very innovative pipeline. And you can see that, for example, in the way that we have built our hem/onc franchise, where we have a nice-blended, internally discovered and partnered programs from Venclexta and Imbruvica, obviously our lead programs, to the significant programs behind that, things like navitoclax, epcoritamab, 383 and now Teliso-V demonstrating extremely strong data in non-small cell lung cancer. So that's a blend of internal and external innovation. And we're going to continue to look at areas in that same way.
And it's principally going to be the fit for our overall situation, the strength of the innovation, and that balance between internal and external innovation that we look at.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Geoff. Operator, next question, please.
Operator
Thank you. Our next question comes from Josh Schimmer from Evercore. Your line is open.
Josh Schimmer -- Evercore ISI -- Analyst
Great. Thanks so much for taking my question. First, I'm a little surprised the contingent consideration adjustment is not higher considering your recently revised Skyrizi forecast. Am I not understanding that line correctly? Or should we be expecting a more meaningful revision in the first quarter? And then you mentioned a couple of times the novel biostimulatory dermal fillers you have in the aesthetics pipeline.
Can you elaborate on how you expect those to differentiate versus the current offering and whether you expect those to expand the market for fillers? Thanks.
Rob Michael -- Executive Vice President and Chief Financial Officer
So Josh, this is Rob. I'll take your first question. So we did actually record in Q2 of last year additional accretion for higher sales forecast for Skyrizi. That was really tied to both our long-range plan, as well as because it's a fair value measure.
You have to take external forecast into account. And obviously, Street numbers have moved up as well. We came out with -- publicly with the updated guidance in December, but we already contemplated that in our contingent consideration accretion in Q2 of last year. So that's already accounted for.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So on the biostimulatory fillers, I think the way to think about it, there are multiple programs, but I'll talk about two areas specifically. Certainly, one of the areas that you want to be able to look at is your ability to be able to stimulate collagen so that your own body can produce collagen to be able to provide support and filling in a specific area that you desire. And there are some products on the market today that provide that. One of the negatives of those products is you don't get the immediate filling effect that you normally get with a filler, where you get physical filling immediately upon the procedure.
You get a little bit of swelling that occurs. So for a very short period of time, you will get what looks to be filling, but then that swelling goes down. And then for a period of time, the patient has to wait in order for them to get the collagen impact, and that takes a significant period of time. So we have a technology in-house that we acquired and we're further developing that combines both physical filling and collagen stimulation in one product.
So you get the immediate filling effect of a normal filler. And then as that starts to resolve over time, you get the collagen impact that's building over that same period of time to provide long-term filling. So I would say that most of these technologies that we're working on are market expansion opportunities. So that's one example.
The second example would be one of the areas that is important for patients is what we describe as skin quality, the smoothness of your skin essentially. And one of the things that provides smoothness of your skin is the elasticity of the skin. So tropoelastin is an example of a product that we have in development that will allow the body to be able to produce more elastin. So you can inject this product and it will provide, we believe, we have to prove this in the clinical studies, that would provide not only some level -- not a dramatic level of filling but an ability to be able to provide elastin formation along those areas and be able to smooth the skin out.
That would clearly be a market expansion opportunity today. There really aren't fillers that do that. They can stretch the skin with the physical filling, but they don't really provide smoothing of the skin. And so those are two examples of what we're working on.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Josh. Operator, next question, please.
Operator
Thank you. Our next question comes from Chris Raymond with Piper Sandler. Your line is open.
Chris Raymond -- Piper Sandler -- Analyst
Hey. Thanks. Just two questions. First, on the migraine franchise, noticed that you have a Phase 3 trial looking at QULIPTA in Botox in a combo therapy for migraine -- for chronic migraine prevention.
Our doc checks indicate actually growing interest. Docs sort of highlight that as proactively -- as something they're interested in. I guess, was this trial in response to that feedback? Or maybe just talk about the rationale and how you're looking at combo in this space. And then just a question on a drug that doesn't come up that you just launched, Vuity.
Presbyopia represents a huge TAM. Maybe just talk about initial uptake trends. And what is it about this market, I guess, that you're seeing that you're not making a bigger deal out of this launch? Thanks.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
So this is Mike. I'll start with the question on QULIPTA and Botox combo use, and then Jeff may want to add and take the second question. With respect to that combination, it really goes back to what Jeff said before, this concept of migraine freedom. Now if you think about chronic migraine, these are patients who have 15 or more migraine days a month.
That's a migraine every other day, and these are debilitating attacks. So a substantial reduction in that is great. But what patients and physicians are really seeking is an elimination of the migraine so that they can be free to go across their daily lives -- to go about their daily lives. And given the options that are out there today to really get to that level in those most severely affected patients, combination therapy is an obvious place to go, particularly when it's complementary approaches that work through completely different mechanisms.
And so you would expect their effects to be independent and additive. And where you have a treatment like Botox, it has a long track record, it's infrequently administered, and has a long duration. So it's that thinking that led to that combination trial. And I do think we would also agree that there is significant interest in treating physicians around these approaches.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Just to add to that that's exactly right, is the -- it's so logical and there's so much unmet need, to Mike's point, in chronic migraine with half a month -- sometimes these migraines last for days. And so there's a lot of desperation. And when the thought leaders and the headache specialists see the impact of Botox and how simple QULIPTA is and how strong that is, they go right there.
So I think we are encouraged, as Mike mentioned, to sort of see the outcome of those studies for migraine freedom. It would -- if it works, it would be a real advance for patients.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And so on Vuity, you're right, we didn't comment on it on this meeting. We typically wouldn't comment on a product that's of this size. And I mean it's a very interesting product. I think it clearly has a unique fit in the market.
I'll have -- I'll let Jeff talk a little bit about the total available market, what we see as far as the size of that market going forward. But the reason we didn't highlight it is, like I said, if we look at what we think peak sales will be here, it's not a product of the magnitude that we would typically highlight.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. And what we see is that there is excitement about Vuity. I mean it's different than the -- obviously, the market is basically over-the-counter or prescription eyeglasses or readers, right? So this is the first-ever product that basically is a drop or a reading drop, right? So when we start to break down the data and you take a really, really big market, tens and tens of millions of patients with presbyopia but we also largely see from the clinical study, it really works the best for moderate to severe younger people, not older people. So as we basically make the cuts, it's still a substantial market size, but it's not as large as you might think if you just look at all the presbyopes that are better in the United States.
But nonetheless, it's early days where we have a sales force that's calling on our optometrist, also ophthalmologists. What we see from the early results is significant interest. We haven't started our big consumer push, which will come later in this quarter. It is an older glaucoma product that's been reformulated.
So there's a little bit of learning from the ophthalmologists who really understand glaucoma products. But overall, the early results are it works as anticipated. It works quickly within 15 minutes. It lasts for six to eight hours.
And so again, when we look at the price point, it's not a reimbursed product. It's a cash pay product. We have, to Rick's point, fairly modest expectations, and we'll continue to watch the trajectory here over the next quarter or so.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
I think the big assumption that you have to look at here is what is the utilization per month that a patient would actually use it for. I mean, as an example, I keep bugging the guys that I have to go get a prescription for it. Now what do I want it for? When I go to a restaurant, I have trouble reading in low light. So I'll use it for that purpose.
And so it's very difficult to come up with the frequency at which it will be used. If it's used at a high frequency, it will obviously be a bigger product. If it's used at a relatively low frequency, it will be a smaller product. So we'll have to see how it plays out.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Chris. Operator, we have time for one final question.
Operator
Thank you. Our final question comes from Matthew Harrison from Morgan Stanley. Your line is open.
Matthew Harrison -- Morgan Stanley -- Analyst
Great Thanks for squeezing me in. I guess two for me, if I may. So first, on epco, could you just comment around your confidence around accelerated approval here in DLBCL and how you're thinking about that opportunity in the near term? And then on Vraylar, maybe just comment on what FDA conversations are ongoing there and how you're thinking about the potential for an AdCom or not. Thanks.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
So on epco -- we have a high degree of confidence in epco overall. It continues to deliver very strong results, high overall response rates, very deep responses, good complete response rates across a number of indications, DLBCL and follicular lymphoma both. With respect to the confidence in accelerated approval for diffuse large B-cell lymphoma, when we look at the data, we think it clearly exceeds the benchmarks of available therapies in highly pretreated refractory patients. So we would think that accelerated approval should be supported by those data.
We'll allow the data to continue to mature from the expansion cohorts and have our final regulatory discussions later on this year to set up that accelerated approval submission. So it certainly is in our planning, and we think it's very supportable based on the data. With respect to confidence in Vraylar in MDD, we're confident in that. We've been confident.
We were confident when we saw the data and looked at the strength of those data and looked at the relevant precedents for molecules that have achieved indications, not only in depression, broadly speaking, but in adjunctive treatment of major depressive disorder. We've completed all of the regulatory discussions that we need to have for the submission, and we're planning the submission shortly, as we described in my prepared remarks. In terms of potential for an AdCom, it's really too early to comment on that. We typically start to have those conversations with the agency a few months into the review process.
But based on the data and based on the precedence, it's not something that we would anticipate. However, if the agency were to have one, it wouldn't concern us either. We think the data package is very strong and would hold its own.
Liz Shea -- Vice President and Head of Investor Relations
Thanks, Matthew. 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: 87 minutes
Call participants:
Liz Shea -- Vice President and Head of Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
Rob Michael -- Executive Vice President and Chief Financial Officer
Chris Schott -- JPMorgan Chase and Company -- Analyst
Ronny Gal -- Sanford C. Bernstein -- Analyst
Andrew Baum -- Citi -- Analyst
Vamil Divan -- Mizuho Securities -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Mohit Bansal -- Wells Fargo Securities -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Josh Schimmer -- Evercore ISI -- Analyst
Chris Raymond -- Piper Sandler -- Analyst
Matthew Harrison -- Morgan Stanley -- Analyst
More ABBV analysis
All earnings call transcripts
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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) Q4 2021 Earnings Call Feb 02, 2022, 9:00 a.m. Welcome to the AbbVie fourth quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. | Notable opportunities from our mid- to late-stage oncology pipeline include: navitoclax for myelofibrosis, which has the potential to provide disease modification in a market where current treatments only address symptoms; epcoritamab, a potentially best-in-class CD3xCD20 for B-cell malignancies, including DLBCL and follicular lymphoma; ABBV-383, our BCMA CD3 bispecific, which has the potential to become a best-in-class treatment in multiple myeloma; and Teliso-V, our promising c-Met ADC being studied for nonsquamous non-small cell lung cancer, which was recently granted Breakthrough Therapy Designation. Operator [Operator signoff] Duration: 87 minutes Call participants: Liz Shea -- Vice President and Head of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources Rob Michael -- Executive Vice President and Chief Financial Officer Chris Schott -- JPMorgan Chase and Company -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Andrew Baum -- Citi -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Steve Scala -- Cowen and Company -- Analyst Tim Anderson -- Wolfe Research -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Josh Schimmer -- Evercore ISI -- Analyst Chris Raymond -- Piper Sandler -- Analyst Matthew Harrison -- Morgan Stanley -- 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) Q4 2021 Earnings Call Feb 02, 2022, 9:00 a.m. | Operator [Operator signoff] Duration: 87 minutes Call participants: Liz Shea -- Vice President and Head of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources Rob Michael -- Executive Vice President and Chief Financial Officer Chris Schott -- JPMorgan Chase and Company -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Andrew Baum -- Citi -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Steve Scala -- Cowen and Company -- Analyst Tim Anderson -- Wolfe Research -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Josh Schimmer -- Evercore ISI -- Analyst Chris Raymond -- Piper Sandler -- Analyst Matthew Harrison -- Morgan Stanley -- 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) Q4 2021 Earnings Call Feb 02, 2022, 9:00 a.m. Welcome to the AbbVie fourth quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. | Operator [Operator signoff] Duration: 87 minutes Call participants: Liz Shea -- Vice President and Head of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources Rob Michael -- Executive Vice President and Chief Financial Officer Chris Schott -- JPMorgan Chase and Company -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Andrew Baum -- Citi -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Steve Scala -- Cowen and Company -- Analyst Tim Anderson -- Wolfe Research -- Analyst Mohit Bansal -- Wells Fargo Securities -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Josh Schimmer -- Evercore ISI -- Analyst Chris Raymond -- Piper Sandler -- Analyst Matthew Harrison -- Morgan Stanley -- 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) Q4 2021 Earnings Call Feb 02, 2022, 9:00 a.m. Welcome to the AbbVie fourth quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president, head of investor relations. |
23632.0 | 2022-02-02 00:00:00 UTC | 5 Top Stock Trades for Thursday: AMD, NVDA, FB, QCOM, ABBV | ABBV | https://www.nasdaq.com/articles/5-top-stock-trades-for-thursday%3A-amd-nvda-fb-qcom-abbv | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We’re in the thick of earnings season, with more big reports due up after the close and again on Thursday. With that in mind, let’s look at a few top stock trades going into the back-half of the week.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Advanced Micro Devices (NASDAQ:AMD) ripped higher at the open following better-than-expected earnings. However, those gains were halved just a few hours later.
That said, just look at how far this stock has come in the last few days after its violent bounce off $100. Shares came up just short of the December low and the 50% retracement.
However, as long as it remains above last week’s high and the 10-day moving average, bulls may be able to maintain control. If lost, the $110 level and the 200-day may be next.
7 Best Robinhood Stocks to Buy on the Dip
Above the 50% retracement puts the 50-day and the daily VWAP measure in play.
Top Stock Trades for Tomorrow No. 2: Nvidia (NVDA)
Click to Enlarge
Source: Chart courtesy of TrendSpider
As for its older brother, Nvidia (NASDAQ:NVDA) rallied in sympathy with AMD stock Wednesday morning, although not as much. Both of these stocks are winners, both surged to new highs in November and both corrected about 39.5%.
A lot of similarities — just like Wednesday morning’s fade.
I liked Nvidia off the weekly-up rotation near $240 and also liked the idea of trimming the stock near $260, around this morning’s open.
What I want to see now is similar to AMD stock. Can Nvidia hold the 10-day moving average and last week’s high?
If it can’t, the 200-day is on deck. If it can, though, we want to see it take out today’s high and push into the $275 area. Above that puts the 50-day in play, followed by $293-ish.
Top Stock Trades for Tomorrow No. 3: Facebook (FB)
Click to Enlarge
Source: Chart courtesy of TrendSpider
I typically do four stocks in this line-up, but I wanted to throw my levels out on Meta (NASDAQ:FB). I’ll keep it quick.
Near the middle of its recent range, Facebook has already enjoyed five big rallies. On the upside, watch $336-ish, which is the 50% retracement and 200-day.
Above that is the $348 to $352 area, which is the 61.8% retracement, fourth-quarter resistance and the December high.
On the downside, however, watch $308 to $310. Below that and $300 is in play.
7 Blue-Chip Stocks to Buy for February
The company reports tonight, as does the next company on our list.
Top Trades for Tomorrow No. 4: Qualcomm (QCOM)
Click to Enlarge
Source: Chart courtesy of TrendSpider
I have said for weeks now that Qualcomm (NASDAQ:QCOM) has a beautiful weekly chart and the stock’s bounce from the 21-week moving average highlights it.
Now back into a potential resistance zone, we want to see if earnings can break this one out. If it does, $195.75 is an area to keep an eye on. It’s the larger zone’s 161.8% extension and just above the current highs.
If it’s anything like AMD’s report, though, $200-plus could be on the table. In that case, keep an eye on $215, as we look for the current range’s next extension level.
On the downside, though, keep $174.50 in mind — last week’s high and the 10-week moving average — followed by the breakout level near $168.
Top Trades for Tomorrow No. 5: AbbVie (ABBV)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Lastly, we have AbbVie (NYSE:ABBV). This stock has been a relative strength leader, and we have liked it for that reason. However, it has been sluggish today despite reporting earnings.
Shares were able to open lower and push to new highs as bulls bought the dip. That’s great.
From here, though, $138 will be a key line in the sand, in my opinion. If it holds, bulls are in control and can potentially look up to the $144 area for the next upside target.
On the downside, however, a break and a sustained move below $138 opens the door to lower prices.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 5 Top Stock Trades for Thursday: AMD, NVDA, FB, QCOM, ABBV 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. | 5: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider Lastly, we have AbbVie (NYSE:ABBV). The post 5 Top Stock Trades for Thursday: AMD, NVDA, FB, QCOM, ABBV appeared first on InvestorPlace. | The post 5 Top Stock Trades for Thursday: AMD, NVDA, FB, QCOM, ABBV appeared first on InvestorPlace. 5: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider Lastly, we have AbbVie (NYSE:ABBV). | The post 5 Top Stock Trades for Thursday: AMD, NVDA, FB, QCOM, ABBV appeared first on InvestorPlace. 5: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider Lastly, we have AbbVie (NYSE:ABBV). | The post 5 Top Stock Trades for Thursday: AMD, NVDA, FB, QCOM, ABBV appeared first on InvestorPlace. 5: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider Lastly, we have AbbVie (NYSE:ABBV). |
23633.0 | 2022-02-02 00:00:00 UTC | AbbVie Q4 21 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q4-21-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 2, 2022, to discuss Q4 21 earnings results.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 2, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 2, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 2, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 2, 2022, to discuss Q4 21 earnings results. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23634.0 | 2022-02-02 00:00:00 UTC | U.S. FDA approves first generic form of AbbVie's eye drug | ABBV | https://www.nasdaq.com/articles/u.s.-fda-approves-first-generic-form-of-abbvies-eye-drug-0 | nan | nan | Adds background, details on drug
Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome.
The condition, which affects millions of Americans every year, occurs when eyes do not make sufficient tears to stay wet or when tears do not work correctly, which can lead to blurry vision.
Restasis, which has been approved in the United States for nearly two decades, helps reduce eye inflammation associated with dry eye, which can affect tear production.
The regulator gave the approval to Viatris Inc VTRS.O. Viatris was formed through the merger of generic drugmaker Mylan Pharmaceuticals and Pfizer Inc's PFE.N off-patent drug business in 2020.
AbbVie and Viatris did not immediately respond to Reuters' requests for comment.
(Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie and Viatris did not immediately respond to Reuters' requests for comment. Adds background, details on drug Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. The condition, which affects millions of Americans every year, occurs when eyes do not make sufficient tears to stay wet or when tears do not work correctly, which can lead to blurry vision. | Adds background, details on drug Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. AbbVie and Viatris did not immediately respond to Reuters' requests for comment. Restasis, which has been approved in the United States for nearly two decades, helps reduce eye inflammation associated with dry eye, which can affect tear production. | Adds background, details on drug Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. AbbVie and Viatris did not immediately respond to Reuters' requests for comment. Restasis, which has been approved in the United States for nearly two decades, helps reduce eye inflammation associated with dry eye, which can affect tear production. | Adds background, details on drug Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. AbbVie and Viatris did not immediately respond to Reuters' requests for comment. Restasis, which has been approved in the United States for nearly two decades, helps reduce eye inflammation associated with dry eye, which can affect tear production. |
23635.0 | 2022-02-02 00:00:00 UTC | Noteworthy Wednesday Option Activity: ABBV, ORCL, QRVO | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-abbv-orcl-qrvo | 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 39,971 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 47.3% of ABBV's average daily trading volume over the past month of 8.5 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 5,391 contracts trading so far today, representing approximately 539,100 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange:
Oracle Corp (Symbol: ORCL) options are showing a volume of 46,659 contracts thus far today. That number of contracts represents approximately 4.7 million underlying shares, working out to a sizeable 47.1% of ORCL's average daily trading volume over the past month, of 9.9 million shares. Especially high volume was seen for the $85 strike call option expiring February 04, 2022, with 16,094 contracts trading so far today, representing approximately 1.6 million underlying shares of ORCL. Below is a chart showing ORCL's trailing twelve month trading history, with the $85 strike highlighted in orange:
And Qorvo Inc (Symbol: QRVO) saw options trading volume of 5,591 contracts, representing approximately 559,100 underlying shares or approximately 41% of QRVO's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $150 strike call option expiring February 18, 2022, with 2,464 contracts trading so far today, representing approximately 246,400 underlying shares of QRVO. Below is a chart showing QRVO's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for ABBV options, ORCL options, or QRVO 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 $145 strike call option expiring March 18, 2022, with 5,391 contracts trading so far today, representing approximately 539,100 underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 39,971 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 47.3% of ABBV's average daily trading volume over the past month of 8.5 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange: Oracle Corp (Symbol: ORCL) options are showing a volume of 46,659 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 39,971 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 47.3% of ABBV's average daily trading volume over the past month of 8.5 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 39,971 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 47.3% of ABBV's average daily trading volume over the past month of 8.5 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 5,391 contracts trading so far today, representing approximately 539,100 underlying shares of ABBV. | Below is a chart showing QRVO's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for ABBV options, ORCL options, or QRVO 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 39,971 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 47.3% of ABBV's average daily trading volume over the past month of 8.5 million shares. |
23636.0 | 2022-02-02 00:00:00 UTC | U.S. FDA approves first generic form of AbbVie's eye drug | ABBV | https://www.nasdaq.com/articles/u.s.-fda-approves-first-generic-form-of-abbvies-eye-drug | nan | nan | Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome.
The regulator has given the approval to Mylan Pharmaceuticals Inc.
(Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. The regulator has given the approval to Mylan Pharmaceuticals Inc. (Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. The regulator has given the approval to Mylan Pharmaceuticals Inc. (Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. The regulator has given the approval to Mylan Pharmaceuticals Inc. (Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 2 (Reuters) - The U.S. Food and Drug Administration said on Wednesday it had approved the first generic version of AbbVie's ABBV.N drug, Restasis, to increase tear production in patients with dry eye syndrome. The regulator has given the approval to Mylan Pharmaceuticals Inc. (Reporting by Amruta Khandekar; Editing by Krishna Chandra Eluri) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23637.0 | 2022-02-02 00:00:00 UTC | Abbvie Inc Shares Climb 0.2% Past Previous 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-climb-0.2-past-previous-52-week-high-market-mover | nan | nan | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $242B. The stock is currently up 2.2% year-to-date, up 40.2% over the past 12 months, and up 183.2% over the past five years. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 4.3%.
Trading Activity
Trading volume this week was 12.3% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -171.7%
The company's stock price performance over the past 12 months beats the peer average by 275.6%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 22.0% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $242B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $242B. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 4.3%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -171.7% The company's stock price performance over the past 12 months beats the peer average by 275.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 22.0% higher than the average peer. | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $242B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -171.7% The company's stock price performance over the past 12 months beats the peer average by 275.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 22.0% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed 0.2% higher than its previous 52 week high, giving the company a market cap of $242B. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 4.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. |
23638.0 | 2022-02-02 00:00:00 UTC | AbbVie (ABBV) Tops Q4 Earnings Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-tops-q4-earnings-estimates | nan | nan | AbbVie (ABBV) came out with quarterly earnings of $3.31 per share, beating the Zacks Consensus Estimate of $3.29 per share. This compares to earnings of $2.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 0.61%. A quarter ago, it was expected that this drugmaker would post earnings of $3.23 per share when it actually produced earnings of $3.33, delivering a surprise of 3.10%.
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 $14.89 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $13.86 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AbbVie shares have added about 1.2% since the beginning of the year versus the S&P 500's decline of -4.6%.
What's Next for AbbVie?
While AbbVie has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AbbVie: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.16 on $13.76 billion in revenues for the coming quarter and $14.05 on $59.75 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 36% 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.
Merck (MRK), another stock in the same industry, has yet to report results for the quarter ended December 2021. The results are expected to be released on February 3.
This pharmaceutical company is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of +6.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Merck's revenues are expected to be $12.6 billion, up 0.7% 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 $3.31 per share, beating the Zacks Consensus Estimate of $3.29 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.89 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.94%. AbbVie shares have added about 1.2% since the beginning of the year versus the S&P 500's decline of -4.6%. | AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.89 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.94%. AbbVie (ABBV) came out with quarterly earnings of $3.31 per share, beating the Zacks Consensus Estimate of $3.29 per share. AbbVie shares have added about 1.2% since the beginning of the year versus the S&P 500's decline of -4.6%. | AbbVie (ABBV) came out with quarterly earnings of $3.31 per share, beating the Zacks Consensus Estimate of $3.29 per share. AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.89 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.94%. AbbVie shares have added about 1.2% since the beginning of the year versus the S&P 500's decline of -4.6%. | AbbVie (ABBV) came out with quarterly earnings of $3.31 per share, beating the Zacks Consensus Estimate of $3.29 per share. While AbbVie has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? AbbVie, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $14.89 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.94%. |
23639.0 | 2022-02-02 00:00:00 UTC | AbbVie's (ABBV) Q4 Earnings Surpass Estimates, Sales Miss | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-q4-earnings-surpass-estimates-sales-miss | nan | nan | AbbVie Inc. ABBV reported earnings of $3.31 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.29 and exceeding the guided range of $3.24 to $3.28 per share. Earnings rose 13.4% year over year.
The company’s revenues of $14.89 billion slightly missed the Zacks Consensus Estimate of $15.03 billion. Sales rose 7.4% year over year on a reported basis and 7.5% on an operational basis. Strong demand across all segments drives sales.
Shares of AbbVie were up 1% in pre-market trading on the earnings beat. AbbVie’s shares have gained 32.4% in the past year compared with the industry’s 18.5% increase.
Image Source: Zacks Investment Research
Quarter in Detail
In immunology, key drug Humira recorded a year-over-year sales increase of 3.5% on an operational basis to $5.33 billion. Sales in the United States climbed 6% to $4.55 billion. However, Humira sales in the ex-U.S. markets were down 8.8% on an operational basis to $781 million. International sales were affected by the launch of several direct biosimilar drugs in Europe by other pharma companies, including Amgen AMGN, Sandoz and Biogen BIIB.
Amgen, Sandoz and Biogen were the first to start commercializing Humira-biosimilar in Europe in 2018. Amgen, Sandoz and Biogen have also received FDA approvals for Humira-biosimilar but commercialization is expected to start after the loss of exclusivity for Humira in 2023.
New immunology drugs, Skyrizi and Rinvoq registered sales of $895 million and $517 million, respectively. In the previous quarter, Skyrizi and Rinvoq had recorded sales of $796 million and $453, respectively. Strong sequential growth in sales can be attributed to the strong uptake.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 4.7% on an operational basis to $1.87 billion in the quarter, driven by the strong growth of Venclexta sales, partially offset by lower U.S. sales of Imbruvica.
Fourth-quarter net revenues from Imbruvica were $1.39 billion, down 2.7% year over year. AbbVie has developed the drug in partnership with Johnson & Johnson JNJ. AbbVie shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $1.11 billion, down 4.3% from the year-ago figure. Increasing competition from newer therapies and lower new patient starts are likely to have hurt sales of the drug during the quarter. AbbVie’s share of profit from international sales of the J&J-partnered drug rose 4.6% to $271 million.
The company’s leukemia drug, Venclexta generated revenues of $488 million in the reported quarter, reflecting 34% year-over-year growth on an operational basis.
AbbVie’s aesthetics portfolio sales were up 22.8% on an operational basis to $1.41 billion on the back of robust demand for Botox Cosmetic and Juvederm. Sales of Botox cosmetics rose 26.6% on an operational basis to $626 million while Juvederm’s sales were up 29.8% operationally to $432 million.
Sales from the neuroscience portfolio increased 19% operationally to $1.65 billion, driven by Botox Therapeutic and Vraylar. While Botox Therapeutic sales rose 18.1% to $671 million, sales of Vraylar were up 21.8% to $489 million. AbbVie’s newly launched oral migraine drug, Ubrelvy, generated $183 million in revenues, compared with $162 million in the third quarter of 2021.
Eye care portfolio sales gained 3.9% on an operational basis to $960 million. Sales of a key drug in the portfolio, Restasis, increased 5.9% year over year to $364 million.
Adjusted SG&A expenses increased 7.1% to $3.31 billion while adjusted R&D expenses were $1.8 billion in the fourth quarter, rising 2.7% year over year. Adjusted operating margin represented 49.3% of sales.
Full-Year Results
AbbVie reported revenues of $56.2 billion, up 22.7% year over year. The company’s adjusted earnings for 2020 were $12.70 per share, up 20.3% from the year-ago period.
2022 Guidance
AbbVie issued EPS guidance for 2022. The company expects adjusted EPS to be in the range of $14.00-$14.20, suggesting year-over-year growth of 10.2%-11.8%. The Zacks Consensus Estimate for current-year earnings per share is pegged at $14.05.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Zacks Rank
Currently, AbbVie is a Zacks Rank #3 (Hold) stock. 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. | AbbVie Inc. ABBV reported earnings of $3.31 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.29 and exceeding the guided range of $3.24 to $3.28 per share. Shares of AbbVie were up 1% in pre-market trading on the earnings beat. AbbVie’s shares have gained 32.4% in the past year compared with the industry’s 18.5% increase. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 4.7% on an operational basis to $1.87 billion in the quarter, driven by the strong growth of Venclexta sales, partially offset by lower U.S. sales of Imbruvica. AbbVie Inc. ABBV reported earnings of $3.31 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.29 and exceeding the guided range of $3.24 to $3.28 per share. Shares of AbbVie were up 1% in pre-market trading on the earnings beat. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 4.7% on an operational basis to $1.87 billion in the quarter, driven by the strong growth of Venclexta sales, partially offset by lower U.S. sales of Imbruvica. AbbVie Inc. Price and EPS Surprise AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote Zacks Rank Currently, AbbVie is a Zacks Rank #3 (Hold) stock. AbbVie Inc. ABBV reported earnings of $3.31 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.29 and exceeding the guided range of $3.24 to $3.28 per share. | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 4.7% on an operational basis to $1.87 billion in the quarter, driven by the strong growth of Venclexta sales, partially offset by lower U.S. sales of Imbruvica. AbbVie Inc. ABBV reported earnings of $3.31 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.29 and exceeding the guided range of $3.24 to $3.28 per share. Shares of AbbVie were up 1% in pre-market trading on the earnings beat. |
23640.0 | 2022-02-02 00:00:00 UTC | AbbVie Guides FY22 Adj. EPS Above Estimates - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie-guides-fy22-adj.-eps-above-estimates-quick-facts | nan | nan | (RTTNews) - While reporting financial results for the fourth quarter on Wednesday, biopharmaceutical company AbbVie Inc. (ABBV) initiated its earnings and adjusted earnings guidance for the full-year 2022.
For fiscal 2022, AbbVie now projects earnings in a range of $9.26 to $9.46 per share and adjusted earnings in a range of $14.00 to $14.20 per share.
On average, 23 analysts polled by Thomson Reuters expect the company to report earnings of $13.99 per share for the year. Analysts' estimates typically exclude special items.
"We are entering 2022 with significant momentum and expect our diverse set of growth assets, robust pipeline and excellent execution to deliver continued strong performance this year and over the long term," 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 fourth quarter on Wednesday, biopharmaceutical company AbbVie Inc. (ABBV) initiated its earnings and adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects earnings in a range of $9.26 to $9.46 per share and adjusted earnings in a range of $14.00 to $14.20 per share. On average, 23 analysts polled by Thomson Reuters expect the company to report earnings of $13.99 per share for the year. | (RTTNews) - While reporting financial results for the fourth quarter on Wednesday, biopharmaceutical company AbbVie Inc. (ABBV) initiated its earnings and adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects earnings in a range of $9.26 to $9.46 per share and adjusted earnings in a range of $14.00 to $14.20 per share. On average, 23 analysts polled by Thomson Reuters expect the company to report earnings of $13.99 per share for the year. | (RTTNews) - While reporting financial results for the fourth quarter on Wednesday, biopharmaceutical company AbbVie Inc. (ABBV) initiated its earnings and adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects earnings in a range of $9.26 to $9.46 per share and adjusted earnings in a range of $14.00 to $14.20 per share. On average, 23 analysts polled by Thomson Reuters expect the company to report earnings of $13.99 per share for the year. | (RTTNews) - While reporting financial results for the fourth quarter on Wednesday, biopharmaceutical company AbbVie Inc. (ABBV) initiated its earnings and adjusted earnings guidance for the full-year 2022. For fiscal 2022, AbbVie now projects earnings in a range of $9.26 to $9.46 per share and adjusted earnings in a range of $14.00 to $14.20 per share. On average, 23 analysts polled by Thomson Reuters expect the company to report earnings of $13.99 per share for the year. |
23641.0 | 2022-02-02 00:00:00 UTC | AbbVie forecasts 2022 profit above estimates on strong sales of Botox, Skyrizi | ABBV | https://www.nasdaq.com/articles/abbvie-forecasts-2022-profit-above-estimates-on-strong-sales-of-botox-skyrizi | nan | nan | Feb 2 (Reuters) - AbbVie Inc ABBV.N forecast full-year adjusted profit above estimates on Wednesday, as its blockbuster anti-wrinkle injection Botox and newer psoriasis drug Skyrizi beat Wall Street expectations for quarterly sales.
The company's best-selling drug Humira is expected to face competition from rivals in the United States in 2023 after it loses exclusivity, and the drugmaker is counting on Botox as well as newer drugs, Skyrizi and Rinvoq, to soften the expected blow to sales.
Sales of Humira, which is already facing copycat rivals in Europe, rose 3.5% to $5.33 billion in the fourth quarter, missing estimates of $5.41 billion, according to Refinitiv IBES data.
Total revenue of $14.89 billion also missed estimates of $14.97 billion.
However, the company reported sales of $895 million for Skyrizi, which beat estimates of $867.22 million, and $626 million in Botox sales for cosmetic uses, which topped estimates of $569.78 million.
Sales of Rinvoq, which belongs to a class of drugs known JAK inhibitors, jumped 84.4% to $517 million.
Net earnings rose to $4.04 billion, or $2.26 per share, in the quarter ended Dec. 31, from $36 million, or $0.01 per share, a year ago. The company had recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi last year.
Excluding items, AbbVie earned $3.31 per share.
The company said it expects 2022 adjusted profit to be between $14.00 and $14.20 per share. Analysts were expecting a profit of $13.99 per share.
(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. | Feb 2 (Reuters) - AbbVie Inc ABBV.N forecast full-year adjusted profit above estimates on Wednesday, as its blockbuster anti-wrinkle injection Botox and newer psoriasis drug Skyrizi beat Wall Street expectations for quarterly sales. Excluding items, AbbVie earned $3.31 per share. The company's best-selling drug Humira is expected to face competition from rivals in the United States in 2023 after it loses exclusivity, and the drugmaker is counting on Botox as well as newer drugs, Skyrizi and Rinvoq, to soften the expected blow to sales. | Feb 2 (Reuters) - AbbVie Inc ABBV.N forecast full-year adjusted profit above estimates on Wednesday, as its blockbuster anti-wrinkle injection Botox and newer psoriasis drug Skyrizi beat Wall Street expectations for quarterly sales. Excluding items, AbbVie earned $3.31 per share. Sales of Humira, which is already facing copycat rivals in Europe, rose 3.5% to $5.33 billion in the fourth quarter, missing estimates of $5.41 billion, according to Refinitiv IBES data. | Feb 2 (Reuters) - AbbVie Inc ABBV.N forecast full-year adjusted profit above estimates on Wednesday, as its blockbuster anti-wrinkle injection Botox and newer psoriasis drug Skyrizi beat Wall Street expectations for quarterly sales. Excluding items, AbbVie earned $3.31 per share. The company's best-selling drug Humira is expected to face competition from rivals in the United States in 2023 after it loses exclusivity, and the drugmaker is counting on Botox as well as newer drugs, Skyrizi and Rinvoq, to soften the expected blow to sales. | Feb 2 (Reuters) - AbbVie Inc ABBV.N forecast full-year adjusted profit above estimates on Wednesday, as its blockbuster anti-wrinkle injection Botox and newer psoriasis drug Skyrizi beat Wall Street expectations for quarterly sales. Excluding items, AbbVie earned $3.31 per share. The company's best-selling drug Humira is expected to face competition from rivals in the United States in 2023 after it loses exclusivity, and the drugmaker is counting on Botox as well as newer drugs, Skyrizi and Rinvoq, to soften the expected blow to sales. |
23642.0 | 2022-02-02 00:00:00 UTC | AbbVie Q4 Profit Increases, beats estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q4-profit-increases-beats-estimates | nan | nan | (RTTNews) - AbbVie (ABBV) released earnings for its fourth quarter that increased from last year and beat the Street estimates.
The company's bottom line came in at $4.04 billion, or $2.26 per share. This compares with $36 million, or $0.01 per share, in last year's fourth quarter.
Excluding items, AbbVie reported adjusted earnings of $6.76 billion or $3.31 per share for the period.
Analysts on average had expected the company to earn $3.29 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 7.4% to $14.89 billion from $13.86 billion last year.
AbbVie earnings at a glance (GAAP) :
-Earnings (Q4): $4.04 Bln. vs. $36 Mln. last year. -EPS (Q4): $2.26 vs. $0.01 last year. -Analyst Estimate: $3.29 -Revenue (Q4): $14.89 Bln vs. $13.86 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) released earnings for its fourth quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.76 billion or $3.31 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $4.04 Bln. | Excluding items, AbbVie reported adjusted earnings of $6.76 billion or $3.31 per share for the period. (RTTNews) - AbbVie (ABBV) released earnings for its fourth quarter that increased from last year and beat the Street estimates. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $4.04 Bln. | (RTTNews) - AbbVie (ABBV) released earnings for its fourth quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.76 billion or $3.31 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $4.04 Bln. | (RTTNews) - AbbVie (ABBV) released earnings for its fourth quarter that increased from last year and beat the Street estimates. Excluding items, AbbVie reported adjusted earnings of $6.76 billion or $3.31 per share for the period. AbbVie earnings at a glance (GAAP) : -Earnings (Q4): $4.04 Bln. |
23643.0 | 2022-02-01 00:00:00 UTC | Why AbbVie (ABBV) Might Surprise This Earnings Season | ABBV | https://www.nasdaq.com/articles/why-abbvie-abbv-might-surprise-this-earnings-season | 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 higher than the broader Zacks Consensus Estimate of $3.29 per share. This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.08% 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.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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 +0.08% heading into earnings season. Investors are always looking for stocks that are poised to beat at earnings season and AbbVie Inc. ABBV may be one such company. That is because AbbVie is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. | This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.08% 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. | This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +0.08% 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. |
23644.0 | 2022-02-01 00:00:00 UTC | AbbVie a Top Socially Responsible Dividend Stock With 4.1% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-a-top-socially-responsible-dividend-stock-with-4.1-yield-abbv | nan | nan | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.1% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society — for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.14% of the underlying holdings of the fund, which owns $43,578,140 worth of ABBV shares.
The annualized dividend paid by AbbVie Inc is $5.64/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2022. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson (JNJ), and Pfizer Inc (PFE).
Top 25 Socially Responsible Dividend Stocks — Income To Feel Good About »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.1% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.14% of the underlying holdings of the fund, which owns $43,578,140 worth of ABBV shares. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.1% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.14% of the underlying holdings of the fund, which owns $43,578,140 worth of ABBV shares. The annualized dividend paid by AbbVie Inc is $5.64/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2022. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.1% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.14% of the underlying holdings of the fund, which owns $43,578,140 worth of ABBV shares. The annualized dividend paid by AbbVie Inc is $5.64/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2022. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.1% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares USA ESG Select ETF (SUSA), making up 1.14% of the underlying holdings of the fund, which owns $43,578,140 worth of ABBV shares. The annualized dividend paid by AbbVie Inc is $5.64/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2022. |
23645.0 | 2022-02-01 00:00:00 UTC | Gilead COVID drug takes top spot for U.S. hospital spending -report | ABBV | https://www.nasdaq.com/articles/gilead-covid-drug-takes-top-spot-for-u.s.-hospital-spending-report | nan | nan | By Deena Beasley
Feb 1 (Reuters) - Gilead Sciences Inc's GILD.O COVID-19 drug remdesivir last year overtook AbbVie Inc's ABBV.N 20-year-old arthritis drug Humira as the medicine that U.S. hospitals spent the most on, according to Vizient Inc, a purchasing group used by about half the nation's hospitals.
Remdesivir, an intravenous antiviral approved early in the pandemic for hospitalized COVID patients and authorized last month for high-risk outpatients, could retain the top spot through mid-2023, according to Vizient's projections.
The group purchasing organization said Gilead's drug, sold as Veklury, made up 3.42% of total member spending on pharmaceuticals during October 2020 to September 2021.
"Unfortunately, it wasn't because the price of Humira declined. It is because we had to spend this much more money on remdesivir," said Steven Lucio, senior principal at Vizient.
The report ranks drugs by relative expenditure, but does not detail how much money was spent or is expected to be spent.
Veklury's average price is $2,080 for non-hospitalized patients, and $3,120 for hospitalized patients.
Gilead, which will report quarterly results on Tuesday, posted $4.2 billion in global Veklury sales in the first nine months of 2021. Wall Street expects fourth-quarter sales of $864 million, as compiled by Refinitiv.
Another drug used for patients hospitalized with severe COVID, Roche Holding's ROG.S anti-inflammatory Actemra, moved into the No. 10 spot for U.S. hospital spending, according to Vizient.
The top-10 drugs by spending are all are injectables.
Cancer continues to be the highest-cost therapeutic area, accounting for 23% of hospital drug spending, the report said.
Vizient expects prices for hospital drugs to increase by a historically modest 3.09% from July 1, 2022 through June 30, 2023 as lower-cost "biosimilar" versions of biotech drugs continue to enter the market.
Humira, launched in 2002, had held the top spot on Vizient's spending list since 2012 and is not expected to face biosimilar rivals until 2023.
(Reporting By Deena Beasley; Editing by Bill Berkrot)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Deena Beasley Feb 1 (Reuters) - Gilead Sciences Inc's GILD.O COVID-19 drug remdesivir last year overtook AbbVie Inc's ABBV.N 20-year-old arthritis drug Humira as the medicine that U.S. hospitals spent the most on, according to Vizient Inc, a purchasing group used by about half the nation's hospitals. Remdesivir, an intravenous antiviral approved early in the pandemic for hospitalized COVID patients and authorized last month for high-risk outpatients, could retain the top spot through mid-2023, according to Vizient's projections. The group purchasing organization said Gilead's drug, sold as Veklury, made up 3.42% of total member spending on pharmaceuticals during October 2020 to September 2021. | By Deena Beasley Feb 1 (Reuters) - Gilead Sciences Inc's GILD.O COVID-19 drug remdesivir last year overtook AbbVie Inc's ABBV.N 20-year-old arthritis drug Humira as the medicine that U.S. hospitals spent the most on, according to Vizient Inc, a purchasing group used by about half the nation's hospitals. Remdesivir, an intravenous antiviral approved early in the pandemic for hospitalized COVID patients and authorized last month for high-risk outpatients, could retain the top spot through mid-2023, according to Vizient's projections. Vizient expects prices for hospital drugs to increase by a historically modest 3.09% from July 1, 2022 through June 30, 2023 as lower-cost "biosimilar" versions of biotech drugs continue to enter the market. | By Deena Beasley Feb 1 (Reuters) - Gilead Sciences Inc's GILD.O COVID-19 drug remdesivir last year overtook AbbVie Inc's ABBV.N 20-year-old arthritis drug Humira as the medicine that U.S. hospitals spent the most on, according to Vizient Inc, a purchasing group used by about half the nation's hospitals. Remdesivir, an intravenous antiviral approved early in the pandemic for hospitalized COVID patients and authorized last month for high-risk outpatients, could retain the top spot through mid-2023, according to Vizient's projections. Vizient expects prices for hospital drugs to increase by a historically modest 3.09% from July 1, 2022 through June 30, 2023 as lower-cost "biosimilar" versions of biotech drugs continue to enter the market. | By Deena Beasley Feb 1 (Reuters) - Gilead Sciences Inc's GILD.O COVID-19 drug remdesivir last year overtook AbbVie Inc's ABBV.N 20-year-old arthritis drug Humira as the medicine that U.S. hospitals spent the most on, according to Vizient Inc, a purchasing group used by about half the nation's hospitals. Remdesivir, an intravenous antiviral approved early in the pandemic for hospitalized COVID patients and authorized last month for high-risk outpatients, could retain the top spot through mid-2023, according to Vizient's projections. 10 spot for U.S. hospital spending, according to Vizient. |
23646.0 | 2022-02-01 00:00:00 UTC | Pharma Stocks to Report Q4 Earnings on Feb 2: ABBV, NVS & NVO | ABBV | https://www.nasdaq.com/articles/pharma-stocks-to-report-q4-earnings-on-feb-2%3A-abbv-nvs-nvo | nan | nan | The pharma bellwether, Johnson & Johnson JNJ, marked the beginning of earnings season for pharma/drug/biotech companies from the Medical sector when it reported its fourth-quarter results on Jan 25, 2022. This was followed by fourth-quarter results of large-cap biotech, Vertex Pharmaceuticals, and generic drugmaker, Dr. Reddy's Laboratories, last week. J&J’s results were mixed with earnings beating estimates but sales missing the same. Revenues and earnings improved for Dr. Reddy's Laboratories year over year. Vertex reported encouraging fourth-quarter results, beating estimates on both counts. The company expects its revenues in 2022 to grow by almost 12% year over year (at the mid-point of the guided range).
The earnings scenario is favorable for the big pharma company, AbbVie ABBV, scheduled to release fourth quarter results on Feb 2. Two other companies that slated to release quarterly results tomorrow are — Novartis NVS and Novo Nordisk NVO.
Several big pharma and biotech companies are slated to release their fourth-quarter results this week, which will set the forward trend for the pharma and biotech sectors. These two medical sectors have declined so far this year. We note that key drugs in J&J’s and Vertex’s portfolio demonstrated robust growth in sales. However, a few of J&J’s drugs showed the residual impact of COVID-19. Fourth-quarter results of other pharma/biotech companies will provide more clarity on the impact of COVID-19 on drug sales.
Per the Earnings Trends report, as of Jan 26, 8.9% of the companies in the Medical sector, constituting nearly 29.2% of the sector’s market capitalization, have reported earnings. While 80% beat earnings estimates, 60% beat the same for sales. Earnings increased 27% year over year on 12.2% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.2% sales increase. These suggest that analysts are expecting the recovery of the Medical sector to have continued in the fourth quarter despite high COVID-19 infections.
Let’s analyze three pharma companies set to report fourth-quarter 2021 results on Feb 2.
Humira and Botox-owner, AbbVie is scheduled to report before market open.
The company’s performance has been encouraging so far, with earnings beating estimates in all the trailing four quarters. AbbVie delivered a four-quarter earnings surprise of 3.02%, on average. In the last-reported quarter, the company’s earnings beat estimates by 3.1%.
Per our proven model, 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for earnings stands at $3.29 per share. For the quarter to be reported, AbbVie has an Earnings ESP of +0.08% and a Zacks Rank #3, indicating a likely earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Strong demand for immunology drugs, aesthetics and cosmetics are expected to have driven sales in the fourth quarter of 2021. Moreover, new drug launches in the past few quarters are likely to have brought additional sales during the fourth quarter. However, the Omicron outbreak since September 2021 could have hurt patient volumes, especially for physician-administered drugs. (Read more: Is a Beat Likely for AbbVie This Earnings Season?)
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Novartis, which has a mixed earnings track record so far, is also scheduled to report results before market open.
The company beat earnings estimates in two of the trailing four quarters and missed the same twice, with the average being 1.36%. In the last-reported quarter, the company’s earnings beat estimates by 3.64%. The company has an Earnings ESP is 0.00% and carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at $1.44 per ADS.
Solid momentum in key brands like psoriasis drug, Cosentyx, a cardiovascular drug, Entresto, gene therapy, Zolgensma, the oncology portfolio and the launch of Kesimpta are likely to have boosted revenues in the fourth quarter. However, the Sandoz division is likely to have hurt the top line due to pricing pressures.
Novartis AG Price and EPS Surprise
Novartis AG price-eps-surprise | Novartis AG Quote
A leader in the worldwide diabetes market, Novo Nordisk, is scheduled to report results before market open.
In the last-reported quarter, the company beat earnings expectations by 5.00%. The company beat earnings estimates in each of the trailing four quarters with the average being 9.18%.
Novo Nordisk has an Earnings ESP of +0.94% and a Zacks Rank of 5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at 71 cents per ADS.
Novo Nordisk’s revenues in the last-reported quarter increased, driven by higher sales of Diabetes and Obesity Care products, a trend that most likely continued in the fourth quarter as well.
Novo Nordisk AS Price and EPS Surprise
Novo Nordisk AS price-eps-surprise | Novo Nordisk AS Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The earnings scenario is favorable for the big pharma company, AbbVie ABBV, scheduled to release fourth quarter results on Feb 2. Humira and Botox-owner, AbbVie is scheduled to report before market open. AbbVie delivered a four-quarter earnings surprise of 3.02%, on average. | The earnings scenario is favorable for the big pharma company, AbbVie ABBV, scheduled to release fourth quarter results on Feb 2. Humira and Botox-owner, AbbVie is scheduled to report before market open. AbbVie delivered a four-quarter earnings surprise of 3.02%, on average. | For the quarter to be reported, AbbVie has an Earnings ESP of +0.08% and a Zacks Rank #3, indicating a likely earnings beat. The earnings scenario is favorable for the big pharma company, AbbVie ABBV, scheduled to release fourth quarter results on Feb 2. Humira and Botox-owner, AbbVie is scheduled to report before market open. | For the quarter to be reported, AbbVie has an Earnings ESP of +0.08% and a Zacks Rank #3, indicating a likely earnings beat. AbbVie Inc. (ABBV): Free Stock Analysis Report The earnings scenario is favorable for the big pharma company, AbbVie ABBV, scheduled to release fourth quarter results on Feb 2. |
23647.0 | 2022-02-01 00:00:00 UTC | Pre-Market Earnings Report for February 2, 2022 : ABBV, TMO, WM, BSX, EMR, JCI, HUM, ROP, MPC, IDXX, RACE, ODFL | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-2-2022-%3A-abbv-tmo-wm-bsx-emr-jci-hum-rop-mpc-idxx | nan | nan | The following companies are expected to report earnings prior to market open on 02/02/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.28. This value represents a 12.33% 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 2021 Price to Earnings ratio for ABBV is 10.80 vs. an industry ratio of 16.10.
Thermo Fisher Scientific Inc (TMO)is reporting for the quarter ending December 31, 2021. The medical instruments company's consensus earnings per share forecast from the 8 analysts that follow the stock is $5.22. This value represents a 26.38% decrease compared to the same quarter last year. In the past year TMO has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 23.34%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TMO is 24.47 vs. an industry ratio of -1.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Waste Management, Inc. (WM)is reporting for the quarter ending December 31, 2021. The waste removal company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.25. This value represents a 10.62% increase compared to the same quarter last year. WM missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -5.26%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for WM is 31.02 vs. an industry ratio of 46.90.
Boston Scientific Corporation (BSX)is reporting for the quarter ending December 31, 2021. The medical products company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.44. This value represents a 91.30% increase compared to the same quarter last year. BSX missed the consensus earnings per share in the 4th calendar quarter of 2020 by -25.81%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BSX is 26.65 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Emerson Electric Company (EMR)is reporting for the quarter ending December 31, 2021. The machinery company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.99. This value represents a 19.28% increase compared to the same quarter last year. In the past year EMR has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.68%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EMR is 18.73 vs. an industry ratio of 18.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Johnson Controls International plc (JCI)is reporting for the quarter ending December 31, 2021. The protection safety company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.53. This value represents a 23.26% increase compared to the same quarter last year. In the past year JCI 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 JCI is 22.16 vs. an industry ratio of -1.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Humana Inc. (HUM)is reporting for the quarter ending December 31, 2021. The hmo company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.25. This value represents a 154.35% increase compared to the same quarter last year. In the past year HUM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.77%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for HUM is 19.15 vs. an industry ratio of 24.80.
Roper Technologies, Inc. (ROP)is reporting for the quarter ending December 31, 2021. The machinery company's consensus earnings per share forecast from the 4 analysts that follow the stock is $3.66. This value represents a 2.81% increase compared to the same quarter last year. In the past year ROP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.3%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ROP is 30.96 vs. an industry ratio of 22.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Marathon Petroleum Corporation (MPC)is reporting for the quarter ending December 31, 2021. The oil refining company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.47. This value represents a 150.00% increase compared to the same quarter last year. In the past year MPC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.39%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MPC is 42.46 vs. an industry ratio of -40.60, implying that they will have a higher earnings growth than their competitors in the same industry.
IDEXX Laboratories, Inc. (IDXX)is reporting for the quarter ending December 31, 2021. The medical instruments company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.67. This value represents a 16.92% decrease compared to the same quarter last year. In the past year IDXX has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 7.98%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IDXX is 60.54 vs. an industry ratio of -1.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Ferrari N.V. (RACE)is reporting for the quarter ending December 31, 2021. The auto (truck) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $1.02. This value represents a 15.00% decrease compared to the same quarter last year. In the past year RACE has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 22.43%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for RACE is 49.67 vs. an industry ratio of 14.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Old Dominion Freight Line, Inc. (ODFL)is reporting for the quarter ending December 31, 2021. The truck company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.24. This value represents a 39.13% increase compared to the same quarter last year. In the past year ODFL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.22%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ODFL is 34.66 vs. an industry ratio of 16.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 10.80 vs. an industry ratio of 16.10. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 10.80 vs. an industry ratio of 16.10. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 10.80 vs. an industry ratio of 16.10. | AbbVie Inc. (ABBV)is reporting for the quarter ending December 31, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 10.80 vs. an industry ratio of 16.10. |
23648.0 | 2022-02-01 00:00:00 UTC | 5 High-Yield Dividend Stocks That Can Save Your Portfolio During a Stock Market Crash | ABBV | https://www.nasdaq.com/articles/5-high-yield-dividend-stocks-that-can-save-your-portfolio-during-a-stock-market-crash | nan | nan | January provided a not-so-subtle reminder that stock market crashes and corrections are a normal part of the investing cycle, and they can occur without warning. Both the benchmark S&P 500 and growth stock-driven Nasdaq Composite endured their steepest corrections in close to two years.
While steep moves lower in the market in a short time frame can be unnerving, arguably one of the smartest ways to save your portfolio from these periods of heightened volatility is to buy high-yield dividend stocks (i.e., those with yields of 4% or above).
Dividend stocks offer a number of advantages to investors. For instance, companies that pay a dividend are often profitable on a recurring basis and time-tested. Additionally, income stocks have a rich history of handily outperforming their non-dividend-paying peers.
Image source: Getty Images.
If this recent sell-off does turn into a full-blown stock market crash, the following high-yield dividend stocks can be your saviors.
AT&T: 8.3% yield
If you crave stability, telecom stocks like AT&T (NYSE: T) are a good place to find it. AT&T has two key catalysts that can deliver modest organic growth over the next half decade, all while the company parses out an above-average payout.
For starters, ongoing upgrades to 5G wireless infrastructure are going to be a big deal. Even though the investments AT&T is making in wireless infrastructure are sizable, consumers and businesses have been waiting a decade for an upgrade to wireless download speeds. The rollout of 5G speeds in the U.S. should encourage businesses and consumers to replace their devices over the coming years. Since data is what drives AT&T's juicy wireless margins, faster download speeds can increase the wireless segment growth rate.
The other growth catalyst for AT&T is the expected spinoff of content arm WarnerMedia, which will be merged with Discovery. This new media entity will offer a larger content library with over 85 million pro forma subscribers, and should result in at least $3 billion in annual cost synergies. Most importantly, AT&T will be able to modestly reduce its dividend following the spinoff and focus on debt reduction. Even after this dividend cut, AT&T should still offer a hearty yield of around 5%.
Image source: Getty Images.
Enterprise Products Partners: 7.9% yield
With the economic chaos caused by the pandemic still fresh in many investors' minds, the idea of an oil stock providing "safety" to a portfolio during a crash might be laughable. But most oil and gas companies can't hold a candle to Enterprise Products Partners (NYSE: EPD) and its nearly 8% yield.
When crude oil demand experienced a historic drawdown in 2020, most upstream companies (drillers and explorers) were slammed. Enterprise Products Partners is a midstream company. It owns around 50,000 miles of oil and gas transmission pipeline, 19 natural gas processing facilities, and has approximately 14 billion cubic feet of natural gas storage space.
The beauty of this operating model can be seen in the way the company structures its contracts with drillers. With volume and price commitments in place well in advance, Enterprise Products Partners has a good bead on how much cash flow it'll be generating looking out multiple quarters. This cash flow predictability is the key to undertaking new infrastructure projects without compromising its profitability or 23-year streak of increasing its base annual payout.
It's also worth noting that at no point during the crash in crude oil prices in 2020 was Enterprise Products Partners' dividend in danger of being cut.
Image source: Getty Images.
Philip Morris International: 4.8% yield
Another high-yield dividend stock that can save your portfolio during a stock market crash is global tobacco giant Philip Morris International (NYSE: PM). Philip Morris sports a yield of nearly 5%, with management intent on paying out a significant portion of annual profits as a dividend.
Three factors are responsible for making this company such a rock-solid investment in virtually any economic environment. First off, tobacco contains nicotine, which is an addictive chemical. These addictive properties allow the company to pass along price increases that help it outpace any volume declines it might be contending with in developed markets.
Second, Philip Morris' geographic diversity is playing a big role. This is a company that's operating in more than 180 countries worldwide. If regulations are tightening in one market, chances are a burgeoning middle class looking for simple luxuries, like tobacco products, are making up the difference in an emerging market.
And third, Philip Morris is looking beyond its traditional tobacco lineup with its IQOS heated tobacco system. Through the first nine months of 2021, it held a close to 7% share of the heated tobacco market in countries where IQOS is sold (excluding the U.S.).
Image source: Getty Images.
Annaly Capital Management: 11.3% yield
Among ultra-high-yield stocks, few can provide more stability to your portfolio during a stock market crash than mortgage real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY). Annaly has paid out north of $20 billion in dividends over the past quarter of a century and has averaged a yield of around 10% for the past two decades.
Mortgage REITs like Annaly are attempting to borrow money at low, short-term lending rates, then using this capital to purchase higher-yielding long-term assets, like mortgage-backed securities. The difference between the yield the company receives and its average borrowing rate is known as "net interest margin." The larger the net interest margin (NIM), the more profitable Annaly can be.
The good news here is Annaly has hit the sweet spot of its growth cycle. During the early stage of economic recoveries, it's not uncommon for the yield curve to steepen. When this difference in yield between short-and-long-term Treasury bonds widens, the company's NIM tends to rise.
What's more, over 90% of Annaly's asset portfolio is agency securities. These are assets backed by the federal government in the event of default. This added protection is what allows the company to deploy leverage to maximize profits and maintain its double-digit yield.
Image source: Getty Images.
AbbVie: 4.1% yield
A fifth high-yield dividend stock that can save your portfolio if a market crash strikes is pharmaceutical stock AbbVie (NYSE: ABBV). Although AbbVie's 4% yield pales in comparison to the likes of Annaly, bear in mind that the former's share price has more than doubled over the past 2.5 years.
There's little question that anti-inflammatory drug Humira is the superstar of AbbVie's product portfolio. Through the first nine months of 2021, Humira brought in $15.4 billion of the company's $41.2 billion in net product sales. If not for the COVID-19 vaccines, Humira would be the world's top-selling drug. Despite facing biosimilar competition in Europe, Humira can remain AbbVie's cash cow for years to come.
On top of organic innovation, AbbVie hasn't been afraid to turn to acquisitions to diversify its revenue stream and boost its long-term growth potential. In May 2020, the company made a splash with its cash-and-stock deal to acquire Allergan. This deal added new lines of revenue (e.g., aesthetics and eye care), as well as a brand-name blockbuster in Botox.
Since people don't get to choose when they get sick or what ailment(s) they develop, demand for pharmaceuticals tends to remain steady in any economic environment. That makes healthcare stocks like AbbVie a solid bet to outperform during a market crash.
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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: 4.1% yield A fifth high-yield dividend stock that can save your portfolio if a market crash strikes is pharmaceutical stock AbbVie (NYSE: ABBV). Although AbbVie's 4% yield pales in comparison to the likes of Annaly, bear in mind that the former's share price has more than doubled over the past 2.5 years. There's little question that anti-inflammatory drug Humira is the superstar of AbbVie's product portfolio. | AbbVie: 4.1% yield A fifth high-yield dividend stock that can save your portfolio if a market crash strikes is pharmaceutical stock AbbVie (NYSE: ABBV). Although AbbVie's 4% yield pales in comparison to the likes of Annaly, bear in mind that the former's share price has more than doubled over the past 2.5 years. There's little question that anti-inflammatory drug Humira is the superstar of AbbVie's product portfolio. | AbbVie: 4.1% yield A fifth high-yield dividend stock that can save your portfolio if a market crash strikes is pharmaceutical stock AbbVie (NYSE: ABBV). Although AbbVie's 4% yield pales in comparison to the likes of Annaly, bear in mind that the former's share price has more than doubled over the past 2.5 years. There's little question that anti-inflammatory drug Humira is the superstar of AbbVie's product portfolio. | AbbVie: 4.1% yield A fifth high-yield dividend stock that can save your portfolio if a market crash strikes is pharmaceutical stock AbbVie (NYSE: ABBV). Although AbbVie's 4% yield pales in comparison to the likes of Annaly, bear in mind that the former's share price has more than doubled over the past 2.5 years. There's little question that anti-inflammatory drug Humira is the superstar of AbbVie's product portfolio. |
23649.0 | 2022-02-01 00:00:00 UTC | 3 Warren Buffett Dividend Stocks to Buy in February | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-dividend-stocks-to-buy-in-february | nan | nan | Warren Buffett has given Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders a lot through the years. Most importantly, under his direction, Berkshire has handily beaten the market.
However, there's one thing that Oracle of Omaha hasn't given Berkshire shareholders -- a dividend. That doesn't mean that Buffett doesn't like dividends. Actually, quite a few of Berkshire's equity holdings offer solid dividends. Some of them are better picks than others, though. Here are three Buffett dividend stocks to buy in February.
Image source: The Motley Fool.
1. AbbVie
AbbVie (NYSE: ABBV) offers one of the juiciest dividends of all the stocks in Berkshire's portfolio with a yield north of 4.1%. Even better, the big drugmaker places a high priority on growing its dividend. AbbVie ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases.
Buffett almost certainly also likes AbbVie's valuation. The stock trades at under 9.6 times expected earnings. That's dirt cheap compared to the S&P 500's forward earnings multiple of 20.3.
There is a reason for that attractive valuation, though. AbbVie's top-selling drug, Humira, faces biosimilar competition in the U.S. beginning next year. Investors are concerned that the company's revenue and earnings will take a significant hit.
However, AbbVie has been preparing for the day when Humira's sales would fall for a long time. The company has multiple other growth drivers in its lineup, notably including newer autoimmune-disease drug Skyrizi and cancer drug Venclexta. AbbVie should be able to return to growth quickly after 2023. And its dividends shouldn't be impacted at all.
2. Bank of America
Bank of America's (NYSE: BAC) dividend yield of around 1.8% isn't especially high. But the financial services company has definitely rewarded investors with dividend growth. Over the past 10 years, Bank of America's dividend payout has increased by a whopping 2,000%.
You'll get a lot more than just a dividend with this bank stock, though. Last year, Bank of America's shares soared 47%. The stock could be a great one to own in 2022 as well.
One of the reasons behind the stock market's volatility so far this year is that investors expect interest rate hikes are on the way. The Federal Reserve has been quite clear that it plans to increase rates. Bank of America stands to benefit from these higher interest rates because the company will make more money from its loans to customers.
While the banking sector can be viewed as somewhat stodgy, Bank of America has been on the cutting edge of introducing new technology. CEO Brian Moynihan even said in the Q4 conference call that the company's digital transformation "is foundational to everything we do." This technological prowess should keep Bank of America at the forefront of financial services for a long time to come.
3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) claims one of the most impressive dividend track records among the stocks owned by Berkshire Hathaway. The healthcare giant is a Dividend King with 59 consecutive years of dividend increases. Its dividend yield stands at close to 2.5%.
A major shake-up is on the way for Johnson & Johnson, but it should be a good one. The company plans to spin off its consumer health business as a stand-alone entity. J&J will be left with its pharmaceutical and medical device units.
This move will leave Johnson & Johnson with a lower dividend payout than it has now. However, investors who hold onto shares of both companies after the spin-off should receive at least the same combined dividend as they did before the transaction.
The best aspect of the spin-off is that it could cause J&J's share price to increase. The pharmaceutical segment is the company's biggest growth driver, followed by the medical device segment. Buffett has owned Johnson & Johnson stock for a long time. He (and other investors) could soon have more robust growth in addition to a solid dividend.
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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 Johnson & Johnson 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. | Keith Speights owns AbbVie, Bank of America, and Berkshire Hathaway (B shares). AbbVie AbbVie (NYSE: ABBV) offers one of the juiciest dividends of all the stocks in Berkshire's portfolio with a yield north of 4.1%. AbbVie ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases. | AbbVie AbbVie (NYSE: ABBV) offers one of the juiciest dividends of all the stocks in Berkshire's portfolio with a yield north of 4.1%. AbbVie ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases. Buffett almost certainly also likes AbbVie's valuation. | AbbVie AbbVie (NYSE: ABBV) offers one of the juiciest dividends of all the stocks in Berkshire's portfolio with a yield north of 4.1%. AbbVie ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases. Buffett almost certainly also likes AbbVie's valuation. | AbbVie AbbVie (NYSE: ABBV) offers one of the juiciest dividends of all the stocks in Berkshire's portfolio with a yield north of 4.1%. AbbVie ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases. Buffett almost certainly also likes AbbVie's valuation. |
23650.0 | 2022-02-01 00:00:00 UTC | 3 Pharmaceutical Stocks With Dividend Yields of 2.9% or Better | ABBV | https://www.nasdaq.com/articles/3-pharmaceutical-stocks-with-dividend-yields-of-2.9-or-better | nan | nan | Nervous investors have been selling risky growth stocks in favor of profit-generating businesses that pay steady dividends. The pharmaceutical industry is one area of the stock market that dividend-seeking investors haven't rushed into yet which means some reliably profitable big pharma companies are offering above-average dividend yields at the moment.
These three pharmaceutical giants are strongly profitable and have a history of annual payout increases. Best of all, each of these stocks offers a yield of 2.9% or better at recent prices.
Image source: Getty Images.
1. AbbVie
It's been a lousy year for growth stocks, but not steadily profitable dividend payers like AbbVie (NYSE: ABBV). Shares of the big pharma stock have actually climbed about 20% higher over the past three months. Despite the recent gains, it still offers a big 4.1% dividend yield.
AbbVie's raised its dividend by a whopping 120% over the past five years thanks to strong sales of its lead drug Humira. First approved by the FDA in 2002, this treatment for rheumatoid arthritis and psoriasis generated over $20 billion in topline sales for AbbVie in 2021.
AbbVie stock offers a juicy dividend yield at recent prices because Humira's going to face biosimilar competition in 2023. Fortunately, AbbVie launched Rinvoq for arthritis and Skyrizi for psoriasis in 2019. As a pair, Rinvoq and Skyrizi are growing fast enough to offset Humira's impending losses. Combined sales of Rinvoq and Skyrizi reached a combined $4.6 billion in 2021 and AbbVie expects this figure to exceed $15 billion in 2025.
In addition to Skyrizi and Rinvoq, the Botox franchise AbbVie acquired from Allergan in 2020 will help drive growth for AbbVie. It's been a long time since Botox was the only brand of botulinum toxin approved by the FDA to smooth out wrinkles but the brand is stronger than ever.
2. Pfizer
Shares of Pfizer (NYSE: PFE) shot up in December after the company released promising clinical trial data for an oral COVID-19 antiviral drug called Paxlovid. The U.S. government bought enough Paxlovid for 20 million Americans, at more than $500 per person.
Unfortunately, Pfizer's game-changing COVID pill isn't as accessible as it could be. Dampened enthusiasm for Paxlovid has allowed Pfizer's stock price to fall around 11% from its peak last December. Now the shares offer a nice 2.9% dividend yield.
Over the past 5 years, Pfizer's dividend has risen by just 25% but the next five years could be a lot more satisfying. Third-quarter sales of Comirnaty, the company's COVID vaccine reached $13 billion. The ongoing rollout for children 5 through 11 years of age, and perhaps a new formulation specific to the omicron variant could keep this revenue stream from drying up any time soon.
Of course, Pfizer does a lot more than just COVID treatments and vaccines. Excluding Comirnaty sales, third-quarter revenue grew 7% year over year thanks to strong performances from Eliquis, an oral anticoagulant, and a rare disease drug called Vyndamax.
Over the past year, Pfizer needed less than 30% of the free cash flow its operations generated to meet its dividend obligation. With plenty of blockbuster drugs driving growth, the company should have no trouble committing to significant payout raises in 2022 and many years to come.
3. Bristol Myers Squibb
Bristol Myers Squibb (NYSE: BMY) is another dividend-paying pharma stock with a looming patent cliff. The stock is around 6% below a peak it reached last fall and it offers a nice 3.3% dividend yield at the moment.
Investors are rightfully nervous about incoming generic competition for Revlimid, Bristol Myers Squibb's top-selling drug right now. Sales of this multiple myeloma treatment finished the third quarter at an annualized run rate of $13.4 billion.
This spring, Sun Pharmaceutical, will be able to sell limited quantities of a generic version of Revlimid. Limitations mean Bristol won't experience much pricing pressure at first. By the end of 2026, though, unlimited quantities of generic Revlimid hitting the U.S. market will most likely cause sales of the branded version to implode.
Over the past 5 years, Bristol Myers Squibb has been able to raise its dividend program 38.5% higher and more big raises could be up ahead. Revlimid revenue will dry up over the next several years but this pharma giant has over 50 drugs in development at the moment.
Since 2019, the FDA has approved a handful of potential new blockbuster drugs from Bristol Myers Squibb such as Zeposia, Reblozyl, and Abecma. These give the company a strong chance to overcome Revlimid's looming patent cliff and deliver heaps of dividend income to patient 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 It's been a lousy year for growth stocks, but not steadily profitable dividend payers like AbbVie (NYSE: ABBV). AbbVie's raised its dividend by a whopping 120% over the past five years thanks to strong sales of its lead drug Humira. First approved by the FDA in 2002, this treatment for rheumatoid arthritis and psoriasis generated over $20 billion in topline sales for AbbVie in 2021. | AbbVie It's been a lousy year for growth stocks, but not steadily profitable dividend payers like AbbVie (NYSE: ABBV). AbbVie's raised its dividend by a whopping 120% over the past five years thanks to strong sales of its lead drug Humira. First approved by the FDA in 2002, this treatment for rheumatoid arthritis and psoriasis generated over $20 billion in topline sales for AbbVie in 2021. | AbbVie It's been a lousy year for growth stocks, but not steadily profitable dividend payers like AbbVie (NYSE: ABBV). AbbVie's raised its dividend by a whopping 120% over the past five years thanks to strong sales of its lead drug Humira. First approved by the FDA in 2002, this treatment for rheumatoid arthritis and psoriasis generated over $20 billion in topline sales for AbbVie in 2021. | AbbVie It's been a lousy year for growth stocks, but not steadily profitable dividend payers like AbbVie (NYSE: ABBV). AbbVie's raised its dividend by a whopping 120% over the past five years thanks to strong sales of its lead drug Humira. First approved by the FDA in 2002, this treatment for rheumatoid arthritis and psoriasis generated over $20 billion in topline sales for AbbVie in 2021. |
23651.0 | 2022-02-01 00:00:00 UTC | Abbvie Inc Shares Approach 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-approach-52-week-high-market-mover-2 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $138.30, giving the company a market cap of $241B. The stock is currently up 2.1% year-to-date, up 39.8% over the past 12 months, and up 182.0% over the past five years. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.3%.
Trading Activity
Trading volume this week was 22.2% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -160.1%
The company's stock price performance over the past 12 months beats the peer average by 324.1%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.9% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 0.9% below its 52 week high of $138.30, giving the company a market cap of $241B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $138.30, giving the company a market cap of $241B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.3%. Trading Activity Trading volume this week was 22.2% higher than the 20-day average. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $138.30, giving the company a market cap of $241B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -160.1% The company's stock price performance over the past 12 months beats the peer average by 324.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.9% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $138.30, giving the company a market cap of $241B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. |
23652.0 | 2022-01-31 00:00:00 UTC | Bristol-Myers (BMY) to Post Q4 Earnings: What's in Store? | ABBV | https://www.nasdaq.com/articles/bristol-myers-bmy-to-post-q4-earnings%3A-whats-in-store | nan | nan | Bristol-Myers Squibb Company BMY is scheduled to report fourth-quarter 2021 results on Feb 4, before market open.
The company’s shares have gained 4.3% in the past year against the industry's decline of 38.8%.
Image Source: Zacks Investment Research
Bristol-Myers has had a pretty decent track record, beating earnings estimates in three of the last four quarters and missing in one, the average surprise being 2.65%. In the last reported quarter, the company beat earnings by 4.71%.
Factors at Play
Bristol-Myers’ multiple myeloma (MM) drug, Revlimid (added with erstwhile Celgene’s acquisition), was the top revenue generator in the third quarter with sales of $3.3 billion, up 11% year over year, driven by demand for triplet-based therapies and increasing treatment duration. Demand has likely been strong in the to-be-reported quarter as the global environment normalizes. The Zacks Consensus Estimate for sales of the drug stands at $3.4 billion.
Blood thinner drug, Eliquis, was also one of the top revenue generators in the last reported quarter with sales of $2.4 billion, up 15% year over year. The solid performance of the drug in the first nine months of 2021 has most likely continued in the to-be-reported quarter, driven by market share increases. The Zacks Consensus Estimate for sales of the drug stands at $2.5 billion.
Sales of key immuno-oncology drug, Opdivo, revived in 2021 following a slowdown and registered a 7% increase to $1.9 billion in the third quarter. Label expansions in recent months (in advanced renal cell carcinoma with Cabometyx and gastric cancer) have most likely boosted sales of Opdivo, which is approved for multiple cancer indications. The Zacks Consensus Estimate for sales of the drug stands at $2 billion.
Arthritis drug, Orencia, raked in sales of $870 million in the third quarter, up 5%. The fourth quarter is likely to have witnessed similar growth levels. The Zacks Consensus Estimate for sales of the drug stands at $908 million.
Pomalyst posted a strong performance in the third quarter and generated sales of $851 million, up 10% year over year. The trend has most likely prevailed in the fourth quarter as well.
Melanoma drug, Yervoy, contributed $515 million to the top line in the previous quarter, up 15% year over year. Similar levels of contribution have most likely been witnessed in the fourth quarter. The Zacks Consensus Estimate for sales of the drug stands at $541 million.
Abraxane contributed $266 million to the top line in the previous quarter, down 22%. Similar levels of contribution have most likely been witnessed in the fourth quarter.
Newly approved drugs like Reblozyl for the treatment of patients with anemia, failing an erythropoiesis-stimulating agent and requiring two or more red blood cell (RBC) units over eight weeks in adults with very low-to-intermediate-risk MDS-RS or with myelodysplastic/myeloproliferative neoplasm with ring sideroblasts and thrombocytosis might have boosted sales. Also, approval for Zeposia (ozanimod) for treating adults with relapsing forms of multiple sclerosis (RMS), including clinically isolated syndrome, relapsing-remitting disease and active secondary progressive disease, has also likely resulted in incremental sales. Reblozyl sales came in at $160 million, and the drug has not likely witnessed sequential growth in the quarter.
In November, the European Commission granted a Marketing Authorization to Zeposia for the treatment of adults with moderately to severely active ulcerative colitis (UC) who have had an inadequate response.
Operating expenses are likely to have increased in the fourth quarter due to costs associated with the broader portfolio.
Key Recent Developments
The FDA extended the review of the new drug application (NDA) for mavacamten for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy (oHCM) to Apr 28, 2022, to get sufficient time to review information pertaining to updates to the proposed Risk Evaluation Mitigation Strategy (REMS). Investors will follow any progress in that regard.
In December, the board of directors declared a quarterly dividend of 54 cents per share, up 10.2% over last year’s rate of 49 cents. The dividend will be paid out on Feb 1, 2022, to stockholders of record at the close of business on Jan 7, 2022. The annual dividend rate for fiscal 2022 is $2.16 per share on this rate. Concurrently, the board authorized the repurchase of an additional $15 billion of common stock.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Bristol Myers 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. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Bristol Myers is -1.00% as the Zacks Consensus Estimate is pegged at $1.84 while the Most Accurate Estimate stands at $1.82.
Zacks Rank: It currently carries a Zacks Rank #4 (Sell).
Bristol Myers Squibb Company Price and EPS Surprise
Bristol Myers Squibb Company price-eps-surprise | Bristol Myers Squibb Company Quote
Stocks to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Pfizer PFE has an Earnings ESP of +3.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pfizer boasts a good track record, having topped earnings estimates in three of the last four quarters. Pfizer pulled off a four-quarter earnings surprise of 10.85%, on average.
Amgen AMGN has an Earnings ESP of +1.49% and a Zacks Rank #3.
Amgen topped earnings estimates in three of the last four quarters. Amgen delivered a four-quarter earnings surprise of 5.65%, on average.
AbbVie ABBV has an Earnings ESP of +0.08% and a Zacks Rank #3.
AbbVie topped earnings estimates in each of the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average.
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 ABBV has an Earnings ESP of +0.08% and a Zacks Rank #3. AbbVie topped earnings estimates in each of the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. | AbbVie ABBV has an Earnings ESP of +0.08% and a Zacks Rank #3. AbbVie topped earnings estimates in each of the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. | AbbVie ABBV has an Earnings ESP of +0.08% and a Zacks Rank #3. AbbVie topped earnings estimates in each of the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. | AbbVie topped earnings estimates in each of the past four quarters. AbbVie ABBV has an Earnings ESP of +0.08% and a Zacks Rank #3. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. |
23653.0 | 2022-01-31 00:00:00 UTC | AbbVie's (ABBV) Q4 Earnings May Reflect Slower Sales Recovery | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-q4-earnings-may-reflect-slower-sales-recovery | nan | nan | AbbVie, Inc.’s ABBV fourth-quarter results are likely to reflect the impact of the recovering trend in drug sales being observed since the second quarter of 2021. The majority of the company’s drugs, especially the aesthetics franchise, witnessed a strong recovery in the past two quarters. However, in certain disease areas like chronic lymphocytic leukemia and hepatitis C, there continued to be a residual impact of the pandemic. The impact of the resurgence of COVID-19 cases due to the Omicron variant since September remains to be seen.
The robust sequential revenue growth for new immunology drugs — Skyrizi and Rinvoq— are likely to have continued in the fourth quarter of 2021. The higher sales from these drugs are likely to have helped the company partially offset lower Humira sales in international markets amid biosimilar competition. The U.S. sales of Humira are likely to have continued their uptrend in the soon-to-be reported quarter.
The Zacks Consensus Estimate for Skyrizi and Rinvoq sales is pegged at $861 million and $540 million, respectively.
The Zacks Consensus Estimate for U.S. sales of Humira is pegged at $4.67 billion while that for international sales is $748 million.
AbbVie’s stock has gained 34.8% in the past year compared with an increase of 17.5% for the industry.
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U.S. sales growth of key oncology medicine, Imbruvica — developed in partnership with J&J JNJ — was hurt by slower-than-expected market recovery from COVID-19 pandemic and increased competition from newer therapies in the past two quarters. We expect fourth-quarter sales growth to be muted for the J&J and AbbVie’s physician-administered drug amid the resurgence of COVID-19 cases. However, strong demand for J&J-partnered Imbruvica in the international market is likely to have aided sales of the drug during the soon-to-be-reported quarter. On its fourth -quarterearnings call J&J reported a decline in Imbruvica sales. The Zacks Consensus Estimate for the drug is pegged at $1.47 billion, comprising sales of $1.19 billion in the United States and $281 million of international profit sharing with J&J.
Sales of another leukemia drug, Venclexta — developed in partnership with Roche RHHBY —is likely to have gained from continued share gains across all approved indications similar to the past few quarters. The increasing momentum internationally in the AML indication is likely to have been the key driver of the Roche-partnered drug’s sales in the fourth quarter. However, potential lower new patient utilization amid Omicron-prevalence may have impacted the fourth-quarter performance of Roche and AbbVie’s Venclexta. The Zacks Consensus Estimate for the drug is pegged at $480 million.
Sales of AbbVie’s new Hepatitis C drug, Mavyret, had shown a recovering trend in the past two quarters. However, patient volumes remained below pre-COVID levels. The continuation of the recovery in sales of Mavyret in the fourth quarter remains uncertain amid increased COVID-19 cases during the quarter. The Zacks Consensus Estimate for Mavyret stands at $463 million.
Sales of the company’s neuroscience franchise are expected to have been driven by Vraylar Botox and the new oral migraine drug, Ubrelvy during the fourth quarter.
The strong recovery in the aesthetics franchise, led by Botox Cosmetic and Juvederm, is likely to have boosted the top line in the soon-to-be-reported quarter. The Zacks Consensus Estimate for the aesthetic franchise stands at $1.34 billion and $1.62 billion for the neuroscience franchise.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked pharma company is Pfizer PFE, carrying a Zacks Rank #1. Earnings estimates for Pfizer have risen from $5.66 to $6.14 for 2022 over the past 30 days. Pfizer beat earnings estimates thrice in the past four quarters, with the average beat being 10.85%.
Shares of Pfizer have gained 51.7% in the past year.
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.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Inc.’s ABBV fourth-quarter results are likely to reflect the impact of the recovering trend in drug sales being observed since the second quarter of 2021. AbbVie’s stock has gained 34.8% in the past year compared with an increase of 17.5% for the industry. We expect fourth-quarter sales growth to be muted for the J&J and AbbVie’s physician-administered drug amid the resurgence of COVID-19 cases. | AbbVie, Inc.’s ABBV fourth-quarter results are likely to reflect the impact of the recovering trend in drug sales being observed since the second quarter of 2021. AbbVie’s stock has gained 34.8% in the past year compared with an increase of 17.5% for the industry. We expect fourth-quarter sales growth to be muted for the J&J and AbbVie’s physician-administered drug amid the resurgence of COVID-19 cases. | AbbVie Inc. Price and EPS Surprise AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie, Inc.’s ABBV fourth-quarter results are likely to reflect the impact of the recovering trend in drug sales being observed since the second quarter of 2021. AbbVie’s stock has gained 34.8% in the past year compared with an increase of 17.5% for the industry. | AbbVie, Inc.’s ABBV fourth-quarter results are likely to reflect the impact of the recovering trend in drug sales being observed since the second quarter of 2021. AbbVie’s stock has gained 34.8% in the past year compared with an increase of 17.5% for the industry. We expect fourth-quarter sales growth to be muted for the J&J and AbbVie’s physician-administered drug amid the resurgence of COVID-19 cases. |
23654.0 | 2022-01-31 00:00:00 UTC | Zacks Investment Ideas feature highlights: Bank of America, AbbVie, and Microsoft | ABBV | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-bank-of-america-abbvie-and-microsoft | nan | nan | For Immediate Release
Chicago, IL – January 31, 2022 – Today, Zacks Investment Ideas features: Bank of America BAC, AbbVie ABBV, and Microsoft MSFT.
Value, Growth or Momentum: What Kind of Investor Are You?
The Covid-19 pandemic impacted all of us in many different ways. From work to family to finances, we were forced to adapt to a “new normal” that included staying home, jumping on Zoom calls, doing puzzles, and baking a ton of sourdough bread (or was that just me?).
The coronavirus crisis also likely changed how you invested in the stock market. While 2020 was a wild year, it was also a time filled with opportunity for those willing to take risks.
Like everything else, our short- and long-term investing strategies had to change to fit the unpredictable and volatile market environment.
But change is not always a bad thing.
Hopefully, you’re a wiser, more nuanced investor right now than you were a year ago. You invested and traded your hard-earned cash during a once-in-a-lifetime pandemic, after all.
The same goes for your investment mindset today versus when you just started out. Knowledge is gained through experience, and experience guides how you manage your portfolio. You grow, you learn, you make good trades and bad ones, and then you learn and grow some more.
What should be a part of your investing strategy for 2022?
In order to help you answer that question, let’s go over three popular methodologies: value, growth, and momentum.
Value investing is all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. Value-oriented strategies focus on key ratios like the P/E, Price/Sales, and Price/Cash Flow to pick out the most attractively discounted stocks.
Growth investors, however, are more concerned with a stock’s future prospects, and the overall financial health and strength of a company. Projected and historic earnings, sales, and cash flow are key fundamentals that can help you uncover stocks that boast long-term, sustainable growth.
With momentum investing, you live by the saying “the trend is your friend.” This style is all about taking advantage of upward or downward trends in a stock’s price and earnings outlook; momentum traders often take advantage of simple moving averages—think the 50-day and 200-day—to pinpoint the most favorable times to build, or sell, a position in a stock.
While it’s normal to gravitate to one of these styles, it’s also fairly common to use a combination of all three. This way, you’re finding stocks that are not only attractively valued, but have a strong growth outlook and promising momentum as well.
Utilizing value, growth, and momentum together is also an easy way to diversify your portfolio.
As I always tell Income Investor readers, one of the simplest ways to protect your investments is through diversification, since the more diversified a portfolio is, the less vulnerable it is to broader macroeconomic events.
Including value stocks, growth stocks, and momentum stocks, as well as complementing these investments with bonds, real estate, hard assets, and/or cash, can help your portfolio thrive during all kinds of market scenarios.
Should You Change Your Investing Style in 2022?
This week, and pretty much all of January, has been a wild ride for the markets.
We’ve been entrenched in a rollercoaster trading environment as investors contend with a furious wave of uncertainty; the main source of volatility for the past few days was the Fed’s latest policy update, which reinforced how serious the central bank is about curbing inflation and raising interest rates.
The Fed’s hawkish outlook has also sparked a major tech sell-off, and the Nasdaq is down over 13% so far this year. High-flying growth stocks have seemingly been given the boot in favor of value and cyclical names in industries like banks and energy.
But no matter which kind of stocks are in demand, your investing style will always depend on your savings goals.
If you’re thinking about changing up your portfolio, ask yourself questions like: when do you plan on retiring? Where do you want to retire? Do you have debt you need to pay off? Do you want to buy a home? Do you need to save for your kids’ college education? And so on and so on; there’s a lot you have to think about before switching to or incorporating a different investing strategy.
But no matter what you decide is best this year, always remember that investing is a personal journey. Your life, and where you see yourself in 10, 20, 30 years, should be the driving force behind your investing decisions and strategies.
3 Stocks Worth Your Consideration
Now that I have you thinking about your 2022 investing style, let’s take a look at three stocks with solid value, growth, and momentum combinations.
Bank of America: Bank of America is the second-biggest bank by assets in the U.S., providing a diverse range of banking and other financial services and products. Additionally, BAC outperformed its peers over the past one-year period, gaining over 54% while the Banks-Major industry moved about 30% higher.
BAC reported strong fiscal fourth-quarter results earlier this month, and net interest income, which is the profit banks make on loans and securities after accounting for the cost of funding those assets, grew to $11.5 billion. Wall Street now thinks BAC will generate as much as 12% annual revenue growth in 2022 mainly due to higher interest rates (this generally means larger profit margins and thus, higher net income).
Bank of America, a #2 (Buy) stock, has a forward P/E of 14X, and still trades below the broader Finance sector (15.7X); shares look even cheaper if you factor in BAC’s bullish revenue outlook. Additionally, Bank of America boasts a solid dividend, with an annual yield of 1.85%.
AbbVie: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Its flagship product, Humira, has been approved for several autoimmune diseases like rheumatoid arthritis and active psoriatic arthritis.
Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. The company also has high expectations for its recent acquisition of Botox-maker Allergan; its bottom line will greatly benefit as the two companies continue to integrate their operations.
AbbVie has a solid, growing dividend yield of 4.2% (which management has been explicit about maintaining and growing), and the stock currently sits at a #3 (Hold) on the Zacks Rank. Shares are cheap as well, and it even looks like a bargain, trading at a 9.8X forward multiple compared to the broader Medical market (19.4X).
Microsoft: Microsoft is a technological powerhouse. Its Office software is used around the world, and its Azure cloud computing platform is now the go-to choice for many enterprises, especially in the pandemic-related shift to remote work. Add in its Windows operating system, LinkedIn, and its Xbox gaming division, and Microsoft and its investors still have many ways to profit.
Microsoft is also extremely liquid; it generated free cash flow of $8.6 billion last quarter, up 3% year-over-year. The tech giant has a ton of leeway to keep investing in new growth ideas while rewarding its shareholders with a growing dividend—MSFT regularly hikes its payout and shares yield 0.83% on an annual basis—and stock buybacks.
MSFT is a #3 (Hold) on the Zacks Rank, and analysts are forecasting 15% earnings growth for the current fiscal year. Shares currently trade at 30.6X forward earnings, still a premium despite the recent sell-off. But if you’re looking for a company that generates stable sales and profits and rewards investors through dividends and buybacks, MSFT looks to be worth consideration.
Disclaimer: I own MSFT in my personal portfolio and ABBV in the Income Investor portfolio. Follow me there for the latest buy-and-hold strategies.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – January 31, 2022 – Today, Zacks Investment Ideas features: Bank of America BAC, AbbVie ABBV, and Microsoft MSFT. AbbVie: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. | For Immediate Release Chicago, IL – January 31, 2022 – Today, Zacks Investment Ideas features: Bank of America BAC, AbbVie ABBV, and Microsoft MSFT. AbbVie: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. | For Immediate Release Chicago, IL – January 31, 2022 – Today, Zacks Investment Ideas features: Bank of America BAC, AbbVie ABBV, and Microsoft MSFT. AbbVie: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. | For Immediate Release Chicago, IL – January 31, 2022 – Today, Zacks Investment Ideas features: Bank of America BAC, AbbVie ABBV, and Microsoft MSFT. AbbVie: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. |
23655.0 | 2022-01-30 00:00:00 UTC | Better Dividend Stock: AbbVie or Pfizer? | ABBV | https://www.nasdaq.com/articles/better-dividend-stock%3A-abbvie-or-pfizer | nan | nan | The healthcare sector offers income-seeking investors plenty of attractive stocks to consider. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) especially stand out. In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli discuss which of these two dividend stocks is the better pick right now.
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Keith Speights: Let's go to our final topic before we get to questions. Now, not all of our Motley Fool members are as interested in aggressive growth. We do have quite a few income-oriented investors out there.
AbbVie and Pfizer rank as two of the most widely followed healthcare dividend stocks. Brian, which of these two -- AbbVie or Pfizer -- do you think is the better choice for income investors and why?
Brian Orelli: AbbVie would seem to have the advantage given its dividend yield of 3.9 percent, Pfizer's dividend yields only 2.9 percent. But even dividend investors should be looking at total returns.
By that measure, I think Pfizer could outpace AbbVie. One of the reasons why AbbVie has such a large dividend yield is that investors are expecting a major decline in revenue due to the competition from biosimilars of Humira. That's its largest-selling drug. In the third-quarter sales of Humira were $5.4 billion of the $14.3 billion total. Basically, it makes them more than a third of AbbVie's total sales.
Pfizer faces some patent cliffs as well. But I don't think they are nearly as severe. Plus Pfizer has the potential for growing sales of its COVID-19 vaccine and its COVID-19 treatment that just came on the market. So I think overall, I think Pfizer is the better prospect because of its potential to grow revenue compared to AbbVie's.
Speights: You make a good point. Don't just look at the dividend, even if you're looking for income, look at the overall prospects. And I think you're right, Pfizer, overall, is the better pick.
Having said that, I do think AbbVie is a pretty good pick for income investors. I mean, it does have that great dividend yield. It's a Dividend Aristocrat. It very soon should be a Dividend King with 50 consecutive years of dividend increases.
I think the company has a pretty good strategy in place for its post-Humira world. I think it's still a good pick for dividend-seeking investors. But I think you're right, Pfizer's the better choice overall.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Pfizer. 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. | One of the reasons why AbbVie has such a large dividend yield is that investors are expecting a major decline in revenue due to the competition from biosimilars of Humira. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) especially stand out. AbbVie and Pfizer rank as two of the most widely followed healthcare dividend stocks. | Brian Orelli: AbbVie would seem to have the advantage given its dividend yield of 3.9 percent, Pfizer's dividend yields only 2.9 percent. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) especially stand out. AbbVie and Pfizer rank as two of the most widely followed healthcare dividend stocks. | AbbVie and Pfizer rank as two of the most widely followed healthcare dividend stocks. Brian Orelli: AbbVie would seem to have the advantage given its dividend yield of 3.9 percent, Pfizer's dividend yields only 2.9 percent. AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) especially stand out. | Brian, which of these two -- AbbVie or Pfizer -- do you think is the better choice for income investors and why? AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) especially stand out. AbbVie and Pfizer rank as two of the most widely followed healthcare dividend stocks. |
23656.0 | 2022-01-29 00:00:00 UTC | Can AbbVie Beat Pfizer in the Atopic Dermatitis Market? | ABBV | https://www.nasdaq.com/articles/can-abbvie-beat-pfizer-in-the-atopic-dermatitis-market | nan | nan | Both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) recently picked up regulatory approvals for JAK inhibitors for treating atopic dermatitis. In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli discuss whether AbbVie is likely to beat Pfizer in this large market.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. 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 AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Keith Speights: Right. Now, the FDA actually approved two JAK inhibitors as treatments for atopic dermatitis last week. In addition to Pfizer winning a green light for abrocitinib, AbbVie gained FDA approval for its JAK inhibitor, Rinvoq, in that same indication.
Abrocitinib, which Pfizer is going to market under the brand name Cibinqo, and Rinvoq will compete head-to-head against each other. They will also compete against Regeneron's (NASDAQ: REGN) and Sanofi's (NASDAQ: SNY) Dupixent.
Which of these newcomers, Cibinqo or Rinvoq, do you think is more likely to be the bigger winner against Dupixent in the atopic dermatitis market?
Brian Orelli: Yeah. AbbVie's Rinvoq appears to have maybe slightly better efficacy than Pfizer's Cibinqo. It's hard to tell because they're not a head-to-head to clinical trial, but based on the competitors, it seems like Rinvoq might be slightly better on the efficacy side.
We also have a more extensive database of safety that isn't as, and sorry to say that it's actually more safe, it's just that they have more evidence that it's safe than Pfizer does. By those two measures, I think Rinvoq probably has the advantage here.
Getting back to Dupixent, I'm not sure if the new JAK inhibitors are really that big of a competitor against Dupixent. If doctors are following the FDA recommendations merged with patients' preferences, they'll likely go from topical medications, which are generally generics. Those are cheap and they're easy to take and they're topicals, so that's helpful because they're not systemic. Doctors are less worried about them causing other problems in other parts of the body.
Then you'd go on Dupixent because, although it doesn't necessarily work as well as the TNF inhibitors or JAK inhibitors, but it's an oral medication. Then if that didn't work, then you probably go on a TNF inhibitor, and then if that didn't work, then you'd go on a JAK inhibitor. I don't think the JAK inhibitors with their current labels are probably going to affect Dupixent sales all that much.
Although as we talked about in the last segment, it probably depends a lot on doctors' preferences and whether they would go off label and potentially try the JAK inhibitors before the TNF inhibitors. But even then, I think they probably would try Dupixent first and then if Dupixent isn't working, then try the JAK inhibitors. I'm not sure that the JAK inhibitors coming on the market really affects Dupixent's sales all that much.
Speights: Atopic dermatitis is a big market and as you said, if one drug doesn't work as well for a given patient then they can switch to another drug. So there's room in this market, I think, for AbbVie and Pfizer to have successes but I think you're right. I don't think either one of these products is going to really touch Dupixent in terms of overall sales.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition to Pfizer winning a green light for abrocitinib, AbbVie gained FDA approval for its JAK inhibitor, Rinvoq, in that same indication. Both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) recently picked up regulatory approvals for JAK inhibitors for treating atopic dermatitis. In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli discuss whether AbbVie is likely to beat Pfizer in this large market. | In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli discuss whether AbbVie is likely to beat Pfizer in this large market. In addition to Pfizer winning a green light for abrocitinib, AbbVie gained FDA approval for its JAK inhibitor, Rinvoq, in that same indication. Both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) recently picked up regulatory approvals for JAK inhibitors for treating atopic dermatitis. | In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli discuss whether AbbVie is likely to beat Pfizer in this large market. Both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) recently picked up regulatory approvals for JAK inhibitors for treating atopic dermatitis. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli discuss whether AbbVie is likely to beat Pfizer in this large market. AbbVie's Rinvoq appears to have maybe slightly better efficacy than Pfizer's Cibinqo. Both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) recently picked up regulatory approvals for JAK inhibitors for treating atopic dermatitis. |
23657.0 | 2022-01-28 00:00:00 UTC | Value, Growth, or Momentum: What Kind of Investor are You? | ABBV | https://www.nasdaq.com/articles/value-growth-or-momentum%3A-what-kind-of-investor-are-you | nan | nan | The Covid-19 pandemic impacted all of us in many different ways. From work to family to finances, we were forced to adapt to a “new normal” that included staying home, jumping on Zoom calls, doing puzzles, and baking a ton of sourdough bread (or was that just me?).
The coronavirus crisis also likely changed how you invested in the stock market. While 2020 was a wild year, it was also a time filled with opportunity for those willing to take risks.
Like everything else, our short- and long-term investing strategies had to change to fit the unpredictable and volatile market environment.
But change is not always a bad thing.
Hopefully, you’re a wiser, more nuanced investor right now than you were a year ago. You invested and traded your hard-earned cash during a once-in-a-lifetime pandemic, after all.
The same goes for your investment mindset today versus when you just started out. Knowledge is gained through experience, and experience guides how you manage your portfolio. You grow, you learn, you make good trades and bad ones, and then you learn and grow some more.
What should be a part of your investing strategy for 2022?
In order to help you answer that question, let’s go over three popular methodologies: value, growth, and momentum.
Value investing is all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. Value-oriented strategies focus on key ratios like the P/E, Price/Sales, and Price/Cash Flow to pick out the most attractively discounted stocks.
Growth investors, however, are more concerned with a stock’s future prospects, and the overall financial health and strength of a company. Projected and historic earnings, sales, and cash flow are key fundamentals that can help you uncover stocks that boast long-term, sustainable growth.
With momentum investing, you live by the saying “the trend is your friend.” This style is all about taking advantage of upward or downward trends in a stock’s price and earnings outlook; momentum traders often take advantage of simple moving averages—think the 50-day and 200-day—to pinpoint the most favorable times to build, or sell, a position in a stock.
While it’s normal to gravitate to one of these styles, it’s also fairly common to use a combination of all three. This way, you’re finding stocks that are not only attractively valued, but have a strong growth outlook and promising momentum as well.
Utilizing value, growth, and momentum together is also an easy way to diversify your portfolio.
As I always tell Income Investor readers, one of the simplest ways to protect your investments is through diversification, since the more diversified a portfolio is, the less vulnerable it is to broader macroeconomic events.
Including value stocks, growth stocks, and momentum stocks, as well as complementing these investments with bonds, real estate, hard assets, and/or cash, can help your portfolio thrive during all kinds of market scenarios.
Should You Change Your Investing Style in 2022?
This week, and pretty much all of January, has been a wild ride for the markets.
We’ve been entrenched in a rollercoaster trading environment as investors contend with a furious wave of uncertainty; the main source of volatility for the past few days was the Fed’s latest policy update, which reinforced how serious the central bank is about curbing inflation and raising interest rates.
The Fed’s hawkish outlook has also sparked a major tech sell-off, and the Nasdaq is down over 13% so far this year. High-flying growth stocks have seemingly been given the boot in favor of value and cyclical names in industries like banks and energy.
But no matter which kind of stocks are in demand, your investing style will always depend on your savings goals.
If you’re thinking about changing up your portfolio, ask yourself questions like: when do you plan on retiring? Where do you want to retire? Do you have debt you need to pay off? Do you want to buy a home? Do you need to save for your kids’ college education? And so on and so on; there’s a lot you have to think about before switching to or incorporating a different investing strategy.
But no matter what you decide is best this year, always remember that investing is a personal journey. Your life, and where you see yourself in 10, 20, 30 years, should be the driving force behind your investing decisions and strategies.
3 Stocks Worth Your Consideration
Now that I have you thinking about your 2022 investing style, let’s take a look at three stocks with solid value, growth, and momentum combinations.
Bank of America BAC: Bank of America is the second-biggest bank by assets in the U.S., providing a diverse range of banking and other financial services and products. Additionally, BAC outperformed its peers over the past one-year period, gaining over 54% while the Banks-Major industry moved about 30% higher.
BAC reported strong fiscal fourth-quarter results earlier this month, and net interest income, which is the profit banks make on loans and securities after accounting for the cost of funding those assets, grew to $11.5 billion. Wall Street now thinks BAC will generate as much as 12% annual revenue growth in 2022 mainly due to higher interest rates (this generally means larger profit margins and thus, higher net income).
Bank of America, a #2 (Buy) stock, has a forward P/E of 14X, and still trades below the broader Finance sector (15.7X); shares look even cheaper if you factor in BAC’s bullish revenue outlook. Additionally, Bank of America boasts a solid dividend, with an annual yield of 1.85%.
AbbVie ABBV: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Its flagship product, Humira, has been approved for several autoimmune diseases like rheumatoid arthritis and active psoriatic arthritis.
Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. The company also has high expectations for its recent acquisition of Botox-maker Allergan; its bottom line will greatly benefit as the two companies continue to integrate their operations.
AbbVie has a solid, growing dividend yield of 4.2% (which management has been explicit about maintaining and growing), and the stock currently sits at a #3 (Hold) on the Zacks Rank. Shares are cheap as well, and it even looks like a bargain, trading at a 9.8X forward multiple compared to the broader Medical market (19.4X).
Microsoft MSFT: Microsoft is a technological powerhouse. Its Office software is used around the world, and its Azure cloud computing platform is now the go-to choice for many enterprises, especially in the pandemic-related shift to remote work. Add in its Windows operating system, LinkedIn, and its Xbox gaming division, and Microsoft and its investors still have many ways to profit.
Microsoft is also extremely liquid; it generated free cash flow of $8.6 billion last quarter, up 3% year-over-year. The tech giant has a ton of leeway to keep investing in new growth ideas while rewarding its shareholders with a growing dividend—MSFT regularly hikes its payout and shares yield 0.83% on an annual basis—and stock buybacks.
MSFT is a #3 (Hold) on the Zacks Rank, and analysts are forecasting 15% earnings growth for the current fiscal year. Shares currently trade at 30.6X forward earnings, still a premium despite the recent sell-off. But if you’re looking for a company that generates stable sales and profits and rewards investors through dividends and buybacks, MSFT looks to be worth consideration.
Disclaimer: I own MSFT in my personal portfolio and ABBV in the Income Investor portfolio. Follow me there for the latest buy-and-hold strategies.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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Bank of America Corporation (BAC): 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: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. AbbVie has a solid, growing dividend yield of 4.2% (which management has been explicit about maintaining and growing), and the stock currently sits at a #3 (Hold) on the Zacks Rank. | AbbVie ABBV: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. AbbVie has a solid, growing dividend yield of 4.2% (which management has been explicit about maintaining and growing), and the stock currently sits at a #3 (Hold) on the Zacks Rank. | AbbVie ABBV: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. AbbVie has a solid, growing dividend yield of 4.2% (which management has been explicit about maintaining and growing), and the stock currently sits at a #3 (Hold) on the Zacks Rank. | Disclaimer: I own MSFT in my personal portfolio and ABBV in the Income Investor portfolio. AbbVie ABBV: A biopharmaceutical giant, AbbVie is known for its large drug portfolio of treatments for rheumatoid arthritis, Crohn’s disease, hepatitis C, endometriosis, and cystic fibrosis. Despite Humira’s pending U.S. patent expiration in 2023, ABBV is still generating solid revenue growth and boosting its pipeline with immunology drugs Skyrizi and Rinvoq. |
23658.0 | 2022-01-28 00:00:00 UTC | Is a Beat Likely for AbbVie (ABBV) This Earnings Season? | ABBV | https://www.nasdaq.com/articles/is-a-beat-likely-for-abbvie-abbv-this-earnings-season | nan | nan | AbbVie ABBV, slated to report fourth-quarter 2021 results on Feb 2, before market open, is expected to beat expectations. In the last reported quarter, the company delivered an earnings surprise of 3.10%.
AbbVie’s stock has gained 33.4% in the past year compared with an increase of 14.2% for the industry.
Image Source: Zacks Investment Research
The large drugmaker’s performance has been pretty impressive, with its earnings beating estimates in three of the trailing four quarters and meeting the same once. The company has a four-quarter earnings surprise of 3.02%, on average.
Factors to Consider
Strong demand for immunology drugs, aesthetics and cosmetics are expected to have driven sales in the fourth quarter of 2021.. Moreover, new drug launches in the past few quarters are likely to have brought additional sales during the fourth quarter. However, the Omicron outbreak since September 2021 could have hurt patient volumes, especially for physician-administered drugs.
Fourth-quarter earnings are expected between $3.24 and $3.28 per share. AbbVie expects adjusted revenues of approximately $15 billion, indicating year-over-year growth of more than 8%. The Zacks Consensus Estimate for earnings and revenues stands at $3.29 per share and $15.07 billion, respectively.
In immunology, Humira has been witnessing strong demand trends in the United States. Sales of the drug in the United States are likely to have increased in the fourth quarter. However, Humira’s international sales are expected to have continued their declining trend due to the impact of biosimilars in Europe. The Zacks Consensus Estimate for Humira stands at $5.41 billion.
The sales of new immunology drugs, Skyrizi and Rinvoq, reflected strong uptake during the last few quarters. The strong uptake is expected to have continued in the soon-to-be-reported quarter. The label expansion of Rinvoq and Skyrizi in Europe to include a new patient populations in the second half of 2021 is likely to have driven the sales of the drugs further during the quarter.
In December, AbbVie updated the Rinvoq label to include boxed warnings about an increased risk of serious heart-related events, cancer, blood clots, and even death following a Drug Safety Communication issued by the FDA in September. The impact of the label update on the drug’s sales in the fourth quarter of 2021 remains to be seen.
In oncology, AbbVie markets Imbruvica in partnership with Johnson & Johnson JNJ and Venclexta with Roche RHHBY. Sales of the J&J and Roche-partnered drugs are likely to have been strong in the soon-to-be-reported quarter. However, lower new patient starts in the chronic lymphocytic leukemia (CLL) indication for both J&J and Roche-partnered drugs — Imbruvica and Venclexta — due to the COVID-19 pandemic are likely to have hurt sales. The impact of increasing competition from newer therapies on sales of J&J-partnered drug, Imbruvica, remains to be seen. The Zacks Consensus Estimate for J&J-partnered drug, Imbruvica, and Roche-partnered drug, Venclexta, is pegged at $1.47 billion and $510 million, respectively.
Sales of AbbVie’s new Hepatitis C drug, Mavyret, started recovering from the pandemic impact during the second quarter, which continued in the third quarter. The recovery trend is likely to have continued in the fourth quarter too, boosting sales of the drug. The Zacks Consensus Estimate for Mavyret stands at $463 million.
Sales of AbbVie’s aesthetics products — Botox cosmetic and Juverderm — demonstrated a strong recovery during the second and third quarters of 2021, reflecting significant pent-up demand. Moreover, sales of the neuroscience franchise also showed strong growth in the first nine months of 2021. The trend is expected to have continued for both franchises in the soon-to-be-reported quarter. However, the impact of high infection rates due to the Omicron variant remains to be seen. The Zacks Consensus Estimate for aesthetics and neuroscience products stands at $1.34 billion and $1.61 billion, respectively.
Investors’ focus will likely be on any update related to the impact of Omicron-outbreak and the guidance for 2022.
Earnings Beat Likely
Our proven model predicts an earnings beat for AbbVie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($3.30 per share) and the Zacks Consensus Estimate ($3.29 per share), is +0.26%.
Zacks Rank: AbbVie carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Another Stock to Consider
Here is a large drug stock that has the right combination of elements to beat on earnings this time around:
Eli Lilly LLY has an Earnings ESP of +0.20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lilly’s stock has surged 13.8% in the past year. Lilly topped earnings estimates in one of the last four quarters. Lilly has a four-quarter earnings surprise of 0.54%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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Roche Holding AG (RHHBY): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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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. | In December, AbbVie updated the Rinvoq label to include boxed warnings about an increased risk of serious heart-related events, cancer, blood clots, and even death following a Drug Safety Communication issued by the FDA in September. AbbVie ABBV, slated to report fourth-quarter 2021 results on Feb 2, before market open, is expected to beat expectations. AbbVie’s stock has gained 33.4% in the past year compared with an increase of 14.2% for the industry. | AbbVie ABBV, slated to report fourth-quarter 2021 results on Feb 2, before market open, is expected to beat expectations. AbbVie’s stock has gained 33.4% in the past year compared with an increase of 14.2% for the industry. AbbVie expects adjusted revenues of approximately $15 billion, indicating year-over-year growth of more than 8%. | Sales of AbbVie’s new Hepatitis C drug, Mavyret, started recovering from the pandemic impact during the second quarter, which continued in the third quarter. AbbVie Inc. Price and EPS Surprise AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote Another Stock to Consider Here is a large drug stock that has the right combination of elements to beat on earnings this time around: Eli Lilly LLY has an Earnings ESP of +0.20% and a Zacks Rank #2. AbbVie ABBV, slated to report fourth-quarter 2021 results on Feb 2, before market open, is expected to beat expectations. | AbbVie Inc. Price and EPS Surprise AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote Another Stock to Consider Here is a large drug stock that has the right combination of elements to beat on earnings this time around: Eli Lilly LLY has an Earnings ESP of +0.20% and a Zacks Rank #2. AbbVie ABBV, slated to report fourth-quarter 2021 results on Feb 2, before market open, is expected to beat expectations. AbbVie’s stock has gained 33.4% in the past year compared with an increase of 14.2% for the industry. |
23659.0 | 2022-01-28 00:00:00 UTC | Gilead (GILD) to Report Q4 Earnings: Is a Beat in the Cards? | ABBV | https://www.nasdaq.com/articles/gilead-gild-to-report-q4-earnings%3A-is-a-beat-in-the-cards | nan | nan | Biotech major Gilead Sciences Inc. GILD is slated to report fourth-quarter 2021 results on Feb 1, after market close.
The company has an excellent track record, with earnings beating estimates in all of the last four quarters, the average beat being 15.7%. In the last reported quarter, the company beat expectations by 54.07%.
Gilead Sciences, Inc. Price and EPS Surprise
Gilead Sciences, Inc. price-eps-surprise | Gilead Sciences, Inc. Quote
What Our Model Predicts
Our proven model predicts an earnings beat for Gilead 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Gilead is +2.03%, as the Zacks Consensus Estimate is pegged at $1.50 and the Most Accurate Estimate is pegged at $1.53.
Zacks Rank: The company currently carries a Zacks Rank #3.
Factors at Play
Gilead did not provide any guidance for the fourth quarter. It upped its product sales outlook for 2021 concurrent with the third-quarter results suggesting an increase in sales in the fourth quarter.
A decline in HIV franchise sales due to the loss of exclusivity of Truvada and Atripla adversely impacted the top line in the third quarter. Sales from this franchise came in at $4.2 billion in the third quarter. The trend is likely to have continued in the fourth quarter as well. Flagship HIV therapy, Biktarvy, saw continued growth and gains in market share, despite the ongoing impact of the pandemic in all three quarters. The trend is expected to have continued in the final quarter. Strong growth in Biktarvy sales might have offset the overall decline in sales in the quarter.
Descovy sales decreased in the previous quarter due to lower net price. A similar trend has most likely prevailed in the to-be-reported quarter. The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.4 billion and $435 million, respectively.
Like the third quarter, HCV sales are likely to have decreased due to fewer patient starts outside the United States. A surge in COVID-19 cases due to the Omicron variant both in the United States and Europe has most likely resulted in lower patient starts this quarter as well.
Veklury (remdesivir) sales, an antiviral treatment for COVID-19, contributed $1.9 billion to the top line in the third quarter. Given the surge in sales of antibody treatments, sales of Veklury are likely to have declined or remained stable sequentially in the fourth quarter. The Zacks Consensus Estimate for Veklury sales is pegged at $755 million.
Cell Therapy product sales, which include Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), came in at $222 million in the previous quarter. Sales might have experienced a sequential increase, driven by label expansions. The Zacks Consensus Estimate for Yescarta sales stands at $194 million.
Trodelvy (for breast cancer) sales came in $101 million in the third quarter, reflecting increased use for the second-line treatment of metastatic triple-negative breast cancer (TNBC) and metastatic urothelial cancer in the United States. The drug was added following the acquisition of Immunomedics by Gilead in 2020. Sales might have registered a sequential increase as demand is normalizing.
Operating expenses might have increased due to higher investments in the oncology program.
Other Pipeline & Regulatory Updates
Apart from the regular top and bottom-line numbers, we expect investors to focus on key pipeline updates.
The FDA has approved the label expansion of antiviral treatment Veklury for COVID-19. The regulatory body has granted expedited approval to a supplemental new drug application (sNDA) for Veklury for the treatment of non-hospitalized adult and adolescent patients who are at high risk of progression to severe COVID-19, including hospitalization or death. The FDA has also expanded the pediatric Emergency Use Authorization (EUA) of Veklury to include non-hospitalized pediatric patients younger than 12 years of age who are at high risk of disease progression. National Institutes of Health Treatment Guidelines for COVID-19 has additionally recommended Veklury for treatment in non-hospitalized settings. This should propel the guidance for the drug.
The European Commission has granted marketing authorization to Trodelvy as a monotherapy indicated for the treatment of adult patients with unresectable or metastatic TNBC who have received two or more prior systemic therapies, at least one of them for advanced disease. Approval in additional geographies should boost the growth potential of the drug.
Share Price Performance
Gilead’s stock has gained 2.5% in the year so far against the industry's decline of 39.3%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other drug/biotech stocks you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
Pfizer PFE has an Earnings ESP of +3.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pfizer boasts of a good track record, having topped earnings estimates in three of the last four quarters. Pfizer pulled off a four-quarter earnings surprise of 10.85%, on average.
Amgen AMGN has an Earnings ESP of +1.49% and a Zacks Rank #3.
Amgen has a decent track record and topped earnings estimates in three of the last four quarters. Amgen delivered a four-quarter earnings surprise of 5.65%, on average.
AbbVie ABBV has an Earnings ESP of +0.26% and a Zacks Rank #3.
AbbVie has an excellent record and topped earnings estimates in the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
Pfizer Inc. (PFE): 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
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV has an Earnings ESP of +0.26% and a Zacks Rank #3. AbbVie has an excellent record and topped earnings estimates in the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. | AbbVie ABBV has an Earnings ESP of +0.26% and a Zacks Rank #3. AbbVie has an excellent record and topped earnings estimates in the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. | AbbVie ABBV has an Earnings ESP of +0.26% and a Zacks Rank #3. AbbVie has an excellent record and topped earnings estimates in the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. | AbbVie ABBV has an Earnings ESP of +0.26% and a Zacks Rank #3. AbbVie has an excellent record and topped earnings estimates in the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average. |
23660.0 | 2022-01-27 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, Edwards Lifesciences and Johnson Controls International | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-edwards-lifesciences-and-johnson-controls | nan | nan | For Immediate Release
Chicago, IL – January 27, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI.
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for AbbVie, Edwards Lifesciences and Johnson Controls
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc., Edwards Lifesciences Corp. and Johnson Controls International plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of AbbVie have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+27.1% vs. +11.7%). The Zacks analyst believes that several new drugs in AbbVie’s portfolio have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Successful label expansions of Imbruvica and Venclexta have been boosting AbbVie’s revenues. ABBV also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified its revenue base, enhancing its long-term growth potential. FDA’s order to include a heart-risk warning in the label of JAK inhibitor drug, Rinvoq, however, may hurt the drug’s sales.
(You can read the full research report on AbbVie here >>>)
Edwards Lifesciences shares have gained +1.5% over the past six months against the Zacks Medical Instruments industry’s loss of -10.2%. The Zacks analyst believes that the huge untapped potential in emerging markets will act as a positive catalyst for Edwards Lifesciences.
Edwards Lifesciences finished the third quarter of 2021 with better-than-expected earnings despite the impact of the Delta variant. Edwards has also reinstated its full-year 2021 outlook, which is indicative of the continuation of the current bullish trend. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe is another catalyst. Tough competition in the cardiac devices market and reimbursement issues, however, remain as the major headwinds.
(You can read the full research report on Edwards Lifesciences here >>>)
Shares of Johnson Controls have gained +1.4% in the last three months against the Zacks Security and Safety Services industry’s loss of -9.3%. The Zacks analyst believes that Johnson Control is poised to benefit from a strong balance sheet, COGS reduction initiative and the OpenBlue digital platform.
Strategic buyouts of Synchrony, EasyIO BEMS product line, Qolsys and Silent-Aire along with collaborations with Microsoft, Pelion, DigiCert, UL, SafeTraces and Phylagen also augur well for Johnson's growth prospects. Supply chain issues, forex woes, as well as stiff competition are likely to weigh on JCI’s margins, though.
(You can read the full research report on Johnson Controls here >>>)
Other noteworthy reports we are featuring today include Prudential Financial, Inc. (PRU) and Etsy, Inc. (ETSY).
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.
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Free: See Our Top Stock and 4 Runners Up >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Johnson Controls International plc (JCI): Free Stock Analysis Report
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Edwards Lifesciences and Johnson Controls The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc., Edwards Lifesciences Corp. and Johnson Controls International plc. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Edwards Lifesciences and Johnson Controls The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc., Edwards Lifesciences Corp. and Johnson Controls International plc. | Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Edwards Lifesciences and Johnson Controls The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc., Edwards Lifesciences Corp. and Johnson Controls International plc. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. | Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for AbbVie, Edwards Lifesciences and Johnson Controls The Zacks Research Daily presents the best research output of our analyst team. The Zacks analyst believes that several new drugs in AbbVie’s portfolio have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. Stocks recently featured in the blog include: AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. |
23661.0 | 2022-01-27 00:00:00 UTC | 2 Stocks to Buy During Market Turbulence Before Earnings | ABBV | https://www.nasdaq.com/articles/2-stocks-to-buy-during-market-turbulence-before-earnings | nan | nan | The S&P 500 and the Nasdaq last week posted their worst performances since the pandemic began. The benchmark index is officially in correction territory (down 10% or more from its highs) and the tech-heavy Nasdaq is down around 16%.
Both indexes are currently trading beneath their 200-day moving averages for the first time since the initial covid selloff. And the downturn to start 2022 has hit nearly every corner of the market.
Thankfully, the substantial and lightning-quick selloff has already significantly recalibrated valuations. And countless growth names, as well as some large-cap giants have seen nearly all of their pandemic gains washed away.
There could be more selling, and stocks fell in afternoon trading Wednesday, after climbing most of the day. The downturn came after the Federal Reserve signaled its plans to raise short-term interest rates as soon as mid-March. Stocks then popped Thursday morning amid mountains of earnings data and stronger-than-expected economic growth.
Even with rising interest rates causing market jitters, they will have to climb a lot higher before investors start to park their money outside of equities. And it’s worth constantly reminding ourselves that the outlook for S&P 500 revenue and earnings are strong for 2022 and 2023, with margins historically high.
With this backdrop in mind, we dive into two strong stocks that also pay a dividend that investors might want to consider buying heading into earnings.
Image Source: Zacks Investment Research
AbbVie ABBV – Q4 Financial Results DueWednesday, Feb. 2
AbbVie is prepared for a bright future even as patent protections run out for one of the world’s best-selling drugs, Humira—biosimilars are available outside of the U.S., with domestic competition to start in 2023. AbbVie readied itself for a post-Humira world, in part, through its $63 billion acquisition of Allergan in May 2020.
ABBV’s deal brought Botox and other popular drugs into a diversified medicine cabinet that includes immunology, oncology, neuroscience, a strong R&D pipeline, and much more. CEO Richard Gonzalez said last year that it’s “on the cusp of potential commercial approvals for more than a dozen new products or indications over the next two years–including five expected approvals in 2021.”
ABBV’s FY20 revenue surged 38%, driven by its Allergan deal. Most recently, it beat our Q3 estimates and raised its full-year guidance. Zacks estimates call for the firm’s 2021 revenue to surge 23%, with FY22 set to climb another 6.4% higher to $60 billion, as the YoY comparisons normalize. Meanwhile, its adjusted earnings are projected to jump 20% and 11%, respectively.
AbbVie lands a Zacks Rank #3 (Hold) at the moment and it’s seen its FY22 consensus estimate climb recently. ABBV also sports “B” grades for Value and Momentum and an “A” for Growth in our Style Score system. Plus, Wall Street is high on the stock, with nine of the 13 brokerage recommendations Zacks has at “Strong Buys,” with nothing below a “Hold.”
Image Source: Zacks Investment Research
Alongside its solid outlook, the firm continues to ramp up its dividend payment at impressive clips, including an 8.5% raise for 2022. It has now raised its dividend by 250% since its inception in 2013 and its current 4.2% yield crushes its industry’s 2.5% average and the 10-year U.S. Treasury’s 1.8%. This payout could help boost any diversified portfolio and provide some nice protection from inflation.
The dividend yield is even better since ABBV shares are up 127% in the past five years vs. Large-Cap Pharma’s 65%. The stock is also up 33% in the last year and 25% in the past three months. In fact, Abbie is currently trading near its highs as Wall Street clamors for safety amid all the market turmoil.
Even though it’s trading right near its all-time records, AbbVie trades at a 10% discount to its own year-long highs at 9.7X forward 12-month earnings, which also represents 30% value compared to its industry. AbbVie’s valuation and strong dividend payout are a few of the reasons Warren Buffett’s Berkshire Hathaway own ABBV in its portfolio.
Ford Motor Company F – Q4 Financial Results Due Thursday, Feb. 3
Ford is the nation’s No. 2 automaker by sales and its F-Series was the best-selling vehicle for the 40th straight year in 2021. More importantly, especially where Wall Street is concerned, Ford was the No. 2 overall electric vehicle seller last year, behind only Tesla TSLA. Ford’s EVs grew 36% faster than the segment as a whole, and it’s just getting started.
Ford rolled out an EV version of its famous Mustang in late 2020. The Mach-E, which is more of a crossover that competes against Tesla’s small SUVs, was named the “Electric Vehicle of the Year” by Car and Driver. Plus, it announced in early January that roughly 200K reservations have been placed for its all-electric F-150 Lightning. And it plans to nearly double its Lightning manufacturing target to over 150K a year—deliveries start this spring.
Ford will boost its EV appeal and relationships through its array of commercial customers from contractors to police departments. Its commercial business is set to bring in more recurring revenue as companies pay to monitor their connected fleets and upgrade software. Ford is prepared to launch an EV line of its best-selling commercial vans soon, and it has teased plans to sell EV Explorers and the Lincoln Aviators.
Image Source: Zacks Investment Research
Ford is investing over $30 billion in EVs through 2025 and it plans to cement its place as the No. 2 EV maker in North America and “then challenge the No. 1 spot” (from Tesla). These efforts crucially include major investments in battery technology and manufacturing. The company said it will have the global capacity to produce 600K battery EVs annually within the next two years.
Ford shares have climbed 80% in the last 12 months to blow away its industry and the S&P 500. The stock surpassed its 2018 levels last year, but it still trades far below the $30 a share levels of the late 1990s. Ford is down 20% from its mid-January highs. The drop has it trading at a discount to its year-long median at 9.8X forward 12-month earnings. Ford also reinstated its dividend after a pandemic pause, with its 2% yield above the recently-climbing 10-year U.S. Treasury.
Zacks estimates call for Ford’s adjusted FY21 earnings to soar 346% to $1.83 a share on nearly 8% higher revenue. Peeking ahead, its FY22 earnings are projected to climb another 10.5% on 18.5% better sales that would see it pull within striking distance of its pre-pandemic total.
Ford’s consensus EPS outlook has improved since its last report, with some strong revisions for FY22 recently. The bottom-line positivity helps Ford grab a Zacks Rank #1 (Strong Buy) right now, alongside its overall “A” VGM grade.
Ford has destroyed our bottom-line estimates by an average of 355% in the trailing four periods. And investors should be pleased to know that even with all of the hype, EVs made up around 3% of all vehicle sales in 2021, which means there is still plenty of time to get in near the ground floor.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
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Ford Motor Company (F): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV’s deal brought Botox and other popular drugs into a diversified medicine cabinet that includes immunology, oncology, neuroscience, a strong R&D pipeline, and much more. Image Source: Zacks Investment Research AbbVie ABBV – Q4 Financial Results DueWednesday, Feb. 2 AbbVie is prepared for a bright future even as patent protections run out for one of the world’s best-selling drugs, Humira—biosimilars are available outside of the U.S., with domestic competition to start in 2023. AbbVie readied itself for a post-Humira world, in part, through its $63 billion acquisition of Allergan in May 2020. | Image Source: Zacks Investment Research AbbVie ABBV – Q4 Financial Results DueWednesday, Feb. 2 AbbVie is prepared for a bright future even as patent protections run out for one of the world’s best-selling drugs, Humira—biosimilars are available outside of the U.S., with domestic competition to start in 2023. AbbVie readied itself for a post-Humira world, in part, through its $63 billion acquisition of Allergan in May 2020. ABBV’s deal brought Botox and other popular drugs into a diversified medicine cabinet that includes immunology, oncology, neuroscience, a strong R&D pipeline, and much more. | Image Source: Zacks Investment Research AbbVie ABBV – Q4 Financial Results DueWednesday, Feb. 2 AbbVie is prepared for a bright future even as patent protections run out for one of the world’s best-selling drugs, Humira—biosimilars are available outside of the U.S., with domestic competition to start in 2023. AbbVie readied itself for a post-Humira world, in part, through its $63 billion acquisition of Allergan in May 2020. ABBV’s deal brought Botox and other popular drugs into a diversified medicine cabinet that includes immunology, oncology, neuroscience, a strong R&D pipeline, and much more. | AbbVie Inc. (ABBV): Free Stock Analysis Report Image Source: Zacks Investment Research AbbVie ABBV – Q4 Financial Results DueWednesday, Feb. 2 AbbVie is prepared for a bright future even as patent protections run out for one of the world’s best-selling drugs, Humira—biosimilars are available outside of the U.S., with domestic competition to start in 2023. AbbVie readied itself for a post-Humira world, in part, through its $63 billion acquisition of Allergan in May 2020. |
23662.0 | 2022-01-27 00:00:00 UTC | 2 Dirt-Cheap Dividend Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-dirt-cheap-dividend-stocks-to-buy-and-hold-forever | nan | nan | Dividend stocks are worth serious consideration, especially given the current state of the economy. With inflation near 40-year highs in the U.S., dividends can be a source of supplemental income for those who need it. And since the rise in prices can eat into investors' returns, opting for automatic dividend reinvestment can help fight off the harmful effects of inflation on your portfolio.
But what's even better than dividend stocks? Cheap dividend stocks. Let's look at two companies to consider -- both of which are excellent, dividend-paying companies and look like steals at current levels: AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY).
1. AbbVie
Pharma giant AbbVie offers a dividend yield of 4.01%, significantly higher than the S&P 500's average of 1.27%. In addition, the company is a Dividend King, which means it has raised its payout for at least 50 consecutive years. The company's total revenue for the third quarter increased by 11.2% to $14.3 billion.
Image source: Getty Images.
Equally important, AbbVie's business remains strong. First, the company's rheumatoid arthritis medicine Humira continues to generate growing sales despite competition from biosimilars in Europe. During the third quarter, global sales of Humira came in at $5.4 billion, a 5.6% increase compared to the year-ago period.
AbbVie also boasts several products that will eventually replace Humira once it loses patent exclusivity in the U.S. next year. These include Rinvoq and Skyrizi, two medicines that treat several autoimmune disorders. Both are seeing sales increase rapidly. In the third quarter, Rinvoq's revenue more than doubled year over year to $453 million while Skyrizi's sales soared by 83% to $796 million.
Other vital products for AbbVie's future include its cancer medicine Venclexta as well as its Botox franchise. Meanwhile, the company boasts a pipeline with several dozen ongoing clinical trials. Even a handful of approvals -- which seems more than likely than not -- should help the company bolster its lineup with label expansions or brand-new products.
The need for lifesaving medicines won't go out of style soon, which is what makes AbbVie's business resilient to economic conditions. The company may face headwinds as every business does, but in the long run it is well-positioned to reward shareholders by way of dividend increases and strong stock market performances.
AbbVie is currently trading for just 9.5 times forward earnings compared to the pharmaceutical industry's average price-to-earnings (P/E) ratio of 12.9. At these levels, AbbVie's stock looks attractively valued. Investors looking for companies whose shares to hold for a long time should look no further than this top pharma stock.
2. Bristol Myers Squibb
Bristol Myers is another drugmaker that provides both value and income. With a dividend yield of 3.21% and a forward P/E of 8, the company is above-average in both categories. Bristol Myers' business looks strong, too, with a raft of medicines that generate robust, growing sales. In the third quarter, the company's revenue grew by 10% year over year to $11.6 billion.
The company had several drugs to thank for that performance, especially oncology products Opdivo and Revlimid and anticoagulant Eliquis. However, all three of these products will be facing patent expiration relatively soon. Revlimid will start facing some generic competition in the U.S. this year while Opdivo and Eliquis will lose patent exclusivity in the U.S. in 2028 and 2026, respectively.
Image source: Getty Images.
Thankfully, Bristol Myers has a plan to deal with these headwinds. The company expects that its portfolio of newer products will contribute between $20 billion and $25 billion in revenue in the coming years. Some of the most promising of the bunch include anemia treatment Reblozyl, which could generate more than $4 billion in annual sales by 2029, according to the company. Reblozyl was first approved by the U.S. Food and Drug Administration in 2019.
Other promising products include mavacamten, a potential treatment for a heart condition known as symptomatic obstructive hypertrophic cardiomyopathy. Mavacamten could earn regulatory approval this year, and Bristol Myers also expects it to generate annual sales of at least $4 billion eventually.
Yet another product Bristol Myers is working on is deucravacitinib, a potential treatment for plaque psoriasis that could earn the green light from regulators in the U.S. and Europe sometime this year. These new medicines will only add to other drugs in Bristol Myers' lineup.
That's why despite the revenue losses it will soon experience due to biosimilar competition for some of its best-selling medicines, the company remains an excellent long-term bet.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's look at two companies to consider -- both of which are excellent, dividend-paying companies and look like steals at current levels: AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). AbbVie Pharma giant AbbVie offers a dividend yield of 4.01%, significantly higher than the S&P 500's average of 1.27%. Equally important, AbbVie's business remains strong. | Let's look at two companies to consider -- both of which are excellent, dividend-paying companies and look like steals at current levels: AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). AbbVie Pharma giant AbbVie offers a dividend yield of 4.01%, significantly higher than the S&P 500's average of 1.27%. Equally important, AbbVie's business remains strong. | Let's look at two companies to consider -- both of which are excellent, dividend-paying companies and look like steals at current levels: AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). AbbVie Pharma giant AbbVie offers a dividend yield of 4.01%, significantly higher than the S&P 500's average of 1.27%. Equally important, AbbVie's business remains strong. | Let's look at two companies to consider -- both of which are excellent, dividend-paying companies and look like steals at current levels: AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). AbbVie Pharma giant AbbVie offers a dividend yield of 4.01%, significantly higher than the S&P 500's average of 1.27%. Equally important, AbbVie's business remains strong. |
23663.0 | 2022-01-27 00:00:00 UTC | Should Value Investors Pick AbbVie (ABBV) At Present? | ABBV | https://www.nasdaq.com/articles/should-value-investors-pick-abbvie-abbv-at-present | nan | nan | Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put AbbVie ABBV into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, AbbVie has a trailing twelve months PE ratio of 10.9, as you can see in the chart below:
Image Source: Zacks Investment Research
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 22.6. If we focus on the long-term PE trend, its current PE level puts it above its midpoint over the past five years.
Image Source: Zacks Investment Research
Further, the stock’s PE also compares favorably with its sector’s trailing twelve months PE ratio, which stands at 25.8. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
Image Source: Zacks Investment Research
We should also point out that AbbVie has a forward PE ratio (price relative to this year’s earnings) of just 9.5 so we might say that the forward earnings estimates indicate that the company’s share price will likely appreciate in the near future.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, AbbVie has a P/S ratio of about 4.3. This is a lower than the S&P 500 average, which comes in at 4.7 right now. We can see in the chart below, this is above the highs for this stock in particular over the past few years.
Image Source: Zacks Investment Research
If anything, this suggests some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, AbbVie currently has a Value Score of B, putting it into the top 40% of all stocks we cover from this look. This makes ABBV a solid choice for value investors, and other key metrics makes this pretty clear too.
Additionally, the P/CF ratio (another great indicator of value) comes in at 9.7, (which is somewhat better than the industry average of 11.1). Clearly, ABBV is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though AbbVie might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of A and a Momentum Score of C. This gives ABBV a Zacks VGM score — or its overarching fundamental grade — of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been discouraging. The current quarter and the full year have seen one estimate go higher and one went lower each in the past 30 days.
Thus, the consensus estimate for the current quarter and the current year has moved down 0.6% and 0.1%, each in the past two months. You can see the consensus estimate trend and recent price action for the stock in the chart below:
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
This bearish trend is why the stock has a Zacks Rank #3 (Hold) and why we are expecting in-line from the company in the near term.
Bottom Line
AbbVie is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, with a Zacks Rank #3 and sluggish industry rank (bottom 35%), it is hard to get too excited about this company overall. Also, over the past year, the broader industry has clearly underperformed the market at large, as you can see below:
Image Source: Zacks Investment Research
So, value investors might want to wait for the estimates to turn around in this name first, but once that happens, this stock could be a compelling pick.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line AbbVie is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Let’s put AbbVie ABBV into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. On this front, AbbVie has a trailing twelve months PE ratio of 10.9, as you can see in the chart below: Image Source: Zacks Investment Research This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 22.6. | On this front, AbbVie has a trailing twelve months PE ratio of 10.9, as you can see in the chart below: Image Source: Zacks Investment Research This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 22.6. You can see the consensus estimate trend and recent price action for the stock in the chart below: AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote This bearish trend is why the stock has a Zacks Rank #3 (Hold) and why we are expecting in-line from the company in the near term. Let’s put AbbVie ABBV into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. | Let’s put AbbVie ABBV into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. You can see the consensus estimate trend and recent price action for the stock in the chart below: AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote This bearish trend is why the stock has a Zacks Rank #3 (Hold) and why we are expecting in-line from the company in the near term. On this front, AbbVie has a trailing twelve months PE ratio of 10.9, as you can see in the chart below: Image Source: Zacks Investment Research This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 22.6. | Right now, AbbVie has a P/S ratio of about 4.3. Let’s put AbbVie ABBV into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. On this front, AbbVie has a trailing twelve months PE ratio of 10.9, as you can see in the chart below: Image Source: Zacks Investment Research This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 22.6. |
23664.0 | 2022-01-26 00:00:00 UTC | Top Analyst Reports for AbbVie, Edwards Lifesciences & Johnson Controls | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-abbvie-edwards-lifesciences-johnson-controls | nan | nan | Wednesday, January 26, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. 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 AbbVie have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+27.1% vs. +11.7%). The Zacks analyst believes that several new drugs in AbbVie’s portfolio have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Successful label expansions of Imbruvica and Venclexta have been boosting AbbVie’s revenues. ABBV also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified its revenue base, enhancing its long-term growth potential. FDA’s order to include a heart-risk warning in the label of JAK inhibitor drug, Rinvoq, however, may hurt the drug’s sales.
(You can read the full research report on AbbVie here >>>)
Edwards Lifesciences shares have gained +1.5% over the past six months against the Zacks Medical Instruments industry’s loss of -10.2%. The Zacks analyst believes that the huge untapped potential in emerging markets will act as a positive catalyst for Edwards Lifesciences.
Edwards Lifesciences finished the third quarter of 2021 with better-than-expected earnings despite the impact of the Delta variant. Edwards has also reinstated its full-year 2021 outlook, which is indicative of the continuation of the current bullish trend. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe is another catalyst. Tough competition in the cardiac devices market and reimbursement issues, however, remain as the major headwinds.
(You can read the full research report on Edwards Lifesciences here >>>)
Shares of Johnson Controls have gained +1.4% in the last three months against the Zacks Security and Safety Services industry’s loss of -9.3%. The Zacks analyst believes that Johnson Control is poised to benefit from a strong balance sheet, COGS reduction initiative and the OpenBlue digital platform.
Strategic buyouts of Synchrony, EasyIO BEMS product line, Qolsys and Silent-Aire along with collaborations with Microsoft, Pelion, DigiCert, UL, SafeTraces and Phylagen also augur well for Johnson's growth prospects. Supply chain issues, forex woes, as well as stiff competition are likely to weigh on JCI’s margins, though.
(You can read the full research report on Johnson Controls here >>>)
Other noteworthy reports we are featuring today include Prudential Financial, Inc. PRU, PG&E Corporation PCG and Etsy, Inc. ETSY.
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
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The Zacks analyst is optimistic about Stericycle's (SRCL) comprehensive multi-year Business Transformation initiative, aimed at improving long-term operational and financial performance.
Centennial (CDEV) Banks on Prolific Delaware Basin Acreage
The Zacks analyst believes that Centennial's production outlook is bright since it has a huge inventory of drilling locations in the prolific oil-rich Delaware basin.
New Downgrades
Weak Content Slate & Stiff Competition Hurts Netflix (NFLX)
Per the Zacks analyst, Netflix's weak slate of content and stiff competition from Disney+, Apple TV+, Amazon Prime Video, HBO Max, and Peacock are expected to hurt prospects in the near term.
Seagen's (SGEN) High Reliance on Adcetris for Revenues a Woe
Per the Zacks analyst, Seagen's heavy dependence on Adcetris, from which it derives most of its revenues, is a concern. Stiff competition from other companies in the target market is another headwind.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. You can see all of today’s research reports here >>> Shares of AbbVie have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+27.1% vs. +11.7%). The Zacks analyst believes that several new drugs in AbbVie’s portfolio have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. | Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. 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 Edwards' (EW) Critical Care Business Solid Amid Forex Woes Spree of Buyouts to Aid Johnson Controls (JCI) Amid Cost Woes Featured Reports Prudential (PRU) Set to Grow on Expanding Retirement Business Per the Zacks analysts, Prudential is set to grow on a leading position in universal, term, and variable life insurance, expanding Retirement business and global presence. You can see all of today’s research reports here >>> Shares of AbbVie have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+27.1% vs. +11.7%). | Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. 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 Edwards' (EW) Critical Care Business Solid Amid Forex Woes Spree of Buyouts to Aid Johnson Controls (JCI) Amid Cost Woes Featured Reports Prudential (PRU) Set to Grow on Expanding Retirement Business Per the Zacks analysts, Prudential is set to grow on a leading position in universal, term, and variable life insurance, expanding Retirement business and global presence. You can see all of today’s research reports here >>> Shares of AbbVie have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+27.1% vs. +11.7%). | The Zacks analyst believes that several new drugs in AbbVie’s portfolio have the potential to drive revenues once Humira loses U.S. exclusivity in 2023. AbbVie Inc. (ABBV): Free Stock Analysis Report Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc. ABBV, Edwards Lifesciences Corp. EW, and Johnson Controls International plc JCI. |
23665.0 | 2022-01-26 00:00:00 UTC | AbbVie (ABBV) Reports Next Week: Wall Street Expects Earnings Growth | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-reports-next-week%3A-wall-street-expects-earnings-growth | nan | nan | The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 2, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This drugmaker is expected to post quarterly earnings of $3.29 per share in its upcoming report, which represents a year-over-year change of +12.7%.
Revenues are expected to be $15.07 billion, up 8.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. 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 higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.26%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that AbbVie will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AbbVie would post earnings of $3.23 per share when it actually produced earnings of $3.33, delivering a surprise of +3.10%.
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 appears 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.
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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 market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. | The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. | The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for AbbVie? For AbbVie, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. | So, this combination indicates that AbbVie will most likely beat the consensus EPS estimate. For the last reported quarter, it was expected that AbbVie would post earnings of $3.23 per share when it actually produced earnings of $3.33, delivering a surprise of +3.10%. The market expects AbbVie (ABBV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. |
23666.0 | 2022-01-26 00:00:00 UTC | 2 Reasons to Buy AbbVie Stock, and 1 Reason to Sell | ABBV | https://www.nasdaq.com/articles/2-reasons-to-buy-abbvie-stock-and-1-reason-to-sell | nan | nan | With 2021 net revenue estimated at $56.2 billion, AbbVie (NYSE: ABBV) is one of the world's most successful pharmaceutical companies. And given its massive pipeline of late-stage, drug-development programs in immunology, oncology, and aesthetics, the company likely has the opportunity to keep growing at a steady pace for years regardless of what's going on in the market or the economy.
But no stock is without flaws, and it behooves investors to understand both a company's strengths and weaknesses. Let's take a peek at two compelling reasons to buy the shares of AbbVie and one significant reason it might be better to avoid or sell -- so that you'll know whether any potential tribulations in the near future are worth the potential upside down the road.
Image source: Getty Images.
It's attractively priced
You wouldn't buy a car without assessing whether the vehicle is worth the asking price, and it follows that you shouldn't buy a stock without examining its valuation. At the moment, AbbVie's shares are priced such that they are neither a bargain nor overpriced.
Currently, its price-to-earnings (P/E) ratio of 30 is just about the same as the pharmaceutical industry's average P/E. In contrast, its price-to-sales (P/S) ratio is just over 4, which is a touch lower than the industry's average of 4.79.
That means investors don't need to worry much about overpaying for the stock. Moreover, there is less risk of AbbVie's shares plummeting as a result of an inflated valuation collapsing in the face of shifting market conditions. And so both of those factors contribute to making the company a good purchase.
It pays a hearty and growing dividend
Though a dividend shouldn't be the only reason to buy a stock, a healthy quarterly payout can still be a great bonus that can help to shore up your cash holdings over time.
In this vein, AbbVie's forward dividend yield is currently 4.24%, which is quite strong in comparison to many other pharmaceutical stocks of similar size. And over the past five years, its dividend payout has risen by 120%, which is quite a rapid pace. In the same period, the company's quarterly free cash flow (FCF) expanded by 285%.
As long as its FCF keeps expanding at that pace, management won't have any trouble continuing to hike the dividend each year. In fact, management has explicitly stated that it aims to continue to raise the dividend over time. That, of course, benefits its stockholders.
But it's biggest drug is losing exclusivity
Now, we come to the elephant in the room. In 2023, remaining exclusivity protections will expire for Humira, AbbVie's drug for treating arthritis. It's also AbbVie's biggest moneymaker. Humira was initially approved in 2002, but thanks to years of work in expanding its indications with clinical trials, it treats quite a few different conditions today, including rheumatoid arthritis, ulcerative colitis, ankylosing spondylitis, and plaque psoriasis, among others.
In the third quarter of 2021, Humira brought in $5.42 billion in net revenue from global sales, $4.61 billion of which is attributable to the U.S. But biosimilar competition has already started to erode its market share, and so over the next few years Humira's contribution to the top line will taper more and more sharply.
To address this massive issue, the company is planning to push development of two of its already approved immunology drugs, Rinvoq and Skyrizi. The two medicines are approved for several of the same indications held by Humira, and AbbVie is investigating a slew of additional indications to increase their revenue-making potential even further.
Management predicts that by 2025, Skyrizi and Rinvoq will earn more than $15 billion in revenue, making the combined income from the pair more lucrative than Humira was at its peak. Until then, it seems all but guaranteed that the company's revenue will face severe pressure. If you're not keen on sticking around to find out whether management's plan is going to work, it's probably a good idea to sell the stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With 2021 net revenue estimated at $56.2 billion, AbbVie (NYSE: ABBV) is one of the world's most successful pharmaceutical companies. Let's take a peek at two compelling reasons to buy the shares of AbbVie and one significant reason it might be better to avoid or sell -- so that you'll know whether any potential tribulations in the near future are worth the potential upside down the road. At the moment, AbbVie's shares are priced such that they are neither a bargain nor overpriced. | In 2023, remaining exclusivity protections will expire for Humira, AbbVie's drug for treating arthritis. With 2021 net revenue estimated at $56.2 billion, AbbVie (NYSE: ABBV) is one of the world's most successful pharmaceutical companies. Let's take a peek at two compelling reasons to buy the shares of AbbVie and one significant reason it might be better to avoid or sell -- so that you'll know whether any potential tribulations in the near future are worth the potential upside down the road. | 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. With 2021 net revenue estimated at $56.2 billion, AbbVie (NYSE: ABBV) is one of the world's most successful pharmaceutical companies. Let's take a peek at two compelling reasons to buy the shares of AbbVie and one significant reason it might be better to avoid or sell -- so that you'll know whether any potential tribulations in the near future are worth the potential upside down the road. | With 2021 net revenue estimated at $56.2 billion, AbbVie (NYSE: ABBV) is one of the world's most successful pharmaceutical companies. Let's take a peek at two compelling reasons to buy the shares of AbbVie and one significant reason it might be better to avoid or sell -- so that you'll know whether any potential tribulations in the near future are worth the potential upside down the road. At the moment, AbbVie's shares are priced such that they are neither a bargain nor overpriced. |
23667.0 | 2022-01-26 00:00:00 UTC | 2 Stocks to Buy No Matter What Happens in 2022 | ABBV | https://www.nasdaq.com/articles/2-stocks-to-buy-no-matter-what-happens-in-2022-0 | nan | nan | The U.S. equity market has been quite volatile in January 2022. Rising omicron cases, sticky inflation, which is expected to result in rate hikes, and now weaker-than-anticipated earnings results for tech stocks have negatively affected investor sentiment. Against this backdrop, CNBC's Jim Cramer expects the S&P 500 to continue to face challenging times even in early February.
While short- to mid-term investors may need to brace themselves for continued rockiness in the market in 2022, those with multiyear investment horizons can use this correction to get their hands on some financially stable and fundamentally resilient stocks at reasonable valuations. Qualcomm (NASDAQ: QCOM) and Pfizer (NYSE: PFE) are two such picks that have the potential to provide solid returns for retail investors in the long run.
Image source: Getty Images.
1. Qualcomm
Shares of leading mobile chipmaker Qualcomm are currently up by more than 36% from their 52-week low of $122.17 on Oct. 12. The company has reported stronger-than-expected fourth-quarter results for fiscal 2021 (ending Sep. 26, 2021). Both revenues and earnings surpassed consensus estimates, a commendable feat in times of significant supply-chain constraints.
According to Grand View Research, the global 5G chipset market is expected to grow to $66.45 billion in 2028, with a compound annual growth rate (CAGR) of 69.1% from 2021 to 2028. Since it is not yet possible to make a top-tier 5G phone without Qualcomm chipsets, the company stands to benefit dramatically from the ongoing 5G device upgrade cycle.
According to Counterpoint, Qualcomm accounted for 27% market share in the global smartphone application-processor market, while MediaTek was the leader with 40% market share in the third quarter ending Sep. 30, 2021. However, MediaTek is more focused on low and mid-tier 5G portfolios, while Qualcomm is dominating the 5G baseband modem segment with a 62% market share. The multisourcing of components from chip manufacturers Taiwan Semiconductor Manufacturing and Samsung, coupled with the launch of the Snapdragon 4, 6, and 7 series, is expected to further strengthen Qualcomm's positioning in the 5G smartphone market.
With handsets accounting for around 50% of Qualcomm's total business, investors are rightly concerned about Apple cutting out Qualcomm and instead opting for in-house development of iPhone chips. However, while challenging, this may not prove catastrophic for Qualcomm considering that Apple accounted for only a 15.2% share of the global smartphone market in the third quarter.
Additionally, Qualcomm is also diversifying rapidly in the non-handset markets, such as automotive connectivity and the Internet of Things (IoT). The company's chips are used for enabling next-generation connectivity services, such as infotainment, precise positioning, security, Bluetooth, and Wi-Fi (in-vehicle and vehicle-to-cloud) in automobiles. This is a huge market opportunity, considering that embedded cellular connectivity is expected to be present in almost 75% of all vehicles sold in 2027, up from only 20% in 2015. Qualcomm's processors, modems, and networking solutions are now being increasingly used in IoT devices.
Qualcomm is a highly profitable, cash-rich, and dividend-paying technology company. Against the backdrop of its leading position in the booming 5G market and its focused diversification strategy, the stock seems to be a solid buy even after a significant share-price rally.
2. Pfizer
Biopharma giant Pfizer's shares have rallied by over 44% in the past year, mainly due to the stupendous success of its coronavirus mRNA vaccine Comirnaty, developed in collaboration with German partner BioNTech. Pfizer now expects COVID-19 vaccine revenues to be $36 billion, almost 44% of its total company revenue guidance at the midpoint for fiscal 2021 (ending Dec. 31, 2021). With new COVID-19 variants emerging and extending the pandemic, the demand for Pfizer's vaccines will continue to remain strong. In fact, the company has guided for $29 billion worth of revenues from sales of Comirnaty for fiscal 2022. Although lower than the fiscal 2021 figure, this is still a robust number. Comirnaty will most likely continue to report blockbuster sales in the next few years due to demand for booster doses and vaccination for younger children.
Additionally, Pfizer stands to make a goodly amount of cash from its COVID-19 treatment pill, Paxlovid. Having already secured U.S. Food and Drug Administration's Emergency Use Authorization, Pfizer is now aiming to manufacture 120 million courses of the drug in 2022. Cantor Fitzgerald's Louise Chen has estimated Paxlovid's peak annual sales to range between $50 billion to $60 billion. The drug, according to Chen, will continue to bring in as much as $25 billion in annual revenues even in 2027. These numbers seem achievable, especially when you consider that many vaccine-hesitant people are likely to start opting for a highly effective yet simple COVID-19 pill.
Besides the COVID-19 franchise, Pfizer also has several other blockbuster medications, such as blood thinner Eliquis, the breast cancer drug Ibrance, and cardiovascular drugs Vyndaqel/Vyndamax. The company has guided for revenues to achieve a CAGR of at least 6% and the bottom line to grow at a double-digit rate till 2025 without additional earnings from COVID-19 vaccine or other mRNA programs.
PFE PE Ratio (Forward) data by YCharts
Despite the solid growth prospects, Pfizer trades at only 8.3 times forward earnings, significantly lower than peers, such as Merck, Johnson & Johnson, and AbbVie. Hence, the company seems like a solid bargain for retail investors.
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool owns and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Johnson & Johnson and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PFE PE Ratio (Forward) data by YCharts Despite the solid growth prospects, Pfizer trades at only 8.3 times forward earnings, significantly lower than peers, such as Merck, Johnson & Johnson, and AbbVie. While short- to mid-term investors may need to brace themselves for continued rockiness in the market in 2022, those with multiyear investment horizons can use this correction to get their hands on some financially stable and fundamentally resilient stocks at reasonable valuations. Qualcomm (NASDAQ: QCOM) and Pfizer (NYSE: PFE) are two such picks that have the potential to provide solid returns for retail investors in the long run. | PFE PE Ratio (Forward) data by YCharts Despite the solid growth prospects, Pfizer trades at only 8.3 times forward earnings, significantly lower than peers, such as Merck, Johnson & Johnson, and AbbVie. The Motley Fool owns and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Johnson & Johnson and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | PFE PE Ratio (Forward) data by YCharts Despite the solid growth prospects, Pfizer trades at only 8.3 times forward earnings, significantly lower than peers, such as Merck, Johnson & Johnson, and AbbVie. According to Counterpoint, Qualcomm accounted for 27% market share in the global smartphone application-processor market, while MediaTek was the leader with 40% market share in the third quarter ending Sep. 30, 2021. The multisourcing of components from chip manufacturers Taiwan Semiconductor Manufacturing and Samsung, coupled with the launch of the Snapdragon 4, 6, and 7 series, is expected to further strengthen Qualcomm's positioning in the 5G smartphone market. | PFE PE Ratio (Forward) data by YCharts Despite the solid growth prospects, Pfizer trades at only 8.3 times forward earnings, significantly lower than peers, such as Merck, Johnson & Johnson, and AbbVie. According to Grand View Research, the global 5G chipset market is expected to grow to $66.45 billion in 2028, with a compound annual growth rate (CAGR) of 69.1% from 2021 to 2028. According to Counterpoint, Qualcomm accounted for 27% market share in the global smartphone application-processor market, while MediaTek was the leader with 40% market share in the third quarter ending Sep. 30, 2021. |
23668.0 | 2022-01-25 00:00:00 UTC | Noteworthy Tuesday Option Activity: ABBV, AMED, REKR | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-abbv-amed-rekr | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 32,524 contracts have traded so far, representing approximately 3.3 million underlying shares. That amounts to about 44.1% of ABBV's average daily trading volume over the past month of 7.4 million shares. Especially high volume was seen for the $145 strike call option expiring February 18, 2022, with 6,845 contracts trading so far today, representing approximately 684,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange:
Amedisys, Inc. (Symbol: AMED) options are showing a volume of 1,428 contracts thus far today. That number of contracts represents approximately 142,800 underlying shares, working out to a sizeable 44.1% of AMED's average daily trading volume over the past month, of 323,495 shares. Especially high volume was seen for the $135 strike call option expiring February 18, 2022, with 708 contracts trading so far today, representing approximately 70,800 underlying shares of AMED. Below is a chart showing AMED's trailing twelve month trading history, with the $135 strike highlighted in orange:
And Rekor Systems Inc (Symbol: REKR) saw options trading volume of 2,171 contracts, representing approximately 217,100 underlying shares or approximately 42.4% of REKR's average daily trading volume over the past month, of 512,235 shares. Particularly high volume was seen for the $10 strike put option expiring May 20, 2022, with 750 contracts trading so far today, representing approximately 75,000 underlying shares of REKR. Below is a chart showing REKR's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for ABBV options, AMED options, or REKR 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 $145 strike call option expiring February 18, 2022, with 6,845 contracts trading so far today, representing approximately 684,500 underlying shares of ABBV. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 32,524 contracts have traded so far, representing approximately 3.3 million underlying shares. That amounts to about 44.1% of ABBV's average daily trading volume over the past month of 7.4 million shares. | Especially high volume was seen for the $145 strike call option expiring February 18, 2022, with 6,845 contracts trading so far today, representing approximately 684,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange: Amedisys, Inc. (Symbol: AMED) options are showing a volume of 1,428 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 32,524 contracts have traded so far, representing approximately 3.3 million underlying shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 32,524 contracts have traded so far, representing approximately 3.3 million underlying shares. Especially high volume was seen for the $145 strike call option expiring February 18, 2022, with 6,845 contracts trading so far today, representing approximately 684,500 underlying shares of ABBV. That amounts to about 44.1% of ABBV's average daily trading volume over the past month of 7.4 million shares. | Below is a chart showing REKR's trailing twelve month trading history, with the $10 strike highlighted in orange: For the various different available expirations for ABBV options, AMED options, or REKR options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 32,524 contracts have traded so far, representing approximately 3.3 million underlying shares. That amounts to about 44.1% of ABBV's average daily trading volume over the past month of 7.4 million shares. |
23669.0 | 2022-01-25 00:00:00 UTC | J&J (JNJ) Q4 Earnings Beat Estimates by a Penny, Sales Miss | ABBV | https://www.nasdaq.com/articles/jj-jnj-q4-earnings-beat-estimates-by-a-penny-sales-miss | nan | nan | Johnson & Johnson’s JNJ fourth-quarter 2021 earnings came in at $2.13 per share, which beat the Zacks Consensus Estimate of $2.12 by a penny. Earnings increased 14.5% from the year-ago period.
Adjusted earnings exclude intangible amortization and some other special items. Including these items, J&J reported fourth-quarter earnings of $1.77 per share, up 172.3% from the year-ago quarter.
Sales of this drug and consumer products giant came in at $24.8 billion, which slightly missed the Zacks Consensus Estimate of $25.3 billion. Sales rose 10.4% from the year-ago quarter, reflecting an operational increase of 11.6% and a negative currency impact of 1.2%.
Organically, excluding the impact of acquisitions and divestitures, sales rose 12.3% on an operational basis compared with a 10.6% increase seen in the previous quarter.
Fourth-quarter sales in the domestic market rose 3% to $12.16 billion. International sales rose 18.5% on a reported basis to $12.64 billion, reflecting an operational increase of 21.2% and a negative currency impact of 2.7%. Excluding the impact of all acquisitions and divestitures, on an adjusted operational basis, international sales rose 22.4% in the quarter.
Segment Details
Pharmaceutical segment sales rose 16.5% year over year to $14.29 billion, reflecting 17.9% operational growth and 1.4% negative currency impact. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales rose 18.6%. The Pharmaceutical segment sales were a little short of the Zacks Consensus Estimate of $14.58 billion.
The 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. J&J’s single-dose COVID-19 vaccine also contributed to sales growth. However, the sales growth was dampened by lower sales of key medicine, Imbruvica and generic/biosimilar competition to drugs like Zytiga and Remicade.
Darzalex sales rose 31.4% year over year to $1.65 billion in the quarter. Stelara sales grew 4% to $2.33 billion in the quarter. Stelara sales were below the Zacks Consensus Estimate of $2.46 billion.
Imbruvica sales declined 5% to $1.06 billion. J&J markets Imbruvica in partnership with AbbVie ABBV.
COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition have been hurting sales of J&J and AbbVie’s Imbruvica for the past couple of quarters.
PAH revenues of $851 million declined 1.6% year over year. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 6.5% to $1.03 billion in the quarter. Simponi/Simponi Aria sales declined 3.2% to $559 million while Prezista sales decreased 9.3% to $515 million.
Xarelto sales rose 2.5% in the quarter to $644 million while sales of Invokana/Invokamet declined 45.1% to $120 million.
Among the newer medicines, Erleada generated sales of $384 million in the quarter, up 59.8% year over year. Tremfya recorded sales of $693 million in the quarter, up 81.5% year over year.
Zytiga sales declined 11.8% to $548 million in the quarter due to generic competition. Sales of Procrit/Eprex declined 12.9% to $113 million in the quarter due to biosimilar competition. Sales of Remicade were down 15.2% in the quarter to $764 million.
J&J’s single-dose COVID-19 vaccine generated sales of $1.62 in the fourth quarter compared with $502 million in the third quarter. A booster shot of the vaccine was authorized in October 2021 which may have contributed to higher sales. Please note that J&J is selling its vaccine on a not-for-profit basis.
Medical Devices segment sales came in at $6.86 billion, up 4.1% from the year-ago period, reflecting an operational increase of 5.3% and a negative currency movement of 1.2%.
Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales rose 5.6%.
The Consumer segment recorded revenues of $3.66 billion in the reported quarter, up 1.1% year over year, reflecting a 1.8% operational increase and 0.7% negative currency impact.
Excluding the impact of acquisitions and divestitures, adjusted operational sales rose 2.9% worldwide.
2021 Results
Full-year 2021 sales rose 13.6% to $93.8 billion, missing the Zacks Consensus Estimate of $94.2 billion. Sales were slightly below the guided range of $94.1 billion - $94.6 billion.
Adjusted earnings for 2021 were $9.80 per share, which were in line with the Zacks Consensus Estimate and up 22% year over year. Earnings were within the guided range of $9.77-$9.82.
2022 Outlook
J&J issued its financial guidance for 2022.
Sales are expected to be in the range of $98.9 billion-$100.4 billion. The Zacks Consensus Estimate for sales is pegged at $98.45 billion. The sales range indicates a year-over-year increase of 5.5%-7.%. The guidance includes $3.0 billion - $3.5 billion in revenues from the COVID-19 vaccine.
Excluding revenues from the COVID-19 vaccine, the base business is expected to generate revenues in the range of $95.9 billion to $96.9 billion.
Operational constant-currency sales are expected to increase in the range of 7%-8.5% (including the COVID vaccine). 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 operational constant-currency sales discussed above.
Adjusted earnings per share are expected in the range of $10.40-$10.60. The Zacks Consensus Estimate for earnings was $10.25 per share.
The earnings range indicates an increase of 6.1%-8.2%. On an operational, constant-currency basis, adjusted earnings per share are expected to increase 8.2%-10.2%.
Our Take
J&J reported mixed fourth-quarter results as it beat estimates for earnings but missed the same for sales. Its Pharmaceuticals unit sales fell slightly short of expectations. Its COVID-19 vaccine generated $2.39 billion in sales for the company in 2021. The Medical Devices segment benefited from an ongoing recovery after its sales were hurt significantly in the early stages of the pandemic. However, delayed procedure volumes due to rising infection rates is hurting sales somewhat in the Medical Devices segment. Sales of the Consumer segment continued to improve.
Its financial guidance for 2022 was well within investor expectations.
However, J&J’s shares were down slightly in pre-market trading on the weaker-than-expected revenues in the quarter. In the past year, J&J’s shares have risen 0.6% compared with the industry’s 11.8% 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. It remains to be seen how the new chief executive officer, Joaquin Duato, navigates the company through this big change.
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.
Stocks to Consider
Some better-ranked large stocks are Pfizer PFE and Eli Lilly LLY. While Pfizer has a Zacks Rank of 1 (Strong Buy), Lilly has a Zacks Rank #2 (Buy).
Pfizer’s stock has risen 43.7% in the past year. Estimates for Pfizer’s 2022 earnings have gone up from $3.86 to $5.80 over the past 60 days.
Pfizer’s earnings performance has been mixed, with the company exceeding earnings expectations in three of the last four quarters while missing in one. PFE has a four-quarter earnings surprise of 10.85%, on average.
Lilly’s stock has risen 14.9% in the past year. Estimates for Lilly’s 2022 earnings have gone up from $8.28 to $8.41 over the past 60 days.
Lilly’s earnings performance has been rather weak with the company exceeding earnings expectations in just one of the last four quarters. Lilly has a four-quarter earnings surprise of 0.54%, 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. | COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition have been hurting sales of J&J and AbbVie’s Imbruvica for the past couple of quarters. J&J markets Imbruvica in partnership with AbbVie ABBV. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition have been hurting sales of J&J and AbbVie’s Imbruvica for the past couple of quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition have been hurting sales of J&J and AbbVie’s Imbruvica for the past couple of quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition have been hurting sales of J&J and AbbVie’s Imbruvica for the past couple of quarters. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23670.0 | 2022-01-25 00:00:00 UTC | Johnson & Johnson (JNJ) Surpasses Q4 Earnings Estimates | ABBV | https://www.nasdaq.com/articles/johnson-johnson-jnj-surpasses-q4-earnings-estimates | nan | nan | Johnson & Johnson (JNJ) came out with quarterly earnings of $2.13 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 0.47%. A quarter ago, it was expected that this world's biggest maker of health care products would post earnings of $2.37 per share when it actually produced earnings of $2.60, delivering a surprise of 9.70%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Johnson & Johnson, which belongs to the Zacks Large Cap Pharmaceuticals industry, posted revenues of $24.8 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 1.77%. This compares to year-ago revenues of $22.48 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Johnson & Johnson shares have lost about 4.7% since the beginning of the year versus the S&P 500's decline of -7.5%.
What's Next for Johnson & Johnson?
While Johnson & Johnson 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 Johnson & Johnson: 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 $2.59 on $23.82 billion in revenues for the coming quarter and $10.25 on $98.45 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 19% 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 December 2021. The results are expected to be released on February 2.
This drugmaker is expected to post quarterly earnings of $3.29 per share in its upcoming report, which represents a year-over-year change of +12.7%. The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level.
AbbVie's revenues are expected to be $15.07 billion, up 8.7% 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. | One other stock from the same industry, AbbVie (ABBV), is yet to report results for the quarter ended December 2021. AbbVie's revenues are expected to be $15.07 billion, up 8.7% 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 December 2021. AbbVie's revenues are expected to be $15.07 billion, up 8.7% 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 December 2021. AbbVie's revenues are expected to be $15.07 billion, up 8.7% 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 December 2021. AbbVie's revenues are expected to be $15.07 billion, up 8.7% from the year-ago quarter. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23671.0 | 2022-01-24 00:00:00 UTC | AbbVie's (ABBV) Skyrizi Gets FDA Nod for Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-skyrizi-gets-fda-nod-for-psoriatic-arthritis | nan | nan | AbbVie, Inc. ABBV announced that the FDA approved a second indication for its inflammatory drug, Skyrizi (risankizumab), to treat patients with active psoriatic arthritis.
Please note that Skyrizi was first approved to treat moderate-to-severe plaque psoriasis in 2019. Active psoriatic arthritis is the second FDA-approved indication for the drug. The drug is approved for both these indications in Europe as well.
The FDA approval for the label expansion of Skyrizi to include active psoriatic arthritis was based on positive top-line data from two pivotal studies — KEEPsAKE-1 and KEEPsAKE-2. Data from these studies demonstrated that the proportion of patients who achieved the primary endpoint of ACR20 response or at least a 20% reduction in the number of both tender and swollen joint counts at week 24 following treatment with Skyrizi was significantly higher compared to treatment with placebo. The drug also showed significant improvements in skin clearance, physical function and minimal disease activity in the pivotal studies.
Data from these pivotal studies supported the potential of Skyrizi in improving several psoriatic arthritis symptoms, which include joint pain, enthesitis and dactylitis.
AbbVie’s stock has risen 19.4% in the past year compared with an increase of 9.7% for the industry.
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Sykrizi is an interleukin-23 (IL-23) inhibitor that selectively blocks IL-23, a cytokine, which is involved in inflammatory processes.
AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim, with AbbVie leading the global development and commercialization of Skyrizi. The companies are currently seeking another label expansion of Skyrizi to include patients with Crohn’s disease. Regulatory applications seeking approval for the drug as a potential treatment for Crohn’s disease are under review in the United States and Europe.
AbbVie remains focused on strengthening its focus on Skyrizi and its other inflammatory drug Rinvoq to gradually lower its dependence on Humira, the company’s blockbuster drug, sales of which are declining due to biosimilars that are eroding AbbVie’s yearly international sales. Humira biosimilars are expected to be launched in the United States in 2023.
Both Skyrizi and Rinvoq demonstrated differentiated clinical profiles compared to Humira. With many new indications coming in the next couple of years, AbbVie expects sales of these two drugs to be higher with the potential to replace Humira.
Skyrizi generated sales worth $2.04 billion in the first nine months of 2021 while Rinvoq generated sales worth $1.33 during the same period.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector are Roche RHHBY, Pfizer PFE and Vertex Pharmaceuticals VRTX. While Roche and Pfizer sport a Zacks Rank #1 (Strong Buy), Vertex carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Roche’s earnings per share estimates for 2021 have increased from $3.04 to $3.12 in the past 30 days.
Shares of Roche have risen 7.5% in the past year.
Pfizer’s earnings estimates per share for 2022 have increased from $5.66 to $5.80 in the past 30 days. Shares of Pfizer have risen 41.6% in the past year.
Earnings of Pfizer beat estimates in three of the last four quarters and missed expectations on one occasion, the average surprise being 10.85%.
Vertex’s earnings per share estimates for 2022 have improved from $13.32 to $13.35 in the past 30 days.
Earnings of Vertex beat estimates in three of the last four quarters and missed expectations once, the earnings surprise being 8.00%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Inc. ABBV announced that the FDA approved a second indication for its inflammatory drug, Skyrizi (risankizumab), to treat patients with active psoriatic arthritis. AbbVie’s stock has risen 19.4% in the past year compared with an increase of 9.7% for the industry. AbbVie is developing Skyrizi in collaboration with Boehringer Ingelheim, with AbbVie leading the global development and commercialization of Skyrizi. | AbbVie, Inc. ABBV announced that the FDA approved a second indication for its inflammatory drug, Skyrizi (risankizumab), to treat patients with active psoriatic arthritis. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie’s stock has risen 19.4% in the past year compared with an increase of 9.7% for the industry. | AbbVie, Inc. ABBV announced that the FDA approved a second indication for its inflammatory drug, Skyrizi (risankizumab), to treat patients with active psoriatic arthritis. AbbVie remains focused on strengthening its focus on Skyrizi and its other inflammatory drug Rinvoq to gradually lower its dependence on Humira, the company’s blockbuster drug, sales of which are declining due to biosimilars that are eroding AbbVie’s yearly international sales. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). | AbbVie, Inc. ABBV announced that the FDA approved a second indication for its inflammatory drug, Skyrizi (risankizumab), to treat patients with active psoriatic arthritis. AbbVie’s stock has risen 19.4% in the past year compared with an increase of 9.7% for the industry. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23672.0 | 2022-01-24 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-0 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $132.16, moving +0.14% from the previous trading session. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.19%.
Coming into today, shares of the drugmaker had lost 0.83% in the past month. In that same time, the Medical sector lost 9.62%, while the S&P 500 lost 5.39%.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be February 2, 2022. In that report, analysts expect AbbVie to post earnings of $3.29 per share. This would mark year-over-year growth of 12.67%. Meanwhile, our latest consensus estimate is calling for revenue of $15.07 billion, up 8.72% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As 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. 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 9.39. This represents a discount compared to its industry's average Forward P/E of 12.85.
Meanwhile, ABBV's PEG ratio is currently 1.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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 the most recent trading day at $132.16, moving +0.14% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.29 per share. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie (ABBV) closed the most recent trading day at $132.16, moving +0.14% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. | AbbVie (ABBV) closed the most recent trading day at $132.16, moving +0.14% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.29 per share. | AbbVie (ABBV) closed the most recent trading day at $132.16, moving +0.14% from the previous trading session. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.29 per share. |
23673.0 | 2022-01-24 00:00:00 UTC | These High-Yield Dividend Stocks Are Growing at Blazing Speeds | ABBV | https://www.nasdaq.com/articles/these-high-yield-dividend-stocks-are-growing-at-blazing-speeds | nan | nan | Are you looking for the best of both worlds from your stock picks? That is to say, do you want strong dividend yields as well as growth? Such names are few and far between. In many cases, you get one or the other.
There are some stocks, however, that offer above-average dividend payouts as well as above-average growth potential. Not all of them are considered mainstream names, mind you. But, that doesn't necessarily mean these companies are completely off-limits to interested investors.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) is probably the most recognizable name you'll find on this list of stocks. AbbVie is perhaps most noteworthy for making arthritis, psoriasis, and Crohn's disease treatment, Humira, which is not only the company's best-selling drug (accounting for nearly 50% of the company's top line), but the world's, too.
That won't be the case for much longer, as Humira has lost the crux of its patent protection. In fact, AbbVie concedes it's seeing international sales of the drug slow down as biosimilar versions of the drug are launched by competitors. The drug is set to lose the bulk of its U.S. patent protection in 2023, one of the key reasons AbbVie shares have underperformed for years, allowing the dividend yield to inch up to its current 4.1%. Investors are understandably worried about the company's future.
It's a worry, however, that's far from merited. While would-be shareholders have every reason to expect worldwide sales of Humira to start contracting soon, the company expects its immunology drugs Skyrizi and Rinvoq to collectively generate more than $15 billion worth of annual revenue by 2025, versus around $4 billion per year now. Meanwhile, its cancer-fighting Imbruvica is on pace to eventually do on the order of $10 billion worth of annual sales, compared to about half that figure now. No single drug can replace Humira, and fiscal 2021's projected top-line growth of 23% will slow going forward. AbbVie has more in its pipeline than is being recognized, though, and what it doesn't have right now, it can use its $12 billion war chest and/or borrowing capacity to acquire. That's how it got the drug that would eventually become Humira, after all.
2. Global Ship Lease
While AbbVie may be a household name, Global Ship Lease (NYSE: GSL) is anything but. However, there's a good chance you or someone in your household benefits from its services.
As the name implies, Global Ship Lease rents boats to organizations looking to make maritime deliveries. Namely, it leases mid-sized and smaller containerships used to ferry the big 20-foot and 40-foot metal containers you see stacked on boats, trains, and even truck beds.
For the foreseeable future, the need for container-based shipping will be high, as the world plays catch-up from pandemic shutdowns. Indeed, for the first time ever, retailer Walmart has opted to lease its own containerships despite the fact that the of leasing a containership still stands at record highs hit late last year. And Walmart isn't alone. A myriad of companies are locking in long-term access to containerships at sky-high rental rates, underscoring the current level of demand and lack of supply.
This backdrop explains why Global Ship Lease's revenue is expected to report fiscal 2021 sales growth of 42%, followed by another 42% improvement in the next fiscal year. The thing is, in that it could be years before the supply of cargo ships catches up with demand, Global Ship Lease investors have good reason to expect strong profits for a long time. In the meantime, Global Ship Lease is paying a well-funded annual dividend with 4.2% yield.
3. Vici Properties
Finally, add Vici Properties (NYSE: VICI) to your watch list of high-yield, high-growth stocks. Vici Properties is a real estate investment trust, or REIT. That means it acts as a landlord and passes along most of its rental income to shareholders in a tax-efficient manner. Vici Properties is a very unique REIT, however, in that it owns the land on which 27 different U.S. casinos currently sit, in addition to the property that's home to four different golf courses, all within the U.S.
Like Global Ship Lease's business, Vici's is subject to above-average volatility. The amateur golfing industry is wobbly at best, and gambling is a highly cyclical business.
As it turns out, however, both leisure industries are experiencing an upswing. Prompted by the impact of the pandemic, a record number of first-timers played a round in 2020, according to the National Golf Foundation, and the total number of people visiting a course in 2020 grew at its best pace in the prior 17 years. Golfing's growth in the U.S. slowed last year, but there was growth nonetheless. As for gambling, the business reached record-breaking revenue of $48.3 billion as of November last year, reported by the American Gaming Association, presumably on pace to a record-breaking year.
Both rising tides bode well for Vici Properties, which is expected to report a 22% uptick in sales for fiscal 2021, and then accelerate its top line growth to 44% this year. This growth will of course help buoy the cash behind the current dividend yield of just over 5%.
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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 drug is set to lose the bulk of its U.S. patent protection in 2023, one of the key reasons AbbVie shares have underperformed for years, allowing the dividend yield to inch up to its current 4.1%. AbbVie AbbVie (NYSE: ABBV) is probably the most recognizable name you'll find on this list of stocks. AbbVie is perhaps most noteworthy for making arthritis, psoriasis, and Crohn's disease treatment, Humira, which is not only the company's best-selling drug (accounting for nearly 50% of the company's top line), but the world's, too. | Global Ship Lease While AbbVie may be a household name, Global Ship Lease (NYSE: GSL) is anything but. AbbVie AbbVie (NYSE: ABBV) is probably the most recognizable name you'll find on this list of stocks. AbbVie is perhaps most noteworthy for making arthritis, psoriasis, and Crohn's disease treatment, Humira, which is not only the company's best-selling drug (accounting for nearly 50% of the company's top line), but the world's, too. | Global Ship Lease While AbbVie may be a household name, Global Ship Lease (NYSE: GSL) is anything but. AbbVie AbbVie (NYSE: ABBV) is probably the most recognizable name you'll find on this list of stocks. AbbVie is perhaps most noteworthy for making arthritis, psoriasis, and Crohn's disease treatment, Humira, which is not only the company's best-selling drug (accounting for nearly 50% of the company's top line), but the world's, too. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! AbbVie AbbVie (NYSE: ABBV) is probably the most recognizable name you'll find on this list of stocks. AbbVie is perhaps most noteworthy for making arthritis, psoriasis, and Crohn's disease treatment, Humira, which is not only the company's best-selling drug (accounting for nearly 50% of the company's top line), but the world's, too. |
23674.0 | 2022-01-24 00:00:00 UTC | 3 No-Brainer Healthcare Stocks to Buy Right Now for Less than $150 | ABBV | https://www.nasdaq.com/articles/3-no-brainer-healthcare-stocks-to-buy-right-now-for-less-than-%24150 | nan | nan | Over the past few months, the stock market has been experiencing sell-offs which has created great buying opportunities for wise investors. There's nothing like getting a high-quality long-term investment at bargain prices. Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. Each of the healthcare stocks offers an above-average dividend to go with plenty of growth potential.
While their shares have all risen recently, I still see possibilities for greater gains. All three land in the "Yes, but..." category for investors. Yes, AbbVie is doing great, but what about the Humira patent cliff? Yes, Merck has Keytruda, but what happens once the drug's revenue falls? Yes, CVS has thrived on COVID-19 shots and testing, but what about when the COVID demand declines?
In all three cases, the concerns are overblown and provide an opportunity for long-term investors.
Image source: Getty Images.
AbbVie has more going on than just Humira
Pharmaceutical company AbbVie is up more than 20% over the past year and down 2% so far this year. The company's large stable of cancer and immunological drugs has driven its strong financials. Over the past five years, its quarterly revenue has climbed 119.4% and its quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) has risen 134.6% over that period.
During that time, the company had the world's top-selling drug, Humira, used to treat numerous inflammatory conditions. The drug brought in a reported $15.3 billion in revenue through the first nine months of 2021, but it is scheduled to go off-patent in the United States in 2023. However, as Humira's sales ebb, AbbVie has begun to replace them with its other two top performers, Skyrizi and Rinvoq, both immunological drugs. The company said this month that it expects to have more than $15 billion in annual sales from the two drugs by 2025.
Through the first nine months, the company reported revenue of $41.3 billion, up 29.3% year over year, and diluted earnings per share of $4.19, up 51.3% over the same period last year.
AbbVie is a rarity among pharmaceuticals because it offers a rather generous dividend. It raised its quarterly dividend this year by 8.5% to $1.41 per share, giving it a yield of 3.91%. Counting its time as a subsidiary of Abbott Laboratories, it is raising its dividend for the 50th consecutive year this year, making it a Dividend King. Since it split off from Abbott in 2013, the company has raised its dividend by more than 250%. There's plenty of room for continued growth with a cash dividend payout ratio of 41.74.
Merck quietly keeps putting out strong numbers
After a sluggish 2021, Merck is up more than 5% so far this year. Over the past five years, the company has boosted quarterly revenue by 39.4% and quarterly diluted earnings per share (EPS) by 221.4%.
The pharmaceutical company is on track for its sixth consecutive year of rising revenue. In the third quarter, Merck reported year-to-date revenue of $35.2 billion, up 13% year over year, while non-GAAP EPS was $4.22, up 18% over the same period last year. The company said it expects full-year revenue to be between $47.4 billion and $47.9 billion, up 14% to 15% year over year, with EPS between $4.71 and $4.76, compared to 2020's total EPS of $2.33.
In some ways, Merck has a similar problem to AbbVie in that its biggest seller will be going off-patent in a few years. Merck's blockbuster oncology drug, Keytruda, brought in $4.5 billion in the third quarter, nearly 12.8% of the company's overall revenue. Unlike AbbVie's Humira, however, Keytruda has a lot longer, until 2028, before it loses exclusivity. In the meantime, Merck is examining coformulations and other ways to extend the drug's patent life.
The company also sees much promise for investigational pulmonary arterial hypertension (PAH) drug sotatercept, which Merck inherited by purchasing Acceleron Pharma for $11.5 billion, in a deal it completed in November. Merck said it sees sotatercept, which is still in late-stage trials, as a first-in-class therapy for PAH. It also said it expects as many as 90 new approvals from its pipeline by 2028.
Merck also has a dependable dividend, which it just raised by 6.2% to $0.69 per share, the 12th consecutive year it has increased its dividend. At its most recent share price, the yield was 3.2%. Over the past five years, the company has increased its dividend by 46.8%. Its cash dividend payout ratio is a little high at 79.79%, but the company's increased revenue has made that less of a concern going forward.
CVS Health keeps surprising the experts
CVS Health's shares have climbed more than 39% over the past year and are down nearly 2% so far this year, with the stock trading near its 52-week high of $107.26. Over the past five years, CVS has grown quarterly revenue by 65.8% and diluted quarterly EPS by 30.4%.
While the company's shares have gotten pricier, they're far from expensive. CVS has the lowest price-to-earnings ratio of the three companies here at 18.58. That's probably because people see the company benefiting greatly from the pandemic but wonder how its revenue numbers can hold up. The company said it gave more than 8 million COVID-19 tests and administered more than 11 million COVID-19 vaccines nationwide just in the third quarter.
The rise of COVID tests and shots has been a boost to CVS. Through nine months, the company reported revenue of $215.5 billion, up 8.2% over 2020. It also reported diluted EPS of $4.98, up 5.5% over the same period in 2020. The company just increased its guidance at the J.P. Morgan Healthcare Conference last week, saying it expected adjusted earnings to be in the range of $8.33 to $8.38 a share, up from the earlier outlook of at least $8 per share.
Looking deeper, it's easy to see it's more than just COVID-related revenue. In the third quarter, the company's retail/LTC segment, which benefited most from the administration of COVID shots and tests, rose 8% year over year, to a reported $72.9 billion over nine months.
Also, the company's healthcare benefits segment (insured and self-insured medical, pharmacy, dental, and behavioral health products and services) reported nine-month revenue of $61.4 billion, up 9% year over year, which the company attributed to a rise in business from government services. Its pharmacy services segment said it had $113.6 billion in revenue through nine months, up by 7% over the same period in 2020.
CVS raised its quarterly dividend by 10% to $0.55 per share, giving it a yield at current prices of 2.07%. While that's a lower yield than the other two stocks, it still is a good bit above the S&P 500 average dividend yield of 1.27%.
The best choice for now and down the road
All three healthcare stocks have great long-term potential. In the short term, I see the most growth for CVS, because its revenue from in-store tests and shots should continue to increase, at least for a while. AbbVie, with its huge stable of drugs, is likely the best long-term choice and it has the added bonus of having the most yield on its dividend and the longest track record of dividend increases. Merck is a solid choice, and because Keytruda's patent cliff is farther away than that of AbbVie's Humira, represents less risk, though its high dividend payout is something to watch.
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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. | However, as Humira's sales ebb, AbbVie has begun to replace them with its other two top performers, Skyrizi and Rinvoq, both immunological drugs. Merck is a solid choice, and because Keytruda's patent cliff is farther away than that of AbbVie's Humira, represents less risk, though its high dividend payout is something to watch. Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. | Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. Yes, AbbVie is doing great, but what about the Humira patent cliff? AbbVie has more going on than just Humira Pharmaceutical company AbbVie is up more than 20% over the past year and down 2% so far this year. | Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. Yes, AbbVie is doing great, but what about the Humira patent cliff? AbbVie has more going on than just Humira Pharmaceutical company AbbVie is up more than 20% over the past year and down 2% so far this year. | AbbVie has more going on than just Humira Pharmaceutical company AbbVie is up more than 20% over the past year and down 2% so far this year. Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. Yes, AbbVie is doing great, but what about the Humira patent cliff? |
23675.0 | 2022-01-23 00:00:00 UTC | Is AbbVie Stock a Top Pick for 2022? | ABBV | https://www.nasdaq.com/articles/is-abbvie-stock-a-top-pick-for-2022 | nan | nan | Inflation is rampant. Treasury yields are rising, and the Federal Reserve is expected to raise interest rates multiple times in 2022. Many growth and technology stocks are getting hammered as a result, and investors are looking for a safe haven. In the case of AbbVie (NYSE: ABBV), look no further.
AbbVie is a global prescription drug developer, manufacturer, and distributor that was spun off from parent company Abbott Labs back in 2013. Its stock is trading near all-time highs as analysts and investors begin to see management's vision taking shape. Risks that were previously thought to be serious enough to hamper results are being managed well. The company is making record revenue, and the dividend is safe and growing. The stock has recently risen substantially from under $110 per share in October 2021 to over $131 now; however, there's still room for this stock to reward investors in 2022.
Image source: Getty Images.
Risks are being managed well
Many people know AbbVie as the company that makes the blockbuster biologic drug Humira which treats a long list of health conditions. And for good reason: In fiscal 2019, Humira sales accounted for 58% of the company's sales. This could be a precarious situation, as companies attempt to bring generic drugs and biosimilars to market. In fact, a biosimilar competitor to Humira was released in Europe in late 2018 resulting in a 31% drop in international sales of Humira in 2019. It is expected that the same results will be seen when biosimilar medications are released in the U.S. in 2023.
With this in mind, management must start replacing this revenue stream. To that end, AbbVie acquired Allergan in 2019 to bolster revenue and create a pharmaceutical powerhouse. Allergan is best known for its Botox franchise, although it also has several other revenue-generating products on the market. Next, AbbVie released Skyrizi and Rinvoq, two medications that are now expected to provide a combined $15 billion in sales by 2025. There was concern in December when the FDA added a warning to Rinvoq among other medications in the class of JAK inhibitors. This reaffirmation of guidance is a clear signal that the company is not concerned that the FDA safety label requirements will hurt sales in any meaningful way.
Another potential risk for AbbVie is that legislation will crimp results by limiting the company's pricing power, patent protections, or both. Congress is keen to talk about lowering drug prices though it struggles to agree on how to do this. Hearings were held in 2021 in which AbbVie's CEO Richard Gonzalez testified. Drugmakers spend billions of dollars on the research and development of new drugs, and many of them do not ever come to market. When a drug is successful, the company and its shareholders expect large returns. While the threat of legislation is still active, Congress is as polarized as ever, and the likelihood of action that would severely hamper AbbVie's results seems minimal.
Shareholders reap the rewards
Because of the aforementioned risks, AbbVie often trades at a discount to fair value. This allows savvy investors to snag a higher dividend yield. The current yield stands at over 4%. AbbVie has raised the dividend for eight straight years and this will likely continue. The current dividend payment is $1.41 per quarter. While the market adjusts to the macroeconomic conditions of 2022, investors can relax and bank dividends from AbbVie without worrying about short-term stock price movements.
ABBV Total Return Level data by YCharts
In the long term, the stock price will likely rise as well. The stock is valued at a reasonable forward price-to-earnings ratio near 10. The company has posted record revenue for the first nine months of 2021, at $41.3 billion. This is 29% higher than over the same period in 2020. Even better, Humira accounted for only 39% of sales for the third quarter of 2021. This shows the tremendous progress that management has made in diversifying revenue streams. As Rinvoq and Skyrizi sales ramp up, this number will continue to decrease.
Despite the looming patent cliff, AbbVie looks safe
AbbVie's management is seemingly doing everything correctly. Revenue is growing significantly, while the percentage of revenue received from Humira sales is declining. The Allergan acquisition has provided additional products, and now Rinvoq and Skyrizi are expected to carry the torch, reaching $15 billion in combined sales in just a few years. Due to the nature of the business, there are always patent cliffs and potential legislation to contend with. However, AbbVie continues to be highly successful. Long-term investors can buy AbbVie for the 4% yield and hold for the rising dividend and share price.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Risks are being managed well Many people know AbbVie as the company that makes the blockbuster biologic drug Humira which treats a long list of health conditions. While the market adjusts to the macroeconomic conditions of 2022, investors can relax and bank dividends from AbbVie without worrying about short-term stock price movements. In the case of AbbVie (NYSE: ABBV), look no further. | Next, AbbVie released Skyrizi and Rinvoq, two medications that are now expected to provide a combined $15 billion in sales by 2025. Despite the looming patent cliff, AbbVie looks safe AbbVie's management is seemingly doing everything correctly. In the case of AbbVie (NYSE: ABBV), look no further. | Risks are being managed well Many people know AbbVie as the company that makes the blockbuster biologic drug Humira which treats a long list of health conditions. While the market adjusts to the macroeconomic conditions of 2022, investors can relax and bank dividends from AbbVie without worrying about short-term stock price movements. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Bradley Guichard owns AbbVie. | Long-term investors can buy AbbVie for the 4% yield and hold for the rising dividend and share price. In the case of AbbVie (NYSE: ABBV), look no further. AbbVie is a global prescription drug developer, manufacturer, and distributor that was spun off from parent company Abbott Labs back in 2013. |
23676.0 | 2022-01-22 00:00:00 UTC | 1 Top Dividend Stock to Buy Right Now | ABBV | https://www.nasdaq.com/articles/1-top-dividend-stock-to-buy-right-now | nan | nan | Whether you're an experienced investor or brand new to investing, dividend stocks can provide an excellent means of increasing your portfolio returns while generating consistent capital to save or reinvest into your portfolio.
In this segment of Backstage Pass recorded on Jan. 5, Motley Fool contributor Rachel Warren discusses the recent volatility that's been plaguing the market, plus one of her top stock sectors and dividend plays for investors to buy into right now.
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Rachel Warren: I think that we've been seeing this trend lately where we have stocks that were flying super high even earlier last year, just getting beaten back in the recent stock market volatility. I think more investors as a whole in some cases are looking toward sectors and stocks that can offer a perceived safe haven in the potential storm, during rocky market times.
On one hand, I do agree, I think you could be looking at areas like tech, a subset of that e-commerce, for example, that have seen this tremendous market-beating growth and see that continue in 2022. On the other hand, I think with more investors trending toward plays such as tried-and-true value stocks. I think we could potentially see areas that are more resilient but have historically not been market-beating like healthcare, rise up and be more in the focus of investors.
If I had to pick one stock in the healthcare space for investors to look at right now, check out AbbVie (NYSE: ABBV), classic value and dividend play, really diversified portfolio of products. Current dividend yields about 4.2%. Not one that's going to make your portfolio see explosive growth overnight, but it's one that can lend some really stable and nice returns.
Rachel Warren 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. | If I had to pick one stock in the healthcare space for investors to look at right now, check out AbbVie (NYSE: ABBV), classic value and dividend play, really diversified portfolio of products. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! If I had to pick one stock in the healthcare space for investors to look at right now, check out AbbVie (NYSE: ABBV), classic value and dividend play, really diversified portfolio of products. | If I had to pick one stock in the healthcare space for investors to look at right now, check out AbbVie (NYSE: ABBV), classic value and dividend play, really diversified portfolio of products. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! If I had to pick one stock in the healthcare space for investors to look at right now, check out AbbVie (NYSE: ABBV), classic value and dividend play, really diversified portfolio of products. |
23677.0 | 2022-01-22 00:00:00 UTC | 3 Clinical Trials to Watch in the First Half of 2022 | ABBV | https://www.nasdaq.com/articles/3-clinical-trials-to-watch-in-the-first-half-of-2022 | nan | nan | Quite a few biopharmaceutical companies expect to report key clinical data in the coming months. In this Motley Fool Live video recorded on Jan. 12, 2022, Fool contributors Keith Speights and Brian Orelli discuss three clinical trials especially worth watching in the first half of 2022.
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Keith Speights: Brian, we're still very early in 2022. There's a lot of data on the way with clinical trials reporting in the first half of the year. Which clinical results are you especially looking forward to seeing?
Brian Orelli: Arena (NASDAQ: ARNA), the ticker there is A-R-N-A, it expects data from a phase 3 study of etrasimod in patients with ulcerative colitis. This obviously affects Pfizer (NYSE: PFE) because it's committed to buying Arena for $7 billion, and most of that value is tied up in that drug. That's obviously going to be a big value potential for Pfizer.
Roche (OTC: RHHBY) expects data for its Alzheimer's disease drug, gantenerumab. It'll be interesting to see if it can compete with Biogen's (NASDAQ: BIIB) Aduhelm and whether the data looks stronger than Aduhelm had.
Then finally, AbbVie (NYSE: ABBV) should have some phase 2 data for its triple combination for cystic fibrosis. The data's supposed to come out early in the year, although we won't get the full results until later in the year. The data is obviously going to have a big effect on Vertex Pharmaceuticals (NASDAQ: VRTX), which has basically had the cystic fibrosis market all to itself. I saw that Vertex presented at J.P. Morgan [its Jan. 10 healthcare conference], and they didn't sound like they were too worried about AbbVie's potential competition.
Keith Speights: I don't think Vertex needs to be too worried at this point. They have such a lock on the market, and unless AbbVie comes out and really demonstrates much superior efficacy, I think Vertex is still going to be in great shape.
Brian Orelli: AbbVie, when they run their phase 3 clinical trial, they're almost going to have to do a head-to-head clinical-trial compared to doing it versus placebo. Because I don't think any cystic fibrosis patients would go into a placebo-controlled study at this point when they can obviously get a known medication that works. I feel like they've almost have to do a head-to-head study, and so that'll be harder for AbbVie to prove superiority that way.
Keith Speights: If they don't prove superiority, if they just show non-inferiority, which basically shows it's at least as good, I don't think patients are going to be all that willing to switch. If they're on a Vertex CF drug that's working well for them, why would they want to switch?
Brian Orelli: Yeah. AbbVie obviously has a shot at getting new patients, but I don't think any doctor would advocate for changing off of a drug that was clearly helping the patient, to a new drug if it's only shown non-inferiority.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brian Orelli, PhD owns Vertex Pharmaceuticals. Keith Speights owns AbbVie, Pfizer, and Vertex Pharmaceuticals. The Motley Fool owns and recommends Vertex Pharmaceuticals. The Motley Fool recommends Biogen. 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. | Brian Orelli: AbbVie, when they run their phase 3 clinical trial, they're almost going to have to do a head-to-head clinical-trial compared to doing it versus placebo. Then finally, AbbVie (NYSE: ABBV) should have some phase 2 data for its triple combination for cystic fibrosis. I saw that Vertex presented at J.P. Morgan [its Jan. 10 healthcare conference], and they didn't sound like they were too worried about AbbVie's potential competition. | Keith Speights owns AbbVie, Pfizer, and Vertex Pharmaceuticals. Then finally, AbbVie (NYSE: ABBV) should have some phase 2 data for its triple combination for cystic fibrosis. I saw that Vertex presented at J.P. Morgan [its Jan. 10 healthcare conference], and they didn't sound like they were too worried about AbbVie's potential competition. | Then finally, AbbVie (NYSE: ABBV) should have some phase 2 data for its triple combination for cystic fibrosis. I saw that Vertex presented at J.P. Morgan [its Jan. 10 healthcare conference], and they didn't sound like they were too worried about AbbVie's potential competition. They have such a lock on the market, and unless AbbVie comes out and really demonstrates much superior efficacy, I think Vertex is still going to be in great shape. | Keith Speights owns AbbVie, Pfizer, and Vertex Pharmaceuticals. Then finally, AbbVie (NYSE: ABBV) should have some phase 2 data for its triple combination for cystic fibrosis. I saw that Vertex presented at J.P. Morgan [its Jan. 10 healthcare conference], and they didn't sound like they were too worried about AbbVie's potential competition. |
23678.0 | 2022-01-22 00:00:00 UTC | 2 Healthcare Stocks You Can Buy and Hold for the Next Decade | ABBV | https://www.nasdaq.com/articles/2-healthcare-stocks-you-can-buy-and-hold-for-the-next-decade-0 | nan | nan | Investors have been stuck on a roller coaster of volatility in the overall market for nearly two months, leading some to eye dividend stocks to cushion the fall. But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade.
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Abbott Labs: a newly crowned king with double-digit revenue growth
Abbott is a major pharmaceutical company best known for its medical devices, diagnostics, and pediatric and adult nutritional products -- think Pedialyte or Similac. This year, it's being crowned as a dividend king -- meaning the company has increased its annual dividend for 50 consecutive years.
Third-quarter revenue grew 23% year over year. Excluding COVID-testing-related sales, Abbott still boasts a nearly 12% increase over pre-pandemic 2019 sales for the quarter. To put this number more in perspective of its strength, Abbott's top competitors -- Abbvie, Agilent Technologies, and Johnson & Johnson -- all grew revenue around 11% year over year in their latest quarters, including sales from Covid related items.
Although Abbott's dividend yield around 1.5% comes in just slightly above the S&P 500, it does fall short of the average healthcare stock dividend of 2.28%. So what will help Abbott be a strong play for the next 10 years? First, the company is bolstering its organic pipeline. During Q3 it announced FDA approval for its Amplatzer Amulet -- a device used in the heart for heading off blood clots before they can form.
The company also filed for a premarket approval to obtain FDA consideration for its CardioMEMS system, developed for remote monitoring of the heart. FDA approvals of these devices could make a significant positive impact for patients, and for company revenue -- 5 million people in the U.S. currently live with heart failure, with an additional 550,000 new cases diagnosed each year.
Second, the company is putting its $9.7 billion in cash toward acquisitions that further bolster its pipeline. The acquisition of Walk Vascular (for an undisclosed amount) in September expands its endovascular product solutions with Walk's system designed to break up and remove blood clots.
Going forward, the medical device market is projected to grow at a compound annual growth rate of 5.7% through 2027, accompanied by a 6.1% CAGR in the nutritional healthcare market through 2028, The increased presence of disease and illness, an aging population, and technological advancements offering alternative treatments and procedures will all help to fuel this market growth. Combined with Abbott's pipeline expansion and consistent dividends, that expanding opportunity should provide reason enough to make this newly minted dividend king an investment you can buy and hold for the next decade.
UnitedHealth Optum-izing services for a larger member base
Like Abbott, UnitedHealth is expected to benefit in the long term through a projected compound annual growth rate of 9.7% for the healthcare insurance market through 2028. That should allow for continued revenue growth and provide cash that the company can use to expand its portfolio of products and services to meet the needs of a growing customer base and an aging population going into the next decade.
UnitedHealth partners with over 1.3 million physicians and 6,500 hospitals and care facilities to provide healthcare insurance and medical products to over 100 million customers under two primary business units, Unitedhealthcare and Optum. Like Abbott, UnitedHealth has growing revenue, 200% share-price gains over the past five years, and a reasonable dividend of 1.24%. That lags yields from its peers and the S&P 500, but still equals a hefty $5.80 per share annually for investors, helping ease any anxiety that a volatile market might bring.
UnitedHealth's fourth-quarter earnings beat consensus estimates by 4.2%as revenue increased by 12.6% year over year, driven by double-digit growth across both business units. Consolidated operating margin also grew to 7.5% from 5.4% year over year, driven by top-line growth, compared to a 5.1% average margin for the healthcare services industry as of Sept. 2021.
Entering 2022, the company expects 500,000 new patients this year through Optum, an area in which per-consumer revenue grew by 30% in 2021. UnitedHealth expects another 800,000 new members through Unitedhealthcare. The success of Optum is helping lead the company into the future, as the company places more emphasis on offering patients expanded care through speciality clinics.
Meanwhile, the insurance side of the business is benefiting from programs that charge patients based on the success of their treatment, rather than the services rendered. By the end of 2022 the company expects to remain on course for double-digit revenue growth once again, topping $317 billion in total revenue for the year.
The COVID-19 pandemic's challenges have forced healthcare companies to adapt to a changing environment. So far, UnitedHealth has taken the appropriate measures to keep growing, giving investors with a long- term investment strategy reasons to stay on board. As the omicron surge eventually wanes, it will be exciting to see what UnitedHealth does next.
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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. | To put this number more in perspective of its strength, Abbott's top competitors -- Abbvie, Agilent Technologies, and Johnson & Johnson -- all grew revenue around 11% year over year in their latest quarters, including sales from Covid related items. FDA approvals of these devices could make a significant positive impact for patients, and for company revenue -- 5 million people in the U.S. currently live with heart failure, with an additional 550,000 new cases diagnosed each year. That should allow for continued revenue growth and provide cash that the company can use to expand its portfolio of products and services to meet the needs of a growing customer base and an aging population going into the next decade. | To put this number more in perspective of its strength, Abbott's top competitors -- Abbvie, Agilent Technologies, and Johnson & Johnson -- all grew revenue around 11% year over year in their latest quarters, including sales from Covid related items. Image Source: Getty Images Abbott Labs: a newly crowned king with double-digit revenue growth Abbott is a major pharmaceutical company best known for its medical devices, diagnostics, and pediatric and adult nutritional products -- think Pedialyte or Similac. UnitedHealth Optum-izing services for a larger member base Like Abbott, UnitedHealth is expected to benefit in the long term through a projected compound annual growth rate of 9.7% for the healthcare insurance market through 2028. | To put this number more in perspective of its strength, Abbott's top competitors -- Abbvie, Agilent Technologies, and Johnson & Johnson -- all grew revenue around 11% year over year in their latest quarters, including sales from Covid related items. But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade. This year, it's being crowned as a dividend king -- meaning the company has increased its annual dividend for 50 consecutive years. | To put this number more in perspective of its strength, Abbott's top competitors -- Abbvie, Agilent Technologies, and Johnson & Johnson -- all grew revenue around 11% year over year in their latest quarters, including sales from Covid related items. Third-quarter revenue grew 23% year over year. Like Abbott, UnitedHealth has growing revenue, 200% share-price gains over the past five years, and a reasonable dividend of 1.24%. |
23679.0 | 2022-01-21 00:00:00 UTC | Pharma Stock Roundup: GSK's Consumer Unit Offer Rejection, FDA Updates for AZN, PFE | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-gsks-consumer-unit-offer-rejection-fda-updates-for-azn-pfe | nan | nan | This week, Glaxo GSK rejected a $68 billion buyout offer for its consumer healthcare business from consumer giant, Unilever. The FDA approved Pfizer PFE & AbbVie’s ABBV JAK inhibitor drugs to treat eczema and also granted priority review to AstraZeneca AZN and partner, Daiichi Sankyo’s supplemental biologics license application (sBLA), seeking approval for cancer drug Enhertu for expanded use in breast cancer. Sanofi SNY announced positive data from the second pivotal prurigo nodularis phase III study on its blockbuster medicine, Dupixent (dupilumab).
Recap of the Week’s Most Important Stories
Glaxo Rejects Unilever’s Offer for Consumer Healthcare Unit: Glaxo issued a statement saying that it received a non-binding and conditional acquisition offer of 50 billion pounds ($68 billion) for its Consumer Healthcare segment from Unilever on Dec 20, 2021. The offer comprised £41.7 billion in cash and £8.3 billion in Unilever shares. Glaxo said it had rejected this offer as well as two previous unsolicited proposals from Unilever as it believes they fundamentally undervalue the CHC unit. Unilever, in a press statement, confirmed that it approached Glaxo about a potential purchase of the CHC unit. Later, Unilever, in a separate press release, mentioned that it will not raise its offer above 50 billion pounds.
Glaxo’s Consumer Healthcare segment is a joint venture between Glaxo and Pfizer in which Glaxo owns a controlling stake of 68%. Glaxo intends to separate its Consumer Healthcare segment into a standalone company in mid-2022. An acquisition offer from Unilever or another company may result in a sale instead of a spin-off.
FDA Approves Pfizer & AbbVie’s JAK inhibitor Drugs for Eczema: The FDA granted approval to Pfizer’s once-daily JAK1 inhibitor, Cibinqo (abrocitinib), for the treatment of moderate-to-severe atopic dermatitis or eczema in adults who are candidates for systemic therapy. Cibinqo is already approved in Europe, U.K. and Japan.
The FDA also approved AbbVie’s JAK inhibitor, Rinvoq (upadacitinib), for treating moderate-to-severe atopic dermatitis in adults and children (12 years and older) in patients who have had an inadequate response to other pills or injections, including biologic medicines. This marks the third-approved indication for Rinvoq in the United States, the others being moderate-to-severe rheumatoid arthritis and active psoriatic arthritis (PsA).
The FDA is now frequently granting approval for new indications to JAK inhibitor after the agency issued a Drug Safety Communication (DSC) in September to include warnings about an increased risk of serious heart-related events, cancer, blood clots, and even death to be added to the label of three JAK inhibitor drugs, including Pfizer’s Xeljanz, Rinvoq and Lilly/Incyte’s Olumiant (baricitinib).
FDA’s Priority Tag to AstraZeneca’s Enhertu sBLA: The FDA accepted and granted priority review to AstraZeneca and its Japan-based partner, Daiichi Sankyo’s sBLA seeking approval for cancer drug Enhertu for unresectable and/or metastatic HER2-positive metastatic breast cancer previously treated with an anti-HER2-based regimen. With the FDA granting priority review to the sBLA, a decision is expected during the second quarter of 2022. The sBLA is based on data from the head-to-head DESTINY-Breast03 phase III study
Enhertu is already approved to treat unresectable or metastatic HER2-positive breast cancer in patients who have received two or more prior anti-HER2-based regimens in the metastatic setting based on data from the DESTINY-Breast01 study.
Sanofi’s 2nd Study on Dupixent in Prurigo Nodularis Succeeds: Sanofi and Regeneron’s second pivotal phase III study on Dupixent (dupilumab) for treating adult patients with uncontrolled prurigo nodularis, a chronic inflammatory skin disease, met its primary and all key secondary endpoints. In the PRIME study, Dupixent significantly reduced itch and skin lesions compared to placebo at 24 weeks.
PRIME is Sanofi’s second successful study on Dupixent for the prurigo nodularis indication. Positive top-line data from the first pivotal study were announced in October last year. Data from the studies will be submitted to global regulatory authorities, starting in the first half of 2022.
The NYSE ARCA Pharmaceutical Index declined 1.6% in the last five trading sessions.
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AstraZeneca rose the most (3.6%) while Pfizer declined the most (2.7%).
In the past six months, Pfizer has recorded the maximum gain (32.7%) while Novartis declined the most (3.2%)
(See the last pharma stock roundup here: PFE’s Research Deal With BEAM & Other Updates)
What's Next in the Pharma World?
Watch out for J&J’s Q4 and FY21 results and regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The FDA also approved AbbVie’s JAK inhibitor, Rinvoq (upadacitinib), for treating moderate-to-severe atopic dermatitis in adults and children (12 years and older) in patients who have had an inadequate response to other pills or injections, including biologic medicines. The FDA approved Pfizer PFE & AbbVie’s ABBV JAK inhibitor drugs to treat eczema and also granted priority review to AstraZeneca AZN and partner, Daiichi Sankyo’s supplemental biologics license application (sBLA), seeking approval for cancer drug Enhertu for expanded use in breast cancer. FDA Approves Pfizer & AbbVie’s JAK inhibitor Drugs for Eczema: The FDA granted approval to Pfizer’s once-daily JAK1 inhibitor, Cibinqo (abrocitinib), for the treatment of moderate-to-severe atopic dermatitis or eczema in adults who are candidates for systemic therapy. | The FDA approved Pfizer PFE & AbbVie’s ABBV JAK inhibitor drugs to treat eczema and also granted priority review to AstraZeneca AZN and partner, Daiichi Sankyo’s supplemental biologics license application (sBLA), seeking approval for cancer drug Enhertu for expanded use in breast cancer. FDA Approves Pfizer & AbbVie’s JAK inhibitor Drugs for Eczema: The FDA granted approval to Pfizer’s once-daily JAK1 inhibitor, Cibinqo (abrocitinib), for the treatment of moderate-to-severe atopic dermatitis or eczema in adults who are candidates for systemic therapy. The FDA also approved AbbVie’s JAK inhibitor, Rinvoq (upadacitinib), for treating moderate-to-severe atopic dermatitis in adults and children (12 years and older) in patients who have had an inadequate response to other pills or injections, including biologic medicines. | The FDA approved Pfizer PFE & AbbVie’s ABBV JAK inhibitor drugs to treat eczema and also granted priority review to AstraZeneca AZN and partner, Daiichi Sankyo’s supplemental biologics license application (sBLA), seeking approval for cancer drug Enhertu for expanded use in breast cancer. FDA Approves Pfizer & AbbVie’s JAK inhibitor Drugs for Eczema: The FDA granted approval to Pfizer’s once-daily JAK1 inhibitor, Cibinqo (abrocitinib), for the treatment of moderate-to-severe atopic dermatitis or eczema in adults who are candidates for systemic therapy. The FDA also approved AbbVie’s JAK inhibitor, Rinvoq (upadacitinib), for treating moderate-to-severe atopic dermatitis in adults and children (12 years and older) in patients who have had an inadequate response to other pills or injections, including biologic medicines. | FDA Approves Pfizer & AbbVie’s JAK inhibitor Drugs for Eczema: The FDA granted approval to Pfizer’s once-daily JAK1 inhibitor, Cibinqo (abrocitinib), for the treatment of moderate-to-severe atopic dermatitis or eczema in adults who are candidates for systemic therapy. The FDA approved Pfizer PFE & AbbVie’s ABBV JAK inhibitor drugs to treat eczema and also granted priority review to AstraZeneca AZN and partner, Daiichi Sankyo’s supplemental biologics license application (sBLA), seeking approval for cancer drug Enhertu for expanded use in breast cancer. The FDA also approved AbbVie’s JAK inhibitor, Rinvoq (upadacitinib), for treating moderate-to-severe atopic dermatitis in adults and children (12 years and older) in patients who have had an inadequate response to other pills or injections, including biologic medicines. |
23680.0 | 2022-01-21 00:00:00 UTC | J&J (JNJ) to Set the Stage for Pharma Sector Q4 Earnings | ABBV | https://www.nasdaq.com/articles/jj-jnj-to-set-the-stage-for-pharma-sector-q4-earnings | nan | nan | Johnson & Johnson JNJ will report fourth-quarter and full-year 2021 results on Jan 25, before market open. In the last-reported quarter, the company delivered an earnings surprise of 9.7%.
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 8.34%, on average.
Johnson & Johnson Price and EPS Surprise
Johnson & Johnson price-eps-surprise | Johnson & Johnson Quote
J&J’s stock has risen 4.8% this year so far compared with an increase of 17.2% 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, Imbruvica, and Stelara. J&J markets Imbruvica in partnership with AbbVie ABBV.
The Zacks Consensus Estimate for Imbruvica, Darzalex and Stelara is pegged at $1.15 billion, $1.61 billion and $2.46 billion, respectively.
Other core products like Invega Sustenna/Xeplion/Invega Trinza/Trevicta, J&J’s PAH drugs and new drugs, Erleada and Tremfya might have contributed significantly to sales growth.
Improvement in sales of some other key drugs like Xarelto, as seen in the past few quarters, is likely to have continued into the fourth quarter. Last quarter, temporary COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition hurt sales of J&J and AbbVie’s Imbruvica to an extent. It remains to be seen if these trends improved in the fourth quarter.
J&J’s single-dose COVID-19 vaccine, which is approved for emergency use in some countries, generated sales of $502 million in the third quarter. Sales of the vaccine are likely to have been higher in the fourth quarter. A booster shot of the vaccine was authorized in October 2021, which is likely to have boosted sales in the fourth quarter.
Generic/biosimilar competition to drugs like Zytiga, Procrit/Eprex and Remicade and some negative impact of COVID-19 is likely to have hurt the top line.
Also, some volatility in sales mainly due to the recent surge of infections due to the Delta and Omicron variants is expected to have affected sales of some drugs in the fourth quarter.
The Zacks Consensus Estimate for J&J’s Pharmaceuticals unit is $14.58 billion.
Medical Devices segment sales are likely to have benefited from an ongoing recovery after being hurt significantly in the early stages of the pandemic. However, the Delta variant and healthcare staff shortage led to a sequential step down in procedure volume trends in the third quarter. Though elective procedure volumes are likely to have recovered in the fourth quarter, the pace of recovery and the impact of Delta/Omicron-related rising infection rates create uncertainty.
The Zacks Consensus Estimate for J&J’s Medical Devices segment is $6.9 billion.
In the Consumer Healthcare segment, the improving trend seen in the last couple of quarters is likely to have continued.
The Zacks Consensus Estimate for J&J’s Consumer Healthcare segment is $3.73 billion.
Importantly, J&J is likely to announce its financial guidance for 2022 on the fourth-quarter conference call.
Key Update in Q4
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.
J&J believes the Consumer Health unit’s separation would drive growth and unlock significant value as the Pharmaceutical and Medical Devices units are relatively higher growth, higher-margin businesses. The separation of the Consumer Health unit is expected to be completed in the next 18 to 24 months, pending necessary board and regulatory approval. The remaining Pharmaceutical and Medical Devices company will continue to use the name Johnson & Johnson and will be led by a new chief executive officer, Joaquin Duato. J&J may announce the new Consumer Health publicly-traded company’s name on the fourth-quarter conference call.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for J&J 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. But that is not the case here.
Earnings ESP: J&J’s Earnings ESP is 0.00% as the Zacks Consensus Estimate as well as the Most Accurate Estimate stand at $2.12 per share. 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 #4 (Sell) currently.
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
Glaxo GSK with an Earnings ESP of +5.41% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaxo’s stock has surged 25.6% in the past year. Glaxo topped earnings estimates in three of the last four quarters. Glaxo has a four-quarter earnings surprise of 15.28%, on average.
Amgen AMGN has an Earnings ESP of +1.20% and a Zacks Rank #3.
Amgen also topped earnings estimates in three of the last four quarters. Amgen has a four-quarter earnings surprise of 5.65%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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GlaxoSmithKline plc (GSK): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last quarter, temporary COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition hurt sales of J&J and AbbVie’s Imbruvica to an extent. J&J markets Imbruvica in partnership with AbbVie ABBV. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. Last quarter, temporary COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition hurt sales of J&J and AbbVie’s Imbruvica to an extent. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. Last quarter, temporary COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition hurt sales of J&J and AbbVie’s Imbruvica to an extent. AbbVie Inc. (ABBV): Free Stock Analysis Report | J&J markets Imbruvica in partnership with AbbVie ABBV. Last quarter, temporary COVID-19 impacts on new patient starts and modest share loss in the United States to new oral competition hurt sales of J&J and AbbVie’s Imbruvica to an extent. AbbVie Inc. (ABBV): Free Stock Analysis Report |
23681.0 | 2022-01-20 00:00:00 UTC | 3 Value Stocks Breaking out in 2022 | ABBV | https://www.nasdaq.com/articles/3-value-stocks-breaking-out-in-2022 | nan | nan | (0:30) - Recap of Last Weeks Episode
(5:45) - Finding Value Stocks With Room To Run: Growth and Value
(15:35) - Tracey’s Top Stock Picks
(26:00) - Episode Roundup: CMA, CROX, ABBV, ANDE, INGR,
Podcast@Zacks.com
Welcome to Episode #265 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
While the growth stocks continue to sell off, many value investors may be starting to look at some and think they are bargains.
But 2022 is not the same market conditions as 2020 and 2021. Instead of loosening, the Federal Reserve will be tightening. And with rates rising, what stocks you want to own will change.
In 2022, investors should be owning companies with earnings and sales.
Screening for Value Stocks Near Their Highs
Instead of trying to time the market for when the growth stocks will be bargains, why not buy value stocks that are breaking out?
You can find the break outs by screening for stocks within 10% of their 52-week highs.
Additionally, adding the Zacks Ranks of #1 (Strong Buy) and #2 (Buy) should get you rising earnings estimates.
And adding the Zacks Style Score for Value of A, which is the highest score, will also get you traditional value stocks with strong value fundamentals.
This screen returned 31 stocks.
3 Value Stocks Breaking Out in 2022
1. AbbVie ABBV
AbbVie is a large pharmaceutical company with a market cap of $241 billion.
During volatile times, it’s often considered a safe haven stock because it pays a big dividend, currently yielding 4.1%.
Shares have gained 25.9% over the last 3 months and have hit new all-time highs.
AbbVie is still cheap, even with the rally, as it trades with a forward P/E of just 9.7.
Earnings are expected to jump another 11.2% in 2022 after rising 20% in 2021.
Does AbbVie have more left in the tank in 2022?
2. The Andersons ANDE
The Andersons operates in three areas: trading, biofuels and plant nutrients. It operates 70 grain terminals throughout the United States.
This small-cap company is based in Ohio. With agriculture heating up, The Andersons is expected to grow its 2021 earnings by 2,966% to $2.76.
Shares are up 52% over the last year and hit a new 52-week high.
Yet The Andersons is still attractively priced with a forward P/E of 16.8.
It also pays a dividend, currently yielding 1.9%.
Will The Andersons be able to continue on the strong agriculture wave in 2022?
3. Ingredion INGR
Ingredion is an ingredient solutions company that specializes in bakery, dairy, beverage and plant-based meat alternatives.
Even though Ingredion has a market cap of $6.7 billion, it is lightly covered on Zacks and only has one estimate for the 2021 and 2022 full year.
Earnings are expected to rise 10.9% in 2021 and another 4.6% in 2022.
Ingredion shares are up 29% to new 52-week highs over the last year. They have even gained in 2022, adding 4%, while the major indexes have taken a tumble and are in the red.
Ingredion is still cheap, even though it’s at new highs, with a forward P/E of 13.9.
Is it time to buy this Zacks Rank #2 (Buy) ingredient company?
What Else Should You Know About Value Stocks that are Breaking Out?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in her personal portfolio.]
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The Andersons, Inc. (ANDE): Free Stock Analysis Report
Ingredion Incorporated (INGR): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (0:30) - Recap of Last Weeks Episode (5:45) - Finding Value Stocks With Room To Run: Growth and Value (15:35) - Tracey’s Top Stock Picks (26:00) - Episode Roundup: CMA, CROX, ABBV, ANDE, INGR, Podcast@Zacks.com Welcome to Episode #265 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large pharmaceutical company with a market cap of $241 billion. AbbVie is still cheap, even with the rally, as it trades with a forward P/E of just 9.7. | (0:30) - Recap of Last Weeks Episode (5:45) - Finding Value Stocks With Room To Run: Growth and Value (15:35) - Tracey’s Top Stock Picks (26:00) - Episode Roundup: CMA, CROX, ABBV, ANDE, INGR, Podcast@Zacks.com Welcome to Episode #265 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large pharmaceutical company with a market cap of $241 billion. AbbVie is still cheap, even with the rally, as it trades with a forward P/E of just 9.7. | (0:30) - Recap of Last Weeks Episode (5:45) - Finding Value Stocks With Room To Run: Growth and Value (15:35) - Tracey’s Top Stock Picks (26:00) - Episode Roundup: CMA, CROX, ABBV, ANDE, INGR, Podcast@Zacks.com Welcome to Episode #265 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large pharmaceutical company with a market cap of $241 billion. AbbVie is still cheap, even with the rally, as it trades with a forward P/E of just 9.7. | (0:30) - Recap of Last Weeks Episode (5:45) - Finding Value Stocks With Room To Run: Growth and Value (15:35) - Tracey’s Top Stock Picks (26:00) - Episode Roundup: CMA, CROX, ABBV, ANDE, INGR, Podcast@Zacks.com Welcome to Episode #265 of the Value Investor Podcast. AbbVie ABBV AbbVie is a large pharmaceutical company with a market cap of $241 billion. AbbVie is still cheap, even with the rally, as it trades with a forward P/E of just 9.7. |
23682.0 | 2022-01-20 00:00:00 UTC | Top Biotech Stocks To Buy Now? 5 For Your Late January Watchlist | ABBV | https://www.nasdaq.com/articles/top-biotech-stocks-to-buy-now-5-for-your-late-january-watchlist | nan | nan | Here Are 5 Biotech Stocks To Check Out In The Stock Market Today
As we move into the rest of 2022, it seems that biotech stocks could continue to be a viable play in the stock market. This can be attributed to the ongoing coronavirus concerns fueling the booming industry. Now, as the Omicron variant sweeps the globe, it shouldn’t come as a surprise as many investors continue to look out for the best biotech stocks to buy. Despite daily new cases seeming to be slowing down in the U.S, the persistent uncertainty has weighed on investors’ expectations regarding the overall market. Also, with rising interest rates hampering tech stocks, the biotech segment does seem appealing these days, given its non-cyclical nature.
All in all, some of the prominent names in the industry today would still center around vaccine makers. Just last week, it was found that a Johnson & Johnson (NYSE: JNJ) booster shot is 85% effective in protecting against hospitalization by the Omicron variant. In other vaccine-related news, Moderna (NASDAQ: MRNA) CEO Stephane Bancel recently provided an update on the company’s work with the Omicron variant. The CEO notes that clinical data for Moderna’s vaccine candidate could arrive by March. While these vaccine stocks remain topics of discussion, other players in the biotech space could be worth mentioning as well. In light of all these, do you have this list of top biotech stocks to watch in the stock market now?
Top Biotech Stocks To Watch In January 2022
Zogenix Inc. (NASDAQ: ZGNX)
Valneva SE (NASDAQ: VALN)
Pfizer Inc. (NYSE: PFE)
Novavax Inc. (NASDAQ: NVAX)
AbbVie Inc. (NYSE: ABBV)
Zogenix
Shares of small-cap biotech stock Zogenix have been moving higher this week. This was thanks to the breaking news on Wednesday regarding an acquisition. In detail, the company’s shares are responding positively to a buyout agreement from Belgian pharmaceutical company UCB. Under the agreement, UCB will be buying all outstanding Zogenix shares for $26.00 per share. Besides that, there is also a milestone-based potential cash payment of $2.00 per share.
For those who come across the company for the first time, it is a biopharmaceutical company that develops therapies to improve the lives of patients with rare diseases. The company’s first rare disease therapy, FINTEPLA (fenfluramine) oral solution, has been approved by the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA).
Besides the two healthcare authorities, fenfluramine is also under regulatory review in Japan. Fenfluramine treats seizures associated with Dravet syndrome, a rare, severe lifelong epilepsy. Given all this and the recent buyout deal, will you be watching ZGNX stock?
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Valneva
Following that, we have Valneva. In brief, it is a French biotech that develops prophylactic vaccines for infectious diseases. As a matter of fact, it currently has several vaccines in development, including vaccines against Lyme disease, coronavirus, and chikungunya. Valneva’s portfolio also includes two commercial vaccines for travelers.
On Wednesday, the company said that preliminary studies showed that three doses of its inactivated COVID-19 vaccine candidate VLA2001 neutralized the Omicron variant of the disease. All of the serum samples tested presented neutralizing antibodies against the ancestral virus and Delta variant, and 87% against the Omicron variant. The company expects to receive potential approvals for its vaccine within the first three months of this year.
Besides that, it will also be providing data to the EMA as well as regulators in the UK and Bahrain. If Europe approves the shot, Valneva expects to start delivering doses there in April. With this potentially groundbreaking development in mind, should you buy VALN stock?
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Pfizer
Without a doubt, Pfizer is one of the most notable names in the COVID-19 vaccine arena. The biopharmaceutical develops and manufactures many health care products that include innovative medicines and vaccines.
The company is also behind many blockbuster drugs, drugs that have brought in a revenue of over $1 billion. Most notably, its COVID-19 vaccine was developed together with BioNTech (NASDAQ: BNTX). Over the past 6 months, Pfizer stock has risen by over 30%.
Yesterday, White House Chief Medical Advisor Dr Anthony Fauci said that the FDA could approve its vaccine for children under 5 years old by next month. He also notes that younger children will likely need three doses, as two shots did not induce an adequate immune response in 2-4-year-olds in Pfizer’s clinical trials. “My hope is that it’s going to be within the next month or so and not much later than that, but I can’t guarantee that,” Fauci said during an interview. With Pfizer continuing to lead the fight against the pandemic, will you be watching PFE stock?
Novavax
Following that, we have Novavax. In short, the company develops vaccines to counter serious infectious diseases. Its recombinant nanoparticles and adjuvant technology continue to be the foundation for ground-breaking innovation that improves global health through safe and effective vaccines.
Novavax announced yesterday that Australia’s Therapeutic Goods Administration (TGA) has finally granted approval for the company’s COVID-19 vaccine for active immunization in individuals 18-years-old and older. In January 2021, the country entered into an advance purchase agreement to order 51 million doses of the vaccine for its population of 26 million.
Moreover, Australia has the option to purchase an additional 10 million doses as well. Supplied under the brand Nuvaxovid, this approval represents the first protein-based COVID-19 vaccine to be used in Australia. Given this piece of news, is NVAX stock one to watch?
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AbbVie
Leading biopharmaceutical company AbbVie focuses on developing treatments across a wide array of therapeutics areas. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology.
Additionally, the company also offers aesthetics-based treatments via its Allergan Aesthetics portfolio. For a sense of scale, the company raked in a total revenue of $14.34 billion in its latest quarter. ABBV stock has risen by over 15% in price over the past 6 months.
Last week, the FDA approved the company’s Rinvoq (upadacitinib) for the treatment of moderate to severe atopic dermatitis. The treatment is for adults and adolescents 12-years-old and older whose disease did not respond to previous treatment options or when other options are not advised. AbbVie has eyed the drug as a potential successor to its blockbuster drug Humira, which has been the primary driver of revenue for the company. Given this approval and potential cash cow drug, will you be eyeing ABBV stock?
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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. | Top Biotech Stocks To Watch In January 2022 Zogenix Inc. (NASDAQ: ZGNX) Valneva SE (NASDAQ: VALN) Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Zogenix Shares of small-cap biotech stock Zogenix have been moving higher this week. 5 For Your List AbbVie Leading biopharmaceutical company AbbVie focuses on developing treatments across a wide array of therapeutics areas. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. | Top Biotech Stocks To Watch In January 2022 Zogenix Inc. (NASDAQ: ZGNX) Valneva SE (NASDAQ: VALN) Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Zogenix Shares of small-cap biotech stock Zogenix have been moving higher this week. 5 For Your List AbbVie Leading biopharmaceutical company AbbVie focuses on developing treatments across a wide array of therapeutics areas. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. | Top Biotech Stocks To Watch In January 2022 Zogenix Inc. (NASDAQ: ZGNX) Valneva SE (NASDAQ: VALN) Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Zogenix Shares of small-cap biotech stock Zogenix have been moving higher this week. 5 For Your List AbbVie Leading biopharmaceutical company AbbVie focuses on developing treatments across a wide array of therapeutics areas. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. | Top Biotech Stocks To Watch In January 2022 Zogenix Inc. (NASDAQ: ZGNX) Valneva SE (NASDAQ: VALN) Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Zogenix Shares of small-cap biotech stock Zogenix have been moving higher this week. 5 For Your List AbbVie Leading biopharmaceutical company AbbVie focuses on developing treatments across a wide array of therapeutics areas. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. |
23683.0 | 2022-01-20 00:00:00 UTC | 3 Dividend Aristocrats Yielding Over 4% | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-yielding-over-4 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to income investing, we prefer dividend stocks that have demonstrated long histories of being able to raise their dividends throughout all kinds of economic conditions. There are many ways to find stocks with great dividend longevity, but one of the easier ways is to simply start with the Dividend Aristocrats.
This is a group of just 65 stocks that are S&P 500 components, and have raised their dividends for at least 25 consecutive years.
That level of dividend longevity means all 65 of these companies have been able to raise their payouts through recessions, meaning the odds of them continuing to do so in future recessions is much higher.
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Not all Dividend Aristocrats are created equal, as some are more geared towards earnings growth, dividend growth, or current yield. In this article, we’ll focus on the latter and highlight three Dividend Aristocrats that are currently yielding more than 4%. They are:
Leggett & Platt (NYSE:LEG)
AbbVie (NYSE:ABBV)
Chevron (NYSE:CVX)
Dividend Aristocrats: Leggett & Platt (LEG)
Source: Casimiro PT / Shutterstock.com
Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. The company operates a bedding business, a furniture and textile business and a miscellaneous segment. Through these segments, Leggett makes things like steel rods, chemicals and additives, foams, mattresses, springs, components for automotive seating, and much more.
The company was founded in 1883, generates about $5 billion in annual sales, employs just over 20,000 people, and trades with a market capitalization of $5.5 billion. Leggett has raised its dividend for the past 48 consecutive years, and it yields 4.1%.
Leggett’s earnings growth has been impressive at times, particularly coming out of the financial crisis. Indeed, between 2009 and 2019, the company boasted a 14% average annual earnings-per-share growth rate. That was based in part on a low base from the recession, and final earnings for 2021 – which haven’t yet been reported – are expected to be roughly equal to 2016.
We’re estimating 5% annual earnings-per-share growth looking forward, which we believe could accrue from a combination of organic sales growth, acquired sales growth and a modest level of share repurchases. Leggett is somewhat vulnerable to recessions, however, so our long-run estimate could have upside or downside depending upon when the next recession strikes.
The company’s competitive advantage is in its extremely long operating history, which has seen it grow its product catalog to a very wide and deep assortment of niche components, where competition is light. It also sports a highly diversified customer book so it isn’t beholden to one industry for revenue and earnings. Given this, we see the company’s ability to continue to grow its dividend in the years to come as quite good.
AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Our next stock is AbbVie, a diversified pharmaceutical company. AbbVie’s biggest revenue generator is Humira, the world’s best selling drug and one that AbbVie sells for several ailments. The company also offers a high number of various cancer treatments, thyroid treatments, anemia and much more.
AbbVie was formed in 2012 but prior to that, was part of Abbott Laboratories (NYSE:ABT). AbbVie now employs 50,000, generates $56 billion in annual revenue, and trades with a market capitalization of $240 billion. Including its time as part of Abbott, AbbVie has raised its dividend for 50 consecutive years, making it a Dividend King. In addition, its current yield is 4.1%.
We expect modest 3% annual earnings-per-share growth from AbbVie in the coming years, as the company is facing a revenue cliff for its best seller, Humira. That drug is rapidly approaching patent expiration in a variety of developed markets, including the U.S. AbbVie has a replacement for Humira, and it has acquired and built several other products to help offset this revenue cliff, but it is a concern nonetheless for near-term growth.
Even so, we see AbbVie’s ability to grow revenue organically, as well as buying back its own stock, as driving sustainable earnings-per-share growth over time.
AbbVie’s competitive advantages include its massive scale, and its world class pipeline of drugs. AbbVie’s focus on cancer treatments has positioned it quite well in a variety of small markets where it holds huge market share. And should Humira’s replacement prove to be successful, we believe it could see accelerated revenue growth into the middle of this decade.
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Given that AbbVie sells non-discretionary treatments for serious ailments, it is quite recession resistant. And given the payout ratio is less than 50% of earnings, we believe it will generate dividend growth for many years to come.
Dividend Aristocrats: Chevron (CVX)
CVX) logo on blue sign in front of skyscraper building" width="300" height="169">
Source: Jeff Whyte / Shutterstock.com
Our final stock is Chevron, an integrated oil, gas, and chemical producer based in the U.S., but operating globally. Chevron operates upstream and downstream businesses, meaning it explores, develops, and produces crude and natural gas, in addition to refining crude into marketable end products.
Chevron was once part of Standard Oil, tracing its roots to 1879. Today, it employs 48,000 people, generates $160 billion in revenue, and trades with a market capitalization of $249 billion. Chevron has raised its dividend for 34 consecutive years, and has a current yield of 4.1%.
We see no growth in the coming years for Chevron, as it is seeing roughly flat total output. With rapidly fluctuating oil and gas prices, Chevron’s margins move around quite a bit as well, but on the plus side, Chevron only needs oil to be $40 per barrel for it to fund its dividend. Oil is at twice that level today, so there could be some upside to our forecast if that level of oil pricing is sustained.
Chevron’s major competitive advantages include its scale, which is one of the largest in the world. In addition, Chevron has a chemicals business that helps it diversify away from strictly oil and gas demand. It also helps smooth out price changes in the raw commodities themselves.
Still, at the end of the day, Chevron is a commodities business and is therefore beholden to the pricing of those commodities to an extent. With the dividend at ~60% of earnings, we believe it to be safe in all but the most bearish scenarios.
Final Thoughts
When looking for great dividend stocks, one of the best places to start is with the Dividend Aristocrats. These companies have stood the test of time and economic weakness, and in the case of Leggett & Platt, AbbVie and Chevron, they all have current yields that are more than triple that of the S&P 500.
Given this, we see all three as quite attractive for income investors today.
On the date of publication, Bob Ciura is long ABBV. 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 3 Dividend Aristocrats Yielding Over 4% 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. | That drug is rapidly approaching patent expiration in a variety of developed markets, including the U.S. AbbVie has a replacement for Humira, and it has acquired and built several other products to help offset this revenue cliff, but it is a concern nonetheless for near-term growth. These companies have stood the test of time and economic weakness, and in the case of Leggett & Platt, AbbVie and Chevron, they all have current yields that are more than triple that of the S&P 500. They are: Leggett & Platt (NYSE:LEG) AbbVie (NYSE:ABBV) Chevron (NYSE:CVX) Dividend Aristocrats: Leggett & Platt (LEG) Source: Casimiro PT / Shutterstock.com Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. | They are: Leggett & Platt (NYSE:LEG) AbbVie (NYSE:ABBV) Chevron (NYSE:CVX) Dividend Aristocrats: Leggett & Platt (LEG) Source: Casimiro PT / Shutterstock.com Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Our next stock is AbbVie, a diversified pharmaceutical company. AbbVie’s biggest revenue generator is Humira, the world’s best selling drug and one that AbbVie sells for several ailments. | They are: Leggett & Platt (NYSE:LEG) AbbVie (NYSE:ABBV) Chevron (NYSE:CVX) Dividend Aristocrats: Leggett & Platt (LEG) Source: Casimiro PT / Shutterstock.com Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Our next stock is AbbVie, a diversified pharmaceutical company. AbbVie’s biggest revenue generator is Humira, the world’s best selling drug and one that AbbVie sells for several ailments. | They are: Leggett & Platt (NYSE:LEG) AbbVie (NYSE:ABBV) Chevron (NYSE:CVX) Dividend Aristocrats: Leggett & Platt (LEG) Source: Casimiro PT / Shutterstock.com Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Our next stock is AbbVie, a diversified pharmaceutical company. AbbVie’s biggest revenue generator is Humira, the world’s best selling drug and one that AbbVie sells for several ailments. |
23684.0 | 2022-01-19 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 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2021 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 16 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)
Iron Horse Wealth Management LLC Existing UNCH +$2
Financial Management Network Inc. Existing +13 +$69
MBE Wealth Management LLC Existing +42 +$146
AdvisorNet Financial Inc Existing -7,971 -$81
Eagle Ridge Investment Management Existing -3,244 +$1,634
Curbstone Financial Management Corp Existing +90 +$496
Paces Ferry Wealth Advisors LLC Existing -101 +$50
Syverson Strege & Co Existing -9 $UNCH
HT Partners LLC Existing UNCH +$75
First PREMIER Bank Existing +9 +$257
Edge Capital Group LLC Existing +311 +$185
Cornell Pochily Investment Advisors Inc. Existing +56 +$1,376
Ridgecrest Wealth Partners LLC Existing +74 +$320
WT Wealth Management NEW +1,596 +$216
Intelligence Driven Advisers LLC NEW +4,832 +$662
YorkBridge Wealth Partners LLC Existing -100 +$439
Aggregate Change: -4,402 +$5,846
In terms of shares owned, we count 7 of the above funds having increased existing ABBV positions from 09/30/2021 to 12/31/2021, with 5 having decreased their positions and 2 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 12/31/2021 reporting period (out of the 483 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2021 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 350,849 shares in the aggregate, from 11,057,395 down to 10,706,546 for a share count decline of approximately -3.17%. The overall top three funds holding ABBV on 12/31/2021 were:
» FUND SHARES OF ABBV HELD
1. Royal London Asset Management Ltd. 884,474
2. Gateway Investment Advisers LLC 549,793
3. Ferguson Wellman Capital Management Inc. 499,387
4-10 Find out the full Top 10 Hedge Funds Holding ABBV »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2021 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 16 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: | Existing +56 +$1,376 Ridgecrest Wealth Partners LLC Existing +74 +$320 WT Wealth Management NEW +1,596 +$216 Intelligence Driven Advisers LLC NEW +4,832 +$662 YorkBridge Wealth Partners LLC Existing -100 +$439 Aggregate Change: -4,402 +$5,846 In terms of shares owned, we count 7 of the above funds having increased existing ABBV positions from 09/30/2021 to 12/31/2021, with 5 having decreased their positions and 2 new positions. At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2021 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 16 of these funds. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: | Existing +56 +$1,376 Ridgecrest Wealth Partners LLC Existing +74 +$320 WT Wealth Management NEW +1,596 +$216 Intelligence Driven Advisers LLC NEW +4,832 +$662 YorkBridge Wealth Partners LLC Existing -100 +$439 Aggregate Change: -4,402 +$5,846 In terms of shares owned, we count 7 of the above funds having increased existing ABBV positions from 09/30/2021 to 12/31/2021, with 5 having decreased their positions and 2 new positions. Ferguson Wellman Capital Management Inc. 499,387 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 22 most recent 13F filings for the 12/31/2021 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 16 of these funds. | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 12/31/2021 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 16 of these funds. Ferguson Wellman Capital Management Inc. 499,387 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: |
23685.0 | 2022-01-19 00:00:00 UTC | 3 Healthcare Stocks Ignoring the Market Mayhem | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-ignoring-the-market-mayhem | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Traders returned from the holiday-lengthened weekend to a wave of selling. Small-caps and growth stocks remain the hardest hit, but just about everything got tossed out on Tuesday. The mayhem sent the Russell 2000 index over 3% and the Nasdaq down 2.5%. In scanning for anything that could hold steady while the market melted, I discovered three good-looking healthcare stocks that demand your attention.
The case for rewarding relative strength when equities are anathema is simple. If a stock can climb while investors are de-risking portfolios and heading for the hills, it says something about how in-demand the shares are. Bulls are willing to acquire shares despite the mass exodus seen everywhere else.
7 of the Top-Rated Pharmaceutical Stocks for Q1
It’s worth noting the healthcare sector wasn’t all that strong on Tuesday. Nor has it fared well during the market correction. So today’s companies are outperforming both the broad market and their sector.
If you’re in the mood for shopping strength, here’s a trio of healthcare stocks to consider.
Bristol-Myers Squibb (NYSE:BMY)
Abbvie (NYSE:ABBV)
CVS Health (NYSE:CVS)
Let’s take a closer look at each stock and identify an options trade that you can use to capitalize on further upside.
Healthcare Stocks Ignoring the Market Mayhem: Bristol-Myers Squibb (BMY)
Source: The thinkorswim® platform from TD Ameritrade
Relative strength isn’t new for Bristol-Myers Squibb. Shares of the biopharmaceutical company have been besting the broader market for two months now. The burst of speed was much-needed after prices fell 24% between September and November. Fortunately, buyers have been quick to pull the stock back from the brink.
Accumulation days litter the landscape and confirm institutions have been scooping up shares. The ascent has carried prices back above all major moving averages, and the 20-day and 50-day moving averages are now rising nicely.
BMY was consolidating near a multi-month high going into this week and ended Tuesday with an impressive hammer candle. The trend strength should continue carrying prices to the old peak near $70. That’s the target.
The Trade: Buy the March $65/$70 bull call spread for $1.70.
You’re risking $1.70 to make $3.30 if BMY returns to $70 over the next 58 days.
Abbvie (ABBV)
Source: The thinkorswim® platform from TD Ameritrade
The price of Abbvie enjoyed a banner year in 2021, with an epic run into Christmas. Shares were up 26% on the year. So far, ABBV stock has spent 2022 digesting the gain while longer-term moving averages play catch-up. The consolidation is well-deserved and sets up a more attractive entry point for new buys.
The past three weeks is forming a high base pattern. Yesterday’s pop carried prices to the top-end of the range, bringing us close to an upside breakout. A quarterly report looming on Feb. 1 could disrupt the pattern, but if you’re willing to give the trend the benefit of the doubt, any weakness will be temporary.
7 of the Top-Rated Pharmaceutical Stocks for Q1
Let’s go with a bull put spread to provide a higher probability of profit and capitalize on the somewhat more expensive options heading into the quarterly report.
The Trade: Sell the February $130/$125 bull put for 90 cents.
You’re risking $4.10 to make 90 cents if prices are above $130 at expiration.
Healthcare Stocks Ignoring the Market Mayhem: CVS Health (CVS)
Source: The thinkorswim® platform from TD Ameritrade
CVS Health has staged quite the turnaround over the past two years. Its share price has doubled off the lows, and prices are nearing their previous record. Combining the strong trend with the recent pause makes for a compelling breakout setup. The pattern actually mirrors Abbvie’s. CVS launched into year-end and has consolidated so far in 2022.
Recall that most stocks have cratered below their 20-day and 50-day moving averages. CVS has not and is maintaining the integrity of its short-term trend. So while we may need the pressure in the market to ease up a bit before a breakout arrives, it’s a surge I want to participate in.
Watch for a break over $106.50, then deploy a bullish trade. Here’s one to consider.
The Trade: Buy the March $105/$110 bull call for around $2.
You’re risking $2 to make $3 if the stock gets above $110.
On the date of publication, Tyler Craig 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.
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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. | Bristol-Myers Squibb (NYSE:BMY) Abbvie (NYSE:ABBV) CVS Health (NYSE:CVS) Let’s take a closer look at each stock and identify an options trade that you can use to capitalize on further upside. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade The price of Abbvie enjoyed a banner year in 2021, with an epic run into Christmas. So far, ABBV stock has spent 2022 digesting the gain while longer-term moving averages play catch-up. | Bristol-Myers Squibb (NYSE:BMY) Abbvie (NYSE:ABBV) CVS Health (NYSE:CVS) Let’s take a closer look at each stock and identify an options trade that you can use to capitalize on further upside. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade The price of Abbvie enjoyed a banner year in 2021, with an epic run into Christmas. So far, ABBV stock has spent 2022 digesting the gain while longer-term moving averages play catch-up. | Bristol-Myers Squibb (NYSE:BMY) Abbvie (NYSE:ABBV) CVS Health (NYSE:CVS) Let’s take a closer look at each stock and identify an options trade that you can use to capitalize on further upside. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade The price of Abbvie enjoyed a banner year in 2021, with an epic run into Christmas. So far, ABBV stock has spent 2022 digesting the gain while longer-term moving averages play catch-up. | Bristol-Myers Squibb (NYSE:BMY) Abbvie (NYSE:ABBV) CVS Health (NYSE:CVS) Let’s take a closer look at each stock and identify an options trade that you can use to capitalize on further upside. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade The price of Abbvie enjoyed a banner year in 2021, with an epic run into Christmas. So far, ABBV stock has spent 2022 digesting the gain while longer-term moving averages play catch-up. |
23686.0 | 2022-01-19 00:00:00 UTC | 2 Best Warren Buffett Dividend Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/2-best-warren-buffett-dividend-stocks-to-buy-now | nan | nan | Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is widely considered as one of the greatest investors of all time. One of Buffett's keys to success -- and a core lesson learned from his mentor Benjamin Graham -- has been to invest with a so-called "margin of safety." This concept centers on the idea of buying stocks trading a substantial discount relative to their intrinsic value.
While the intrinsic value of a stock means different things to different investors, one of the common themes across the galaxy of definitions for this time-tested investing concept is to focus on companies with strong free cash flows, a solid balance sheet, and a growing dividend program. By taking this approach, investors can essentially ignore the inherent volatility in the market from year to year and simply let the company's strong fundamentals do the heavy lifting, so to speak.
Which Berkshire Hathaway holdings -- a.k.a. Warren Buffett stocks -- are the best buys during this particularly volatile market? Dividend-paying pharma stocks AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY) are both outstanding buys for any type of investor right now. Here's why.
Image source: Getty Images.
AbbVie: A high-yield, high-growth biopharma
AbbVie is an oddball of sorts. Despite the looming U.S. patent expiration for its top drug Humira in 2023 and the ongoing bear market in biopharma stocks in general, AbbVie's stock has produced total returns (including the dividend) on capital of a healthy 28.7% over the prior 12 months. Investors have bid this top biopharma stock up for a couple of reasons. On the margin-of-safety side of things, AbbVie sports an above average annualized yield of 4.15% at current levels. Its shares are also trading at less than 9 times forward-looking earnings, which is a bargain-basement valuation for a large-cap biopharma.
On the growth front, the drugmaker's top line is projected to continue to rise in the low to mid-single digits over the next three years, despite Humira's upcoming battle with the patent cliff. By 2025, though, AbbVie expects its top-line growth to ramp up in a significant way, thanks to the strength of its five core business segments in aesthetics, eye care, hematologic oncology, immunology, and neuroscience. Specifically, a parade of newer drugs such as the autoimmune-disease medications Rinvoq and Skyrizi, as well as the novel cancer treatment Venclexta, are forecast to push the biopharma's annual sales to all-time highs in the second half of the decade. AbbVie's shares thus appear to be trading at a steep discount right now, relative to the company's longer-term prospects.
All told, AbbVie is a safe bet in an uncertain market.
Bristol: An undervalued dividend play
Bristol's shares have essentially broken even from a total return standpoint over the prior 12-month period. Investors have been less enthusiastic about this big pharma stock than AbbVie because the company is set to go through a major portfolio churn later this decade. Bristol's top three selling medications -- cancer drug Revlimid, blood thinner Eliquis, and immuno-oncology superstar Opdivo -- are all slated to lose patent protection before 2030. This patent cliff risk, however, is arguably being overblown by this moody market.
The key reason is that Bristol expects to generate between $10 billion to $13 billion in new product sales by 2025, according to the company's recent J.P. Morgan Healthcare conference presentation. What's more, the drugmaker has one of the deepest and most robust clinical pipelines, with more than 50 early-stage candidates under development right now. Bristol is also likely to add a few key revenue generating products through bolt-on acquisitions in 2022 and 2023. Long story short, Bristol has the pieces in place to overcome this spate of patent expirations, and future business development deals should ensure that its top line continues to head higher over the long term.
On the dividend front, Bristol's stock offers a juicy 3.34% yield at present. That's slightly above average for its major drug manufacturing peer group. Moreover, the drugmaker's shares are also trading at a paltry 7.15 times forward-looking earnings right now. Bristol's stock thus offer potential investors an attractive mix of better than average levels of passive income and a rock-bottom valuation.
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George Budwell has no position in any of the stocks mentioned. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. 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. | By 2025, though, AbbVie expects its top-line growth to ramp up in a significant way, thanks to the strength of its five core business segments in aesthetics, eye care, hematologic oncology, immunology, and neuroscience. Dividend-paying pharma stocks AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY) are both outstanding buys for any type of investor right now. AbbVie: A high-yield, high-growth biopharma AbbVie is an oddball of sorts. | Dividend-paying pharma stocks AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY) are both outstanding buys for any type of investor right now. AbbVie: A high-yield, high-growth biopharma AbbVie is an oddball of sorts. Despite the looming U.S. patent expiration for its top drug Humira in 2023 and the ongoing bear market in biopharma stocks in general, AbbVie's stock has produced total returns (including the dividend) on capital of a healthy 28.7% over the prior 12 months. | Despite the looming U.S. patent expiration for its top drug Humira in 2023 and the ongoing bear market in biopharma stocks in general, AbbVie's stock has produced total returns (including the dividend) on capital of a healthy 28.7% over the prior 12 months. Dividend-paying pharma stocks AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY) are both outstanding buys for any type of investor right now. AbbVie: A high-yield, high-growth biopharma AbbVie is an oddball of sorts. | Dividend-paying pharma stocks AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY) are both outstanding buys for any type of investor right now. AbbVie: A high-yield, high-growth biopharma AbbVie is an oddball of sorts. Despite the looming U.S. patent expiration for its top drug Humira in 2023 and the ongoing bear market in biopharma stocks in general, AbbVie's stock has produced total returns (including the dividend) on capital of a healthy 28.7% over the prior 12 months. |
23687.0 | 2022-01-19 00:00:00 UTC | 3 Under-the-Radar COVID Stocks | ABBV | https://www.nasdaq.com/articles/3-under-the-radar-covid-stocks | nan | nan | COVID-19 has created a lot of volatility in the stock market. The whole market crashed in 2020, but many stocks quickly recovered. Indeed, there have been some high-flying pharmaceutical stocks that have skyrocketed as the biotech industry has fought back against the virus. And there are also some really interesting healthcare stocks that are flying under the radar.
Here's why three Motley Fool contributors, in this roundtable discussion, think you might want to discover NRx Pharmaceuticals (NASDAQ: NRXP), FIGS (NYSE: FIGS), and OptimizeRx (NASDAQ: OPRX).
Image source: Getty Images.
Multiple shots on goal
George Budwell (NRx Pharmaceuticals): Although NRx Pharmaceuticals has gotten a fair amount of ink from several media outlets in recent months, the biotech's investing thesis has yet to resonate with the broader investing community. As proof, the drugmaker is currently being valued at a mere $238 million at the time of this writing. What's particularly noteworthy about this small-cap biotech stock is that NRx Pharmaceuticals sports two potential blockbuster COVID-19 products in its pipeline. What's more, both of these product candidates may hit the market this year. So there's a real chance that NRx Pharmaceuticals stock might be incredibly undervalued right now.
What's the backstory? NRx Pharmaceuticals recently filed an Emergency Use Authorization application with the Food and Drug Administration (FDA) for its COVID-19 drug known as zyesami. The goal is to get zyesami approved as a treatment for critically ill patients who are at immediate risk of death from respiratory failure despite treatment with Gilead Sciences' Veklury (remdesivir) and who are ineligible for enrollment into the ongoing ACTIV-3b trial sponsored by the National Institutes of Health (NIH). If approved, zyesami could quite possibly rake in over $1 billion in sales during its first 12 months on the market.
NRx Pharmaceuticals is also developing a promising COVID-19 vaccine called briLife. BriLife has so far shown encouraging signs of efficacy against both the delta and omicron strains of the virus. The company thinks this experimental vaccine could achieve peak sales in the area of $5 billion if approved before year's end. NRx Pharmaceuticals hopes to have this vaccine under regulatory review sometime in the second half of 2022, depending on the outcome of its ongoing phase 2/3 trial.
What's the risk? There's no guarantee that the FDA will approve zyesami or that briLife's late-stage trial results will warrant a regulatory filing. That being said, this unloved COVID-19 stock should still intrigue the risk-tolerant crowd. If all the stars align, so to speak, NRx Pharmaceuticals stock should soar.
Getting figgy with it
Patrick Bafuma (FIGS): Thus far, each new COVID-19 variant has caused a wave of hospitalizations, and healthcare workers often find themselves working 12-hour shifts. If you are going to spend at least half a day in scrubs, you might as well splurge on an anti-wrinkle, breathable, odor-resistant, ridiculously soft pair of FIGS scrubs.
Sure, the healthcare apparel company is expensive at a price-to-sales (P/S) ratio of 9.3, especially when you compare it to Lululemon's 7.5 P/S ratio. But FIGS saw 62% revenue growth in fiscal year 2021 versus 2020, whereas the athleisure company experienced 42% revenue growth. The scrubs company also has enviable gross margins of 72.3%, trouncing the 57.2% margins of Lululemon. With growth and margins like these, FIGS' current valuation is quite justified.
The market is huge, too. FIGS estimates a $79 billion global healthcare apparel market. By expanding its offerings to outerwear and "underscrubs" (essentially, a fitted, long-sleeved shirt), the company is creating its own markets. The designer healthcare clothing brand keeps its customers happy too, with 68% of net revenues in 2021 coming from repeat buyers, a number that has steadily increased every year since 2018. With higher growth and better margins than Lululemon, not to mention a mission statement of celebrating, empowering, and serving those who serve others, FIGS and its $3.7 billion market cap may not be an under-the-radar stock much longer.
Replacing the pharmaceutical sales call
Taylor Carmichael (OptimizeRx): Drug companies have been sending sales reps into hospitals for a long time. It's long been thought a necessary inconvenience as doctors have to be educated about new remedies and treatments. This job, however, has been getting more and more difficult. Doctors are generally averse to having these conversations. Roughly half of all doctors limit access to salespeople. COVID-19 has just made this situation worse.
The lockdown accelerated a development that was already underway. The $20 billion-dollar pharmaceutical marketing industry is shifting to digital. Roughly $4 billion of healthcare ad spend is now reserved for internet marketing. This has opened the door to OptimizeRx, which has introduced a new way for drug companies to reach physicians in the middle of their busy working day.
The average doctor spends almost six hours a day looking at patients' electronic health records (EHR) over the internet. And this is a highly fragmented market, with over 500 companies providing EHR software. Contracting with multiple EHR providers, Optimize has put together a marketing network that reaches over 700,000 healthcare professionals. That makes this tiny company the largest point-of-care communications network for doctors in the U.S.
A healthcare company that uses the OptimizeRx solution can reach a doctor while they are looking at a patient's records online. Thus, a salesperson can target a doctor with relevant information in the course of their ordinary workflow. So the OptimizeRx customer list is a who's who of Big Pharma: AbbVie, Amgen, AstraZeneca, Pfizer, Merck, Glaxo, Sanofi, Novartis, Medtronic, and more.
OptimizeRx delivered a 1,300% return on investment to its healthcare partners last year. The company's revenues jumped 53% in the most recent quarter, and OptimizeRx has already achieved profitability. Investors looking for a stock that is flying high under-the-radar ought to check out OptimizeRx.
10 stocks we like better than FIGS, Inc.
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George Budwell has no position in any of the stocks mentioned. Patrick Bafuma owns Lululemon Athletica. Taylor Carmichael owns OptimizeRx Corporation. The Motley Fool owns and recommends Lululemon Athletica. The Motley Fool recommends Amgen and GlaxoSmithKline. 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. | So the OptimizeRx customer list is a who's who of Big Pharma: AbbVie, Amgen, AstraZeneca, Pfizer, Merck, Glaxo, Sanofi, Novartis, Medtronic, and more. Getting figgy with it Patrick Bafuma (FIGS): Thus far, each new COVID-19 variant has caused a wave of hospitalizations, and healthcare workers often find themselves working 12-hour shifts. The designer healthcare clothing brand keeps its customers happy too, with 68% of net revenues in 2021 coming from repeat buyers, a number that has steadily increased every year since 2018. | So the OptimizeRx customer list is a who's who of Big Pharma: AbbVie, Amgen, AstraZeneca, Pfizer, Merck, Glaxo, Sanofi, Novartis, Medtronic, and more. Multiple shots on goal George Budwell (NRx Pharmaceuticals): Although NRx Pharmaceuticals has gotten a fair amount of ink from several media outlets in recent months, the biotech's investing thesis has yet to resonate with the broader investing community. Replacing the pharmaceutical sales call Taylor Carmichael (OptimizeRx): Drug companies have been sending sales reps into hospitals for a long time. | So the OptimizeRx customer list is a who's who of Big Pharma: AbbVie, Amgen, AstraZeneca, Pfizer, Merck, Glaxo, Sanofi, Novartis, Medtronic, and more. Here's why three Motley Fool contributors, in this roundtable discussion, think you might want to discover NRx Pharmaceuticals (NASDAQ: NRXP), FIGS (NYSE: FIGS), and OptimizeRx (NASDAQ: OPRX). That makes this tiny company the largest point-of-care communications network for doctors in the U.S. A healthcare company that uses the OptimizeRx solution can reach a doctor while they are looking at a patient's records online. | So the OptimizeRx customer list is a who's who of Big Pharma: AbbVie, Amgen, AstraZeneca, Pfizer, Merck, Glaxo, Sanofi, Novartis, Medtronic, and more. COVID-19 has created a lot of volatility in the stock market. NRx Pharmaceuticals is also developing a promising COVID-19 vaccine called briLife. |
23688.0 | 2022-01-19 00:00:00 UTC | 3 Dividend Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-and-hold-forever | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividends are an important factor for many investors. The quarterly and annual payouts to shareholders can have a big impact on a portfolio’s growth over time. Dividend stocks can also serve as an income stream to people in retirement.
For this reason, many investors seek out stocks that have high dividend yields.
Even some of the most successful and richest investors are focused on dividend payments. Warren Buffett, the Oracle of Omaha himself, is a notorious dividend collector. Consider that in 2021 Buffett collected $672 million in dividend payments from the 400 million shares of Coca-Cola (NYSE:KO) that he owns and you get an idea of the impact dividends can have and why certain investors appreciate and rely on them.
7 of the Top-Rated Pharmaceutical Stocks for Q1
Here are three dividend stocks for investors to buy and hold forever.
AbbVie (NYSE:ABBV)
Kroger (NYSE:KR)
Chevron (NYSE:CVX)
Dividend Stocks to Buy: AbbVie (ABBV)
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Source: Piotr Swat / Shutterstock.com
Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. In its nine years as a public company, ABBV stock has delivered a 300% return to shareholders, which is great in and of itself.
However, AbbVie also pays a healthy 4.2% dividend yield and has grown its dividend at annualized rate of 18% over the past five years. That should put AbbVie on the radar of any investor looking for strong dividend payments in addition to share price appreciation. And, with it trading at about 10x its trailing 12 month free cash flow, AbbVie is a value investor’s dream.
If there’s one drawback to investing in ABBV stock it is that the company is going to lose the patent exclusivity on its blockbuster medication Humira that is used to treat inflammatory bowel conditions, namely Crohn’s disease. Sales of Humira accounted for a third of AbbVie’s $14.4 billion in revenue during the third quarter of 2021, so the patent expiration in 2023 is going to be a big blow to the company’s finances and valuation moving forward.
AbbVie has been working to increase sales of its other drugs, such as Rinvoq and Skyrizi, forecasting that they could combine for annual sales of $15 billion by 2025, which would help to offset any losses from Humira.
Kroger (KR)
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Source: Jonathan Weiss / Shutterstock.com
Supermarket operator Kroger is another company that continues to deliver outsized gains to shareholders. In the past 12 months, KR stock has advanced 24% to just under $50 a share. The stock rallied nearly 10% in the last month after the company announced a new $1 billion share buyback program.
Additionally, the company maintains a decent 7% dividend yield that management is committed to and plans to grow in coming years. The combination of share growth, stock buybacks and dividend payments provides a lot of value to investors and makes Kroger a great option for any portfolio.
In terms of its operations, Kroger remains focused on growing its digital operations, which have accelerated 103% over the last two years, and which the company expects will double again by 2023. Additionally, Kroger is growing its advertising business that is contributing more to the company’s bottom line and beefing up its logistics capabilities by adding new grocery fulfillment centers and expanding its delivery network across the U.S.
Last fall, Kroger announced the opening of two new fulfillment centers in California and one in North Carolina, as well as a new “delivery spoke” situated in Indiana. Kroger is a company on the move.
Dividend Stocks to Buy: Chevron (CVX)
Source: LesPalenik / Shutterstock.com
Energy stocks are hot right now, and shares of Chevron have been marching higher as a result. CVX stock is up 31% over the past six months, including a 13% gain in the last 30 days.
While the gain in the stock’s price has been great, Chevron has the added bonus of providing shareholders with a hefty dividend yield of 4.1%, which equates to a quarterly dividend payout of $1.34 per share and an annual total of $5.36 per share. And the company has increased its dividend payment for 34 consecutive years. While investors love the dividend payout, they also like that Chevron is an integrated oil producer, meaning it explores, extracts and refines the commodity.
With oil price holding steady above $80 a barrel, now is a good time to take a position in Chevron. Other reasons to be bullish on the San Ramon, California-based company include that management recently raised their annual share repurchase target to $3 billion to $5 billion of stock from a previous target of $2 billion to $3 billion.
Chevron is also efficiently run and has managed to lower its operating costs in recent years despite challenges posed by the pandemic. If that weren’t enough, Chevron has also committed to spend $10 billion through 2028 to lower the carbon intensity of its worldwide operations.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Dividend Stocks to Buy and Hold 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. | If there’s one drawback to investing in ABBV stock it is that the company is going to lose the patent exclusivity on its blockbuster medication Humira that is used to treat inflammatory bowel conditions, namely Crohn’s disease. Sales of Humira accounted for a third of AbbVie’s $14.4 billion in revenue during the third quarter of 2021, so the patent expiration in 2023 is going to be a big blow to the company’s finances and valuation moving forward. AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. | AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. In its nine years as a public company, ABBV stock has delivered a 300% return to shareholders, which is great in and of itself. However, AbbVie also pays a healthy 4.2% dividend yield and has grown its dividend at annualized rate of 18% over the past five years. | AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. In its nine years as a public company, ABBV stock has delivered a 300% return to shareholders, which is great in and of itself. However, AbbVie also pays a healthy 4.2% dividend yield and has grown its dividend at annualized rate of 18% over the past five years. | In its nine years as a public company, ABBV stock has delivered a 300% return to shareholders, which is great in and of itself. Sales of Humira accounted for a third of AbbVie’s $14.4 billion in revenue during the third quarter of 2021, so the patent expiration in 2023 is going to be a big blow to the company’s finances and valuation moving forward. AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. |
23689.0 | 2022-01-18 00:00:00 UTC | 7 of the Top-Rated Pharmaceutical Stocks for Q1 | ABBV | https://www.nasdaq.com/articles/7-of-the-top-rated-pharmaceutical-stocks-for-q1 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Pharmaceutical stocks haven’t really had much since the pandemic hit. Most of the talk has been about the companies in a race for vaccines or treatments and the companies that are distributing vaccines and treatments.
That hasn’t left a lot of space for other discussions. But that’s human nature, especially when a massive challenge like a global pandemic hits and the global economy seizes.
With the Omicron variant still raging, we’re almost two years out from the beginning of this health challenge. Fortunately, viruses usually have a virulent beginning and over time mutate into more livable inconveniences.
7 Long-Term Stocks to Buy and Hold Until 2030
This is the ideal time to refocus on my top-rated pharmaceutical stocks. They’re reasonably priced and still offer great growth opportunities as we enter a new stage of the market.
AbbVie (NYSE:ABBV)
Catalyst Pharmaceuticals (NASDAQ:CPRX)
Horizon Therapeutics (NASDAQ:HZNP)
Innoviva (NASDAQ:INVA)
Eli Lilly (NYSE:LLY)
Pfizer (NYSE:PFE)
Zoetis (NYSE:ZTS)
Pharmaceutical Stocks to Buy: AbbVie (ABBV)
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Source: Piotr Swat / Shutterstock.com
Last year, ABBV’s Humira was the no. 1 prescribed pharmaceutical in the world, generating $20 billion in revenue. And that kind of revenue has been flowing for over a decade now.
That’s a very impressive record and it has made ABBV one of the top pharmaceutical stocks in the world. What’s more, that kind of money is very helpful in generating the kind of money that helps grow a diverse and exciting pipeline of other drugs.
ABBV focuses on autoimmune-related diseases, of which most are chronic issues. That means managing a disease over long periods of time. And that means long-term revenue streams.
ABBV stock rose over 20% in the past 12 months. It also has a 4.15% dividend, which is a nice kicker for reinvesting dividends for the long haul.
This stock has a B rating in my Portfolio Grader.
Catalyst Pharmaceuticals (CPRX)
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Source: Pavel Kapysh / Shutterstock.com
Where ABBV has a market cap around $242 billion, CPRX has a market cap of just $616 million. It’s not one of the big pharmaceutical stocks, to say the least.
But it also has a very specific market and a go-to drug for patients with rare neurological diseases. It’s a niche few others have tried to enter, which makes CPRX a significant player in the space.
It has a partner that is also looking to move the drug into markets beyond US shores, which could be very lucrative. And as its drug Firdapse heads toward its patent cliff, CPRX is already developing a new and improved version to keep its primacy in the sector.
CPRX stock has gained nearly 80% in the past 12 months yet it still has a forward price-to-earnings (P/E) around 14. This a long-term choice for its growth potential or possible sale to a big pharma at a premium.
7 Undervalued Stocks to Buy Before Wall Street Catches On
This stock has an A rating in my Portfolio Grader.
Pharmaceutical Stocks to Buy: Horizon Therapeutics (HZNP)
Source: luchschenF / Shutterstock.com
Moving into its second decade, HZNP is an Ireland-based pharmaceutical firm with a $20 billion market cap that has a number of drugs in the market and a healthy pipeline. It focuses on the orphan and rheumatology treatment areas.
While located in Ireland, HZNP does almost all its business in the U.S., with a few drugs also available outside the U.S. The sectors it focuses on allow it to explore therapies that don’t have much – or any – competition, which makes it a sure bet in its fields. Pricing drugs for orphan diseases have more elasticity as well, another benefit for HZNP.
HZNP stock is up 13% in the past 12 months, and it has a very strong pipeline that makes it very attractive for the long term.
This stock has a B rating in my Portfolio Grader.
Innoviva (INVA)
Source: Bukhta Yurii / Shutterstock.com
Wouldn’t it be nice if someone came into your house and found all the things you’ve forgotten about over the years, package and sell them to people that actually want them, and then split the profits with you?
Essentially that’s the business INVA is in with pharmaceutical companies. It finds drugs that are sitting in the back of these pharmaceutical stocks’ closets and repackages them to sell. It then gives its pharma clients a cut of the proceeds.
It’s an interesting model, and INVA has been doing it since the mid-1990s, so it’s good at what it does.
It’s a small company, with a $1 billion market cap. However, its services are gaining attention. INVA stock is up 32% in the past 12 months, yet it trades at a P/E of less than 6.
7 Cooling Mega-Cap Stocks to Avoid for Now
This stock has an A rating in my Portfolio Grader.
Pharmaceutical Stocks to Buy: Eli Lilly (LLY)
Source: Jonathan Weiss / Shutterstock.com
One of the bluest of the blue chip pharmaceutical stocks is LLY. It has been around since 1876 and has a market cap that rivals ABBV. It’s in some rarified air to be sure.
In 1923, LLY marketed Iletin, the first commercially available insulin product. LLY continues to be a leader in diabetes medicines with its current top seller, Trulicity.
It was also the first company to produce and distribute Dr. Jonas Salk’s polio vaccine. Humulin, Prozac, Cymbalta, Zyprexa and many other drugs make up its massive portfolio.
LLY stock has gained 28% in the past 12 months, but has slid slightly in 2022. It’s a bit expensive now, but it will certainly see more investor interest as tech stocks and vaccine stocks lose their allure for solid long-term growth stocks with solid earnings.
This stock has an A rating in my Portfolio Grader.
Pfizer (PFE)
Source: Manuel Esteban / Shutterstock.com
PFE is even older than LLY, starting in 1849, and I think it’s fair to say most people in the world know at least one product PFE makes these days.
But it’s first big achievement was manufacturing citric acid and ascorbic acid (vitamin C) from sugar. That technological achievement had a massive impact on the citric acid market, which is still used widely as a preservative.
By the 1940s it was the leading producer of penicillin for use during WWII. A decade later, it was producing Terramycin, a broad-based antibiotic. And of course by the turn of the century PFE launched Viagra. And there have been plenty of drugs before and since.
PFE stock meanwhile has had quite a year with plenty more to go. The stock has gained 50% in the past 12 months, yet it trades at a P/E of just below 16, and has a nearly 3% dividend to boot.
7 Stocks to Buy Under $10 in January
This stock has an A rating in my Portfolio Grader.
Pharmaceutical Stocks to Buy: Zoetis (ZTS)
Source: JHVEPhoto / Shutterstock.com
While many people immediately think of pharmaceutical stocks being all about humans, the fact is there’s a huge market for pharmaceuticals for companion pets, as well as livestock.
PFE actually has a significant division dedicated to animal health. It’s also a good way to test drugs for human use or multiple uses as well. But ZTS specializes in animal health medicines and vaccines.
You may recall that in 2019, one of the big stories was about the spread of African Swine Flu to pig farms, particularly in China. It was a massive economic issue in China, as well as globally. ZTS was already developing a vaccine.
And given the increasing frequency of diseases crossing from birds, pigs and other animals to humans, keeping healthy animals around us is vital to our physical and economic health. ZTS is one of the top animal health pharmaceutical stocks in the world and its products are in rising demand.
ZTS stock has gained 28% in the past year, and that’s after losing 16% year-to-date. It’s a bit expensive here, but earnings will certainly catch up when the global economy revs up again.
This stock has a B rating in my Portfolio Grader.
On the date of publication, Louis Navellier had long positions in ABBV, HZNP 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.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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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) Catalyst Pharmaceuticals (NASDAQ:CPRX) Horizon Therapeutics (NASDAQ:HZNP) Innoviva (NASDAQ:INVA) Eli Lilly (NYSE:LLY) Pfizer (NYSE:PFE) Zoetis (NYSE:ZTS) Pharmaceutical Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Last year, ABBV’s Humira was the no. That’s a very impressive record and it has made ABBV one of the top pharmaceutical stocks in the world. ABBV focuses on autoimmune-related diseases, of which most are chronic issues. | AbbVie (NYSE:ABBV) Catalyst Pharmaceuticals (NASDAQ:CPRX) Horizon Therapeutics (NASDAQ:HZNP) Innoviva (NASDAQ:INVA) Eli Lilly (NYSE:LLY) Pfizer (NYSE:PFE) Zoetis (NYSE:ZTS) Pharmaceutical Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Last year, ABBV’s Humira was the no. That’s a very impressive record and it has made ABBV one of the top pharmaceutical stocks in the world. ABBV focuses on autoimmune-related diseases, of which most are chronic issues. | AbbVie (NYSE:ABBV) Catalyst Pharmaceuticals (NASDAQ:CPRX) Horizon Therapeutics (NASDAQ:HZNP) Innoviva (NASDAQ:INVA) Eli Lilly (NYSE:LLY) Pfizer (NYSE:PFE) Zoetis (NYSE:ZTS) Pharmaceutical Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Last year, ABBV’s Humira was the no. That’s a very impressive record and it has made ABBV one of the top pharmaceutical stocks in the world. ABBV focuses on autoimmune-related diseases, of which most are chronic issues. | AbbVie (NYSE:ABBV) Catalyst Pharmaceuticals (NASDAQ:CPRX) Horizon Therapeutics (NASDAQ:HZNP) Innoviva (NASDAQ:INVA) Eli Lilly (NYSE:LLY) Pfizer (NYSE:PFE) Zoetis (NYSE:ZTS) Pharmaceutical Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Last year, ABBV’s Humira was the no. That’s a very impressive record and it has made ABBV one of the top pharmaceutical stocks in the world. ABBV focuses on autoimmune-related diseases, of which most are chronic issues. |
23690.0 | 2022-01-18 00:00:00 UTC | Noteworthy ETF Inflows: VYM, VZ, ABBV, KO | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-vym-vz-abbv-ko | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $1.2 billion dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 370,014,283 to 380,535,703). Among the largest underlying components of VYM, in trading today Verizon Communications Inc (Symbol: VZ) is off about 1.1%, AbbVie Inc (Symbol: ABBV) is off about 0.3%, and Coca-Cola Co (Symbol: KO) is lower by about 1.2%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average:
Looking at the chart above, VYM's low point in its 52 week range is $90.62 per share, with $115.66 as the 52 week high point — that compares with a last trade of $113.20. 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 VYM, in trading today Verizon Communications Inc (Symbol: VZ) is off about 1.1%, AbbVie Inc (Symbol: ABBV) is off about 0.3%, and Coca-Cola Co (Symbol: KO) is lower by about 1.2%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $90.62 per share, with $115.66 as the 52 week high point — that compares with a last trade of $113.20. 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 VYM, in trading today Verizon Communications Inc (Symbol: VZ) is off about 1.1%, AbbVie Inc (Symbol: ABBV) is off about 0.3%, and Coca-Cola Co (Symbol: KO) is lower by about 1.2%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $90.62 per share, with $115.66 as the 52 week high point — that compares with a last trade of $113.20. 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 VYM, in trading today Verizon Communications Inc (Symbol: VZ) is off about 1.1%, AbbVie Inc (Symbol: ABBV) is off about 0.3%, and Coca-Cola Co (Symbol: KO) is lower 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 Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $1.2 billion dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 370,014,283 to 380,535,703). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $90.62 per share, with $115.66 as the 52 week high point — that compares with a last trade of $113.20. | Among the largest underlying components of VYM, in trading today Verizon Communications Inc (Symbol: VZ) is off about 1.1%, AbbVie Inc (Symbol: ABBV) is off about 0.3%, and Coca-Cola Co (Symbol: KO) is lower 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 Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $1.2 billion dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 370,014,283 to 380,535,703). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $90.62 per share, with $115.66 as the 52 week high point — that compares with a last trade of $113.20. |
23691.0 | 2022-01-18 00:00:00 UTC | Zacks Industry Outlook Highlights: Roche, Pfizer, AbbVie and Merck | ABBV | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-roche-pfizer-abbvie-and-merck | nan | nan | For Immediate Release
Chicago, IL – January 18, 2022 – Today, Zacks Equity Research discusses Roche RHHBY, Pfizer PFE, AbbVie ABBV and Merck MRK.
Industry: Big Pharma
Link:https://www.zacks.com/commentary/1851984/3-medical-services-stocks-to-buy-despite-near-term-industry-woes
The drug and biotech sectors remained in the limelight in 2021. The pharma, biotech and medical devices companies played a vital role in 2021, by bringing the pandemic slightly under control through the development of vaccines, diagnostic tests and medicines/antibodies to treat COVID-19. The vaccines allowed global economies to recover to some extent.
Just when things looked somewhat under control, the highly contagious Omicron variant of the virus struck toward the end of 2021, throwing the world into disarray again. Infection rates are rising to record highs globally and Omicron is already doing economic damage.
However, Omicron is expected to pass quickly and growth is expected to rebound in the second quarter of the year. It looks like drug/biotech and medical device companies will continue to remain in the spotlight in 2022. Among the large drugmakers Roche, Pfizer, AbbVie and Merck are worth retaining in your portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that develop multi-million dollar drugs for a broad range of therapeutic areas such as neuroscience, cardiovascular and metabolism, rare diseases, immunology, and oncology. Some of these companies also make vaccines, animal health, medical devices, and consumer-related healthcare products.
All these players invest millions of dollars into their product pipelines and line extensions of their already marketed drugs. Continuous innovation is a defining characteristic of pharma companies and these large drugmakers are constantly investing in drug development and the discovery of new medicines. Regular mergers and acquisitions and collaboration deals are another key feature of large drug companies.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success:For big drugmakers, innovation in their pipeline is a competitive necessity and key to top-line growth. Pharma companies are constantly striving to ramp up innovation and spending a significantly high portion of their revenues on R&D. Successful innovation and product line extensions in important therapeutic areas and strong clinical study results may act as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activity. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies sitting on huge piles of cash regularly buy innovative small/mid-cap biotech companies to build out their pipelines.
Also, the imperfect sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices, and the emergence of big tech firms like Apple and Google in the healthcare industry whet the M&A appetite of large drugmakers. In 2021, M&A activity in pharma and biotech recovered after a dull 2020 when deal-making was hurt by pandemic-led disruption. Though deals were not as plentiful as 2018 and 2019 and there were no mega-mergers, most of the M&A deals of 2021 were valued at more than $1 billion.
It is expected that M&A activity will pick up significantly in 2022. The fast-growing and lucrative markets such as oncology and cell and gene therapy are likely to remain focus areas for M&A activities. Also, collaborations and partnerships with smaller companies are in full swing.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share price. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments, and a slowdown in sales of some of the most high-profile older drugs.
Uncertainty Surrounding the Pandemic: The pandemic has hurt demand trends of physician-administered drugs of most companies. There is still uncertainty about the duration and contemplated impact of the pandemic on the companies’ results and outlook with the recent surge of the heavily-mutated Omicron variant. The spread of Omicron has hurt financial markets. Governments around the world have tightened travel and workplace restrictions.
Zacks Industry Rank Indicates Gloomy Prospects
The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #219, which places it in the bottom 14% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s performance and its current valuation.
Industry Versus S&P 500 & Sector
The Zacks Large Cap Pharmaceuticals industry is a 14-stock group within the broader Medical sector. It has underperformed the S&P 500 but outperformed the Zacks Medical Sector in the past year.
Stocks in this industry have collectively risen 18.6% in the past year compared with the Zacks S&P 500 composite’s rise of 26.2%. The Zacks Medical Sector has declined 16.1% in the said time frame.
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 14.03X compared with the S&P 500’s 21.26X and the Zacks Medical sector's 20.8X.
Over the last five years, the industry has traded as high as 16.00X, as low as 13.18X and at a median of 14.91X.
4 Large Drugmakers to Keep an Eye On
Pfizer: Pfizer has been riding high on the success of its two-shot vaccine for COVID-19, Comirnaty, which it developed in partnership with Germany-based company, BioNTech. The vaccine was developed in record time and is now approved for emergency/temporary use in several countries worldwide and fully approved in the United States. Pfizer/BioNTech’s vaccine was approved for younger patients (5-17 years) while a booster vaccine dose was also approved in the United States in 2021.
Pfizer and BioNTech’s Comirnaty has become a key contributor to the top line. In the last week of December 2021, the FDA granted Emergency Use Authorization (EUA) to Pfizer’s promising oral antiviral candidate for COVID-19, Paxlovid, for the treatment of mild-to-moderate COVID-19 in adult and pediatric patients at increased risk of hospitalizations or death.
In other pipeline successes, Pfizer’s Prevnar-20, a 20-valent pneumococcal conjugate vaccine, was approved in the United States in 2021. Pfizer is also due to acquire Arena Pharmaceuticals for $100 per share or $6.7 billion in an all-cash deal.
Pfizer may as well make another bolt-on acquisition announcement next year, given its strong cash position after the success of Comirnaty.
We believe that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. While the vaccine should continue to boost revenues in 2022, Paxlovid should also become an important top-line driver, with sharply rising infection cases due to the Omicron variant. Paxlovid is expected to work well against the Omicron variant, while most of the monoclonal antibody drugs appear to be largely ineffective against the same.
Pfizer has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for this New York-based drugmaker’s 2022 EPS has risen 50.3% over the past 60 days. The stock has risen 55.6% in the past year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AbbVie: AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. AbbVie’s acquisition of Allergan significantly expanded and diversified its revenue base with new therapeutic areas enhancing its long-term growth potential.
AbbVie has built a substantial oncology franchise with Imbruvica and Venclexta. It expects oncology to be its major growth driver over the next 10 years. Label expansion approvals in the past couple of years have expanded the eligible patient population of Venclexta and Imbruvica significantly, which is boosting sales from the drugs.
It has several new drugs in its portfolio like immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib), which have the potential to drive revenues once blockbuster drug Humira loses U.S. exclusivity in 2023. AbbVie also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential.
AbbVie has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for this Lake Bluff, IL-based drugmaker’s 2022 EPS has risen 0.7% over the past 60 days. The stock has risen 28.7% in the past year.
Merck: Merck has a Zacks Rank #3 (Hold). The company boasts more than six blockbuster drugs in its portfolio with a PD-L1 inhibitor, Keytruda, approved for several types of cancer, alone accounting for more than 25% of its pharmaceutical sales. Its drugs Keytruda, Lynparza and Bridion have been driving sales.
Keytruda has played an instrumental role in driving Merck’s steady revenue growth in the past few years. Keytruda sales are gaining from continued uptake in lung cancer and increasing usage in other cancer indications. Merck’s Animal health and vaccine products remain core growth drivers.
Sales of Merck’s physician-administered drugs and vaccines are recovering from the impact of the pandemic. Merck also boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth. In June 2021, Merck spun off products from its Women’s Health unit, legacy drugs and biosimilar products into a new publicly-traded company called Organon & Co.
The separation into two companies should enable Merck to achieve higher profits than the combined company.
Shares of this New Jersey-based drugmaker have risen 6% in the past year. The Zacks Consensus Estimate for 2022 EPS has been revised 3.9% upward over the past 60 days.
Roche: Roche’s performance in 2021 was encouraging with the core pharmaceuticals business showing signs of recovery from COVID-19 disruptions. The diagnostics division maintained its stellar performance on strong demand for COVID-19 tests due to the Delta variant and other diagnostics platforms. Strong growth in Ocrevus, Evrysdi, Tecentriq and Hemlibra continues to counter biosimilar competition for legacy drugs like Herceptin, Avastin and MabThera.
The approval of new drugs should also boost the top line. The Diagnostics segment’s strong performance is likely to continue as Roche launched additional products in the year. Shares of this Swiss drugmaker have risen 15% in the past year. The Zacks Consensus Estimate for 2022 EPS has been revised 5.8% upward over the past 60 days. Roche is a #3 Ranked stock.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Roche Holding AG (RHHBY): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – January 18, 2022 – Today, Zacks Equity Research discusses Roche RHHBY, Pfizer PFE, AbbVie ABBV and Merck MRK. Among the large drugmakers Roche, Pfizer, AbbVie and Merck are worth retaining in your portfolio. AbbVie: AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | For Immediate Release Chicago, IL – January 18, 2022 – Today, Zacks Equity Research discusses Roche RHHBY, Pfizer PFE, AbbVie ABBV and Merck MRK. Among the large drugmakers Roche, Pfizer, AbbVie and Merck are worth retaining in your portfolio. AbbVie: AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | For Immediate Release Chicago, IL – January 18, 2022 – Today, Zacks Equity Research discusses Roche RHHBY, Pfizer PFE, AbbVie ABBV and Merck MRK. Among the large drugmakers Roche, Pfizer, AbbVie and Merck are worth retaining in your portfolio. AbbVie: AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | For Immediate Release Chicago, IL – January 18, 2022 – Today, Zacks Equity Research discusses Roche RHHBY, Pfizer PFE, AbbVie ABBV and Merck MRK. Among the large drugmakers Roche, Pfizer, AbbVie and Merck are worth retaining in your portfolio. AbbVie: AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. |
23692.0 | 2022-01-17 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-0 | nan | nan | AbbVie (ABBV) closed at $135.87 in the latest trading session, marking a +1.76% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Prior to today's trading, shares of the drugmaker had gained 4.89% over the past month. This has outpaced the Medical sector's loss of 3.56% and the S&P 500's gain of 0.64% 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 February 2, 2022. On that day, AbbVie is projected to report earnings of $3.29 per share, which would represent year-over-year growth of 12.67%. Meanwhile, our latest consensus estimate is calling for revenue of $15.07 billion, up 8.72% from the prior-year quarter.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. AbbVie is currently a Zacks Rank #2 (Buy).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 30.22. This represents a premium compared to its industry's average Forward P/E of 13.12.
It is also worth noting that ABBV currently has a PEG ratio of 6.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.03 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 219, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
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Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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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. | AbbVie (ABBV) closed at $135.87 in the latest trading session, marking a +1.76% move from the prior 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 $3.29 per share, which would represent year-over-year growth of 12.67%. | AbbVie (ABBV) closed at $135.87 in the latest trading session, marking a +1.76% move from the prior 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 $3.29 per share, which would represent year-over-year growth of 12.67%. | AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie (ABBV) closed at $135.87 in the latest trading session, marking a +1.76% move from the prior 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 $3.29 per share, which would represent year-over-year growth of 12.67%. AbbVie (ABBV) closed at $135.87 in the latest trading session, marking a +1.76% move from the prior day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. |
23693.0 | 2022-01-17 00:00:00 UTC | AbbVie's (ABBV) Rinvoq Gets FDA Nod for Atopic Dermatitis | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-rinvoq-gets-fda-nod-for-atopic-dermatitis | nan | nan | AbbVie Inc. ABBV announced that the FDA has approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication. The drug is now approved for the treatment of moderate to severe atopic dermatitis (“AD”) in adults and children aged 12 years and above whose disease did not respond to previous treatment and is not well controlled by other pills or injections, including biologic medicines, or when use of other pills or injections are not recommended. This marks the third approved indication for Rinvoq in the United States.
The latest FDA nod was based on efficacy and safety data from one of the largest registrational phase III programs that evaluated Rinvoq (15 mg and 30 mg) for AD in more than 2,500 patients across three studies.
In the studies, treatment with Rinvoq resulted in significant improvement in itch as early as week one and significant improvement in skin clearance as compared to placebo at 16 weeks. Also, treatment with Rinvoq led to significantly higher levels of skin clearance versus placebo at 16 weeks.
Rinvoq (15 mg) is approved in the United States for treating moderate-to-severe rheumatoid arthritis (“RA”) in adults who has had an inadequate response or intolerance to one or more tumor necrosis factor (“TNF”) blockers. In December 2021, the FDA approved Rinvoq for its second indication – treatment of adults with active psoriatic arthritis (PsA) who had an inadequate response or intolerance to one or more TNF blockers.
Shares of AbbVie have rallied 23% in the past year compared with the industry’s increase of 14.8%.
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Last month, AbbVie announced an update to the prescribing information for Rinvoq for the treatment of adults with moderate-to-severe RA. The update followed a Drug Safety Communication (“DSC”) issued by the FDA in September 2021. Per the new label update for Rinvoq, the FDA has limited approved use of the drug to certain RA patients who have not responded or cannot tolerate one or more TNF blockers.
In September 2021, the FDA issued a DSC to include warnings about an increased risk of serious heart-related events, cancer, blood clots and even death, to be added to the label of three JAK inhibitor drugs — including Pfizer’s PFE Xeljanz, Rinvoq and Eli Lilly LLY /Incyte’s INCY Olumiant (baricitinib) — in patients for RA.
The decision was based on the FDA’s review of a post-marketing study on Pfizer’s Xeljanz in patients with RA. The FDA limited the use of the JAK inhibitor drugs to certain patients who have not responded to or cannot tolerate one or more TNF blockers. Last year, the FDA delayed decisions for three additional indications for Rinvoq, including PsA, ankylosing spondylitis (“AS”) and moderate-to-severe AD, due to the ongoing review of the Xeljanz’s safety study.
In Europe Rinvoq is approved for treating four indications — RA, AD, PsA and AS. It is under regulatory review in the United States as well as Europe for ulcerative colitis. Rinvoq is also being studied in late-stage studies for Crohn’s disease and giant-cell arteritis.
Pfizer’s Xeljanz is approved to treat RA, PsA, ulcerative colitis and AS. Last week, the FDA approved Pfizer’s JAK inhibitor, Cibinqo (abrocitinib), for the treatment of adults with refractory, moderate-to-severe AD.
Eli Lilly/Incyte’s Olumiant (baricitinib) is approved for treating RA and COVID-19 (hospitalized patients). In Europe, baricitinib is approved for AD and is under review for the same in the United States. Lilly/Incyte’s baricitinib is also under review for severe alopecia areata and in phase III studies systemic lupus erythematosus.
Zacks Rank
AbbVie currently has a Zacks Rank #2 (Buy). 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. | AbbVie Inc. ABBV announced that the FDA has approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication. Shares of AbbVie have rallied 23% in the past year compared with the industry’s increase of 14.8%. Image Source: Zacks Investment Research Last month, AbbVie announced an update to the prescribing information for Rinvoq for the treatment of adults with moderate-to-severe RA. | AbbVie Inc. ABBV announced that the FDA has approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication. Shares of AbbVie have rallied 23% in the past year compared with the industry’s increase of 14.8%. Image Source: Zacks Investment Research Last month, AbbVie announced an update to the prescribing information for Rinvoq for the treatment of adults with moderate-to-severe RA. | AbbVie Inc. ABBV announced that the FDA has approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication. Shares of AbbVie have rallied 23% in the past year compared with the industry’s increase of 14.8%. Image Source: Zacks Investment Research Last month, AbbVie announced an update to the prescribing information for Rinvoq for the treatment of adults with moderate-to-severe RA. | AbbVie Inc. ABBV announced that the FDA has approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication. Shares of AbbVie have rallied 23% in the past year compared with the industry’s increase of 14.8%. Image Source: Zacks Investment Research Last month, AbbVie announced an update to the prescribing information for Rinvoq for the treatment of adults with moderate-to-severe RA. |
23694.0 | 2022-01-17 00:00:00 UTC | Pfizer's (PFE) Cibinqo Gets FDA Nod for Atopic Dermatitis | ABBV | https://www.nasdaq.com/articles/pfizers-pfe-cibinqo-gets-fda-nod-for-atopic-dermatitis | nan | nan | Pfizer Inc. PFE announced that the FDA has approved its oral, once-daily, JAK1 inhibitor, Cibinqo (abrocitinib), for the treatment of refractory moderate-to-severe atopic dermatitis (AD) — also called eczema — in adult patients who did not respond to treatment with other drugs or when the use of other treatments is not recommended. Cibinqo is already approved in Europe, U.K. and Japan.
Cibinqo has been approved at two dose levels for the given indication - 100 mg and 200 mg. The 200 mg dose is to be prescribed when patients do not respond to treatment with 100 mg dose. The FDA has also approved a third dose level of 50 mg to treat AD patients specifically with moderate renal impairment (kidney failure), patients receiving treatment with inhibitors of cytochrome P450 (CYP) 2C19 or patients who have a poor metabolism of CYP2C19.
The FDA approval for Cibinqo is based on data from five clinical studies that evaluated Cibinqo in more than 1,600 patients. One of the studies also compared the drug with Sanofi SNY and Regeneron’s REGN blockbuster AD drug, Dupixent (dupilumab). Data from all these studies demonstrated that treatment with Cibinqo improved disease severity, itch and skin clearance.
Shares of Pfizer have surged 49.7% in the trailing 12 months compared with the industry’s 14.7% rise.
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We remind investors that the approval for Cibinqo in AD comes after the FDA extended the review period of the regulatory application seeking approval for abrocitinib twice in the last year.
This delay was due to the FDA’s review of the final data from the post-marketing safety study of Pfizer’s another JAK inhibitor, Xeljanz, in rheumatoid arthritis (RA). The FDA’s review concluded that patients treated with both low and high doses of Xeljanz experienced a higher rate of serious heart-related events such as heart attack, stroke, cancer, blood clots, and death compared to those treated with tumor necrosis factor (TNF) inhibitors. Hence, the FDA limited the use of Xeljanz to certain patients who have not responded to or cannot tolerate one or more TNF blockers and issued a directive last September to add warnings about these increased risks on Xeljanz’s label
This FDA directive was also extended to the labels of other JAK inhibitors medications, AbbVie’s ABBV Rinvoq and Eli Lilly’s Olumiant, both of which are approved for RA indication.
Last week, the FDA also granted label expansion to AbbVie’s Rinvoq to treat moderate-to-severe AD in adults and children aged 12 years and above who did not respond to treatment with other drugs or when the use of other treatments is not recommended.
Last month, AbbVie received FDA approval for Rinvoq in active psoriatic arthritis indication.
We note that dupilumab is a fully human monoclonal antibody developed by Regeneron in partnership with Sanofi as part of a global collaboration agreement. Both Cibinqo and Rinvoq face stiff competition from Regeneron/Sanofi’s Dupixent, which has already been approved by the FDA to treat moderate-to-severe atopic dermatitis in patients aged six years and older.
Pfizer Inc. Price
Pfizer Inc. price | Pfizer Inc. Quote
Zacks Rank
Pfizer carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Hence, the FDA limited the use of Xeljanz to certain patients who have not responded to or cannot tolerate one or more TNF blockers and issued a directive last September to add warnings about these increased risks on Xeljanz’s label This FDA directive was also extended to the labels of other JAK inhibitors medications, AbbVie’s ABBV Rinvoq and Eli Lilly’s Olumiant, both of which are approved for RA indication. Last week, the FDA also granted label expansion to AbbVie’s Rinvoq to treat moderate-to-severe AD in adults and children aged 12 years and above who did not respond to treatment with other drugs or when the use of other treatments is not recommended. Last month, AbbVie received FDA approval for Rinvoq in active psoriatic arthritis indication. | Hence, the FDA limited the use of Xeljanz to certain patients who have not responded to or cannot tolerate one or more TNF blockers and issued a directive last September to add warnings about these increased risks on Xeljanz’s label This FDA directive was also extended to the labels of other JAK inhibitors medications, AbbVie’s ABBV Rinvoq and Eli Lilly’s Olumiant, both of which are approved for RA indication. Last week, the FDA also granted label expansion to AbbVie’s Rinvoq to treat moderate-to-severe AD in adults and children aged 12 years and above who did not respond to treatment with other drugs or when the use of other treatments is not recommended. Last month, AbbVie received FDA approval for Rinvoq in active psoriatic arthritis indication. | Hence, the FDA limited the use of Xeljanz to certain patients who have not responded to or cannot tolerate one or more TNF blockers and issued a directive last September to add warnings about these increased risks on Xeljanz’s label This FDA directive was also extended to the labels of other JAK inhibitors medications, AbbVie’s ABBV Rinvoq and Eli Lilly’s Olumiant, both of which are approved for RA indication. Last week, the FDA also granted label expansion to AbbVie’s Rinvoq to treat moderate-to-severe AD in adults and children aged 12 years and above who did not respond to treatment with other drugs or when the use of other treatments is not recommended. Last month, AbbVie received FDA approval for Rinvoq in active psoriatic arthritis indication. | Hence, the FDA limited the use of Xeljanz to certain patients who have not responded to or cannot tolerate one or more TNF blockers and issued a directive last September to add warnings about these increased risks on Xeljanz’s label This FDA directive was also extended to the labels of other JAK inhibitors medications, AbbVie’s ABBV Rinvoq and Eli Lilly’s Olumiant, both of which are approved for RA indication. Last week, the FDA also granted label expansion to AbbVie’s Rinvoq to treat moderate-to-severe AD in adults and children aged 12 years and above who did not respond to treatment with other drugs or when the use of other treatments is not recommended. Last month, AbbVie received FDA approval for Rinvoq in active psoriatic arthritis indication. |
23695.0 | 2022-01-17 00:00:00 UTC | The Zacks Analyst Blog Highlights: Pfizer (PFE), Beam Therapeutics, AbbVie, Merck and Glaxo | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-pfizer-pfe-beam-therapeutics-abbvie-merck-and-glaxo | nan | nan | For Immediate Release
Chicago, IL – January 17, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Pfizer PFE, Beam Therapeutics BEAM,AbbVie ABBV, Merck’s (MRK) and Glaxo GSK.
Pharma Stock Roundup: Pfizer's New Research Deal and More
This week, Pfizer signed a multi-target research collaboration with Beam Therapeutics. AbbVie maintained its long-term sales outlook for the two most promising new drugs, Skyrizi and Rinvoq. Merck’s blockbuster PD-L1 inhibitor, Keytruda reduced the risk of disease recurrence or death after surgery in a late-stage study in patients with stage IB-IIIA non-small cell lung cancer (NSCLC). Glaxo and partner Vir Biotech announced a new U.S government order for their COVID-19 medicine, sotrovimab
Recap of the Week’s Most Important Stories
Pfizer’s Drug Development Deal With Beam Therapeutics: Pfizer signed an exclusive four-year agreement with gene editing company, Beam Therapeutics to develop in-vivo base editing therapies for three targets for rare genetic diseases of the liver, muscle and central nervous system. The potentially transformative base editing therapies will be developed by leveraging Beam Therapeutics’ proprietary in-vivo messenger RNA (mRNA), lipid nanoparticles (LNP) delivery technologies. For the partnership, Beam will receive an upfront payment of $300 million, while also being eligible to receive future milestone payments of up to $1.05 billion.
Pfizer announced positive top-line data from a phase III study evaluating a combination of its newly approved 20-valent pneumococcal conjugate vaccine, Prevnar-20 with COVID-19 vaccine. The data showed that its COVID-19 vaccine or booster andPrevnar-20 given at the same time elicited the same responses.
AbbVie Retains Rinvoq/Skyrizi Combined Guidance: AbbVie retained its previously issued combined sales (risk-adjusted) guidance for Skyrizi and Rinvoq. It expects combined sales to be more than $15 billion by 2025. Sales of both Skyrizi and Rinvoq are expected to be greater than $7.5 billion each.
For the JAK inhibitor drug, Rinvoq, higher anticipated sales in international markets and higher potential revenues from Crohn's disease and ulcerative colitis indications are expected to make up for lower-than-previously expected sales in the United States due to some warnings added on the U.S. label.
While regulatory applications have been filed in the United States and EU for the UC indication, Rinvoq is in late-stage development for Crohn’s disease. Strong performance in psoriasis is expected to continue driving Skyrizi sales growth.
AbbVie has submitted regulatory applications to the FDA and European Medicines Agency (EMA) seeking approval of Rinvoq (upadacitinib) for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA). The latest applications seeking approval of Rinvoq for nr-axSpA were based on data from the phase III SELECT-AXIS 2 (Study 2) study.
Axial spondyloarthritis is a chronic inflammatory disease that affects the spine and consists of two sub-groups, ankylosing spondylitis (AS) and nr-axSpA. Regulatory applications seeking approval of Rinvoq for AS are under review in the United States while the drug is approved for this indication in Europe.
Merck’s Keytruda Study for Adjuvant Lung Cancer Meets One Goal: Merck’s phase III study evaluating Keytruda for adjuvant stage IB-IIIA non-small cell lung cancer (NSCLC), regardless of PD-L1 expression, meets one of its dual primary endpoints of disease-free survival (DFS). Interim data from the study showed that treatment with Keytruda led to a statistically significant and clinically meaningful improvement in DFS compared with placebo in the all-comer population of patients with stage IB-IIIA NSCLC.
In the interim analysis, conducted by an independent Data Monitoring Committee, an improvement in DFS was also observed in patients whose tumors express PD-L1 (tumor proportion score [TPS] ≥50%) who were treated with Keytruda versus placebo.
New U.S Government Order for Glaxo/Vir’s Sotrovimab: Glaxo and partner Vir Biotech announced a new contract to supply an additional 600,000 doses of their monoclonal antibody treatment for COVID-19, sotrovimab to the U.S. government. The FDA granted EUA to Glaxo/Vir’s sotrovimab in May 2021. The additional 600,000 doses will be delivered throughout the first quarter of 2022. Including the latest agreement, Glaxo and Vir have received binding orders for the sale of approximately 1.7 million doses of sotrovimab worldwide.
The NYSE ARCA Pharmaceutical Index declined 0.2% in the last five trading sessions.
In the last five trading sessions, Merck rose the most (2.9%) while Lilly declined the most (3.8%).
In the past six months, Pfizer recorded the maximum gain (40.7%) while Novartis declined the most (0.7%)
(See the last pharma stock roundup here: FDA Nod to PFE Booster for Age 12-15, Breakthrough Tag to ABBV Drug)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates this
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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 has submitted regulatory applications to the FDA and European Medicines Agency (EMA) seeking approval of Rinvoq (upadacitinib) for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA). Stocks recently featured in the blog include: Pfizer PFE, Beam Therapeutics BEAM,AbbVie ABBV, Merck’s (MRK) and Glaxo GSK. AbbVie maintained its long-term sales outlook for the two most promising new drugs, Skyrizi and Rinvoq. | Stocks recently featured in the blog include: Pfizer PFE, Beam Therapeutics BEAM,AbbVie ABBV, Merck’s (MRK) and Glaxo GSK. AbbVie maintained its long-term sales outlook for the two most promising new drugs, Skyrizi and Rinvoq. AbbVie Retains Rinvoq/Skyrizi Combined Guidance: AbbVie retained its previously issued combined sales (risk-adjusted) guidance for Skyrizi and Rinvoq. | Stocks recently featured in the blog include: Pfizer PFE, Beam Therapeutics BEAM,AbbVie ABBV, Merck’s (MRK) and Glaxo GSK. AbbVie maintained its long-term sales outlook for the two most promising new drugs, Skyrizi and Rinvoq. AbbVie Retains Rinvoq/Skyrizi Combined Guidance: AbbVie retained its previously issued combined sales (risk-adjusted) guidance for Skyrizi and Rinvoq. | Stocks recently featured in the blog include: Pfizer PFE, Beam Therapeutics BEAM,AbbVie ABBV, Merck’s (MRK) and Glaxo GSK. AbbVie maintained its long-term sales outlook for the two most promising new drugs, Skyrizi and Rinvoq. AbbVie Retains Rinvoq/Skyrizi Combined Guidance: AbbVie retained its previously issued combined sales (risk-adjusted) guidance for Skyrizi and Rinvoq. |
23696.0 | 2022-01-17 00:00:00 UTC | Is AbbVie a Good Dividend Stock to Buy Right Now? | ABBV | https://www.nasdaq.com/articles/is-abbvie-a-good-dividend-stock-to-buy-right-now | nan | nan | If you're looking for better-than-average dividend yields, there's a pharmaceutical stock you need to take a look at. At recent prices, AbbVie (NYSE: ABBV) offers a 4.1% dividend yield that's impossible to ignore.
Over the past year, the average dividend-paying stock in the S&P 500 index delivered a lousy 1.3% yield. If the big yield AbbVie offers seems a little too good to be true, it's because there's a catch.
Image source: Getty Images.
Why the above-average yield?
In a nutshell, fear of declining sales for AbbVie's lead drug, Humira, is the reason AbbVie offers a huge dividend yield that is more than double the benchmark average. It's been 20 years since the FDA first approved this injectable drug for the treatment of rheumatoid arthritis. U.S. Humira sales contributed $4.6 billion to AbbVie's top line during the third quarter, so replacing lost revenue from this drug is going to be a major challenge.
Biosimilar competition in the EU broke through the thicket of patents AbbVie built around Humira in 2018. As a result, international sales fell from $4.9 billion in the first nine months of 2018 to $2.6 billion in the first nine months of 2021.
The FDA has already approved several biosimilar versions of Humira, including Amjevita from Amgen, which is expected to launch in early 2023. By the end of 2023, AbbVie will have to contend with at least half a dozen more Humira biosimilars.
Rinvoq and Skyrizi to the rescue
It's hard to know how far Humira sales could fall over the next few years. That said, we can be fairly certain it won't stop AbbVie from making and raising its dividend payout. That's partly because a pair of more recently launched anti-inflammatory drugs are poised to offset the losses.
Rinvoq is a treatment for rheumatoid arthritis that AbbVie launched in 2019. The once-daily tablet is already so popular that sales reached $1.7 billion last year. Skyrizi also launched in 2019 as a treatment for psoriasis and it's rising straight to the top. This is an antibody that patients only need to inject once every 12 weeks to keep their skin clear.
Skyrizi has quickly become one of the most popular drugs in the psoriasis space with $2.9 billion in sales last year. Label expansions in and outside of the U.S. recently gave AbbVie the confidence to predict over $15 billion in combined annual sales from Rinvoq and Skyrizi by 2025.
Skyrizi and Rinvoq aren't the only relatively reliable growth engines in AbbVie's product lineup. Annual aesthetics sales, largely driven by the Botox brand are expected to pass $9 billion in 2029.
AbbVie's atypical antipsychotic treatment, Vraylar finished 2021 at an annualized run rate of around $2 billion. AbbVie expects Vrylar sales to approach $4 billion with its current addressable patient population. An application the company expects to send the FDA in the first half of 2021 could expand that population to include millions of people with clinical depression.
Room for raises ahead
AbbVie raised its dividend payout by 250% since its inception in 2013. With Rinvoq, Skyrizi, and Vraylar driving growth, the next nine years could be just as exciting.
Despite hiking its payout, AbbVie was able to meet its obligation using just 42% of the free cash flow its lucrative pharmaceutical operations generated over the past year. With a dividend program already on solid footing and new drugs driving growth, AbbVie looks like a great dividend stock to buy right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. Humira sales contributed $4.6 billion to AbbVie's top line during the third quarter, so replacing lost revenue from this drug is going to be a major challenge. Despite hiking its payout, AbbVie was able to meet its obligation using just 42% of the free cash flow its lucrative pharmaceutical operations generated over the past year. At recent prices, AbbVie (NYSE: ABBV) offers a 4.1% dividend yield that's impossible to ignore. | In a nutshell, fear of declining sales for AbbVie's lead drug, Humira, is the reason AbbVie offers a huge dividend yield that is more than double the benchmark average. With a dividend program already on solid footing and new drugs driving growth, AbbVie looks like a great dividend stock to buy right now. At recent prices, AbbVie (NYSE: ABBV) offers a 4.1% dividend yield that's impossible to ignore. | In a nutshell, fear of declining sales for AbbVie's lead drug, Humira, is the reason AbbVie offers a huge dividend yield that is more than double the benchmark average. Label expansions in and outside of the U.S. recently gave AbbVie the confidence to predict over $15 billion in combined annual sales from Rinvoq and Skyrizi by 2025. With a dividend program already on solid footing and new drugs driving growth, AbbVie looks like a great dividend stock to buy right now. | Rinvoq is a treatment for rheumatoid arthritis that AbbVie launched in 2019. At recent prices, AbbVie (NYSE: ABBV) offers a 4.1% dividend yield that's impossible to ignore. If the big yield AbbVie offers seems a little too good to be true, it's because there's a catch. |
23697.0 | 2022-01-16 00:00:00 UTC | Abbvie Inc Shares Near 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-near-52-week-high-market-mover-2 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.6% below its 52 week high of $136.73, giving the company a market cap of $240B. The stock is currently up 1.4% year-to-date, up 28.7% over the past 12 months, and up 175.9% over the past five years. This week, the Dow Jones Industrial Average fell 0.9%, and the S&P 500 fell 0.3%.
Trading Activity
Trading volume this week was 20.0% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.0.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -188.2%
The company's stock price performance over the past 12 months beats the peer average by 144.4%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.7% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 0.6% below its 52 week high of $136.73, giving the company a market cap of $240B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.0. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. | Abbvie Inc (ABBV) shares closed today at 0.6% below its 52 week high of $136.73, giving the company a market cap of $240B. This week, the Dow Jones Industrial Average fell 0.9%, and the S&P 500 fell 0.3%. Trading Activity Trading volume this week was 20.0% higher than the 20-day average. | Abbvie Inc (ABBV) shares closed today at 0.6% below its 52 week high of $136.73, giving the company a market cap of $240B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -188.2% The company's stock price performance over the past 12 months beats the peer average by 144.4% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.7% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.6% below its 52 week high of $136.73, giving the company a market cap of $240B. This week, the Dow Jones Industrial Average fell 0.9%, and the S&P 500 fell 0.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. |
23698.0 | 2022-01-16 00:00:00 UTC | 3 Pharma Stocks With Especially Juicy Dividends | ABBV | https://www.nasdaq.com/articles/3-pharma-stocks-with-especially-juicy-dividends | nan | nan | Big pharmaceutical companies usually make big bucks. And many of them return a portion of their profits to investors in the form of dividends.
We asked three Motley Fool contributors to pick the pharma stocks that they think have especially juicy dividends. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE).
Image source: Getty Images.
A Dividend Aristocrat that's performing well
Keith Speights (AbbVie): There's so much to like about AbbVie's dividend that it's hard to know where to begin. But I'll start with its attractive yield of 4.2%. What's even better, though, is that AbbVie is a Dividend Aristocrat -- an elite group of S&P 500 members that have increased their dividends for at least 25 consecutive years.
Unlike some dividend stocks, AbbVie has also delivered strong growth lately. Its shares soared 26% last year. With dividends included, the drugmaker's total return easily beat the S&P 500's performance.
There are a couple of concerns for AbbVie, though. The U.S. Food and Drug Administration (FDA) recently placed additional warnings on the company's JAK inhibitor Rinvoq. This could limit the sales of the drug to some extent. Also, AbbVie's top-selling drug Humira faces biosimilar rivals in the U.S. beginning in 2023. Sales are expected to decline significantly.
However, AbbVie's dividend shouldn't be threatened at all. The company could also continue generating solid growth in the second half of this decade after the initial impact of Humira losing exclusivity. AbbVie has several other growth drivers, including autoimmune disease drug Skyrizi and blood cancer drug Venclexta.
This biotech has boosted its dividend 51% in five years
David Jagielski (Gilead Sciences): Investing in a high-yielding dividend stock can be a great way to make the most of your money. But to ensure that inflation isn't chipping away at that cash flow over time, you'll also want to invest in a company that raises its dividend payments. With Gilead Sciences, investors are getting the best of both worlds -- a high yield of around 4% that has also been growing over the years.
Five years ago, Gilead was paying its investors a quarterly dividend of $0.47. Today, those payments are up to $0.71, rising by 51% during that time and averaging a compound annual growth rate of 8.6%. And that already-juicy dividend can get even more mouth-watering as the company's payout ratio sits below 50%.
In Gilead's latest quarterly update, sales rose 13% year over year to $7.4 billion. The company also reported net income of $2.6 billion, which equated to a per-share (diluted) profit of $2.05. And in the nine months leading up to that date, the earnings per share (EPS) topped $4.63. That's easily enough to cover the current dividend, which on an annual basis would total $2.84. And it leaves room for some generous increases as well.
Now may be an optimal time to buy Gilead stock. The company typically reports its fourth-quarter earnings in early February. Gilead could announce another dividend hike then as well. Since 2015 when the company began making dividend payments, Gilead has consistently raised its payouts each subsequent year (and normally in February).
With solid financials and the company likely to continue receiving a boost from its COVID-19 treatment, Veklury, it's probable that this dividend could get even juicier than it already is today.
A cash cow with a stable dividend
Prosper Junior Bakiny (Pfizer): When it comes to dividend stocks, high yields are great, but the ability to sustain dividend increases is even better. That's what pharma giant Pfizer provides. The company's current yield of 2.75% is well above the S&P 500's average of 1.27%. But just as important is Pfizer's very conservative cash payout ratio of 29.64%. For context, a payout ratio below the 60% range is generally considered good.
This implies that Pfizer has considerable room to sustain dividend increases in large part thanks to the cash it has been generating over the past year. Pfizer's free cash flow soared by 126.1% to $29.2 billion in the trailing twelve-month period. We can attribute that primarily to Pfizer's COVID-19 vaccine, Comirnaty. This vaccine has become a blockbuster product -- and then some -- in its first year on the market.
Pfizer said it would generate $36 billion from Comirnaty in the fiscal year 2021. Given recent developments surrounding the pandemic, 2022 should be another excellent year for the vaccine. Management thinks sales of Comirnaty could come in at $29 billion this year. Pfizer's coronavirus-related business alone, which includes Comirnaty and Paxlovid, a COVID-19 therapy that recently earned authorization, will generate more sales than dozens of large corporations will this year.
But Pfizer has other tools at its disposal. The company's anticoagulant Eliquis, cancer medicine Xtandi, as well as its biosimilar business, are meaningfully contributing to its overall performance. Even immunosuppressant Xeljanz could return to growth this year despite the regulatory headwinds it encountered last year.
Lastly, Pfizer's pipeline includes 29 ongoing phase 3 clinical trials. Expect new products and label expansions to strengthen an already solid lineup.
And all of this at a reasonable price, too. Pfizer is trading at just 9.1 times forward earnings compared to an average price-to-earnings ratio of 13.3 for the pharma industry.
In short, Pfizer provides a little bit of everything most investors look for: high growth, reasonable value, and stable income in the form of dividends. Too juicy to pass up, indeed.
10 stocks we like better than AbbVie
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David Jagielski has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). A Dividend Aristocrat that's performing well Keith Speights (AbbVie): There's so much to like about AbbVie's dividend that it's hard to know where to begin. What's even better, though, is that AbbVie is a Dividend Aristocrat -- an elite group of S&P 500 members that have increased their dividends for at least 25 consecutive years. | Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). A Dividend Aristocrat that's performing well Keith Speights (AbbVie): There's so much to like about AbbVie's dividend that it's hard to know where to begin. What's even better, though, is that AbbVie is a Dividend Aristocrat -- an elite group of S&P 500 members that have increased their dividends for at least 25 consecutive years. | What's even better, though, is that AbbVie is a Dividend Aristocrat -- an elite group of S&P 500 members that have increased their dividends for at least 25 consecutive years. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). A Dividend Aristocrat that's performing well Keith Speights (AbbVie): There's so much to like about AbbVie's dividend that it's hard to know where to begin. | A Dividend Aristocrat that's performing well Keith Speights (AbbVie): There's so much to like about AbbVie's dividend that it's hard to know where to begin. Here's why they chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE). What's even better, though, is that AbbVie is a Dividend Aristocrat -- an elite group of S&P 500 members that have increased their dividends for at least 25 consecutive years. |
23699.0 | 2022-01-14 00:00:00 UTC | U.S. FDA approves drugs from AbbVie, Pfizer to treat eczema | ABBV | https://www.nasdaq.com/articles/u.s.-fda-approves-drugs-from-abbvie-pfizer-to-treat-eczema | nan | nan | Recasts to include approval for Pfizer's drug
Jan 14 (Reuters) - The U.S. Food and Drug Administration approved drugs from AbbVie Inc ABBV.N and Pfizer Inc PFE.N for treating eczema, a skin disease, the companies said on Friday.
AbbVie's Rinvoq and Pfizer's Cibinqo have been approved to treat moderate-to-severe atopic dermatitis, or eczema, in patients who do not respond to previous treatment or when use of other treatments is not recommended.
Rinvoq's approval was expanded from rheumatoid arthritis to treat eczema for patients 12 years and older, while Cibinqo was approved for use in only adults.
Both the drugs belong to a class called JAK inhibitors, which block inflammation-causing enzymes known as Janus kinases and target a range of autoimmune diseases.
Both Pfizer and AbbVie cited risks of serious infections and cardiovascular events, among others.
The expanded approval for Rinvoq follows significant delays amid concerns over safety of JAK inhibitors.
Cibinqo had last year received approvals from the European and UK regulators.
The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following a review of Pfizer's Xeljanz, another JAK inhibitor.
The initial results from a trial showed an increased risk of serious heart-related problems and cancer in some patients being treated with the drug.
(Reporting by Leroy Leo in Bengaluru; Editing by Shailesh Kuber)
((Leroy.Dsouza@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. | Recasts to include approval for Pfizer's drug Jan 14 (Reuters) - The U.S. Food and Drug Administration approved drugs from AbbVie Inc ABBV.N and Pfizer Inc PFE.N for treating eczema, a skin disease, the companies said on Friday. AbbVie's Rinvoq and Pfizer's Cibinqo have been approved to treat moderate-to-severe atopic dermatitis, or eczema, in patients who do not respond to previous treatment or when use of other treatments is not recommended. Both Pfizer and AbbVie cited risks of serious infections and cardiovascular events, among others. | Recasts to include approval for Pfizer's drug Jan 14 (Reuters) - The U.S. Food and Drug Administration approved drugs from AbbVie Inc ABBV.N and Pfizer Inc PFE.N for treating eczema, a skin disease, the companies said on Friday. AbbVie's Rinvoq and Pfizer's Cibinqo have been approved to treat moderate-to-severe atopic dermatitis, or eczema, in patients who do not respond to previous treatment or when use of other treatments is not recommended. Both Pfizer and AbbVie cited risks of serious infections and cardiovascular events, among others. | Recasts to include approval for Pfizer's drug Jan 14 (Reuters) - The U.S. Food and Drug Administration approved drugs from AbbVie Inc ABBV.N and Pfizer Inc PFE.N for treating eczema, a skin disease, the companies said on Friday. AbbVie's Rinvoq and Pfizer's Cibinqo have been approved to treat moderate-to-severe atopic dermatitis, or eczema, in patients who do not respond to previous treatment or when use of other treatments is not recommended. The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following a review of Pfizer's Xeljanz, another JAK inhibitor. | Both Pfizer and AbbVie cited risks of serious infections and cardiovascular events, among others. The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following a review of Pfizer's Xeljanz, another JAK inhibitor. Recasts to include approval for Pfizer's drug Jan 14 (Reuters) - The U.S. Food and Drug Administration approved drugs from AbbVie Inc ABBV.N and Pfizer Inc PFE.N for treating eczema, a skin disease, the companies said on Friday. |
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