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25700.0 | 2018-01-31 00:00:00 UTC | Anthem (ANTM) Tops Q4 Earnings & Revenues, Issues '18 View | ABBV | https://www.nasdaq.com/articles/anthem-antm-tops-q4-earnings-revenues-issues-18-view-2018-01-31 | nan | nan | Anthem Inc.'sANTM fourth-quarter 2017 adjusted net income per share of $1.29 surpassed the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line, however declined 27% year over year.
For 2017, the company's adjusted net income came at $12.04 per share, up 9.5% from the last year.
Operating revenues of $22.4 billion surpassed the Zacks Consensus Estimate by 1.3%. The top line also grew 4.5% year over year due to premium rate increases as well as higher enrollment in the Medicaid, Medicare, and Local Group insured and self-funded businesses. The upside was partially offset by the impact of the one-year waiver of the health insurance tax in 2017.
For 2017, operating revenues came at $89 billion, up 5.8% year over year.
Quarterly Operational Update
Medical enrollment increased 0.8% year over year to 40.2 million members. The rise was primarily driven by commercial & specialty business. Enrollment growth in Government business also contributed to the appreciation. This upside was partially offset by a decline in membership in the National Account and Individual businesses.
Total expenses increased nearly 7.1% to $22.6 billion in the reported quarter, mainly due to a 6.3% rise in benefitexpenses and 4% increase in selling, general and administrative(SG&A) expenses, both on a year-over-year basis.
Anthem's benefit expense ratio of 88.6% deteriorated 140 basis points (bps) from the prior-year quarter. This was largely due to the one-year waiver of the health insurance tax in 2017. However, the deterioration was partially offset by improved medical cost performance in the Individual and Local Group businesses.
SG&A expense ratio of 15.1% improved 10 bps from the year-ago quarter. This was due to one-year waiver of the health insurance tax in 2017 and the impact of fixed cost leverage on operating revenue growth. However, the decline was partially offset by increased spend to support growth initiatives during the quarter.
Segment Update
Commercial & Specialty Business
Operating revenues were $10.1 billion in the fourth quarter, up 4.9% year over year.
Operating gain totaled $71.2 million, down 62.4% year over year due to increased spend to support growth initiatives and the impact of the one-year waiver of the health insurance tax in 2017. The decrease was partially offset by improved medical cost performance in the Local Group and Individual businesses.
Operating margin was 0.7%, down 130 bps year over year.
Government Business
Operating revenues were $12.3 billion in the fourth quarter, up 4% from the prior-year quarter.
Operating gain was $360.8 million, down 31.9% year over year. The downside reflected increased spend to support growth initiatives during the quarter and the impact of the one-year waiver of the health insurance tax in 2017. However, the deterioration was partially offset by improved medical cost performance in the Medicaid business.
Operating margin was 2.9%, declining 160 bps year over year.
Other
Operating revenues were $13.6 million in the fourth quarter, up 84% from the prior-year quarter.
The segment reported an operating loss of $51 million, narrower than an operating loss of $66.1 million in the prior-year quarter. The improvement was primarily driven by lower expenses related to the terminated Cigna acquisition.
Operating margin was 1.7%, down 130 bps year over year.
Anthem, Inc. Price, Consensus and EPS Surprise
Anthem, Inc. Price, Consensus and EPS Surprise | Anthem, Inc. Quote
Financial Update
As of Dec 31, 2017, Anthem had cash and cash equivalents of $3.6 billion, down 11% from year-end 2016.
As of Dec 31, 2017, its long-term debt increased 21% to $17.4 billion from year-end 2016.
As of Dec 31, 2017, shareholder equity was $26.5 billion, up 5.5% from year-end 2016.
Operating cash outflow was $1.3 billion in the fourth quarter. This brings full-year 2017 operating cash flow to $4.2 billion, or 1.1 times net income. This also reflects 28% year-over-year growth over 2016.
During the fourth quarter, Anthem recorded a one-time, non-cash deferred tax benefit from corporate tax reform of $1.1 billion. This reduces total income tax expenses in 2017 to $121 million.
Share Repurchase and Dividend Update
During the quarter, Anthem repurchased 1.8 million shares of its common stock for $362 million.
During 2017, it repurchased 10.5 million shares of its common stock for $2 billion.
As of Dec 31, 2017, it had approximately $7.2 billion of share repurchase authorization remaining.
During the fourth quarter, Anthem paid a quarterly dividend of 70 cents per share.
On Jan 30, 2017, the board declared dividend of 75 cents per share for the first quarter of 2018. This reflects a hike of 7.1%. The dividend will be paid on Mar 23 to shareholders of record on Mar 9.
Guidance for 2018
Anthem expects adjusted net income to be greater than $15.00 per share.
Medical membership is now expected in the range of 40-40.2 million.
Operating revenues are projected in the range of $90.5-$91.5 billion.
Benefit expense ratio is expected to be around 84.5%, with adjustment of 30 bps.
SG&A ratio is expected to be around 15.5%, with adjustment of 30 bps
Anthem expects operating cash flow to be more than $4 billion.
Zacks Rank and Performance of Other Peers
Anthem sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. This was due to one-year waiver of the health insurance tax in 2017 and the impact of fixed cost leverage on operating revenue growth. | Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Operating gain totaled $71.2 million, down 62.4% year over year due to increased spend to support growth initiatives and the impact of the one-year waiver of the health insurance tax in 2017. | Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Segment Update Commercial & Specialty Business Operating revenues were $10.1 billion in the fourth quarter, up 4.9% year over year. | Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Operating revenues of $22.4 billion surpassed the Zacks Consensus Estimate by 1.3%. |
25701.0 | 2018-01-31 00:00:00 UTC | The Best Arthritis Drug/Treatment Stocks on the Market Right Now | ABBV | https://www.nasdaq.com/articles/best-arthritis-drugtreatment-stocks-market-right-now-2018-01-31 | nan | nan | Around 350 million people across the world suffer from arthritis, with over 54 million Americans in that group. Treating arthritis costs at least $81 billion each year. It's not surprising that three of the five top-selling drugs in the world in 2017 treated at least one type of arthritis.
But the enormous market for arthritis drugs and treatments extends well beyond those three best-selling drugs. Many of the world's largest biopharmaceutical companies market arthritis drugs and treatments.
Data sources: Company SEC filings, Yahoo! Finance.
While most of these companies continue to enjoy commercial success with their arthritis drugs, some also face challenges. Which of these top arthritis drug/treatment stocks are the best on the market right now? I think two especially stand out.
No. 1: AbbVie
AbbVie claims the best-selling drug in the world with Humira. The drug is approved for treating multiple autoimmune diseases, including rheumatoid arthritis and psoriatic arthritis. Humira generated a whopping $18.4 billion in 2017, around 65% of AbbVie's total revenue last year.
The company expects Humira's sales growth will continue for the next few years, with revenue for the drug approaching $21 billion by 2020. However, Humira will face biosimilar competition in Europe beginning later this year. Biosimilar rivals will also enter the U.S. market by early 2023. Still, though, AbbVie CEO Rick Gonzalez stated at a recent conference that the company expects "manageable erosion" in sales for Humira and that the drug will continue to generate significant cash flow through 2025 and beyond.
AbbVie also has rising stars that have already gained regulatory approval that should help make up for future market share losses for Humira. The company's biggest moneymaker outside of Humira right now is cancer drug Imbruvica, which continues to enjoy strong sales momentum. AbbVie also launched Mavyret in 2017. The hepatitis C drug is expected to become AbbVie's next blockbuster.
The drugmaker could have more arthritis drugs on the way to join Humira as well. Upadicitinib is being evaluated in late-stage clinical studies targeting treatment of psoriatic arthritis and rheumatoid arthritis. The drug is in phase 2 studies for treating atopic dermatitis (eczema), Crohn's disease, and ulcerative colitis. Risankizumab is being evaluated in a late-stage study for treatment of psoriasis, but is also in phase 2 studies targeting treatment of psoriatic arthritis and Crohn's disease.
I view AbbVie as the best big pharma stock on the market . There are three key reasons why. It's had the best total shareholder return of any big pharma stock over the past one, three, and five years. The company has generated the second highest revenue growth of any big pharma. And AbbVie has produced the highest growth in adjusted earnings per share over the past three years.
These winning ways appear likely to continue. AbbVie recently announced that it expects to increase adjusted EPS by 32% in 2018, thanks in large part to a positive impact from U.S. tax reform. With that kind of earnings growth combined with a dividend yield of 2.3%, I think AbbVie is hard to beat.
No. 2: Celgene
Celgene is the only big biopharmaceutical company to enjoy faster revenue growth than AbbVie in recent years. Much of Celgene's success stemmed from its blockbuster blood cancer drug Revlimid. However, Celgene has also experienced tremendous growth from Otezla, the company's oral drug for treating psoriasis and psoriatic arthritis.
Some investors might have been concerned after Celgene's third-quarter 2017 results that Otezla was in trouble. The biotech reported disappointing results after facing headwinds for its autoimmune-disease drug. However, Celgene should have put those worries to rest with fourth-quarter results announced in January 2018.
Terri Curran, Celgene's president of inflammation and immunology, noted that sales for Otezla jumped 22% year over year in the fourth quarter. Even better, Otezla's performance was 20% above the third-quarter results. Curran also pointed to improving patient access in the U.S. and successful launches in key international markets for Otezla.
Celgene doesn't have any pipeline candidates for treatment of arthritis lined up to join Otezla. However, the company does have several promising autoimmune-disease drugs in development. The most eagerly anticipated one is ozanimod. Celgene hopes to win approval in 2018 for the drug for its first indication, relapsed multiple sclerosis. Ozanimod is also being evaluated in a late-stage study for treatment of ulcerative colitis and a phase 2 study for treating Crohn's disease.
Hematology and oncology continue to be the strongest areas for Celgene, though. The company's blood cancer franchise, currently featuring Revlimid and Pomalyst, could add another potential blockbuster if luspatercept proves to be successful in late-stage studies targeting treatment of myelodysplastic syndromes and beta-thalassemia. Celgene's pending acquisition of Juno Therapeutics also positions the biotech well in competing in cell therapy treatment of cancer.
With strong sales continuing for its current blockbusters and a deep pipeline, Celgene thinks that it will grow adjusted EPS by close to 20% over the next few years. Its stock is trading at less than 10 times expected earnings. That's dirt cheap for a company with the prospects that Celgene has, making it one of the more attractive stocks around.
Other solid picks
I definitely like AbbVie and Celgene as the best arthritis drug/treatment stocks on the market. There are other solid picks as well, though.
Johnson & Johnson is a perennial favorite for investors. Although sales for its top arthritis drug, Remicade, are falling in the face of biosimilar competition, J&J has other drugs that are offsetting some of the decline, including another arthritis drug, Stelara. The company has also made acquisitions to drive more growth. I wouldn't bet against J&J over the long run.
Pfizer is another pharma stock that I think has solid long-term prospects. While blockbuster arthritis drug Enbrel is struggling, Pfizer's Xeljanz is generating strong sales growth. The company is also getting help from other areas, particularly anticoagulant Eliquis. Pfizer's biosimilars, led by Inflectra (which competes against J&J's Remicade), should also pick up steam.
I think Bristol-Myers Squibb is a good pick also -- although not because of its arthritis drug, Orencia. The main reason to like Bristol is its blockbuster immunotherapy Opdivo. With its potential for being used in combinations with several other drugs, Opdivo could be the world's second-best-selling cancer drug after Revlimid over the next few years.
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Keith Speights owns shares of AbbVie, Celgene, and Pfizer. The Motley Fool owns shares of and recommends Celgene and Johnson & Johnson. The Motley Fool recommends Juno Therapeutics. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Still, though, AbbVie CEO Rick Gonzalez stated at a recent conference that the company expects "manageable erosion" in sales for Humira and that the drug will continue to generate significant cash flow through 2025 and beyond. 1: AbbVie AbbVie claims the best-selling drug in the world with Humira. Humira generated a whopping $18.4 billion in 2017, around 65% of AbbVie's total revenue last year. | 2: Celgene Celgene is the only big biopharmaceutical company to enjoy faster revenue growth than AbbVie in recent years. 1: AbbVie AbbVie claims the best-selling drug in the world with Humira. Humira generated a whopping $18.4 billion in 2017, around 65% of AbbVie's total revenue last year. | Other solid picks I definitely like AbbVie and Celgene as the best arthritis drug/treatment stocks on the market. 1: AbbVie AbbVie claims the best-selling drug in the world with Humira. Humira generated a whopping $18.4 billion in 2017, around 65% of AbbVie's total revenue last year. | I view AbbVie as the best big pharma stock on the market . Other solid picks I definitely like AbbVie and Celgene as the best arthritis drug/treatment stocks on the market. 1: AbbVie AbbVie claims the best-selling drug in the world with Humira. |
25702.0 | 2018-01-30 00:00:00 UTC | 3 Big Biotech Stocks With Major Catalysts on the Way | ABBV | https://www.nasdaq.com/articles/3-big-biotech-stocks-major-catalysts-way-2018-01-30 | nan | nan | Once a company grows to the size of AbbVie Inc. (NYSE: ABBV) , Celgene Corporation (NASDAQ: CELG) , or Gilead Sciences, Inc. (NASDAQ: GILD) , moving the needle forward gets a lot harder. That doesn't stop their management teams from trying, though.
Despite their immense size, each of these biotech stocks could make big moves soon. In the days and weeks ahead, we should hear announcements concerning potential new blockbuster drugs getting close to the finish line. Here's what you need to know.
1. AbbVie Inc.: Under review
April could be an exciting month for AbbVie and its development partner, Neurocrine Biosciences, Inc. (NASDAQ: NBIX) . Late last October, the Food and Drug Administration (FDA) granted Elagolix a priority review for the treatment of pain associated with endometriosis, a basket term for excess tissue growth outside the uterus.
Hundreds of thousands of endometriosis cases get reported each year, but there aren't any drugs specifically approved to treat the often painful condition. This huge unmet need is a big reason why the FDA agreed to a shortened six-month review that should wrap up near the end of April, or sooner.
Although AbbVie and Neurocrine are developing Elagolix to treat pain, it's really a hormone therapy that inhibits runaway cell growth. Aiming for the root cause of the pain seems to be the trick. During a study that tested Elagolix as a treatment for endometriosis pain, patients treated with a high dose were more than three times as likely to report a significant improvement with regard to severe menstrual pain as those given a placebo.
Solid efficacy results, plus a dearth of effective pain-management options that don't involve addictive opioids, are key factors expected to eventually drive annual Elagolix sales above $1.5 billion if the drug earns approval. While we're waiting for the FDA's approval decision concerning endometriosis pain, AbbVie and Neurocrine are expected to report results for a late-stage study designed to expand Elagolix to treat heavy menstrual bleeding associated with non-cancerous growths in the uterus. Keep an eye open for the results expected sometime in the first quarter.
2. Celgene Corporation: Crohn's concerns
Celgene made lots of investors nervous when it abruptly ended a late-stage trial with a new drug candidate for which it paid $710 million a few years earlier. The anti-inflammation hopeful, called mongersen, was intended to treat Crohn's disease, but investigators recommended shutting the trial down early because they couldn't measure a significant clinical benefit.
About a year after the ill-fated purchase of mongersen, Celgene shelled out a whopping $7.2 billion for another anti-inflammatory candidate aimed at several conditions, including Crohn's disease. Ozanimod works differently than mongersen, so the latter's failure should have no bearing on the former. That said, anything less than a rousing success could result in downward pressure on the stock.
The company's lead drug, Revlimid will probably begin losing ground to generic competition in 2022, which means it needs to launch tomorrow's blockbusters today in order to keep growing total sales over the long run. Ozanimod is a big part of Celgene's plan to eventually offset impending Revlimid losses as a treatment for irritable bowel disease and multiple sclerosis.
Ozanimod is in the same class as an available oral multiple sclerosis (MS) drug called Gilenya from Novartis . Although the two haven't been compared in a head-to-head trial, their performances compared to a standard MS treatment appears too similar to support management's belief that ozanimod is a best-in-class drug that can generate peak annual sales in the $4 billion to $6 billion range. That means investors will want to keep their eyes peeled for results from ozanimod's pivotal trial with Crohn's disease patients, which Celgene plans to present in detail during a scientific conference in mid-February.
3. Gilead Sciences: Big expectations
Celgene isn't the only big biotech racing to replace falling sales of existing products. Unfortunately, for Gilead Sciences, competition from the likes of AbbVie has hammered annual sales of its hepatitis C treatments from a peak of $19.1 billion in 2015 to a range expected to fall between $8.5 billion and $9 billion when the company reports 2017 results on Feb. 6.
That raises the stakes for a potential new HIV cocktail that's awfully important to Gilead's long-term outlook. Unlike hepatitis C virus, keeping HIV at bay requires lifelong treatment. Annual sales of Gilead's bictegravir containing triple combo are expected to pass $5 billion by 2022, which makes this a must-win for Gilead.
Gilead expects the FDA to announce an approval decision on or before February 12. A thumbs up seems likely, but the combo's ability to compete with GlaxoSmithKline 's recently launched Juluca remains an important question mark. If Gilead's drug is approved, investors still need to keep their eyes peeled for signs of a successful launch into a competitive environment.
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Cory Renauer owns shares of Celgene and Gilead Sciences. The Motley Fool owns shares of and recommends Celgene and 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While we're waiting for the FDA's approval decision concerning endometriosis pain, AbbVie and Neurocrine are expected to report results for a late-stage study designed to expand Elagolix to treat heavy menstrual bleeding associated with non-cancerous growths in the uterus. Once a company grows to the size of AbbVie Inc. (NYSE: ABBV) , Celgene Corporation (NASDAQ: CELG) , or Gilead Sciences, Inc. (NASDAQ: GILD) , moving the needle forward gets a lot harder. AbbVie Inc.: Under review April could be an exciting month for AbbVie and its development partner, Neurocrine Biosciences, Inc. (NASDAQ: NBIX) . | While we're waiting for the FDA's approval decision concerning endometriosis pain, AbbVie and Neurocrine are expected to report results for a late-stage study designed to expand Elagolix to treat heavy menstrual bleeding associated with non-cancerous growths in the uterus. Unfortunately, for Gilead Sciences, competition from the likes of AbbVie has hammered annual sales of its hepatitis C treatments from a peak of $19.1 billion in 2015 to a range expected to fall between $8.5 billion and $9 billion when the company reports 2017 results on Feb. 6. Once a company grows to the size of AbbVie Inc. (NYSE: ABBV) , Celgene Corporation (NASDAQ: CELG) , or Gilead Sciences, Inc. (NASDAQ: GILD) , moving the needle forward gets a lot harder. | Unfortunately, for Gilead Sciences, competition from the likes of AbbVie has hammered annual sales of its hepatitis C treatments from a peak of $19.1 billion in 2015 to a range expected to fall between $8.5 billion and $9 billion when the company reports 2017 results on Feb. 6. Once a company grows to the size of AbbVie Inc. (NYSE: ABBV) , Celgene Corporation (NASDAQ: CELG) , or Gilead Sciences, Inc. (NASDAQ: GILD) , moving the needle forward gets a lot harder. AbbVie Inc.: Under review April could be an exciting month for AbbVie and its development partner, Neurocrine Biosciences, Inc. (NASDAQ: NBIX) . | Unfortunately, for Gilead Sciences, competition from the likes of AbbVie has hammered annual sales of its hepatitis C treatments from a peak of $19.1 billion in 2015 to a range expected to fall between $8.5 billion and $9 billion when the company reports 2017 results on Feb. 6. Once a company grows to the size of AbbVie Inc. (NYSE: ABBV) , Celgene Corporation (NASDAQ: CELG) , or Gilead Sciences, Inc. (NASDAQ: GILD) , moving the needle forward gets a lot harder. AbbVie Inc.: Under review April could be an exciting month for AbbVie and its development partner, Neurocrine Biosciences, Inc. (NASDAQ: NBIX) . |
25703.0 | 2018-01-30 00:00:00 UTC | Drug/Biotech Stocks Q4 Earnings Due on Jan 31: LLY & VRTX | ABBV | https://www.nasdaq.com/articles/drug-biotech-stocks-q4-earnings-due-on-jan-31%3A-lly-vrtx-2018-01-30 | nan | nan | The fourth-quarter 2017 earnings season is in full swing with financial figures from 133 S&P 500 members or 26% of the index already out as of Jan 26, 2018 per the latest Earnings Preview .
Total earnings for these index members jumped 12.3% from the year-ago quarter, driven by 8.8% improvement in revenues. The beat ratio was 81.2% for the bottom line and 78.9% for the top line.
On a positive note, the ongoing earnings phase seems to have begun well for the Drug/Biotech sector. Among major large cap players, Johnson & Johnson JNJ kicked off the season with earnings beating estimates while sales slightly missing the same. A few other large pharma companies released their earnings results last week and the picture looks quite encouraging.
The pharma bigwigs having reported last week are Novartis NVS and AbbVie ABBV , which surpassed both earnings and sales estimates in the quarter under review. While Novartis raised its sales guidance for 2018, AbbVie increased its previously issued earnings expectations for the year.
Of the major players in the biotech sector, Biogen BIIB announced a mixed performance in the reported period with earnings lagging estimates while sales exceeding the same. However, Celgene Corp. CELG outpaced both the metrics' expectations during the fourth quarter.
Drug/biotech stocks remained on a growth trajectory in 2017, courtesy of a slew of FDA approvals, rise in demand for new product sales, successful innovation and product line expansion, strong clinical reports as well as a continued robust performance of legacy products. Moreover, these impressive factors, along with regular acquisitions, are expected to drive the sector's growth in 2018 as well.
Also, per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is likely to record 4.9% year-over-year growth in revenues and a 4.2% rise in earnings in the period under discussion.
Two pharma/biotech giants are scheduled to report earnings numbers on Jan 31. Let's see how things are shaping up for the companies in the upcoming releases.
Eli Lilly and CompanyLLY
Lilly is scheduled to release fourth-quarter earnings before the market opens. The company delivered a positive surprise of 1.94% last quarter. Lilly's earnings performance has been modest with earnings missing expectations in three of the last four quarters while beating the same in the remaining one, thus bringing the average beat to 1.68%.
Our proven model shows that Lilly is likely to beat on earnings this quarter. The combination of Lilly's Zacks Rank #3, which increases the predictive power of ESP as a solid Zacks Rank, and a positive Earnings ESP of +0.47% makes us confident about an earnings beat in the impending report. The Zacks Consensus Estimate for the quarter to be reported is pegged at $1.08 per share.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
We expect a sturdy uptake of new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance and Lartruvo. This upside is likely to make up for the decline in sales of established products like Zyprexa, Alimta, Cialis, Strattera and Effient in the fourth quarter. (Read More: Lilly to Report Q4 Earnings: What's in the Cards? ).
Vertex Pharmaceuticals, Inc.VRTX
Vertex is slated to release fourth-quarter earnings after the market closes . The company's track record has also been impressive so far. It delivered a positive surprise in each of the trailing four quarters with an average beat of 32.67%. In third-quarter 2017, Vertex came up with a positive surprise of 43.24%.
However, our proven model does not conclusively show that Vertex is likely to beat on earnings this quarter. Though the company's favorable Zacks Rank #3 (Hold) increases the predictive power of ESP, its Earnings ESP of -4.00% leaves surprise prediction inconclusive. The Zacks Consensus Estimate is pegged at 58 cents per share. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Vertex's cystic fibrosis (CF) drugs, Kalydeco & Orkambi, performed consistently in the first three quarters of 2017. We expect this uptrend to be reflected in the results of the soon-to-be reported quarter. (Read More: Vertex to Report Q4 Earnings: What's in the Cards? ).
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The pharma bigwigs having reported last week are Novartis NVS and AbbVie ABBV , which surpassed both earnings and sales estimates in the quarter under review. While Novartis raised its sales guidance for 2018, AbbVie increased its previously issued earnings expectations for the year. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The pharma bigwigs having reported last week are Novartis NVS and AbbVie ABBV , which surpassed both earnings and sales estimates in the quarter under review. While Novartis raised its sales guidance for 2018, AbbVie increased its previously issued earnings expectations for the year. | Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The pharma bigwigs having reported last week are Novartis NVS and AbbVie ABBV , which surpassed both earnings and sales estimates in the quarter under review. While Novartis raised its sales guidance for 2018, AbbVie increased its previously issued earnings expectations for the year. | The pharma bigwigs having reported last week are Novartis NVS and AbbVie ABBV , which surpassed both earnings and sales estimates in the quarter under review. While Novartis raised its sales guidance for 2018, AbbVie increased its previously issued earnings expectations for the year. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. |
25704.0 | 2018-01-29 00:00:00 UTC | 3 Things Driving AbbVie Inc. Stock After Q4 Earnings Report | ABBV | https://www.nasdaq.com/articles/3-things-driving-abbvie-inc-stock-after-q4-earnings-report-2018-01-29 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc. (NYSE: ABBV ) reported fourth-quarter- and full-year-earnings Friday morning, and ABBV stock stock responded by jumping more than 10% in early trading. What did the pharmaceuticals giant do right? There are three things that stood out.
Top-and Bottom-Line Beats
ABBV stock beat consensus fourth-quarter estimates on earnings and revenue. The company earned $1.48 per share, ahead of the $1.44 Wall Street was looking for and the company's biggest earnings beat on a percentage basis (2.8%) in more than a year.
Sales even further outpaced expectations at $7.74 billion (analysts had estimated $7.53 billion). Those top- and bottom-line results represented year-over-year improvements of 23% and 11%, respectively-big upgrades from 2% and 8% growth in the previous quarter.
5 Energy Stocks Coming Back From the Dead
Strong Non-Humira Growth for ABBV Stock
AbbVie has long been associated with Humira, a drug that treats Chrohn's disease, psoriasis, ulcerative colitis and several different types of arthritis. And with good reason: with $4.89 billion in sales, Humira accounted for more than half of AbbVie's total fourth-quarter sales-a 14% improvement over the same quarter a year ago.
That's impressive growth for a product as well-saturated as Humira. But a couple ABBV products are growing much faster.
Imbruvica and HCV, AbbVie's second- and third-biggest sellers by revenue, grew sales by 38.7% and 63.4%, respectively, in the fourth quarter.
While several products, including AndroGel and Duodopa, saw decreased revenues, ABBV had 10 drugs that topped $100 million in sales in the fourth quarter. As the company becomes more diverse and less dependent on the success of Humira, the long-term sustainability of ABBV stock ratchets up.
Tax-Fueled Guidance Bump
The Trump administration's new corporate-friendly tax laws should have a profound effect on AbbVie's 2018 earnings. The company raised its full-year guidance to a range of $7.33 to $7.43, well up from its previous range of $6.37 to $6.57.
It plans to start devoting some of that extra cash-about $2.5 billion of it-to capital projects over the next five years. All of that bodes well for AbbVie's future earnings. The midpoint of its raised guidance range would represent a year-over year EPS increase of roughly one-third.
Bottom Line on ABBV Stock
It's been a great week for ABBV, jumping from $104 to all-time highs above $118. In fact, it's been a great five months: ABBV traded below $70 as recently as August. After today's encouraging earnings report, particularly its 2018 guidance, don't expect the good times to end for AbbVie stock any time soon.
With a trailing P/E under 30 and a forward P/E under 20, the stock is still reasonably valued, especially given this year's growth projection. While a 9% bump in one day is fairly extreme, I expect Wall Street to continue pushing ABBV until its value catches up with the company's anticipated growth.
Remember: AbbVie stock was actually pretty stagnant in the last three months of 2017, trading in a range between $89 and $96. Having crossed the $100 barrier earlier this month, ABBV is clearly in full breakout mode.
If it's anything like its last breakout, which began in mid-August, I fully expect AbbVie shares to keep rising well into February, perhaps past Valentine's Day.
The longer-term picture looks bright too. Eventually, ABBV stock will correct, perhaps when the broad market finally pulls back. But whether you're investing for the next month or the next couple years, ABBV looks like one of the more reliable investments in biopharmaceuticals today.
As of this writing, Chris Fraley did not hold a position in any of the aforementioned securities.
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The post 3 Things Driving AbbVie Inc. Stock After Q4 Earnings Report 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And with good reason: with $4.89 billion in sales, Humira accounted for more than half of AbbVie's total fourth-quarter sales-a 14% improvement over the same quarter a year ago. While several products, including AndroGel and Duodopa, saw decreased revenues, ABBV had 10 drugs that topped $100 million in sales in the fourth quarter. While a 9% bump in one day is fairly extreme, I expect Wall Street to continue pushing ABBV until its value catches up with the company's anticipated growth. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc. (NYSE: ABBV ) reported fourth-quarter- and full-year-earnings Friday morning, and ABBV stock stock responded by jumping more than 10% in early trading. Top-and Bottom-Line Beats ABBV stock beat consensus fourth-quarter estimates on earnings and revenue. After today's encouraging earnings report, particularly its 2018 guidance, don't expect the good times to end for AbbVie stock any time soon. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc. (NYSE: ABBV ) reported fourth-quarter- and full-year-earnings Friday morning, and ABBV stock stock responded by jumping more than 10% in early trading. 5 Energy Stocks Coming Back From the Dead Strong Non-Humira Growth for ABBV Stock AbbVie has long been associated with Humira, a drug that treats Chrohn's disease, psoriasis, ulcerative colitis and several different types of arthritis. More from InvestorPlace These 7 Goldman Sachs Picks Are Top Stocks to Buy for 2018 7 Stocks Set for Monster Growth in 2018 5 Biotech and Pharmaceutical Stocks Going Bonkers Compare Brokers The post 3 Things Driving AbbVie Inc. Stock After Q4 Earnings Report appeared first on InvestorPlace . | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc. (NYSE: ABBV ) reported fourth-quarter- and full-year-earnings Friday morning, and ABBV stock stock responded by jumping more than 10% in early trading. More from InvestorPlace These 7 Goldman Sachs Picks Are Top Stocks to Buy for 2018 7 Stocks Set for Monster Growth in 2018 5 Biotech and Pharmaceutical Stocks Going Bonkers Compare Brokers The post 3 Things Driving AbbVie Inc. Stock After Q4 Earnings Report appeared first on InvestorPlace . Top-and Bottom-Line Beats ABBV stock beat consensus fourth-quarter estimates on earnings and revenue. |
25705.0 | 2018-01-29 00:00:00 UTC | AstraZeneca's Triple Combo COPD Inhaler Positive in Phase III | ABBV | https://www.nasdaq.com/articles/astrazenecas-triple-combo-copd-inhaler-positive-in-phase-iii-2018-01-29 | nan | nan | AstraZeneca PlcAZN announced positive top-line results from a phase III study evaluating its investigational triple combination therapy PT010 for the treatment of chronic obstructive pulmonary disease (COPD).
PT010 is a combination of budesonide, an ICS with glycopyrronium, a long-acting muscarinic antagonist (LAMA) and formoterol fumarate, a LABA therapy.
PT010 is being developed by delivering AstraZeneca's Aerosphere Delivery Technology.
The KRONOS study compared PT010 to dual combination therapies - Bevespi Aerosphere, (Symbicort Turbuhaler, and PT009). The company will present the KRONOS trial results at a forthcoming medical meeting.
The study demonstrated PT010's efficacy in improving lung function. The study showed significant improvement compared with dual combination therapies in six out of nine lung function primary endpoints. The study was based on forced expiratory volume in one second (FEV1) assessments in patients with moderate to very severe COPD.
Shares of AstraZeneca have gained 35.2% over a year while the industry registered an increase of 29%.
AstraZeneca expects to make regulatory submissions in Japan and China in the second half of 2018, followed by potential submissions in the United States and Europe in 2019.
We remind investors that last year the FDA approved, GlaxoSmithKline GSK and partner Innoviva INVA once-daily, single inhaler triple combination therapy Trelegy Ellipta, for the treatment of COPD.
Trelegy Ellipta is a combination of fluticasone furoate - an ICS, umeclidinium - a long-acting muscarinic antagonist (LAMA) and vilanterol - a LABA therapy. Trelegy Ellipta will be delivered in Glaxo' Ellipta dry powder inhaler.
Astrazeneca PLC Price
Astrazeneca PLC Price | Astrazeneca PLC Quote
Zacks Rank & Stock to Consider
AstraZeneca has a Zacks Rank #3 (Hold).
A better-ranked stock from the health care space is AbbVie Inc. ABBV carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AbbVie's earnings per share estimates have moved up from $6.55 to $6.58 for 2018 in the last 60 days. The company delivered a positive earnings surprise in the last four quarters, the average being 1.81%. Share price of the company surged 103.9% over a year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A better-ranked stock from the health care space is AbbVie Inc. ABBV carrying a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up from $6.55 to $6.58 for 2018 in the last 60 days. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Innoviva, Inc. (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Innoviva, Inc. (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock from the health care space is AbbVie Inc. ABBV carrying a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up from $6.55 to $6.58 for 2018 in the last 60 days. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Innoviva, Inc. (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock from the health care space is AbbVie Inc. ABBV carrying a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up from $6.55 to $6.58 for 2018 in the last 60 days. | A better-ranked stock from the health care space is AbbVie Inc. ABBV carrying a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up from $6.55 to $6.58 for 2018 in the last 60 days. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Innoviva, Inc. (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. |
25706.0 | 2018-01-29 00:00:00 UTC | Stock Market News for Jan 29, 2018 | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-jan-29-2018-2018-01-29 | nan | nan | All the three key U.S. indexes closed at record levels on Friday following better-than-expected earnings from Intel, AbbVie and Honeywell. Additionally, continued economic growth and optimism over a weaker dollar had a positive impact on investor sentiment. The S&P 500 has finished at a record level for 14 trading days so far this month, its best such feat in a month since June 1955. The index also posted its best one-day rise since March 1, 2017.
Additionally, the Dow posted a rise of more than 220 points on Friday, while the Nasdaq registered its biggest one-day gain since Jan 2. Further, all the three indexes advanced more than 2% for the week, posting their fourth straight week of gains.
How the Benchmarks Fared?
The Dow Jones Industrial Average (DJI) increased 0.8%, or 220.13 points to close at 26,115.65. The S&P 500 rose 1.2% to close at 2,872.87. The tech-laden Nasdaq Composite Index closed at 7,505.77, gaining 1.3%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.3% to close at 11.08. A total of around 6.58 billion shares were traded on Friday, lower than the last 20-session average of 6.81 billion shares. Advancers outnumbered decliners on the NYSE by a 1.20-to-1 ratio. On Nasdaq, a 1.54-to-1 ratio favored advancing issues.
Upbeat Q4 Earnings Boost Sentiment
Encouraging earnings results from Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc HON lent further impetus to the markets' rally. Intel's shares climbed 10.6% after the chipmaker posted fourth quarter earnings per share (EPS) and revenues, which beat the respective Zacks Consensus Estimate. Intel guided first-quarter 2018 non-GAAP revenues of around $15 billion, up 5% year over year excluding McAfee. ( Read More )
Shares of AbbVie jumped 13.8% after the pharmaceutical products manufacturer reported fourth quarter EPS and revenues, which surpassed the respective Zacks Consensus Estimate. AbbVie raised its adjusted EPS in the range of $7.33-$7.43 for 2018 compared with $6.37-$6.57, predicted earlier. The Zacks Consensus Estimate for current-year earnings is pegged at $6.58 per share. ( Read More )
Honeywell's shares increased 2% after the diversified technology companyposted solid fourth-quarter results with healthy year-over-year increase in revenues and adjusted earnings. Further, Honeywell revised full-year 2018 earnings guidance to better reflect the favorable impact from the tax reform. ( Read More )
Economic Data
U.S. GDP increased at a seasonally adjusted annual rate of 2.6% in the final three months of 2017 following gains of more than 3% in the two previous quarters, as per the "advance" estimate released by the Bureau of Economic Analysis. In fact, this marked the economy's strongest stretch of growth since the expansion started in mid-2009.
The economy was boosted by solid consumer spending, which increased at 3.8% over the quarter after a 2.2% gain in the third quarter. Consumer outlays registered its fastest pace of growth in the fourth quarter in almost two years. Companies also ramped up spending in the fourth quarter by 6.8%. Among other bright spots, government spending also increased at a clip of 3%.
Weak Dollar Bodes Well For Large-Caps
Additionally, during the week, U.S. Treasury Secretary Steven Mnuchin said that any weakness in the dollar was beneficial for trade. His comments led to the ICE U.S. Dollar Index falling to its lowest level since Dec 2014 on Wednesday. Although, later Mnuchin said that his remarks regarding dollar was "misinterpreted."
Meanwhile, President Trump in the World Economic Forum in Davos, Switzerland said that "the dollar is going to get stronger and stronger" and eventually he wished the greenback to strengthen. However, the ICE U.S. Dollar Index fell 1.5% for the week to settle at 89.07, following Mnuchin's comments. A weaker dollar bodes well for large-cap multinationals, which generate revenues mainly from buyers outside the U.S.
Weekly Roundup
For the week, the Dow, the S&P 500 and the Nasdaq gained 2.1%, 2.2% and 2.3%, respectively. Benchmarks registered their fourth straight weekly increase after the Senate gave its consent to pass a Bill that ends the recent government shutdown. Additionally, encouraging earnings results by Netflix, Inc. NFLX , The Travelers Companies, Inc. TRV , 3M Company MMM and Caterpillar Inc. CAT also boosted markets.
Stocks That Made Headlines
Diageo 1H18 Interim Earnings & Sales Up Year Over Year
Diageo plcDEO recently announced interim results for the half yearly period ended Jul 31, 2017. ( Read More )
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ( Read More ) Shares of AbbVie jumped 13.8% after the pharmaceutical products manufacturer reported fourth quarter EPS and revenues, which surpassed the respective Zacks Consensus Estimate. All the three key U.S. indexes closed at record levels on Friday following better-than-expected earnings from Intel, AbbVie and Honeywell. Upbeat Q4 Earnings Boost Sentiment Encouraging earnings results from Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc HON lent further impetus to the markets' rally. | Upbeat Q4 Earnings Boost Sentiment Encouraging earnings results from Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc HON lent further impetus to the markets' rally. Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. All the three key U.S. indexes closed at record levels on Friday following better-than-expected earnings from Intel, AbbVie and Honeywell. | ( Read More ) Shares of AbbVie jumped 13.8% after the pharmaceutical products manufacturer reported fourth quarter EPS and revenues, which surpassed the respective Zacks Consensus Estimate. Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. All the three key U.S. indexes closed at record levels on Friday following better-than-expected earnings from Intel, AbbVie and Honeywell. | All the three key U.S. indexes closed at record levels on Friday following better-than-expected earnings from Intel, AbbVie and Honeywell. Upbeat Q4 Earnings Boost Sentiment Encouraging earnings results from Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc HON lent further impetus to the markets' rally. ( Read More ) Shares of AbbVie jumped 13.8% after the pharmaceutical products manufacturer reported fourth quarter EPS and revenues, which surpassed the respective Zacks Consensus Estimate. |
25707.0 | 2018-01-29 00:00:00 UTC | What to Expect in Pfizer's Q4 Earnings Results | ABBV | https://www.nasdaq.com/articles/what-expect-pfizers-q4-earnings-results-2018-01-29 | nan | nan | While the stock market roared in 2017, Pfizer (NYSE: PFE) turned in a respectable, but not spectacular, performance, with its stock gaining 11.5%. The big pharma company's third-quarter results, announced in October , highlighted why -- slow operational sales growth but solid earnings increases.
Pfizer provides an update on its fourth-quarter financial performance on Jan. 30 before the market opens. Will there be a continuation of the mixed results seen in the third quarter, or could the drugmaker deliver a surprise? Here's what to expect in Pfizer's Q4 earnings results.
Positives
There's no reason to think that Pfizer's fast-growing drugs didn't keep their solid momentum going during the fourth quarter. Ibrance generated sales of $878 million in the third quarter, up 59% year over year. Total revenue in the ballpark of $900 million in the fourth quarter should be attainable, despite the presence of two other CDK4/6 inhibitors in the market.
Eliquis will no doubt continue its winning ways as well. Pfizer reported in the third quarter that its portion of sales for the anticoagulant jumped 43% year over year to $644 million. The company's partner, Bristol-Myers Squibb , recorded third-quarter sales for Eliquis of $1.2 billion. Both companies should have another great quarter for the drug. My view is that Pfizer should report around $680 million in revenue from Eliquis on Tuesday.
Pfizer CEO Ian Read said in October that Xeljanz was setting all-time highs with respect to new rheumatology prescriptions. That showed up in the drug's third-quarter sales, which soared 48% to $348 million. Pfizer received good news from the FDA in December with approval for Xeljanz in treating psoriatic arthritis. While the new indication came too late in the year to make much difference in the fourth quarter, Xeljanz should still do very well -- with sales probably around $360 million.
Several other drugs should also be bright spots in Pfizer's fourth-quarter results. I'd definitely put smoking-cessation product Chantix and nerve-pain drug Lyrica in that group.
Negatives
Now for the not-so-bright spots. Pfizer's sterile injectables business dragged overall growth down in previous quarters. Expect more of the same in the fourth quarter.
Product shortages resulting primarily from supply-chain issues have hurt sales of sterile injectables for a while now. Although Pfizer has stated that it's working to resolve these problems, there's little reason to hope for significant improvement in the fourth quarter. Supply challenges are likely to carry over into 2018.
Declining sales for certain legacy products will also continue to plague the big drugmaker. In addition, Pfizer has a laundry list of drugs in the "peri-LOE" category, which refers to drugs that have either recently lost exclusivity or soon will do so. Overall sales for these drugs have been falling and will probably continue to do so in the fourth quarter.
Unfortunately, Pfizer's woes aren't limited to only drugs that have either lost exclusivity in the past or fall into the peri-LOE group. Sales for Enbrel fell nearly 13% year over year in the third quarter. Expect more headwinds for the autoimmune-disease drug in the fourth quarter because of biosimilar competition in Europe.
In between
Pfizer should also report fourth-quarter results in several areas that are neither overwhelmingly positive or negative. I'd put Xtandi on that list. Although prescription growth for the prostate cancer drug picked up with the 2016 acquisition of Medivation is solid, revenue isn't yet where Pfizer would like it to be. One reason is that there has been high utilization of patient assistance programs. Over time, Xtandi should be a big winner for Pfizer, but I wouldn't count on a radical improvement in the fourth quarter.
Another drug gained through an acquisition in 2016 is Eucrisa. Pfizer expected the eczema drug to have blockbuster potential when it bought Anacor Pharmaceuticals. Eucrisa won FDA approval in December 2016, but sales didn't exactly take off in the first three quarters of last year. Pfizer has made progress addressing some of the payer-related issues that held back sales, though. My expectation is that momentum will pick up for Eucrisa, but probably not enough in the fourth quarter to make a huge difference on Pfizer's financial performance.
Then there's Pfizer's biosimilar program. The good news is that biosimilar revenue is growing. The bad news is that it's not growing as much as Pfizer wants it to. I don't see either story changing in the fourth quarter. Pfizer's primary challenge comes from Johnson & Johnson (NYSE: JNJ) , which has defended Remicade from Pfizer's Inflectra biosimilar pretty well. Although Pfizer has taken J&J to court, the ongoing litigation won't have an impact for Inflectra yet.
Overall
So what's the overall predicted verdict for Pfizer's fourth quarter? My take is that there could be a repeat of the third quarter -- low-single-digit percentage revenue growth accompanied by good earnings growth.
However, I think there are two things that will be discussed in Pfizer's fourth-quarter earnings call that could generate plenty of excitement. One is the potential sale or spin-off of its consumer healthcare business. I viewed that as potentially great news for shareholders when Pfizer announced that it was considering these options in October. Although J&J has publicly stated that it won't buy Pfizer's consumer unit, several other companies are reportedly in the running.
Probably the best news from Pfizer, though, will relate to U.S. tax reform. AbbVie just bumped up its 2018 earnings outlook as a result of the impact of tax reform. Pfizer should also enjoy nice benefits from both lower corporate tax rates and repatriation of offshore cash at a lower rate. While this might not affect the fourth-quarter results, it could bode well for Pfizer in 2018.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie just bumped up its 2018 earnings outlook as a result of the impact of tax reform. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie and Pfizer. The big pharma company's third-quarter results, announced in October , highlighted why -- slow operational sales growth but solid earnings increases. | AbbVie just bumped up its 2018 earnings outlook as a result of the impact of tax reform. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie and Pfizer. The big pharma company's third-quarter results, announced in October , highlighted why -- slow operational sales growth but solid earnings increases. | AbbVie just bumped up its 2018 earnings outlook as a result of the impact of tax reform. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie and Pfizer. Positives There's no reason to think that Pfizer's fast-growing drugs didn't keep their solid momentum going during the fourth quarter. | AbbVie just bumped up its 2018 earnings outlook as a result of the impact of tax reform. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie and Pfizer. Here's what to expect in Pfizer's Q4 earnings results. |
25708.0 | 2018-01-29 00:00:00 UTC | AbbVie (ABBV) Soars on Q4 Results: Key Takeaways from the Earnings Call | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-soars-q4-results-key-takeaways-earnings-call-2018-01-29 | nan | nan | AbbVie's ABBV shares jumped 13.8% following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. Results were driven by the performance of Humira, Imbruvica and Mavyret. Imbruvica continued to witness strong uptake for the chronic lymphocytic leukemia ("CLL") indication while Humira's performance was driven by robust demand despite the introduction of new mechanisms of action and competition from indirect biosimilars. Meanwhile, Mavyret (hepatitis C virus - HCV) has been witnessing strong uptake in both the United States and international markets. Mavyret exited 2017 with a market share of 32% in the United States and is expected to become a major growth driver for the company.
Rosy Outlook for 2018: The company provided an upbeat outlook for 2018 reflecting Mavyret's strong uptake, the continued robust underlying performance from other products, and a lower tax rate thanks to the passage of the U.S. tax reform. AbbVie expects 2018 earnings per share in the range of $7.33 - $7.43 on revenues of almost $32 billion. The mid-point of the earnings guidance range reflects year-over-year growth of 32%, an improvement over the company's previously provided guidance of 17% growth at the mid-point (provided with third quarter results).
Humira sales are expected to grow approximately 13% - 14% in the United States while ex-U.S. sales are expected to be about $6.2 billion. The company expects to record Imbruvica revenues of more than $3.3 billion in 2018. Mavyret sales are expected to cross $2.5 billion. Other products like Venclexta, AndroGel, and Duodopa are expected to record sales of $300 million plus, $475 million, and $458 million, respectively. Creon sales are expected to grow 10% in 2018 while Synagis, Lupron and Synthroid sales are expected to remain flat. Zinbryta sales are expected to come in below $100 million reflecting the impact of competition and label changes.
Cash Repatriation/Capital Deployment: The U.S. tax reform will allow AbbVie more efficient access to its foreign cash and the ability to use it in the United States. The company intends to invest about $2.5 billion in capital within the United States in the next five years and is currently evaluating additional expansion of its U.S. facilities. AbbVie also intends to accelerate pension funding by $750 million and enhance non-executive employee compensation. The company is also planning a one-time shareable contribution of about $350 million to select not-for-profit organizations, supporting initiatives such as the Puerto Rico rebuilding efforts, children's healthcare access programs, and certain charities. AbbVie also said that it would be increasing shareholder returns in what could be a combination of acceleration of dividend growth and more share buybacks. Details will be provided later by the company.
What about Deals? As far as deals are concerned, the company's key focus is on opportunities that could drive growth in the 2023-2025 timeframe. AbbVie said that it is looking at early-stage assets.
Catalyst Rich 2018: AbbVie's R&D spend in 2018 is expected to be about 16% of sales, reflecting higher spending to support the late-stage pipeline and mid-stage programs. In addition to working on expanding the label of approved products like Imbruvica and Venclexta, AbbVie's late-stage pipeline includes candidates like upadacitinib (rheumatoid arthritis - RA, Crohn's disease) and risankizumab (psoriasis, Crohn's disease). AbbVie is looking to file for regulatory approval of risankizumab for the psoriasis indication in the first half of the year while the regulatory filing for upadacitinib for the RA indication is expected in the second half of 2018.
Meanwhile, elagolix is under priority review for endometriosis with a response from the FDA expected in the second quarter.
AbbVie's shares are up 103.9% over the last one year, compared to the 29% rally of the industry it belongs to. AbbVie is a Zacks Rank #2 (Buy) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . This week, pharma companies like Pfizer PFE , Eli Lilly and Company LLY and Novo Nordisk NVO will be reporting fourth quarter results.
While Pfizer has an Earnings ESP of -0.08% for the fourth quarter, Lilly and Novo Nordisk have an Earnings ESP of +0.47% and +2.66%, respectively. Earnings ESP is a very valuable tool for investors looking for stocks that are most likely to beat earnings estimates. Moreover, adding a Zacks Rank of #1, 2 or 3 has produced a positive surprise 70% of the time. While Pfizer and Lilly are both Zacks Rank #3 (Hold) stocks, Novo Nordisk is a Zacks Rank #2 stock. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's ABBV shares jumped 13.8% following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. AbbVie expects 2018 earnings per share in the range of $7.33 - $7.43 on revenues of almost $32 billion. Cash Repatriation/Capital Deployment: The U.S. tax reform will allow AbbVie more efficient access to its foreign cash and the ability to use it in the United States. | In addition to working on expanding the label of approved products like Imbruvica and Venclexta, AbbVie's late-stage pipeline includes candidates like upadacitinib (rheumatoid arthritis - RA, Crohn's disease) and risankizumab (psoriasis, Crohn's disease). Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie's ABBV shares jumped 13.8% following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. | AbbVie is a Zacks Rank #2 (Buy) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie's ABBV shares jumped 13.8% following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. | AbbVie expects 2018 earnings per share in the range of $7.33 - $7.43 on revenues of almost $32 billion. AbbVie's ABBV shares jumped 13.8% following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. Cash Repatriation/Capital Deployment: The U.S. tax reform will allow AbbVie more efficient access to its foreign cash and the ability to use it in the United States. |
25709.0 | 2018-01-29 00:00:00 UTC | Strength Seen in AbbVie (ABBV): Stock Soars 13.8% | ABBV | https://www.nasdaq.com/articles/strength-seen-in-abbvie-abbv%3A-stock-soars-13.8-2018-01-29 | nan | nan | AbbVie Inc.ABBV was a big mover last session, as the company saw its shares nearly 14% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company-as the stock is now up 26% in the past one-month time frame.
The move came after the company reported better-than-expected fourth-quarter 2017 results.
The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
AbbVie currently has a Zacks Rank #2 (Buy) while its Earnings ESP is positive.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Investors interested in the Large Cap Pharmaceuticals industry may consider H. Lundbeck A/S HLUYY , which has a Zacks Rank #1 (Strong Buy). 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.
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 was a big mover last session, as the company saw its shares nearly 14% on the day. AbbVie currently has a Zacks Rank #2 (Buy) while its Earnings ESP is positive. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Investors interested in the Large Cap Pharmaceuticals industry may consider H. Lundbeck A/S HLUYY , which has a Zacks Rank #1 (Strong Buy). | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Investors interested in the Large Cap Pharmaceuticals industry may consider H. Lundbeck A/S HLUYY , which has a Zacks Rank #1 (Strong Buy). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV was a big mover last session, as the company saw its shares nearly 14% on the day. | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Investors interested in the Large Cap Pharmaceuticals industry may consider H. Lundbeck A/S HLUYY , which has a Zacks Rank #1 (Strong Buy). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV was a big mover last session, as the company saw its shares nearly 14% on the day. | AbbVie currently has a Zacks Rank #2 (Buy) while its Earnings ESP is positive. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Investors interested in the Large Cap Pharmaceuticals industry may consider H. Lundbeck A/S HLUYY , which has a Zacks Rank #1 (Strong Buy). AbbVie Inc.ABBV was a big mover last session, as the company saw its shares nearly 14% on the day. |
25710.0 | 2018-01-29 00:00:00 UTC | Notable ETF Inflow Detected - MTUM, BA, C, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-mtum-ba-c-abbv-2018-01-29 | 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 Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $255.6 million dollar inflow -- that's a 3.6% increase week over week in outstanding units (from 61,650,000 to 63,900,000). Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is down about 0.3%, Citigroup Inc (Symbol: C) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $77.89 per share, with $113.60 as the 52 week high point - that compares with a last trade of $113.25. 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.
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 MTUM, in trading today Boeing Co. (Symbol: BA) is down about 0.3%, Citigroup Inc (Symbol: C) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $255.6 million dollar inflow -- that's a 3.6% increase week over week in outstanding units (from 61,650,000 to 63,900,000). 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 MTUM, in trading today Boeing Co. (Symbol: BA) is down about 0.3%, Citigroup Inc (Symbol: C) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $77.89 per share, with $113.60 as the 52 week high point - that compares with a last trade of $113.25. 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 MTUM, in trading today Boeing Co. (Symbol: BA) is down about 0.3%, Citigroup Inc (Symbol: C) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $255.6 million dollar inflow -- that's a 3.6% increase week over week in outstanding units (from 61,650,000 to 63,900,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $77.89 per share, with $113.60 as the 52 week high point - that compares with a last trade of $113.25. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is down about 0.3%, Citigroup Inc (Symbol: C) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $255.6 million dollar inflow -- that's a 3.6% increase week over week in outstanding units (from 61,650,000 to 63,900,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $77.89 per share, with $113.60 as the 52 week high point - that compares with a last trade of $113.25. |
25711.0 | 2018-01-29 00:00:00 UTC | Roche Hemophilia Drug Hemlibra Gets Positive CHMP Opinion | ABBV | https://www.nasdaq.com/articles/roche-hemophilia-drug-hemlibra-gets-positive-chmp-opinion-2018-01-29 | nan | nan | RocheRHHBY announced that the EU Committee for Medicinal Products for Human Use ("CHMP") has adopted a positive opinion for Hemlibra (emicizumab) for routine prophylaxis of bleeding episodes in patients suffering from hemophilia A with factor VIII inhibitors.
The CHMP has recommended the drug for use in all age groups.
The Marketing Authorisation Application is being reviewed under accelerated assessment.
A final decision is expected from the European Commission shortly. The CHMP recommendation is based on the positive results of two pivotal clinical studies for people with haemophilia A with inhibitors, the phase III HAVEN 1 and HAVEN 2 studies.
We note that the FDA approved Hemlibra for routine prophylaxis to event or reduce the frequency of bleeding episodes in adults and children with haemophilia A with factor VIII inhibitors in November 2017. Hemlibra was reviewed by the FDA under Priority Review and granted Breakthrough Therapy Designation by the FDA in people aged 12 years or older with haemophilia A with inhibitors in September 2015.
Meanwhile, Hemlibra is being evaluated in a clinical development program that includes two additional phase III studies, HAVEN 3 and HAVEN 4. Results from HAVEN 3 showed a statistically significant and clinically meaningful reduction in the number of treated bleeds over time in adults and adolescents (12 years of age or older) with haemophilia A without inhibitors who received Hemlibra prophylaxis every week or every two weeks, compared with those receiving no prophylaxis. Interim results from HAVEN 4 showed a clinically meaningful control of bleeding in adults and adolescents (12 years of age or older) with haemophilia A with or without inhibitors who received Hemlibra prophylaxis once every four weeks.
A potential approval in Europe will further boost Roche's hematology portfolio which includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta as well as an encouraging pipeline comprising candidates like polatuzumab vedotin/RG7596 and a small-molecule antagonist of MDM2 (idasanutlin/RG7388).
We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . Both companies are jointly commercializing in the United States. AbbVie is commercializing the drug outside the United States.
Earlier in the month, the European Commission granted marketing authorization for multiple sclerosis (MS) drug Ocrevus.
The drug is approved for active relapsing forms of MS defined by clinical or imaging features as well as for early primary progressive MS in terms of disease duration and level of disability, and with imaging features characteristic of inflammatory activity.
Roche's stock has lost 3.1% over a year compared with industry 's gain of 2.9%.
Approval of new drugs and a potential label expansion of existing drugs bode well for Roche as its legacy drugs like Herceptin, MabThera are facing competition from biosimilars.
Novartis AG NVS has already launched its biosimilar version of Rituxan/ MabThera in Europe. Amgen AMGN has also obtained FDA approval for a biosimilar version of Avastin for treatment of five types of cancers including lung cancer, colorectal cancer, glioblastoma, renal cell carcinoma and cervix cancer.
Zacks Rank
Roche currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks Top 10 Stocks for 2018
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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 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 Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. | We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25712.0 | 2018-01-28 00:00:00 UTC | Why Dividend Investors Want to Own AbbVie in 2018 | ABBV | https://www.nasdaq.com/articles/why-dividend-investors-want-own-abbvie-2018-2018-01-28 | nan | nan | Looking for a stock that offers an above average dividend fueled by double-digit profit growth year after successful year?
AbbVie, Inc. (NYSE: ABBV) has already ticked those boxes and looks set to do it again. Dividend investors who have been kicking themselves for avoiding the stock's debut might want to take another look at the drugmaker.
AbbVie's dividend offers an above-average 2.4% yield at the moment, plus management just laid out some big reasons investors can look forward to rapid profit growth in 2018 and sustainable gains in the years ahead. Here's what to look out for.
Raising expectations
Savings associated with tax reforms are expected to be a huge boost to AbbVie's bottom line in 2018. In fact, management recently boosted the low end of its adjusted earnings expectations for all of 2018 about 15% higher to $7.33 per share.
Although the company will book a net charge that works out to $0.77 per share related to tax reform in 2017, AbbVie will save heaps. The company's effective tax rate has hovered between 22% and 27% over the past few years. Management expects that rate to fall to 9% in 2018, and then slowly rise to 13% over the several years.
Achieving such a low effective tax rate in 2018 would leave the company with a lot more profit to spread around to shareholders. During the 12 months ended last September, the company used just 60% of after-tax profits to make dividend payments.
During the fourth-quarter earnings call, management reiterated that cash flows are indeed outpacing opportunities for investment and a proposal for returning that cash to shareholders is in the works. Look for news of big share repurchases and dividend boosts following an important board meeting in February.
Big catalysts on the way
AbbVie is a big company and it takes a lot to move its needle. That said, some important announcements in 2018 could push the stock up a few notches.
The "Trinity" study is testing Rova-T as a potential treatment for small-cell lung cancer and is expected to produce a result in the second quarter. AbbVie paid $5.8 billion upfront to get its hands on the cancer drug candidate, but early survival data from a smaller trial with similar patients underwhelmed.
While the Rova-T program tries to redeem itself, recently launched Venclexta continues firing on all cylinders and could get another boost soon. AbbVie markets the drug in partnership with Roche (NASDAQOTH: RHHBY) , and it looks like a combination of the Swiss pharma's Rituxan and Venclexta could be the next big thing for advanced-stage patients with the most common form of leukemia.
The necessary application is in front of the FDA, and we should hear back from the agency in the first half of 2018. During a trial supporting the application, investigators couldn't detect disease activity in 84.9% of patients treated with the combo therapy versus just 23.1% among those given standard drugs. With results this strong, plus a previous approval, this label expansion seems like a slam dunk.
The FDA approved Venclexta for a much smaller, genetically defined group of leukemia patients less than a year ago. An expansion to a much larger population is just what it needs to reach peak annual sales estimates that top out around $2 billion.
What competition?
Trial results, potential new drug launches, and label expansions have set AbbVie up for growth in the years ahead. What truly makes this a great stock to own right now, though, is management's uncanny ability to protect Humira's market share.
It's been over a year since the FDA approved a lower cost, biosimilar version of Humira, AbbVie's flagship anti-inflammatory drug. Don't ask your doctor to prescribe Amjevita, though: Amgen (NASDAQ: AMGN) recently agreed not to launch its version of Humira in the U.S. until 2023. Keeping biosimilar competition at bay is a big reason global Humira sales surged 14.6% higher in 2017 and are expected to climb by a double-digit percentage again in 2018.
Developing new drug candidates, and expanding existing drugs to larger indications involves a great deal of uncertainty. There aren't any guarantees AbbVie will be able to defend Humira's existing market share either. After getting Amgen to back off, though, I'd say there's a solid chance Humira sales will exceed $20 billion this year. That would give the company a ton of cash to distribute in the quarters ahead, which makes it a great dividend stock to own 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.
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 offers an above-average 2.4% yield at the moment, plus management just laid out some big reasons investors can look forward to rapid profit growth in 2018 and sustainable gains in the years ahead. AbbVie paid $5.8 billion upfront to get its hands on the cancer drug candidate, but early survival data from a smaller trial with similar patients underwhelmed. AbbVie markets the drug in partnership with Roche (NASDAQOTH: RHHBY) , and it looks like a combination of the Swiss pharma's Rituxan and Venclexta could be the next big thing for advanced-stage patients with the most common form of leukemia. | Trial results, potential new drug launches, and label expansions have set AbbVie up for growth in the years ahead. AbbVie, Inc. (NYSE: ABBV) has already ticked those boxes and looks set to do it again. AbbVie's dividend offers an above-average 2.4% yield at the moment, plus management just laid out some big reasons investors can look forward to rapid profit growth in 2018 and sustainable gains in the years ahead. | AbbVie's dividend offers an above-average 2.4% yield at the moment, plus management just laid out some big reasons investors can look forward to rapid profit growth in 2018 and sustainable gains in the years ahead. Trial results, potential new drug launches, and label expansions have set AbbVie up for growth in the years ahead. AbbVie, Inc. (NYSE: ABBV) has already ticked those boxes and looks set to do it again. | Trial results, potential new drug launches, and label expansions have set AbbVie up for growth in the years ahead. AbbVie, Inc. (NYSE: ABBV) has already ticked those boxes and looks set to do it again. AbbVie's dividend offers an above-average 2.4% yield at the moment, plus management just laid out some big reasons investors can look forward to rapid profit growth in 2018 and sustainable gains in the years ahead. |
25713.0 | 2018-01-26 00:00:00 UTC | Novartis Gets Spark Therapeutics' Luxterna License Outside US | ABBV | https://www.nasdaq.com/articles/novartis-gets-spark-therapeutics-luxterna-license-outside-us-2018-01-26 | nan | nan | Novartis AGNVS entered into a licensing agreement with Spark Therapeutics to develop, register and commercialize Luxturna (voretigene neparvovec) in markets outside the United States.
We note Luxturna was approved in the United States on Dec 19, 2017 as one-time gene therapy to restore functional vision in children and adult patients with biallelic mutations of the RPE65 (retinal pigment epithelial 65 kDa protein) gene.
The market authorization application was filed with the European Medicines Agency on July 31, 2017.
Novartis will make an upfront payment as well as pay milestones and royalties to Spark Therapeutics. Meanwhile, Spark Therapeutics will retain exclusive rights for Luxturna in the United States and will retain responsibility for obtaining approval in Europe. Spark Therapeutics will also be responsible for the supply of Luxturna under a separate manufacturing and supply agreement with Novartis.
We remind investors that the FDA approved Novartis' breakthrough gene transfer treatment, Kymriah suspension for the treatment of patients up to 25 years of age with B-cell precursor acute lymphoblastic leukemia that is refractory or in second or later relapse. Kymriah has been launched in the United States.
Earlier in the week, Novartis reported encouraging results for the fourth quarter wherein results beat both earnings and sales estimates on strong performance of Cosentyx and Entresto. Psoriasis Cosentyx achieved multi-blockbuster drug status in 2017 on the back of strong growth of three approved indications while Entresto's sales benefited from continued access improvements and expansion of sales force in the United States.
The generic division, Sandoz also combatted pricing pressure strongly buoyed by launches of Rixathon, the biosimilar version of Roche Holdings, Inc.'s RHHBY Rituxan (rituximab) and Erelzi, the biosimilar of Amgen, Inc.'s AMGN Enbrel in EU. The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA.
Meanwhile, the strategic decision on Alcon to retain the business or separation via capital market transactions such as a spin-off or an initial public offering has been postponed. The company believes that the Alcon division has revived well for now and hence a decision on a possible spin-off will be taken in 2019. The recent approvals of Kymriah and Kisqali will further boost the oncology portfolio and drive growth.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. | The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25714.0 | 2018-01-26 00:00:00 UTC | US Stocks Extend Gains as Health Care, Tech Sectors Edge Higher | ABBV | https://www.nasdaq.com/articles/us-stocks-extend-gains-health-care-tech-sectors-edge-higher-2018-01-26 | nan | nan | US equity benchmarks were extending gains on Friday afternoon despite a lower-than-expected estimate of fourth quarter economic growth as gains in the health care, technology and energy sectors helped to offset declines among utilities and real estate stocks.
The economy grew by an estimated 2.6% on an annualized basis in the final quarter of 2017, down from a 3.2% annualized growth rate in the third quarter, according to data published by the Commerce Department. This was below analysts' expectations for a reading of 3.0%.
The result comes the same day that President Donald Trump delivered an address at the World Economic Forum in Davos, Switzerland in which he urged businesses to invest in the US, saying that his America first policy "does not mean America alone".
In equities, gainers on the Standard & Poor's 500 Index were led by Intel ( INTC ), 9.5% higher after the technology company posted better-than-expected quarterly results late on Thursday which prompted RBC Capital to raise its price target on the stock to $46 from $44 while reiterating a sector perform rating.
Hot on its heels was pharmaceutical company Abbvie ( ABBV ), up by 9.4% after reporting a fourth quarter adjusted net profit and revenue which beat analysts' estimates. Insurance company Arthur J Gallagher ( AJG ) was 5.9% higher after RBC Capital Markets raised its price target on the stock to $66 from $64 after the company posted better-than-expected revenue and net income in its fourth quarter late on Thursday.
And Newell Brands ( NWL ) was up by 5% despite receiving an investment-rating downgrade to sector perform from outperform from RBC Capital Markets a day after the consumer-products company cut its guidance for 2017, forecast 2018 normalized earnings per share below analysts' expectations and unveiled plans to explore strategic options for some of its assets.
Decliners on the index were led by consumer goods company Colgate-Palmolive ( CL ), down by 5.6% after posting revenue which fell short of analysts' expectations for its fourth quarter despite the metric rising year-on-year buttressed by growth in Latin America. Starbucks (SBUX) was also in the doldrums after the coffee shops operator reported first quarter sales which missed analysts' estimates late on Thursday despite a strong performance in China, which it sees as one of its two main drivers of global growth.
The Dow Jones Industrial Average was 0.30% higher, the Standard & Poor's 500 Index was up by 0.50% and the Nasdaq was 0.55% higher at the time of writing.
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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. | Hot on its heels was pharmaceutical company Abbvie ( ABBV ), up by 9.4% after reporting a fourth quarter adjusted net profit and revenue which beat analysts' estimates. In equities, gainers on the Standard & Poor's 500 Index were led by Intel ( INTC ), 9.5% higher after the technology company posted better-than-expected quarterly results late on Thursday which prompted RBC Capital to raise its price target on the stock to $46 from $44 while reiterating a sector perform rating. And Newell Brands ( NWL ) was up by 5% despite receiving an investment-rating downgrade to sector perform from outperform from RBC Capital Markets a day after the consumer-products company cut its guidance for 2017, forecast 2018 normalized earnings per share below analysts' expectations and unveiled plans to explore strategic options for some of its assets. | Hot on its heels was pharmaceutical company Abbvie ( ABBV ), up by 9.4% after reporting a fourth quarter adjusted net profit and revenue which beat analysts' estimates. US equity benchmarks were extending gains on Friday afternoon despite a lower-than-expected estimate of fourth quarter economic growth as gains in the health care, technology and energy sectors helped to offset declines among utilities and real estate stocks. In equities, gainers on the Standard & Poor's 500 Index were led by Intel ( INTC ), 9.5% higher after the technology company posted better-than-expected quarterly results late on Thursday which prompted RBC Capital to raise its price target on the stock to $46 from $44 while reiterating a sector perform rating. | Hot on its heels was pharmaceutical company Abbvie ( ABBV ), up by 9.4% after reporting a fourth quarter adjusted net profit and revenue which beat analysts' estimates. In equities, gainers on the Standard & Poor's 500 Index were led by Intel ( INTC ), 9.5% higher after the technology company posted better-than-expected quarterly results late on Thursday which prompted RBC Capital to raise its price target on the stock to $46 from $44 while reiterating a sector perform rating. Insurance company Arthur J Gallagher ( AJG ) was 5.9% higher after RBC Capital Markets raised its price target on the stock to $66 from $64 after the company posted better-than-expected revenue and net income in its fourth quarter late on Thursday. | Hot on its heels was pharmaceutical company Abbvie ( ABBV ), up by 9.4% after reporting a fourth quarter adjusted net profit and revenue which beat analysts' estimates. The economy grew by an estimated 2.6% on an annualized basis in the final quarter of 2017, down from a 3.2% annualized growth rate in the third quarter, according to data published by the Commerce Department. In equities, gainers on the Standard & Poor's 500 Index were led by Intel ( INTC ), 9.5% higher after the technology company posted better-than-expected quarterly results late on Thursday which prompted RBC Capital to raise its price target on the stock to $46 from $44 while reiterating a sector perform rating. |
25715.0 | 2018-01-26 00:00:00 UTC | AbbVie (ABBV) Q4 Earnings Beat, 2018 View Raised, Shares Up | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q4-earnings-beat-2018-view-raised-shares-up-2018-01-26 | nan | nan | AbbVie Inc. ABBV reported impressive results in the fourth quarter of 2017. The company surpassed earnings and revenue estimates during the period. Importantly, it raised its earnings expectations for 2018. In response, shares climbed almost 6% in pre-market trading .
AbbVie's shares have soared 90.1% in a year's time, significantly outperforming the industry 's 26.5% rally.
The biopharmaceutical company reported fourth-quarter 2017 earnings of $1.48 per share, beating the Zacks Consensus Estimate by 2.8%. The bottom line grew 23.3% year over year. Earnings also surpassed the previous expectations of $1.42 and $1.44.
The company posted revenues of $7.7 billion in the reported quarter, marginally beating the Zacks Consensus Estimate of $7.6 billion. The top line also increased 13.9% year over year. Excluding a 1.5% favorable impact from foreign exchange rate fluctuations, operational revenues jumped 12.6%. Revenues reported higher growth compared with the previously expected 10% rise on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 12.3% on an operational basis with revenues coming in at $4.9 billion. Sales in the United States increased 15.1% to $3.3 billion. Humira sales in the ex-U.S. market were up 6.5% on operational basis and 11.7% on reported basis to $1.57 billion. Growth across all three major market categories drove this upside despite increasing competition from new classes of drugs as well as an indirect biosimilar competition in the international markets.
Fourth-quarter net revenues from Imbruvica stood at $708 million, up 38.7% year over year. U.S. sales of Imbruvica were $585 million, up 35.3% compared with the year-ago figure. AbbVie recorded $123 million (up 38.7%) of international profit sharing with Johnson & Johnson JNJ .
Other products having delivered an impressive performance include Duodopa showing revenue growth of 21.3% on operational and 27.6% on reported basis. Another product called Creon witnessed an ascent of 10.6% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) product recorded sales of $510 million, significantly up 62.7% and 63.4% on operational and reported basis, respectively.
Adjusted SG&A expenses inched up 0.9% to $1.64 billion and R&D expenses escalated 12.5% to $1.32 billion in the quarter. Adjusted operating margin was 40.7% of sales in the reported quarter.
2017 Results
Full-year sales jumped 10.1% year over year to $28.2 billion. Sales outpaced the Zacks Consensus Estimate of $28 billion. Revenue growth is slightly higher than previous expectation of 10%.
The 2017 earnings of $5.60 per share exceeded the Zacks Consensus Estimate of $5.56. The full-year bottom line reflects 16.2% growth compared with the year-ago figure. Moreover, reported earnings are slightly higher than the past projection of $5.53-$5.55.
2018 Outlook
AbbVie raised its adjusted EPS in the range of $7.33-$7.43 for 2018 compared with $6.37-$6.57, predicted earlier. The earnings guidance reflects a year-over-year surge of 32% at the mid-point. The Zacks Consensus Estimate for current-year earnings is pegged at $6.58 per share.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote
Zacks Rank & Key Picks
AbbVie carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the health care sector are Novo Nordisk A/S NVO and Sucampo Pharmaceuticals, Inc. SCMP , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Novo Nordisk's earnings per share estimates have increased from $2.51 to $2.56 for 2018 over the last 30 days. The company delivered positive earnings surprises in three of the trailing four quarters with an average beat of 4.46%. The company's share price has surged 65.7% in a year.
Sucampo's earnings per share estimates have moved north from $1.15 to $1.19 for 2018 in the last 60 days. The company pulled off a positive earnings surprise in three of the last four quarters with an average beat of 15.63%. The company's share price has soared 63.7% in a year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 impressive results in the fourth quarter of 2017. AbbVie's shares have soared 90.1% in a year's time, significantly outperforming the industry 's 26.5% rally. AbbVie recorded $123 million (up 38.7%) of international profit sharing with Johnson & Johnson JNJ . | AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Sucampo Pharmaceuticals, Inc. (SCMP): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV reported impressive results in the fourth quarter of 2017. | AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Sucampo Pharmaceuticals, Inc. (SCMP): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV reported impressive results in the fourth quarter of 2017. | AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). AbbVie Inc. ABBV reported impressive results in the fourth quarter of 2017. AbbVie's shares have soared 90.1% in a year's time, significantly outperforming the industry 's 26.5% rally. |
25716.0 | 2018-01-26 00:00:00 UTC | AbbVie Inc Stock Soars on Strong Q4 Earnings Beat | ABBV | https://www.nasdaq.com/articles/abbvie-inc-stock-soars-strong-q4-earnings-beat-2018-01-26 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) stock was flying high today following the release of its earnings report for the fourth quarter of 2017.
Source: Black Stripe via Wikimedia (Modified)
During the fourth quarter of the year, AbbVie Inc reported earnings per share of $1.48. This is an increase over its earnings per share of $1.20 from the fourth quarter of 2016. It was also good news for ABBV stock by beating out Wall Street's earnings per share estimate of $1.44 for the period.
AbbVie Inc reported net income of $52 million in the fourth quarter of 2017. The pharmaceutical company's net income from the same period of the year prior came in at $1.39 billion. Operating income for the fourth quarter of the year was $1.79 billion, which is down from the previous year's operating income of $2.36 billion.
Revenue of $7.74 billion reported by AbbVie Inc for the fourth quarter of the year was also a boon to ABBV stock. This is up from its revenue of $6.80 billion that was reported during the same time last year. It also came in above analysts' revenue estimate of $7.53 billion for the quarter.
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AbbVie Inc also has an update to its 2018 outlook in its most recent earnings report. It now expects 2018 earnings per share to range from $7.33 to $7.43. It's previous guidance had earnings per share coming in between $6.37 and $6.57. ABBV attributes the increase to the new tax reform law. Wall Street is looking for earnings per share of $6.59 for the full year of 2018.
ABBV stock was up 9% as of Friday morning.
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The post AbbVie Inc Stock Soars on Strong Q4 Earnings Beat 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Source: Black Stripe via Wikimedia (Modified) During the fourth quarter of the year, AbbVie Inc reported earnings per share of $1.48. It was also good news for ABBV stock by beating out Wall Street's earnings per share estimate of $1.44 for the period. Compare Brokers The post AbbVie Inc Stock Soars on Strong Q4 Earnings Beat appeared first on InvestorPlace . | Source: Black Stripe via Wikimedia (Modified) During the fourth quarter of the year, AbbVie Inc reported earnings per share of $1.48. It was also good news for ABBV stock by beating out Wall Street's earnings per share estimate of $1.44 for the period. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was flying high today following the release of its earnings report for the fourth quarter of 2017. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was flying high today following the release of its earnings report for the fourth quarter of 2017. Revenue of $7.74 billion reported by AbbVie Inc for the fourth quarter of the year was also a boon to ABBV stock. Source: Black Stripe via Wikimedia (Modified) During the fourth quarter of the year, AbbVie Inc reported earnings per share of $1.48. | It was also good news for ABBV stock by beating out Wall Street's earnings per share estimate of $1.44 for the period. Revenue of $7.74 billion reported by AbbVie Inc for the fourth quarter of the year was also a boon to ABBV stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was flying high today following the release of its earnings report for the fourth quarter of 2017. |
25717.0 | 2018-01-26 00:00:00 UTC | A Spate of Q4 Earnings | ABBV | https://www.nasdaq.com/articles/a-spate-of-q4-earnings-2018-01-26 | nan | nan | Ahead of the opening bell for the final trading day of this week, new U.S. Gross Domestic Product (GDP) figures were released, and, while not exactly disappointing, came up short of what many analysts had been expecting. The first read for Q4 GDP reached 2.6%, lower than the consensus estimate of 2.9%.
Should this figure remain unchanged through future revisions - the second read is expected February 28 - this would amount to domestic economic growth of roughly 2.6%. This is nothing to sneeze at; in fact, it is almost exactly the average GDP growth rate of the previous 5 years. It's a level which has brought the U.S. from the edge of the abyss during the Great Recession all the way to current all-time highs in the major stock market indexes.
That said, the 30 basis-point miss does come as a bit of a surprise, especially considering a very strong Retail industry over the holiday shopping season, as well as a recovery in Oil & Gas and Construction and Manufacturing - all of which served as albatrosses in previous years. Indeed, some analysts were expecting a positive surprise for Q4 GDP that would have pushed the December quarter to 3% growth three times in a row for the first time this decade.
This may yet happen, of course - future GDP reads have the benefit of more data points over time, and should this information break more to the positive, we could indeed see the most robust U.S. economy since the Recession. In particular, we look toward adjustments to private inventory investment, which shook out at 2.5% in Q4; personal consumption expenditures of 2.8% were the highest we've seen in a couple years.
Q4 Earnings Roll On
We finish the week as we began it - with a new batch of Q4 earnings results. Overall we've enjoyed a very strong earnings season, with positive surprises far outweighing negative ones. Even better: earnings revisions in future quarters for companies already having reported are currently up double-digits for the first time in many quarters, according to Zacks Director of Research Sheraz Mian.
Industrial giant Honeywell HON beat earnings estimates by a penny to $1.85 per share. Revenues of $10.84 billion outpaced the $10.69 billion in the Zacks consensus. Fiscal year earnings guidance was ratcheted up to a range of $7.75-8.00 from a previous guide of $7.55-7.80. For more on HON's earnings, click here.
Defense contractor Rockwell Collins COL posted fiscal Q1 2018 earnings of $1.59 per share, ahead of the $1.53 expected. Revenues also outperformed estimates to $2.01 billion from the $1.99 billion estimate, which were also up 9% year over year. Tax reform added a one-time 37 cents per share to the company's bottom line. For more on COL's earnings, click here.
Biotech company AbbVie ABBV is up 3% in today's pre-market on an earnings beat of $1.48 per share from $1.44 expected, on quarterly sales of $7.7 billion which eked out a positive surprise over the $7.6 billion in the Zacks consensus. Drug titles Imbruvica and Humira led the way to gains in the company's Q4. Guidance is way up to $7.33-7.43 per share; the Zacks consensus had been for $6.58 per share. For more on ABBV's earnings, click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotech company AbbVie ABBV is up 3% in today's pre-market on an earnings beat of $1.48 per share from $1.44 expected, on quarterly sales of $7.7 billion which eked out a positive surprise over the $7.6 billion in the Zacks consensus. For more on ABBV's earnings, click here. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Rockwell Collins, Inc. (COL): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Rockwell Collins, Inc. (COL): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report To read this article on Zacks.com click here. Biotech company AbbVie ABBV is up 3% in today's pre-market on an earnings beat of $1.48 per share from $1.44 expected, on quarterly sales of $7.7 billion which eked out a positive surprise over the $7.6 billion in the Zacks consensus. For more on ABBV's earnings, click here. | Biotech company AbbVie ABBV is up 3% in today's pre-market on an earnings beat of $1.48 per share from $1.44 expected, on quarterly sales of $7.7 billion which eked out a positive surprise over the $7.6 billion in the Zacks consensus. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Rockwell Collins, Inc. (COL): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report To read this article on Zacks.com click here. For more on ABBV's earnings, click here. | Biotech company AbbVie ABBV is up 3% in today's pre-market on an earnings beat of $1.48 per share from $1.44 expected, on quarterly sales of $7.7 billion which eked out a positive surprise over the $7.6 billion in the Zacks consensus. For more on ABBV's earnings, click here. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Rockwell Collins, Inc. (COL): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report To read this article on Zacks.com click here. |
25718.0 | 2018-01-26 00:00:00 UTC | S&P 500 Movers: CL, ABBV | ABBV | https://www.nasdaq.com/articles/sp-500-movers-cl-abbv-2018-01-26 | nan | nan | In early trading on Friday, shares of AbbVie ( ABBV ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.2%. Year to date, AbbVie registers a 21.2% gain.
And the worst performing S&P 500 component thus far on the day is Colgate-Palmolive ( CL ), trading down 4.9%. Colgate-Palmolive is lower by about 2.6% looking at the year to date performance.
Two other components making moves today are Starbucks ( SBUX ), trading down 4.8%, and Intel ( INTC ), trading up 7.5% on the day.
VIDEO: S&P 500 Movers: CL, ABBV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Friday, shares of AbbVie ( ABBV ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.2%. VIDEO: S&P 500 Movers: CL, ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, AbbVie registers a 21.2% gain. | VIDEO: S&P 500 Movers: CL, ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of AbbVie ( ABBV ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.2%. Year to date, AbbVie registers a 21.2% gain. | In early trading on Friday, shares of AbbVie ( ABBV ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.2%. VIDEO: S&P 500 Movers: CL, ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, AbbVie registers a 21.2% gain. | VIDEO: S&P 500 Movers: CL, ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of AbbVie ( ABBV ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.2%. Year to date, AbbVie registers a 21.2% gain. |
25719.0 | 2018-01-26 00:00:00 UTC | AbbVie (ABBV) Q4 Earnings & Revenues Beat, Guidance Raised | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q4-earnings-revenues-beat-guidance-raised-2018-01-26 | nan | nan | North Chicago, IL-based AbbVie Inc. ABBV is best known for its autoimmune disease drug, Humira. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. Other key products include Imbruvica (cancer) and Viekira Pak (hepatitis C virus (HCV) treatment).
Humira, is a major contributor to AbbVie's top line. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on pipeline updates.
Meanwhile, the Pharmacyclics acquisition has diversified AbbVie's product portfolio with the addition of Imbruvica.
AbbVie's performance has been impressive, with the pharmaceuticals company delivering positive surprises in the three of the past four quarter while recording in-line earnings in the other. The average earnings beat over the last four quarters is 1.12%.
Currently, AbbVie has a Zacks Rank #3 (Hold), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: AbbVie's fourth-quarter earnings came in at $1.48 per share, beating the Zacks Consensus Estimate of $1.44.
Revenues: AbbVie posted revenues of $7.7 billion, which marginally beat the Zacks Consensus Estimate of $7.6 billion.
Key Stats: Humira sales came in at $4.9 billion, up 12.3% year over year excluding currency impact. Fourth-quarter Imbruvica net revenues were $708 million, up 38.7% year over year.
2018 Outlook: AbbVie updated its outlook for 2018. The company raised its adjusted EPS in the range of $7.33 to $7.43 compared to $6.37-$6.57 expected previously. The Zacks Consensus Estimate is currently pegged at $6.58 per share.
Share Price Impact: Shares rose more than 3% in pre-market trading .
Check back later for our full write up on this AbbVie earnings report.
AbbVie Inc. Price and Consensus
AbbVie Inc. Price and Consensus | AbbVie Inc. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | North Chicago, IL-based AbbVie Inc. ABBV is best known for its autoimmune disease drug, Humira. AbbVie's performance has been impressive, with the pharmaceuticals company delivering positive surprises in the three of the past four quarter while recording in-line earnings in the other. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. | AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. AbbVie Inc. Price and Consensus AbbVie Inc. Price and Consensus | AbbVie Inc. Quote Wall Street's Next Amazon Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. North Chicago, IL-based AbbVie Inc. ABBV is best known for its autoimmune disease drug, Humira. | AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. We have highlighted some of the key stats from this just-revealed announcement below: Earnings: AbbVie's fourth-quarter earnings came in at $1.48 per share, beating the Zacks Consensus Estimate of $1.44. AbbVie Inc. Price and Consensus AbbVie Inc. Price and Consensus | AbbVie Inc. Quote Wall Street's Next Amazon Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. | We have highlighted some of the key stats from this just-revealed announcement below: Earnings: AbbVie's fourth-quarter earnings came in at $1.48 per share, beating the Zacks Consensus Estimate of $1.44. Revenues: AbbVie posted revenues of $7.7 billion, which marginally beat the Zacks Consensus Estimate of $7.6 billion. North Chicago, IL-based AbbVie Inc. ABBV is best known for its autoimmune disease drug, Humira. |
25720.0 | 2018-01-26 00:00:00 UTC | Will J&J (JNJ) Witness Deceleration in 2018 Sales Growth? | ABBV | https://www.nasdaq.com/articles/will-jj-jnj-witness-deceleration-in-2018-sales-growth-2018-01-26 | nan | nan | Johnson & Johnson'sJNJ fourth-quarter 2017 results were mixed as it beat estimates for earnings while missing the same for sales. J&J announced its fourth-quarter results on Jan 23 before markets opened.
As expected, J&J's sales growth accelerated in the second half of the year backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices. Organically, excluding the impact of acquisitions and divestitures, sales increased 4.2% on an operational basis in the fourth quarter, better than 3.8% increase seen in the third quarter and 2.4% in the first half.
Meanwhile, the acceleration in underlying sales growth in J&J's Pharma segment seen in the third quarter continued in the fourth quarter. Pharmaceutical segment sales rose 17.6% year over year in the fourth quarter to $9.7 billion. Also the drug and medical device giant issued a bullish profit outlook for 2018. J&J estimated 2018 adjusted earnings per share in the range of $8.00 - $8.20, reflecting an operational growth rate between 6.8% and 9.6%. The company's guidance exceeded the then Zacks Consensus Estimate of $7.86 per share.
Despite all these positive factors, shares of J&J have declined since the earnings release on what seems to be investor disappointment with the 2018 revenue guidance.
In 2018, J&J expects revenues in the range of $80.6 billion to $81.4 billion, reflecting operational constant currency sales growth in the range of 3.5% to 4.5%. However, the sales guidance fell slightly short of the then Zacks Consensus Estimate of $81.55 billion. Organic sales growth, excluding the impact of acquisitions and divestitures, is expected to be in the range of 2.5%-3.5%, which, though slightly higher than 2.4% seen in 2017, is short of 4.2% recorded in the fourth quarter. The organic sales growth outlook fell short of investor expectation, which resulted in the share price drop.
We understand investors' concern with the projected decline in revenue growth in 2018. However, we do believe that this outlook is conservative, considering that J&J has a history of issuing a cautious outlook, especially at the beginning of the year. We believe that there are several tailwinds this year, which can coax it to improve the projection as the year progresses.
Two new drugs were approved last year - Guselkumab/Tremfya in the United States as well as in the EU for plaque psoriasis and the first dual treatment for HIV, Juluca (dolutegravir + rilpivirine) in partnership with GlaxoSmithKline GSK in the United States. Juluca is under review in the EU.
J&J also gained FDA approval for several line extensions - a lower dose of Xarelto, two new indications of Simponi Aria, use in adolescents for Stelara, combination use of Darzalex with Celgene's CELG multiple myeloma drug, Pomalyst and the sixth indication for Imbruvica, among others. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV .
The line extensions can expand the eligible patient populations of these drugs and drive sales higher in 2018. The newly approved products will also contribute to sales in 2018.
In 2017, J&J also submitted regulatory applications for label expansion of key drugs including Darzalex (in first-line setting for multiple myeloma), Xarelto (for chronic coronary artery disease and/or peripheral artery disease), Invokana (to include the cardiovascular indication), Zytiga (for earlier stages of metastatic prostate cancer). It might get FDA nod for these line extensions this year, which can provide top-line support, if launched.
This year J&J expects to file for approval of depression candidate, esketamine while apalutamide for pre-metastatic prostate cancer and Symtuza, a darunavir-based once-daily single-tablet regimen for HIV, could be approved by the FDA. Also, several pivotal data readouts and regulatory milestones are expected in 2018.
Meanwhile, J&J's Pharma segment sales accelerated in the second half from a weak first half and management seemed confident that the positive trend will continue in 2018. J&J also said on the call that the Consumer and Medical Device segments will continue to improve in 2018.
We believe that new products in all segments, label expansion of drugs like Imbruvica and Darzalex and contribution from acquisitions, mainly Actelion, will support top-line growth.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Organic sales growth, excluding the impact of acquisitions and divestitures, is expected to be in the range of 2.5%-3.5%, which, though slightly higher than 2.4% seen in 2017, is short of 4.2% recorded in the fourth quarter. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . The organic sales growth outlook fell short of investor expectation, which resulted in the share price drop. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . As expected, J&J's sales growth accelerated in the second half of the year backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices. | Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. As expected, J&J's sales growth accelerated in the second half of the year backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices. |
25721.0 | 2018-01-26 00:00:00 UTC | Morning Movers: AbbVie Jumps on Earnings, Colgate Crushed, Gilead Rising | ABBV | https://www.nasdaq.com/articles/morning-movers-abbvie-jumps-earnings-colgate-crushed-gilead-rising-2018-01-26 | nan | nan | Stocks are rising this morning despite slower-than-expected U.S. economic growth in the fourth quarter as President Donald Trump touted America as an investment destination.
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S&P 500 futures have risen 0.3%, while Dow Jones Industrial futures have advanced 55 points, or 0.2%. Nasdaq Composite futures have gained 0.5%.
Still, there's no doubt that today's disappointing GDP number--the U.S. economy grew 2.6%, missing forecasts for 2.9%--throws a bit of cold water on the whole super-sized growth thesis, even if it doesn't signal any immediate problems. "These are disappointing numbers, no doubt, especially because 3% growth has become a sort of new normal," says E*Trade's Mike Loewengart.
The miss was largely a result of the U.S. trade imbalance, which subtracted 1.13 percentage points from GDP, providing evidence for President Trump's contention that trade needs to be fair. The market, though, though, is probably looking ahead to the first quarter, and whether it will get stronger. "The key for an improvement above that in 2018 will of course be the response by companies to the incentive to increase capital spending and how much companies raise wages which hopefully will lead to a rise in consumer spending," says Bleakley Advisory Group's Peter Boockvar. "This will be offset by the elimination of SALT which could be a big impact on 1/3 of the US economy and how the US economy deals with a rising cost of capital and reduced Fed liquidity."
That's a lot of offsets. - Ben Levisohn
Morning Movers StarbucksSBUXfiscal first quarter earningslagged in the past yearsee better times aheadpicks from the recent Barron's Roundtable IntelINTCIntel gained on the newsstock's reaction to security worries AbbVieABBVraised its 2018 earnings guidance Colgate-PalmoliveCLreporting a fourth-quarter profit LearLEAreporting a fourth-quarter profitGilead Sciences Advance Auto PartsTesladenied problems with Model 3 productionthis CNBC story
- Teresa Rivas and Ben Levisohn
There's not a lot to like about CenturyLink (CTL), an old-fashioned telecom company in a mobile world. Or at least that's what its 22% loss during the past 12 month would appear to be telling us.
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RBC Capital Markets a nalyst Jonathan Atkin and his team aren't sure that's true. In a note released yesterday, Atkin writes that he sees potential upside to management's synergy targets for its Level 3 acquisition, and expects CenturyLink will be able to restructure its operations to drive earnings growth. Moreover, while CenturyLink's 12.1% dividend yield may raise eyebrows, he believes that the payout is sustainable, due to growing free cash flow from cost cutting and lower corporate taxes.
Atkin acknowledges that there are still challenges for CenturyLink, but writes that the valuation factors in a lot of the negatives already. As a result, he boosted their rating on the shares to Outperform from Sector Perform, and raised his price target to $22 from $18.
CenturyLink has been quite volatile, given the challenges facing the traditional wireline industry but has actually fared better than most: Both Windstream (WIN) and Frontier Communications (FTR) are down about 80% in the past 12 months.
Shares of CenturyLink have risen 2.2% to $18.17 in pre-open trading.
And you thought President Donald Trump was the only world leader to leave some observers dumbfounded at the World Economic Forum in Davos, Switzerland, yesterday. British Prime Minister Theresa May took it upon herself to blame tech for just about everything wrong with the world.
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"No one wants to be known as the terrorist platform or the first choice app for pedophiles," she scolded. Her dirty laundry list extended to the spread of terrorism and modern slavery over social media as well as the looming dangers of artificial intelligence.
Then, to further flummox her audience and the greater tech community, she ended her speech with the assertion that post-Brexit Britain is a fertile setting for digital start-ups and evolving technology is "fundamental to the advance of humanity."
Huh?
In her heavy-handed bid to "put pressure" on investors to clean up tech, she united investors and at least one economist in their criticism of May. "I think it's lazy to blame tech companies rather than pursuing criminals directly," Rob Kniaz, co-founding managing partner at Hoxton Ventures, an early-stage investment firm, told Business Insider.
May's argument is reminiscent of the decades-old debate over the effect on TV on violence. Too easy, too convenient, too simplistic.
It is true that Facebook (FB), Twitter (TWTR) and others should be accountable for the spread of misinformation and hate speech on their platforms - and they are taking steps to do so, albeit belatedly. (May was not alone in her criticism of Facebook at Davos; billionaire investor George Soros and Salesforce (CRM) CEO Marc Benioff took the company to task, suggesting it be regulated.)
But to summarily assign all of society's ills to technology, as May did, smacks of reckless finger-pointing. - Jon Swartz
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | - Ben Levisohn Morning Movers StarbucksSBUXfiscal first quarter earningslagged in the past yearsee better times aheadpicks from the recent Barron's Roundtable IntelINTCIntel gained on the newsstock's reaction to security worries AbbVieABBVraised its 2018 earnings guidance Colgate-PalmoliveCLreporting a fourth-quarter profit LearLEAreporting a fourth-quarter profitGilead Sciences Advance Auto PartsTesladenied problems with Model 3 productionthis CNBC story - Teresa Rivas and Ben Levisohn There's not a lot to like about CenturyLink (CTL), an old-fashioned telecom company in a mobile world. In a note released yesterday, Atkin writes that he sees potential upside to management's synergy targets for its Level 3 acquisition, and expects CenturyLink will be able to restructure its operations to drive earnings growth. "I think it's lazy to blame tech companies rather than pursuing criminals directly," Rob Kniaz, co-founding managing partner at Hoxton Ventures, an early-stage investment firm, told Business Insider. | - Ben Levisohn Morning Movers StarbucksSBUXfiscal first quarter earningslagged in the past yearsee better times aheadpicks from the recent Barron's Roundtable IntelINTCIntel gained on the newsstock's reaction to security worries AbbVieABBVraised its 2018 earnings guidance Colgate-PalmoliveCLreporting a fourth-quarter profit LearLEAreporting a fourth-quarter profitGilead Sciences Advance Auto PartsTesladenied problems with Model 3 productionthis CNBC story - Teresa Rivas and Ben Levisohn There's not a lot to like about CenturyLink (CTL), an old-fashioned telecom company in a mobile world. Stocks are rising this morning despite slower-than-expected U.S. economic growth in the fourth quarter as President Donald Trump touted America as an investment destination. Getty Images S&P 500 futures have risen 0.3%, while Dow Jones Industrial futures have advanced 55 points, or 0.2%. | - Ben Levisohn Morning Movers StarbucksSBUXfiscal first quarter earningslagged in the past yearsee better times aheadpicks from the recent Barron's Roundtable IntelINTCIntel gained on the newsstock's reaction to security worries AbbVieABBVraised its 2018 earnings guidance Colgate-PalmoliveCLreporting a fourth-quarter profit LearLEAreporting a fourth-quarter profitGilead Sciences Advance Auto PartsTesladenied problems with Model 3 productionthis CNBC story - Teresa Rivas and Ben Levisohn There's not a lot to like about CenturyLink (CTL), an old-fashioned telecom company in a mobile world. "The key for an improvement above that in 2018 will of course be the response by companies to the incentive to increase capital spending and how much companies raise wages which hopefully will lead to a rise in consumer spending," says Bleakley Advisory Group's Peter Boockvar. In a note released yesterday, Atkin writes that he sees potential upside to management's synergy targets for its Level 3 acquisition, and expects CenturyLink will be able to restructure its operations to drive earnings growth. | - Ben Levisohn Morning Movers StarbucksSBUXfiscal first quarter earningslagged in the past yearsee better times aheadpicks from the recent Barron's Roundtable IntelINTCIntel gained on the newsstock's reaction to security worries AbbVieABBVraised its 2018 earnings guidance Colgate-PalmoliveCLreporting a fourth-quarter profit LearLEAreporting a fourth-quarter profitGilead Sciences Advance Auto PartsTesladenied problems with Model 3 productionthis CNBC story - Teresa Rivas and Ben Levisohn There's not a lot to like about CenturyLink (CTL), an old-fashioned telecom company in a mobile world. Getty Images S&P 500 futures have risen 0.3%, while Dow Jones Industrial futures have advanced 55 points, or 0.2%. Atkin acknowledges that there are still challenges for CenturyLink, but writes that the valuation factors in a lot of the negatives already. |
25722.0 | 2018-01-26 00:00:00 UTC | Why This Biopharma 'Behemoth' Could Soon Become Acquisitive | ABBV | https://www.nasdaq.com/articles/why-biopharma-behemoth-could-soon-become-acquisitive-2018-01-26 | nan | nan | AbbVie ( ABBV ) surged to a record high Friday after issuing a beat-and-raise earnings report that included guidance for a 9% tax rate in 2018, prompting one analyst to suggest "yet another industry behemoth" could become acquisitive.
[ibd-display-video id=3107223 width=50 float=left autostart=true] For its fourth quarter, AbbVie reported adjusted income of $1.48 per share on $7.74 billion in sales, rising 23% and 14%, respectively. Both metrics topped the consensus of analysts for adjusted profit of $1.44 a share on $7.59 billion in sales.
In early trading on the stock market today , AbbVie popped 8%, near 117, helping drug stocks to rise a collective 1.9%.
Guidance for a lower 2018 tax rate should have been expected, Leerink analyst Geoffrey Porges wrote in a note to clients. In December, the White House approved legislation that lowered the corporate tax rate to 21% from 35%.
"With this tax rate, and the company's revenue growth and margin performance, we expect a significant increase in free cash flow in 2018, with attendant de-leveraging, thus setting the stage for more active business development activity from yet another industry behemoth," he said. Investors had previously expected AbbVie to guide to a 20% tax rate, Porges said.
Mergers activity has been heating recently in the biopharma group. This week, Celgene ( CELG ) said it would buy the remainder of Juno Therapeutics ( JUNO ) it didn't already own for $9 billion. In 2017, Gilead Sciences ( GILD ) spent nearly $12 billion to acquire Kite Pharma.
AbbVie expects its effective tax rate to increase to 13% over the next five years due to increased domestic income and investment, Piper Jaffray analyst Christopher Raymond said in his note to clients.
As for AbbVie's results, sales of Humira - which treats several forms of arthritis, Crohn's disease and plaque psoriasis - increased 14% to $4.89 billion in sales. Humira is AbbVie's most important drug. Sales beat the consensus for $4.82 billion, Raymond said.
IBD'S TAKE:AbbVie leads its group with an IBD Composite Rating of 98 out of a best-possible 99, making it a leader among all stocks in terms of key growth metrics. For more on how drug stocks rank, visit IBD Stock Checkup .
Cancer drug Imbruvica brought in $708 million in revenue, growing nearly 39%. That was $1 million ahead of analysts' collective view, Raymond said.
Worldwide sales of AbbVie's hepatitis C drugs Viekira and Mavyret advanced more than 63% vs. the year-earlier period to $510 million, beating the consensus by 89%, said Porges.
The lower tax rate also boosted other 2018 guidance. For the year, AbbVie calls for adjusted income of $7.33-$7.43 per share, up from $6.45-$6.55 and topping the consensus for $6.57. Sales are expected to approach $32 billion, above the Street consensus view for $31.4 billion.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) surged to a record high Friday after issuing a beat-and-raise earnings report that included guidance for a 9% tax rate in 2018, prompting one analyst to suggest "yet another industry behemoth" could become acquisitive. Worldwide sales of AbbVie's hepatitis C drugs Viekira and Mavyret advanced more than 63% vs. the year-earlier period to $510 million, beating the consensus by 89%, said Porges. [ibd-display-video id=3107223 width=50 float=left autostart=true] For its fourth quarter, AbbVie reported adjusted income of $1.48 per share on $7.74 billion in sales, rising 23% and 14%, respectively. | [ibd-display-video id=3107223 width=50 float=left autostart=true] For its fourth quarter, AbbVie reported adjusted income of $1.48 per share on $7.74 billion in sales, rising 23% and 14%, respectively. AbbVie ( ABBV ) surged to a record high Friday after issuing a beat-and-raise earnings report that included guidance for a 9% tax rate in 2018, prompting one analyst to suggest "yet another industry behemoth" could become acquisitive. In early trading on the stock market today , AbbVie popped 8%, near 117, helping drug stocks to rise a collective 1.9%. | AbbVie expects its effective tax rate to increase to 13% over the next five years due to increased domestic income and investment, Piper Jaffray analyst Christopher Raymond said in his note to clients. AbbVie ( ABBV ) surged to a record high Friday after issuing a beat-and-raise earnings report that included guidance for a 9% tax rate in 2018, prompting one analyst to suggest "yet another industry behemoth" could become acquisitive. [ibd-display-video id=3107223 width=50 float=left autostart=true] For its fourth quarter, AbbVie reported adjusted income of $1.48 per share on $7.74 billion in sales, rising 23% and 14%, respectively. | AbbVie ( ABBV ) surged to a record high Friday after issuing a beat-and-raise earnings report that included guidance for a 9% tax rate in 2018, prompting one analyst to suggest "yet another industry behemoth" could become acquisitive. [ibd-display-video id=3107223 width=50 float=left autostart=true] For its fourth quarter, AbbVie reported adjusted income of $1.48 per share on $7.74 billion in sales, rising 23% and 14%, respectively. In early trading on the stock market today , AbbVie popped 8%, near 117, helping drug stocks to rise a collective 1.9%. |
25723.0 | 2018-01-26 00:00:00 UTC | Don’t Chase AbbVie Inc Stock After Its Huge Earnings Win | ABBV | https://www.nasdaq.com/articles/dont-chase-abbvie-inc-stock-after-its-huge-earnings-win-2018-01-26 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
From a fundamental perspective, it's difficult to find anything wrong with AbbVie Inc (NYSE: ABBV ). Friday morning's fourth-quarter results beat consensus on the top and bottom lines for the fourth straight quarter. The midpoint of updated 2018 guidance implies 32% per-share earnings growth in 2018. And yet, AbbVie stock trades at less than 16 times that guidance, even after gaining 9% in early trading Friday.
AbbVie's multiple of 16 and its growth of 32% suggest a so-called PEG (price/earnings-growth) ratio of 0.5x - a figure not found often, or ever, in this bull market. To top it off, ABBV stock still yields 2.6%. The combination makes AbbVie stock look like an incredible deal, even with the stock up 65% just since August. And with momentum strong coming out of the report, and 2018 results likely to be solid, that may be the case in the near term.
But as strong as recent results have been, and as good as 2018 looks, there's a case to take profits at this point. There are a number of risks here, and looking backward in the pharmaceutical industry is a dangerous way to invest.
ABBV does look cheap, but most pharmaceutical stocks do from time to time, and as recent performance has shown, they can get a lot cheaper.
ABBV Crushes Earnings
To be sure, Q4 earnings themselves show little reason for caution. Revenue rose 13.8%, more than three points faster than analysts suggested. Adjusted EPS of $1.48 was 4 cents ahead of the Street. And 2018 guidance is impressive, with AbbVie projecting EPS of $7.33 to $7.43, raised from a prior $6.37-$6.57.
10 Boring Stocks with Thrilling Growth
Corporate tax reform is helping on that front, but more than half of the EPS growth is expected to come from the operating business. That operating business contributed 8 cents of the guidance increase as well.
The news looks good on a more granular business. Abbvie's 7 largest drugs all grew sales year-over-year. The largest drug, arthritis treatment Humira, saw revenue rise 12.6% in constant currency. Sales of second-place Imbruvica rose nearly 39%. Operating margins expanded nearly 90 basis points, but AbbVie also increased its R&D spending 19% on an adjusted basis.
The fourth quarter looks like nothing but good news, but questions remain for ABBV stock holders.
Will the Gains Hold?
The Q4 gains don't necessarily come as a surprise.
AbbVie has been a phenomenal performer since its late 2012 spinoff from Abbott Laboratories (NYSE: ABT ), gaining 236%. But, again, in the pharma space, it's dangerous to look backward - because patent protection and regulatory impacts can have a huge effect on earnings.
And ABBV does have a few reasons for caution. The most obvious is that it remains heavily reliant on Humira. The drug drove a whopping 65% of total 2017 sales. And as seen at Gilead Sciences, Inc. (NASDAQ: GILD ), whose sales have been heavily weighted toward its hepatitis C treatment Solvadi, that kind of revenue concentration can be dangerous.
AbbVie no doubt is better-positioned that Gilead was at Sovaldi's peak. The rest of its pipeline looks stronger. Humira, unlike Solvadi, doesn't cure the disease - and lead to an end of treatment. But Humira will come under some pressure.
A patent dispute settled with Amgen, Inc. (NASDAQ: AMGN ) allows Amgen a non-exclusive license to Humira in Europe starting Oct. 16. (Roughly one-third of 2017 sales of Humira came from outside the U.S.) U.S. competition will follow in 2023. AbbVie still will make a royalty from Amgen products - but it likely will have to cut prices for Humira as a response, hurting sales and margins.
And before that, after 2018, corporate tax reform actually will move AbbVie's tax rate up, per the Q4 release, presenting a modest headwind until U.S. competition arrives.
ABBV Stock Is Cheap, But Not Cheap Enough
AbbVie has a pair of drugs in the pipeline that hopefully will cushion any declines in Humira. Upadacitinib, an immunology drug, should be launched for multiple indications by 2022. Psoriasis treatment risankizumab showed strong phase 3 results last year.
But the lesson of the drug space is that it's difficult to truly replace a blockbuster drug. GILD is down over 30% from its 2015 highs - though it looked cheap as Sovaldi came to market. Stocks across the space have been crushed when sales weaken: Valeant Pharmaceuticals Intl Inc (NYSE: VRX ), Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA ), and Mallinckrodt PLC (NYSE: MNK ) all have been seen huge declines in the last few years.
ABBV is not VRX or TEVA, to be sure. It doesn't have the same debt, and it has a much more stronger and more diversified portfolio. But the broader point is that drug stocks usually look cheap on the way up - and quite often struggle once revenue peaks.
That peak isn't necessarily here for AbbVie. If Humira holds up and the pipeline assets drive revenue, overall sales and profits can grow well into the next decade. But as good as Q4 earnings look, investors need to be careful. Everything looks positive for ABBV at the moment - but at some point, the path will get rockier.
As of this writing, Vince Martin has no positions in any securities mentioned.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a fundamental perspective, it's difficult to find anything wrong with AbbVie Inc (NYSE: ABBV ). And yet, AbbVie stock trades at less than 16 times that guidance, even after gaining 9% in early trading Friday. AbbVie's multiple of 16 and its growth of 32% suggest a so-called PEG (price/earnings-growth) ratio of 0.5x - a figure not found often, or ever, in this bull market. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a fundamental perspective, it's difficult to find anything wrong with AbbVie Inc (NYSE: ABBV ). And yet, AbbVie stock trades at less than 16 times that guidance, even after gaining 9% in early trading Friday. AbbVie's multiple of 16 and its growth of 32% suggest a so-called PEG (price/earnings-growth) ratio of 0.5x - a figure not found often, or ever, in this bull market. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a fundamental perspective, it's difficult to find anything wrong with AbbVie Inc (NYSE: ABBV ). ABBV Stock Is Cheap, But Not Cheap Enough AbbVie has a pair of drugs in the pipeline that hopefully will cushion any declines in Humira. More From InvestorPlace 5 Biotech and Pharmaceutical Stocks Going Bonkers Netflix, Inc. Stock Will Grow Into Its Valuation… in the Year 2029 3 Earnings Reports to Watch Next Week Compare Brokers The post Don't Chase AbbVie Inc Stock After Its Huge Earnings Win appeared first on InvestorPlace . | To top it off, ABBV stock still yields 2.6%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a fundamental perspective, it's difficult to find anything wrong with AbbVie Inc (NYSE: ABBV ). And yet, AbbVie stock trades at less than 16 times that guidance, even after gaining 9% in early trading Friday. |
25724.0 | 2018-01-26 00:00:00 UTC | 5 Biotech and Pharmaceutical Stocks Going Bonkers | ABBV | https://www.nasdaq.com/articles/5-biotech-and-pharmaceutical-stocks-going-bonkers-2018-01-26 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This is a market like the world has never seen. U.S. equities are pushing to new record highs on Friday thanks in large part to a moon-shot trajectory by biotech and pharmaceutical stocks. The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB ) is up roughly 18% from its November low to break to new all-time highs.
Many factors are in play. But mainly, this is a reflection of the incredible bullish sentiment and powerful upward momentum at work in the public markets. In fact, according to SentinenTrader data, there have been nearly 200 days since the S&P 500 posted back-to-back losses of at least 0.25%.
But individual issues are benefiting from specific tailwinds as well.
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Here are five to biotech and pharmaceutical stocks watch:
Biotech and Pharmaceutical Stocks to Buy: Gilead Sciences (GILD)
Gilead Sciences, Inc. (NASDAQ: GILD ) shares are going vertical, up nearly 5% on Friday, in the wake of an upgrade by analysts at Jefferies. The sector was also bolstered by M&A activity earlier in the week, with Celgene Corporation (NASDAQ: CELG ) buying Juno Therapeutics Inc (NASDAQ: JUNO ) for $9 billion and Sanofi SA (ADR) (NYSE: SNY ) buying Bioverativ Inc (NASDAQ: BIVV ) for $11.6 billion.
The company will next report results on Feb. 6, after the close. Analysts are looking for earnings of $1.65-per-share on revenues of $5.7 billion. When the company last reported on Oct. 26, earnings of $2.27-per-share beat estimates by 14 cents on a 13.2% decline in revenues.
Biotech and Pharmaceutical Stocks to Buy:Biogen (BIIB)
Biogen Inc (NASDAQ: BIIB ) shares are up nearly 4% on Friday to push up and over its October highs as investors greeted the company's latest quarterly results with glee. Specifically, additional detail on a recent acquisition from Karyopharma (an early stage ALS treatment candidate). H.C. Wainwright analysts said they believe this deal exemplifies management's core competency in developing scientifically sound assets.
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The company will next report results on April 26. When the company last reported on Thursday, earnings of $5.26 missed estimates by 19 cents despite a 15.1% rise in revenues.
Biotech and Pharmaceutical Stocks to Buy: Amgen (AMGN)
Amgen, Inc. (NASDAQ: AMGN ) shares are rising nearly 3% on Friday to challenge their high set earlier in the week. The company enjoyed an analyst upgrade at Argus on Jan. 22 after reporting positive Phase 3 results from an episodic migraine treatment.
The company will next report results on Feb. 1, after the close. Analysts are looking for earnings of $3.04-per-share on revenues of $5.8 billion. When the company last reported on Oct. 25, earnings of $3.27-per-share beat estimates by 17 cents on a 0.7% decline in revenues.
Biotech and Pharmaceutical Stocks to Buy:Pfizer (PFE)
Pfizer Inc. (NYSE: PFE ) shares are blasting out of a two-month consolidation range, marking a 21%+ rise from the low set in August. The catalyst was headlines that European regulators approved PFE's diabetes drug Steglatro developed in collaboration with Merck & Co., Inc. (NYSE: MRK ).
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The company will next report results on Jan. 30, before the bell. Analysts are looking for earnings of 56-cents-per-share on revenues of $13.67 billion. When the company last reported on Oct. 31, earnings of 67-cents-per-share beat estimates by 2 cents on a 0.9% rise in revenues.
Biotech and Pharmaceutical Stocks to Buy: AbbVie (ABBV)
AbbVie Inc (NYSE: ABBV ) shares are moving the most aggressively among the ones presented here, up nearly 14% to cap a 25% gain over the past month. Investors have been spurred by solid quarterly results, raised forward guidance and the impact of the GOP's tax cut legislation. Much of the stock's jump is on strong sales of its Humira drug.
The company reported on Friday, before the bell. Earnings of $1.48-per-share beat estimates by 5 cents on a 13.9% rise in revenues. Before that, the company reported earnings of $1.41-per-share on Oct. 27, which beat estimates by 2 cents.
Anthony Mirhaydari is the founder of theEdge(ETFs) andEdge Pro(Options) investment advisory newsletters.Free two- and four-week trial offers have been extended to InvestorPlace readers.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotech and Pharmaceutical Stocks to Buy: AbbVie (ABBV) AbbVie Inc (NYSE: ABBV ) shares are moving the most aggressively among the ones presented here, up nearly 14% to cap a 25% gain over the past month. The catalyst was headlines that European regulators approved PFE's diabetes drug Steglatro developed in collaboration with Merck & Co., Inc. (NYSE: MRK ). Investors have been spurred by solid quarterly results, raised forward guidance and the impact of the GOP's tax cut legislation. | Biotech and Pharmaceutical Stocks to Buy: AbbVie (ABBV) AbbVie Inc (NYSE: ABBV ) shares are moving the most aggressively among the ones presented here, up nearly 14% to cap a 25% gain over the past month. 10 Top-Rated Vanguard Funds to Buy Now Here are five to biotech and pharmaceutical stocks watch: Biotech and Pharmaceutical Stocks to Buy: Gilead Sciences (GILD) Gilead Sciences, Inc. (NASDAQ: GILD ) shares are going vertical, up nearly 5% on Friday, in the wake of an upgrade by analysts at Jefferies. Biotech and Pharmaceutical Stocks to Buy: Amgen (AMGN) Amgen, Inc. (NASDAQ: AMGN ) shares are rising nearly 3% on Friday to challenge their high set earlier in the week. | Biotech and Pharmaceutical Stocks to Buy: AbbVie (ABBV) AbbVie Inc (NYSE: ABBV ) shares are moving the most aggressively among the ones presented here, up nearly 14% to cap a 25% gain over the past month. 10 Top-Rated Vanguard Funds to Buy Now Here are five to biotech and pharmaceutical stocks watch: Biotech and Pharmaceutical Stocks to Buy: Gilead Sciences (GILD) Gilead Sciences, Inc. (NASDAQ: GILD ) shares are going vertical, up nearly 5% on Friday, in the wake of an upgrade by analysts at Jefferies. Biotech and Pharmaceutical Stocks to Buy:Biogen (BIIB) Biogen Inc (NASDAQ: BIIB ) shares are up nearly 4% on Friday to push up and over its October highs as investors greeted the company's latest quarterly results with glee. | Biotech and Pharmaceutical Stocks to Buy: AbbVie (ABBV) AbbVie Inc (NYSE: ABBV ) shares are moving the most aggressively among the ones presented here, up nearly 14% to cap a 25% gain over the past month. 10 Top-Rated Vanguard Funds to Buy Now Here are five to biotech and pharmaceutical stocks watch: Biotech and Pharmaceutical Stocks to Buy: Gilead Sciences (GILD) Gilead Sciences, Inc. (NASDAQ: GILD ) shares are going vertical, up nearly 5% on Friday, in the wake of an upgrade by analysts at Jefferies. Biotech and Pharmaceutical Stocks to Buy:Pfizer (PFE) Pfizer Inc. (NYSE: PFE ) shares are blasting out of a two-month consolidation range, marking a 21%+ rise from the low set in August. |
25725.0 | 2018-01-26 00:00:00 UTC | Stocks With Rising Relative Strength: Novartis | ABBV | https://www.nasdaq.com/articles/stocks-rising-relative-strength-novartis-2018-01-26 | nan | nan | The Relative Strength ( RS ) Rating for Novartis ( NVS ) headed into a higher percentile Friday, as it got a lift from 70 to 75.
[ibd-display-video id=2881825 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
Decades of market research shows that the best stocks tend to have an RS Rating north of 80 in the early stages of their moves. See if Novartis can continue to show renewed price strength and hit that benchmark.
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Novartis is now considered extended and out of buy range after clearing an 87.00 buy point in a first-stage flat base . See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 8%, compared to 5% in the prior report. Revenue increased from -1% to 3%.
Novartis holds the No. 7 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. The Relative Strength ( RS ) Rating for Novartis ( NVS ) headed into a higher percentile Friday, as it got a lift from 70 to 75. Decades of market research shows that the best stocks tend to have an RS Rating north of 80 in the early stages of their moves. | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. The Relative Strength ( RS ) Rating for Novartis ( NVS ) headed into a higher percentile Friday, as it got a lift from 70 to 75. Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. The score shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database. Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. [ibd-display-video id=2881825 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database. |
25726.0 | 2018-01-26 00:00:00 UTC | AstraZeneca Gets Relative Strength Rating Upgrade | ABBV | https://www.nasdaq.com/articles/astrazeneca-gets-relative-strength-rating-upgrade-2018-01-26 | nan | nan | The Relative Strength ( RS ) Rating for AstraZeneca ( AZN ) entered a higher percentile Friday, as it got a lift from 62 to 75.
[ibd-display-video id=2385970 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks compares to the rest of the market.
History reveals that the stocks that go on to make the biggest gains often have an RS Rating north of 80 in the early stages of their moves. See if AstraZeneca can continue to rebound and clear that threshold.
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AstraZeneca is within a buy range after clearing a 35.70 buy point in a consolidation . Once a stock moves 5% or higher beyond the original entry, it's considered extended and out of buy range.
Earnings growth fell in the most recent report from 5% to -15%. But revenue gains moved higher, from -10% to 9%. The next quarterly numbers are expected on or around Feb. 2.
AstraZeneca holds the No. 11 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. The Relative Strength ( RS ) Rating for AstraZeneca ( AZN ) entered a higher percentile Friday, as it got a lift from 62 to 75. History reveals that the stocks that go on to make the biggest gains often have an RS Rating north of 80 in the early stages of their moves. | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? How Relative Strength Line Can Help You Judge A Stock 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 ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. See How IBD Helps You Make More Money In Stocks AstraZeneca is within a buy range after clearing a 35.70 buy point in a consolidation . Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ), Zoetis ( ZTS ) and Grifols ( GRFS ) are among the top 5 highly rated stocks within the group. See if AstraZeneca can continue to rebound and clear that threshold. But revenue gains moved higher, from -10% to 9%. |
25727.0 | 2018-01-26 00:00:00 UTC | This Is By Far the Most Important Number in AbbVie's Q4 Results | ABBV | https://www.nasdaq.com/articles/far-most-important-number-abbvies-q4-results-2018-01-26 | nan | nan | After AbbVie (NYSE: ABBV) reported its third-quarter results in October, all the signs pointed to the big biotech enjoying its best year ever in 2017. The company was on a roll.
Investors fully expected that the positive momentum would continue when AbbVie announced its fourth-quarter and full-year 2017 results before the market opened on Friday. Their expectations were met -- and then some. AbbVie yet again knocked the ball out of the park, with shares jumping 6% in early trading. And one number stood out as more important than any other.
By the numbers
Up, up, and way down -- but with an asterisk. That's the quick version of AbbVie's fourth-quarter numbers.
The big biotech reported revenue of $7.7 billion, an increase of nearly 14% over the prior-year period. This top-line performance was boosted a bit by a favorable 1.5% impact from foreign exchange. As usual, Humira generated the lion's share of AbbVie's total revenue, with sales of the autoimmune disease drug totaling nearly $4.9 billion in the fourth quarter. During the full-year 2017, Humira raked in $18.4 billion, making it the best-selling drug in the world in yet another year.
However, AbbVie's fastest-growing product was Imbruvica. Sales for the cancer drug soared nearly 58% year over year to $708 million. Imbruvica ended 2017 with close to $2.6 billion in annual revenue.
AbbVie announced adjusted diluted earnings per share (EPS) of $1.48 in the fourth quarter, a year-over-year jump of 23%. That result handily topped the consensus Wall Street estimate of $1.44.
But AbbVie's net income for the fourth quarter of 2017 was a puny $52 million. In the same quarter of 2016, the company reported net income of nearly $1.4 billion. This is where the asterisk comes into play, though. While AbbVie's bottom-line performance appears to have significantly worsened, the big drop stemmed from the one-time impact of around $4.5 billion in taxes on cash parked offshore.
This hefty tax payment is actually good news because it means AbbVie was able to bring a lot of money back into the U.S. That money will be spent in several ways, including investing $2.5 billion over the next five years in capital projects in the U.S. and contributing around $350 million to charities in 2018.
Most important number
While AbbVie's fourth-quarter numbers were strong, the most important number announced by the company related to the future rather than the past. AbbVie now projects 32% year-over-year adjusted EPS growth in 2018 at the midpoint of its guidance range.
Previously, the company provided adjusted EPS guidance for 2018 between $6.37 and $6.57. AbbVie raised that guidance to a range of $7.33 to $7.43. Tax reform was the catalyst for the change.
The effects of U.S. corporate tax reform are going to be really positive for AbbVie. The company's GAAP tax rate in 2017 was 95.6%. However, that was skewed by the big repatriation tax, so AbbVie's adjusted tax rate was 18.9%. AbbVie predicts its 2018 effective tax rate will be around 9% as a result of a one-time tax benefit related to the timing of the phase-in of provisions of the new tax reform act for some of its subsidiaries. Over the next five years, AbbVie expects its adjusted tax rate to be around 13%.
Remember that AbbVie operates throughout the world, so its effective tax rates include more than the U.S. However, there's no question that the company will make a lot more money as a result of lower U.S. taxes. If you're an AbbVie shareholder, that's good news.
Looking ahead
AbbVie CEO Rick Gonzalez said at the recent J. P. Morgan Healthcare Conference that the company expects to launch at least 20 new products or indications by 2020. Gonzalez also said that AbbVie expects non-Humira sales (adjusted for risk) totaling $35 billion by 2025. To put that into perspective, combined sales for all of the company's drugs outside of Humira totaled less than $9.8 billion last year.
I have thought for a while that AbbVie was the best big pharma stock on the market. After the company's outstanding fourth-quarter performance and tremendous outlook for 2018, my view has solidified.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors fully expected that the positive momentum would continue when AbbVie announced its fourth-quarter and full-year 2017 results before the market opened on Friday. While AbbVie's bottom-line performance appears to have significantly worsened, the big drop stemmed from the one-time impact of around $4.5 billion in taxes on cash parked offshore. Looking ahead AbbVie CEO Rick Gonzalez said at the recent J. P. Morgan Healthcare Conference that the company expects to launch at least 20 new products or indications by 2020. | AbbVie announced adjusted diluted earnings per share (EPS) of $1.48 in the fourth quarter, a year-over-year jump of 23%. However, that was skewed by the big repatriation tax, so AbbVie's adjusted tax rate was 18.9%. Over the next five years, AbbVie expects its adjusted tax rate to be around 13%. | Most important number While AbbVie's fourth-quarter numbers were strong, the most important number announced by the company related to the future rather than the past. However, that was skewed by the big repatriation tax, so AbbVie's adjusted tax rate was 18.9%. AbbVie predicts its 2018 effective tax rate will be around 9% as a result of a one-time tax benefit related to the timing of the phase-in of provisions of the new tax reform act for some of its subsidiaries. | As usual, Humira generated the lion's share of AbbVie's total revenue, with sales of the autoimmune disease drug totaling nearly $4.9 billion in the fourth quarter. Over the next five years, AbbVie expects its adjusted tax rate to be around 13%. After AbbVie (NYSE: ABBV) reported its third-quarter results in October, all the signs pointed to the big biotech enjoying its best year ever in 2017. |
25728.0 | 2018-01-26 00:00:00 UTC | Blue-Chip Drug Stock, Dow Jones Name Boasts Big Yield, Hits 13-Year High | ABBV | https://www.nasdaq.com/articles/blue-chip-drug-stock-dow-jones-name-boasts-big-yield-hits-13-year-high-2018-01-26 | nan | nan | Amid renewed strength in the biotech and drug industry, Pfizer ( PFE ) is surging into multiyear-high territory Friday as volume tracked well above average.
[ibd-display-video id=2382612 width=50 float=left autostart=true] The blue-chip drug stock boasts two quarters of accelerating earnings growth - a fundamental metric shared by many of the market's top growth stocks.
In the most recent quarter, the Dividend Leader grew its earnings and sales 10% and 1% respectively vs. the year-ago period. Its current quarter's results are due out Jan. 30 before the market open. Analysts expect Pfizer to report earnings of 56 cents per share - a 19% increase year over year - while revenue is expected to be slightly up at $13.68 billion.
The drugmaker is set to pay out its next quarterly dividend - in the amount of 34 cents per share - on March 1 to shareholders of record on Feb. 2. The payout is two cents - or 6.3% - higher than the year-ago period. The boosted payment results in a $1.36 annualized dividend per share and a 3.6% yield.
Medical-Ethical Drug industry group leader AbbVie ( ABBV ) surged more than 10% Friday after handily beating its Q4 profit and sales estimates . Meanwhile, the overall group is attempting to move into the top 40 rankings. Three weeks ago, the group was a middling No. 87, but has improved to No. 47 out of 197 groups .
Pfizer shares, meanwhile, jumped into multiyear-high territory on a 200% surge in volume amid continued strength after a breakout above 36.88 in a long 16-month saucer with handle in heavy weekly trade during the week ended Dec. 15. The strong turnover as the stock hit new highs indicates that the major institutional players expect more potential upside.
According to the IBD Stock Checkup , Pfizer holds a B Accumulation/Distribution Rating, while its up/down volume ratio is a bullish 1.3 vs. a 1.0 neutral reading.
Progress has been muted so far from the breakout, but the stock is finally starting to gain upside momentum Friday. The 5% buy range runs up to 38.72, so the stock is on the cusp of being extended.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Medical-Ethical Drug industry group leader AbbVie ( ABBV ) surged more than 10% Friday after handily beating its Q4 profit and sales estimates . Amid renewed strength in the biotech and drug industry, Pfizer ( PFE ) is surging into multiyear-high territory Friday as volume tracked well above average. According to the IBD Stock Checkup , Pfizer holds a B Accumulation/Distribution Rating, while its up/down volume ratio is a bullish 1.3 vs. a 1.0 neutral reading. | Medical-Ethical Drug industry group leader AbbVie ( ABBV ) surged more than 10% Friday after handily beating its Q4 profit and sales estimates . Amid renewed strength in the biotech and drug industry, Pfizer ( PFE ) is surging into multiyear-high territory Friday as volume tracked well above average. Pfizer shares, meanwhile, jumped into multiyear-high territory on a 200% surge in volume amid continued strength after a breakout above 36.88 in a long 16-month saucer with handle in heavy weekly trade during the week ended Dec. 15. | Medical-Ethical Drug industry group leader AbbVie ( ABBV ) surged more than 10% Friday after handily beating its Q4 profit and sales estimates . [ibd-display-video id=2382612 width=50 float=left autostart=true] The blue-chip drug stock boasts two quarters of accelerating earnings growth - a fundamental metric shared by many of the market's top growth stocks. Pfizer shares, meanwhile, jumped into multiyear-high territory on a 200% surge in volume amid continued strength after a breakout above 36.88 in a long 16-month saucer with handle in heavy weekly trade during the week ended Dec. 15. | Medical-Ethical Drug industry group leader AbbVie ( ABBV ) surged more than 10% Friday after handily beating its Q4 profit and sales estimates . Amid renewed strength in the biotech and drug industry, Pfizer ( PFE ) is surging into multiyear-high territory Friday as volume tracked well above average. In the most recent quarter, the Dividend Leader grew its earnings and sales 10% and 1% respectively vs. the year-ago period. |
25729.0 | 2018-01-26 00:00:00 UTC | Earnings Reaction History: AbbVie Inc., 41.7% Follow-Through Indicator, 3.2% Sensitive | ABBV | https://www.nasdaq.com/articles/earnings-reaction-history-abbvie-inc-417-follow-through-indicator-32-sensitive-2018-01-26 | nan | nan | Expected Earnings Release: 01/26/2018, Premarket
Avg. Extended-Hours Dollar Volume: $6,461,569
AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 57.1%
Average next regular session additional gain: 1.9%
Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.9%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 20%
Average next regular session additional loss: 1.7%
Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close.
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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.
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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 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.9% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 20% Average next regular session additional loss: 1.7% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. Extended-Hours Dollar Volume: $6,461,569 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.9% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 20% Average next regular session additional loss: 1.7% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.9% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 20% Average next regular session additional loss: 1.7% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. Extended-Hours Dollar Volume: $6,461,569 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Extended-Hours Dollar Volume: $6,461,569 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.9% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.9%. |
25730.0 | 2018-01-25 00:00:00 UTC | Notable Thursday Option Activity: ASPS, ABBV, AMTD | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity-asps-abbv-amtd-2018-01-25 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Altisource Portfolio Solutions SA (Symbol: ASPS), where a total of 1,484 contracts have traded so far, representing approximately 148,400 underlying shares. That amounts to about 78.8% of ASPS's average daily trading volume over the past month of 188,280 shares. Particularly high volume was seen for the $25 strike call option expiring February 16, 2018 , with 1,400 contracts trading so far today, representing approximately 140,000 underlying shares of ASPS. Below is a chart showing ASPS's trailing twelve month trading history, with the $25 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,753 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 73.7% of ABBV's average daily trading volume over the past month, of 4.4 million shares. Particularly high volume was seen for the $116 strike call option expiring February 16, 2018 , with 11,542 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $116 strike highlighted in orange:
And TD Ameritrade Holding Corp (Symbol: AMTD) saw options trading volume of 19,866 contracts, representing approximately 2.0 million underlying shares or approximately 68.8% of AMTD's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $54.50 strike call option expiring January 26, 2018 , with 4,010 contracts trading so far today, representing approximately 401,000 underlying shares of AMTD. Below is a chart showing AMTD's trailing twelve month trading history, with the $54.50 strike highlighted in orange:
For the various different available expirations for ASPS options , ABBV options , or AMTD 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.
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 $116 strike call option expiring February 16, 2018 , with 11,542 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ASPS's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,753 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 73.7% of ABBV's average daily trading volume over the past month, of 4.4 million shares. | Below is a chart showing ASPS's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,753 contracts thus far today. Particularly high volume was seen for the $116 strike call option expiring February 16, 2018 , with 11,542 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $116 strike highlighted in orange: And TD Ameritrade Holding Corp (Symbol: AMTD) saw options trading volume of 19,866 contracts, representing approximately 2.0 million underlying shares or approximately 68.8% of AMTD's average daily trading volume over the past month, of 2.9 million shares. | Particularly high volume was seen for the $116 strike call option expiring February 16, 2018 , with 11,542 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $116 strike highlighted in orange: And TD Ameritrade Holding Corp (Symbol: AMTD) saw options trading volume of 19,866 contracts, representing approximately 2.0 million underlying shares or approximately 68.8% of AMTD's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing ASPS's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,753 contracts thus far today. | Below is a chart showing ABBV's trailing twelve month trading history, with the $116 strike highlighted in orange: And TD Ameritrade Holding Corp (Symbol: AMTD) saw options trading volume of 19,866 contracts, representing approximately 2.0 million underlying shares or approximately 68.8% of AMTD's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing AMTD's trailing twelve month trading history, with the $54.50 strike highlighted in orange: For the various different available expirations for ASPS options , ABBV options , or AMTD options , visit StockOptionsChannel.com. Below is a chart showing ASPS's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,753 contracts thus far today. |
25731.0 | 2018-01-25 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-2018-01-25 | 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 AbbVieis seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings - with the most up-to-date information possible - is a pretty good indicator of some favorable trends underneath the surface for ABBV in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.46 per share for ABBV, compared to a broader Zacks Consensus Estimate of $1.44 per share. This suggests that analysts have very recently bumped up their estimates for ABBV, giving the stock a Zacks Earnings ESP of +1.30% heading into earnings season.
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
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The 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. | 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. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 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 +1.30% 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 +1.30% 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. 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. |
25732.0 | 2018-01-25 00:00:00 UTC | Pre-Market Earnings Report for January 26, 2018 : ABBV, HON, NEE, CL, APD, COL, LEA, GNTX, HRC, POL, NEP, ABCB | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-january-26-2018-abbv-hon-nee-cl-apd-col-lea-gntx-hrc-pol-nep | nan | nan | The following companies are expected to report earnings prior to market open on 01/26/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
AbbVie Inc. ( ABBV ) is reporting for the quarter ending December 31, 2017. The large cap pharmaceutical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.44. This value represents a 20.00% 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 2017 Price to Earnings ratio for ABBV is 18.98 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Honeywell International Inc. ( HON ) is reporting for the quarter ending December 31, 2017. The diversified operations company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.84. This value represents a 5.75% increase compared to the same quarter last year. In the past year HON has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for HON is 22.53 vs. an industry ratio of 29.10.
NextEra Energy, Inc. ( NEE ) is reporting for the quarter ending December 31, 2017. The electric power utilities company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.31. This value represents a 8.26% increase compared to the same quarter last year. NEE missed the consensus earnings per share in the 4th calendar quarter of 2016 by -6.2%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for NEE is 22.41 vs. an industry ratio of 18.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Colgate-Palmolive Company ( CL ) is reporting for the quarter ending December 31, 2017. The cleaning company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.75. This value represents a no change for the same quarter last year. In the past year CL has met analyst expectations three times and beat the expectations the other quarter. Zacks Investment Research reports that the 2017 Price to Earnings ratio for CL is 26.76 vs. an industry ratio of 23.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Air Products and Chemicals, Inc. ( APD ) is reporting for the quarter ending December 31, 2017. The chemical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.66. This value represents a 12.93% increase compared to the same quarter last year. APD missed the consensus earnings per share in the 4th calendar quarter of 2016 by -0.68%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for APD is 24.30 vs. an industry ratio of 19.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Rockwell Collins, Inc. ( COL ) is reporting for the quarter ending December 31, 2017. The aerospace and defense company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.53. This value represents a 27.50% increase compared to the same quarter last year. In the past year COL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for COL is 19.33 vs. an industry ratio of -14.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Lear Corporation ( LEA ) is reporting for the quarter ending December 31, 2017. The auto (truck) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $4.25. This value represents a 11.84% increase compared to the same quarter last year. In the past year LEA has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.21%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for LEA is 11.40 vs. an industry ratio of 14.80.
Gentex Corporation ( GNTX ) is reporting for the quarter ending December 31, 2017. The auto (truck) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.32. This value represents a 3.23% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for GNTX is 17.95 vs. an industry ratio of 14.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Hill-Rom Holdings Inc ( HRC ) is reporting for the quarter ending December 31, 2017. The medical products company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.79. This value represents a 5.33% increase compared to the same quarter last year. In the past year HRC has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for HRC is 20.58 vs. an industry ratio of -56.60, implying that they will have a higher earnings growth than their competitors in the same industry.
PolyOne Corporation ( POL ) is reporting for the quarter ending December 31, 2017. The plastics company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.39. This value represents a 2.63% increase compared to the same quarter last year. In the past year POL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for POL is 20.52 vs. an industry ratio of 18.70, implying that they will have a higher earnings growth than their competitors in the same industry.
NextEra Energy Partners, LP ( NEP ) is reporting for the quarter ending December 31, 2017. The alternative energy company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.26. This value represents a 71.43% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for NEP is 45.88 vs. an industry ratio of 120.30.
Ameris Bancorp ( ABCB ) is reporting for the quarter ending December 31, 2017. The banks (southeast) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.63. This value represents a 1.61% increase compared to the same quarter last year. The last two quarters ABCB had negative earnings surprises; the latest report they missed by -3.08%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for ABCB is 21.59 vs. an industry ratio of 16.30, 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.
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, 2017. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for ABBV is 18.98 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2017 Price to Earnings ratio for ABBV is 18.98 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry. AbbVie Inc. ( ABBV ) is reporting for the quarter ending December 31, 2017. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. | Zacks Investment Research reports that the 2017 Price to Earnings ratio for ABBV is 18.98 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry. AbbVie Inc. ( ABBV ) is reporting for the quarter ending December 31, 2017. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending December 31, 2017. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for ABBV is 18.98 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry. |
25733.0 | 2018-01-24 00:00:00 UTC | 3 Stocks to Help You Build Retirement Wealth | ABBV | https://www.nasdaq.com/articles/3-stocks-help-you-build-retirement-wealth-2018-01-24 | nan | nan | If you want to build retirement wealth, there are two great ways to do it. The first is that you can find stocks that should appreciate in value significantly. The second is that you can find stocks that pay out attractive dividends, which you can then use to reinvest for a greater overall return. An even better way to build retirement wealth is to find stocks that check off both boxes.
With this in mind, I researched stocks with solid growth prospects that also pay solid dividends. And by solid, I mean earnings growth potential of at least 10% annually over the next five years and dividend yields of at least 2%. Three top stocks that made the cut were AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , and Iron Mountain (NYSE: IRM) . Here's why these stocks are definitely worth considering for your retirement portfolio.
AbbVie
AbbVie didn't just beat the S&P 500 and Dow Jones index es in 2017 -- it clobbered them. The big pharma stock soared 54% last year. AbbVie expects to generate strong double-digit earnings growth through 2020. Wall Street agrees, with the average analysts' estimate projecting average annual earnings growth of 15% over the next five years.
In addition to its good growth prospects, AbbVie also pays out a nice dividend. Its yield currently stands at 2.71%. The drugmaker has increased its dividend by a whopping 77% over the past five years. Probably the only way AbbVie's dividend yield won't go higher is if the future dividend increases don't keep up with the stock appreciation -- exactly what happened last year.
There are plenty of reasons AbbVie's success should continue well into the future. At the recent J.P. Morgan Healthcare Conference , AbbVie CEO Rick Gonzalez noted that the company's top-selling drug, Humira, should grow sales from around $18 billion in 2017 to close to $21 billion by 2020. Even better, he said the company expects $35 billion in risk-adjusted non-Humira annual sales by 2025.
AbbVie hopes to achieve that big sales increase through existing products such as Imbruvica, Venclexta, Mavyret, and Zinbryta. The company also boasts an impressive pipeline, featuring potential future blockbusters Rova-T, elagolix, risankizumab, and upadacitinib.
Brookfield Infrastructure Partners
Brookfield Infrastructure Partners also trounced the S&P 500 and Dow Jones indexes last year, with the stock gaining nearly 34%. Analysts think more growth is in store: The consensus estimate calls for Brookfield to grow earnings by an annual average of 34% over the next five years.
But Brookfield Infrastructure's attraction isn't just growth. The dividend currently yields north of 4%. Including reinvesting this strong dividend, the stock's total return in 2017 was nearly 40%.
The company, which owns and operates communications, energy, transportation, and utility infrastructure businesses, achieved much of its success last year by making strategic acquisitions. While acquisitions will no doubt continue to be an important driver of long-term growth, Brookfield will probably focus more in 2018 on building out its infrastructure . The company has its largest backlog of expansion projects ever, with a price tag in the neighborhood of $2.3 billion.
Brookfield has a solid track record of getting a good return on its investments. The coming infrastructure expansion, which includes deploying smart meters for its U.K. utilities and investing in toll roads purchased last year, should deliver a strong return on investment as well. Expect Brookfield to keep on growing -- and raising its dividend -- for years to come.
Iron Mountain
Iron Mountain didn't post a market-beating performance last year. However, the stock's gain of 16% in 2017 certainly was nothing to complain about. More important, though, including the impact of reinvesting, Iron Mountain's strong dividend pushed the total return for the stock up to nearly 24%.
That dividend, by the way, currently yields over 6.6%. And it's growing. Iron Mountain expects to increase the dividend by at least 4% annually over the next few years.
Can the stock price grow also? I think so. Iron Mountain, in my view, is the kind of stock you can buy and hold forever -- or pretty close to it. The company specializes in records storage and information management and enjoys a near monopoly. Around 95% of the Fortune 1,000 use Iron Mountain's services.
Wall Street analysts project that Iron Mountain will increase its average annual earnings by 32% over the next five years. That doesn't seem far-fetched to me. The company should be able to expand significantly in emerging markets. Iron Mountain has started to move into the data-center real estate market, another high-growth opportunity. And the reality is that organizations continue to generate increasingly more records and data that will need to be stored somewhere. That somewhere is likely to be Iron Mountain's facilities.
One thing to remember
I'm convinced that all three of these stocks can build retirement wealth. They have tremendous growth prospects. They pay great dividends. But there's one thing to remember: Building retirement wealth takes time.
Even though AbbVie, Brookfield Infrastructure Partners, and Iron Mountain enjoyed great years in 2017, not every year will be that good. Any of these stocks could disappoint you in a given quarter or year. Over the long run, however, all three of these companies have solid business models that should generate value. After all, it's really not stocks that will create retirement wealth for you; it's the underlying businesses.
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Keith Speights owns shares of AbbVie and JPMorgan Chase. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie hopes to achieve that big sales increase through existing products such as Imbruvica, Venclexta, Mavyret, and Zinbryta. Three top stocks that made the cut were AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , and Iron Mountain (NYSE: IRM) . AbbVie AbbVie didn't just beat the S&P 500 and Dow Jones index es in 2017 -- it clobbered them. | Three top stocks that made the cut were AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , and Iron Mountain (NYSE: IRM) . AbbVie AbbVie didn't just beat the S&P 500 and Dow Jones index es in 2017 -- it clobbered them. AbbVie expects to generate strong double-digit earnings growth through 2020. | Probably the only way AbbVie's dividend yield won't go higher is if the future dividend increases don't keep up with the stock appreciation -- exactly what happened last year. Even though AbbVie, Brookfield Infrastructure Partners, and Iron Mountain enjoyed great years in 2017, not every year will be that good. Three top stocks that made the cut were AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , and Iron Mountain (NYSE: IRM) . | Even though AbbVie, Brookfield Infrastructure Partners, and Iron Mountain enjoyed great years in 2017, not every year will be that good. Three top stocks that made the cut were AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , and Iron Mountain (NYSE: IRM) . AbbVie AbbVie didn't just beat the S&P 500 and Dow Jones index es in 2017 -- it clobbered them. |
25734.0 | 2018-01-24 00:00:00 UTC | Novartis (NVS) Q4 Earnings & Sales Top on Cosentyx, Entresto | ABBV | https://www.nasdaq.com/articles/novartis-nvs-q4-earnings-sales-top-on-cosentyx-entresto-2018-01-24 | nan | nan | Novartis AGNVS reported encouraging results for fourth-quarter 2017 wherein both earnings and revenues beat estimates driven by strong performance of Cosentyx and Entresto.
Novartis AG Price and EPS Surprise
Novartis AG Price and EPS Surprise | Novartis AG Quote
Fourth-quarter 2017 core earnings of $1.21 per share beat the Zacks Consensus Estimate of $1.16 and were up from $1.12 recorded in the year-ago quarter.
Revenues increased 5% to $12.9 billion as volume growth driven by Cosentyx and Entresto was partially offset by the negative impact of generic competition and pricing. Revenues also beat the Zacks Consensus Estimate of $12.6 billion.
Novartis' stock has rallied 3.5% in the last six months compared with the industry 's 10.8% gain.
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
Quarter in Detail
Novartis operates under three segments: Innovative Medicines (Pharmaceuticals), Alcon (Ophthalmology unit) and Sandoz (Generics).
The Innovative Medicines division recorded sales of $8.8 billion, up 4%. Generic competition impacted sales at the segment, primarily due to the entry of generics for Gleevec in the United States and Europe. Pricing too impacted sales. Nevertheless, growth products - Cosentyx, Entresto, Promacta/Revolade, Jakavi, Tafinlar + Mekinist and Gilenya boosted sales.
Psoriasis Cosentyx achieved multi-blockbuster drug status in 2017 on the back of strong growth in its three approved indications while Entresto's sales benefited from continued access improvements and expansion of sales force in the United States. Cosentyx generated sales of $2.1 billion in 2017. Entresto sales came in at $507 million in 2017. Oncology franchise (excluding Gleevec) grew 13%.
Sales at the Sandoz division were $2.6 billion, down 4% as volume growth was offset by price erosion in the Unites States. Sales in the United States declined 17% due to pricing pressure. Biopharmaceuticals sales grew 6% mainly driven by Zarxio in the United States and launches of Rixathon, the biosimilar version of Roche Holdings, Inc.'s RHHBY Rituxan (rituximab) and Erelzi, the biosimilar of Amgen, Inc.'s AMGN Enbrel in EU.
Sales at the Alcon division were $1.6 billion, up 6%. Surgical sales increased 9% driven by broad recovery across most market segments, including strong growth from vitreoretinal products. Vision Care sales were up 2% fueled by the continued double-digit growth of Dailies Total1.
Earlier, Novartis announced that it is mulling over strategic options for its lagging eye-care unit Alcon which includes retaining the business, or a separation via capital market transactions such as a spin-off or an initial public offering. The company updated its strategic plan and announced that it has the potential to grow sales at or above market while delivering profitability in line with the industry. The company also made significant progress on developing a potential capital markets solution, including financial carve-outs, tax and legal entity structuring, and identifying listing and incorporation locations. A final decision will be taken depending on Alcon's sales performance which is not likely to happen before the first half of 2019.
Meanwhile, Novartis has moved the Ophthalmic OTC products to the Alcon Division, effective Jan 1, 2018, to allow the Innovative Medicines Division to focus on pharmaceutical pipeline.
2017 Results
Sales came in at $49.1 billion, up 2% from 2016 and beat the Zacks Consensus Estimate of $48.9 billion. Earnings per share came in at $4.86 beating the Zacks Consensus Estimate of $4.79 and up from $4.75 per share in 2016.
2018 Outlook
Novartis expects net sales in 2018 to grow low to mid-single digit. Innovative Medicines is projected to grow in mid-single digit. Revenues from Sandoz is expected to be broadly in line or decline slightly. Alcon sales are estimated to grow in low to mid-single digits.
Pipeline Update
Novartis' pipeline candidates' progress has been encouraging. 2017 was a good year for Novartis with 16 major approvals. The oncology portfolio continues to gain traction. In a significant boost, the FDA approved its breakthrough gene transfer treatment, Kymriah suspension for the treatment of patients up to 25 years of age with B-cell precursor acute lymphoblastic leukemia that is refractory or in second or later relapse. Kymriah has been launched in the United States. Novartis is seeking to expand Kymriah's label.
Novartis' supplemental Biologics License Application for Kymriah suspension for intravenous infusion, for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma who are ineligible for or relapse after autologous stem cell transplant has been accepted by the FDA for Priority Review.
Breast cancer drug Kisqali was approved in Europe as a first-line option for HR+/HER2- advanced or metastatic breast cancer in combination with any aromatase inhibitor. The drug is already approved in the United States. The company also received approval of Rydapt in Europe for the treatment of newly diagnosed FLT3-mutated acute myeloid leukemia and three types of systemic mastocytosis.
Sandoz continues to progress with its biosimilars pipeline. The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. The biosimilar version of Humira is already review in the EU.
Tasigna was approved in Europe for the treatment of pediatric patients with newly diagnosed Philadelphia chromosome-positive chronic myeloid leukemia in the chronic phase (Ph+ CML-CP) and pediatric patients with Ph+ CML-CP with resistance or intolerance to prior therapy including imatinib.
Our Take
Novartis fourth-quarter results beat both earnings and sales estimates on strong performance of Cosentyx and Entresto. The generic division, Sandoz also combatted pricing pressure strongly buoyed by biosimilar launches of Rixathin and Erelzi. Meanwhile, the strategic decision on Alcon to retain the business or separation via capital market transactions such as a spin-off or an initial public offering has been postponed. The company believes that the Alcon division has revived well for now and hence a decision on a possible spin-off will be taken in 2019. The recent approvals of Kymriah and Kisqali will further boost the oncology portfolio and drive growth.
Zacks Rank
Novartis currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. | The proposed biosimilar version of AbbVie. Inc.'s ABBV Humira (adalimumab) has also been accepted for review by the FDA. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25735.0 | 2018-01-24 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, Merck & Co. and AstraZeneca | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-merck-co.-and-astrazeneca-2018-01-24 | nan | nan | For Immediate Release
Chicago, IL - January 24, 2018 - 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 , Merck & Co., Inc.MRK and AstraZeneca plcAZN .
Here are highlights from Tuesday's Analyst Blog:
3 Large-Cap Pharma Stocks to Beat Earnings This Quarter
The fourth-quarter earnings season is in full swing and the trend so far appears impressive. Notably, 53 S&P 500 companies have posted results (as of Jan 19, 2018) with earnings up 11.7% on revenue growth of 7.5%, per the latest Earnings Preview . Also, 62.3% of these companies topped on earnings and revenues.
Focusing our attention on the Large Cap Pharma sector, we are yet to witness the main show from this space with only one company having reported quarterly results till now/so far. The Large Cap Pharma sub-industry carries a Zacks Industry Rank of #112, placing it among the first 42% of the 265 plus Zacks industries. Our back testing shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
We remind investors that the drug stocks had a prolific run in 2017, courtesy of a slew of FDA approvals. The regulatory body approved 46 novel drugs last year, easily surpassing 2016's total tally of 22. Particularly, large-cap players in the industry raked in stellar returns, up 23.9% in the last 12 months.
Upbeat quarterly results, rise in demand for new product sales, successful innovation and product line expansion, strong clinical study results as well as a continued strong performance of legacy products propelled the large-cap drug sector to scale new highs in 2017. Moreover, these tailwinds are expected to drive the sector's growth in 2018.
Meanwhile, jubilant Republicans passed the tax overhaul bill for the first time in 30 years. The tax bill was signed into law by U.S. President Donald Trump only last month on Dec 22.
The corporate tax rate having been slashed from 35% to 21% can now boost profits of large drug/biotech companies. Meanwhile, the change in tax code will also allow companies to bring back the huge cash stashed overseas at a one-time tax rate of 10%. Also, the tax cuts are expected to prevent the earlier inversions rampant in the drug industry.
Importantly, the outlook for the upcoming fourth-quarter results looks bright. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 4.6% year-over-year growth in revenues and a 3% rise in earnings this time around.
How to Pick Likely Q4 Winners
Given the enormity of the healthcare space, the task of selecting stocks with potential to beat estimates could appear quite daunting. But our proprietary methodology makes this job fairly simple. One way to taper the list of choices this earnings season is by looking at the stocks with the combination of a favorable Zacks Rank - Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - and a positive Earnings ESP . More often than not, a positive earnings surprise delivered by a company leads to its stock price appreciation.
Per our well-researched quantitative model, the Earnings ESP is used for identifying stocks with higher or 70% chances of delivering a positive surprise in the upcoming earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Investing in stocks with large market cap is a much more reliable investment as the same controls a large portion of the respective industry. Also, companies with a larger market cap have evidently performed well throughout 2017.
Here are three large-cap pharma stocks poised to surpass estimates in the fourth quarter according to our methodology.
Our first pick is AbbVie Inc . This North Chicago, IL-based company has an Earnings ESP of +1.30% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here . The stock has seen the Zacks Consensus Estimate for fourth-quarter 2017 earnings being pegged at $1.44 per share. The company boasts a positive earnings surprise record, having exceeded expectations in three of the last four quarters with an average beat of 1.12%. AbbVie is scheduled to report results on Jan 26.
Our next choice is Merck & Co., Inc . The stock has an Earnings ESP of +1.06% and a Zacks Rank of 3. The consensus mark for its fourth-quarter earnings stands at 94 cents per share. Based in Kenilworth, NJ, Merck has an encouraging positive earnings surprise history. The company's average beat over the trailing four quarters is 7.76%. Merck is slated to announce results on Feb 2.
AstraZeneca plc too has a pleasing earnings profile with the company having consistently outpaced earnings expectations in all the last four quarters with an average beat of 126.62%. It looks perfectly poised to repeat this winning streak in the fourth quarter as well. This London, UK-based company is a Zacks #3 Ranked player and has an Earnings ESP of +8.05%. The Zacks Consensus Estimate is pegged at 44 cents per share. AstraZeneca is scheduled to release earnings performance on Feb 2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 , Merck & Co., Inc.MRK and AstraZeneca plcAZN . Our first pick is AbbVie Inc . AbbVie is scheduled to report results on Jan 26. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include AbbVie Inc.ABBV , Merck & Co., Inc.MRK and AstraZeneca plcAZN . Our first pick is AbbVie Inc . | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include AbbVie Inc.ABBV , Merck & Co., Inc.MRK and AstraZeneca plcAZN . Our first pick is AbbVie Inc . | Stocks recently featured in the blog include AbbVie Inc.ABBV , Merck & Co., Inc.MRK and AstraZeneca plcAZN . Our first pick is AbbVie Inc . AbbVie is scheduled to report results on Jan 26. |
25736.0 | 2018-01-24 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-latest-13f-filers-holds-abbvie-2018-01-24 | nan | nan | At Holdings Channel , we have reviewed the latest batch of the 24 most recent 13F filings for the 12/31/2017 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen .
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
In terms of shares owned, we count 3 of the above funds having increased existing ABBV positions from 09/30/2017 to 12/31/2017, with 4 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 12/31/2017 reporting period (out of the 578 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2017 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds increased their holdings by 1,153,195 shares in the aggregate, from 31,058,895 up to 32,212,090 for a share count increase of approximately 3.71%. The overall top three funds holding ABBV on 12/31/2017 were:
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.
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 24 most recent 13F filings for the 12/31/2017 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 3 of the above funds having increased existing ABBV positions from 09/30/2017 to 12/31/2017, with 4 having decreased their positions and 2 new positions. | At Holdings Channel , we have reviewed the latest batch of the 24 most recent 13F filings for the 12/31/2017 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 3 of the above funds having increased existing ABBV positions from 09/30/2017 to 12/31/2017, with 4 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 12/31/2017 reporting period (out of the 578 we looked at in total). | Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 3 of the above funds having increased existing ABBV positions from 09/30/2017 to 12/31/2017, with 4 having decreased their positions and 2 new positions. We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2017 period, to see how the aggregate share count held by hedge funds has moved for ABBV. The overall top three funds holding ABBV on 12/31/2017 were: 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: In terms of shares owned, we count 3 of the above funds having increased existing ABBV positions from 09/30/2017 to 12/31/2017, with 4 having decreased their positions and 2 new positions. We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2017 period, to see how the aggregate share count held by hedge funds has moved for ABBV. At Holdings Channel , we have reviewed the latest batch of the 24 most recent 13F filings for the 12/31/2017 reporting period, and noticed that AbbVie Inc (Symbol: ABBV) was held by 13 of these funds. |
25737.0 | 2018-01-24 00:00:00 UTC | Is a Beat in the Cards for AbbVie (ABBV) in Q4 Earnings? | ABBV | https://www.nasdaq.com/articles/is-a-beat-in-the-cards-for-abbvie-abbv-in-q4-earnings-2018-01-24 | nan | nan | We expect AbbVie Inc.ABBV to beat expectations when it reports fourth-quarter 2017 results on Jan 26 before the market opens. Last quarter, the company delivered a positive earnings surprise of 1.44%.
AbbVie's shares have soared 73.9% in a year's time, ahead of the industry 's rally of 24.6%.
Notably, AbbVie's earnings history is quite impressive with the pharmaceuticals company outpacing estimates in three of the last four quarters and meeting the same in one. Overall, AbbVie has an average beat of 1.12%.
Let's see, how things are shaping up for the company this quarter.
Factors to Consider
AbbVie expects fourth-quarter 2017 earnings in the range of $1.42-$1.44 per share. Revenues are estimated to grow approximately 10% on an operational basis. Foreign exchange is anticipated to have a 2% favorable impact on sales in the period to be reported.
The company's key drug, Humira, is likely to remain the growth driver in the fourth quarter, backed by strong demand trends for the drug. AbbVie expects Humira full-year sales growth in the mid to high-teens range while internationally, the metric is projected in a mid-single-digit range on an operational basis. The Zacks Consensus Estimate for Humira is $4.8 billion for the to-be-reported quarter.
Significantly, on fourth-quarter conference call, investors' focus will also be on the performance and label expansion updates of AbbVie's another cancer drug, Imbruvica. The drug has been recording strong sales since the past few quarters, a trend that we expect to continue even in the quarter to be reported. The Zacks Consensus Estimate for Imbruvica is $704 million for the period.
Other drugs like Duopa and Creon are also likely to continue to perform well in the soon-to-be-reported quarter.
However, AbbVie's Hepatitis C virus (HCV) treatment, Viekira, will continue to see declining sales impacted by an intense pricing and competitive pressure in the HCV market.
Notably, AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret, gained approval in the United States, EU, Canada and Japan in third-quarter 2017. Mavyret recorded $100 million global sales in the quarter. The initial uptake of the drug has been impressive and we expect its higher sales in the fourth quarter.
Earnings Whispers
Our proven model shows that the stock is likely to beat on earnings this quarter as it has the right combination of the two key ingredients - a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen.
Zacks ESP: AbbViehas an Earnings ESP of +1.30%, representing the difference between the Most Accurate estimate ($1.46 per share) and the Zacks Consensus Estimate ($1.44). Moreover, a positive ESP indicates a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: AbbVie has a Zacks Rank #3, which increases the predictive power of ESP and together with a positive ESP, chances of beating estimates in the stock's upcoming release are always pegged higher.
We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote
Other Stocks That Warrant a Look
Here are some other health care stocks worth considering as per our model, these comprise the right combination of elements to beat on earnings this time around:
Pfizer, Inc. PFE is scheduled to release results on Jan 30. The company has an Earnings ESP of +0.30% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Merck & Co., Inc. MRK has an Earnings ESP of +1.06% and a Zacks Rank of 3. The company is scheduled to report earnings numbers on Feb 2.
Astrazeneca PLC AZN is slated to announce financial figures on Feb 2. The company has an Earnings ESP of +6.82% and is a Zacks #3 Ranked player.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Notably, AbbVie's earnings history is quite impressive with the pharmaceuticals company outpacing estimates in three of the last four quarters and meeting the same in one. Significantly, on fourth-quarter conference call, investors' focus will also be on the performance and label expansion updates of AbbVie's another cancer drug, Imbruvica. Notably, AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret, gained approval in the United States, EU, Canada and Japan in third-quarter 2017. | AbbVie Inc. Price and EPS Surprise AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote Other Stocks That Warrant a Look Here are some other health care stocks worth considering as per our model, these comprise the right combination of elements to beat on earnings this time around: Pfizer, Inc. PFE is scheduled to release results on Jan 30. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We expect AbbVie Inc.ABBV to beat expectations when it reports fourth-quarter 2017 results on Jan 26 before the market opens. | Zacks Rank: AbbVie has a Zacks Rank #3, which increases the predictive power of ESP and together with a positive ESP, chances of beating estimates in the stock's upcoming release are always pegged higher. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We expect AbbVie Inc.ABBV to beat expectations when it reports fourth-quarter 2017 results on Jan 26 before the market opens. | Zacks Rank: AbbVie has a Zacks Rank #3, which increases the predictive power of ESP and together with a positive ESP, chances of beating estimates in the stock's upcoming release are always pegged higher. We expect AbbVie Inc.ABBV to beat expectations when it reports fourth-quarter 2017 results on Jan 26 before the market opens. AbbVie's shares have soared 73.9% in a year's time, ahead of the industry 's rally of 24.6%. |
25738.0 | 2018-01-23 00:00:00 UTC | 3 Large Cap Pharma Stocks to Beat Earnings This Quarter | ABBV | https://www.nasdaq.com/articles/3-large-cap-pharma-stocks-to-beat-earnings-this-quarter-2018-01-23 | nan | nan | The fourth-quarter earnings season is in full swing and the trend so far appears impressive. Notably, 53 S&P 500 companies have posted results (as of Jan 19, 2018) with earnings up 11.7% on revenue growth of 7.5%, per the latest Earnings Preview . Also, 62.3% of these companies topped on earnings and revenues.
Focusing our attention on the Large Cap Pharma sector, we are yet to witness the main show from this space with only one company having reported quarterly results till now/so far. The Large Cap Pharma sub-industry carries a Zacks Industry Rank of #112, placing it among the first 42% of the 265 plus Zacks industries. Our back testing shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
We remind investors that the drug stocks had a prolific run in 2017, courtesy of a slew of FDA approvals. The regulatory body approved 46 novel drugs last year, easily surpassing 2016's total tally of 22. Particularly, large-cap players in the industry raked in stellar returns, up 23.9% in the last 12 months.
Upbeat quarterly results, rise in demand for new product sales, successful innovation and product line expansion, strong clinical study results as well as a continued strong performance of legacy products propelled the large-cap drug sector to scale new highs in 2017. Moreover, these tailwinds are expected to drive the sector's growth in 2018.
Meanwhile, jubilant Republicans passed the tax overhaul bill for the first time in 30 years. The tax bill was signed into law by U.S. President Donald Trump only last month on Dec 22.
The corporate tax rate having been slashed from 35% to 21% can now boost profits of large drug/biotech companies. Meanwhile, the change in tax code will also allow companies to bring back the huge cash stashed overseas at a one-time tax rate of 10%. Also, the tax cuts are expected to prevent the earlier inversions rampant in the drug industry.
Importantly, the outlook for the upcoming fourth-quarter results looks bright. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 4.6% year-over-year growth in revenues and a 3% rise in earnings this time around.
How to Pick Likely Q4 Winners
Given the enormity of the healthcare space, the task of selecting stocks with potential to beat estimates could appear quite daunting. But our proprietary methodology makes this job fairly simple. One way to taper the list of choices this earnings season is by looking at the stocks with the combination of a favorable Zacks Rank - Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - and a positive Earnings ESP . More often than not, a positive earnings surprise delivered by a company leads to its stock price appreciation.
Per our well-researched quantitative model, the Earnings ESP is used for identifying stocks with higher or 70% chances of delivering a positive surprise in the upcoming earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Investing in stocks with large market cap is a much more reliable investment as the same controls a large portion of the respective industry. Also, companies with a larger market cap have evidently performed well throughout 2017.
Here are three large-cap pharma stocks poised to surpass estimates in the fourth quarter according to our methodology.
Our first pick is AbbVie Inc. ( ABBV ). This North Chicago, IL-based company has an Earnings ESP of +1.30% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here . The stock has seen the Zacks Consensus Estimate for fourth-quarter 2017 earnings being pegged at $1.44 per share. The company boasts a positive earnings surprise record, having exceeded expectations in three of the last four quarters with an average beat of 1.12%. AbbVie is scheduled to report results on Jan 26.
Our next choice is Merck & Co., Inc. ( MRK ). The stock has an Earnings ESP of +1.06% and a Zacks Rank of 3. The consensus mark for its fourth-quarter earnings stands at 94 cents per share. Based in Kenilworth, NJ, Merck has an encouraging positive earnings surprise history. The company's average beat over the trailing four quarters is 7.76%. Merck is slated to announce results on Feb 2.
AstraZeneca plc ( AZN ) too has a pleasing earnings profile with the company having consistently outpaced earnings expectations in all the last four quarters with an average beat of 126.62%. It looks perfectly poised to repeat this winning streak in the fourth quarter as well. This London, UK-based company is a Zacks #3 Ranked player and has an Earnings ESP of +8.05%. The Zacks Consensus Estimate is pegged at 44 cents per share. AstraZeneca is scheduled to release earnings performance on Feb 2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report results on Jan 26. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report results on Jan 26. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report results on Jan 26. | Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report results on Jan 26. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
25739.0 | 2018-01-23 00:00:00 UTC | The Zacks Analyst Blog Highlights: Alexion Pharmaceuticals, Celgene, AbbVie and Merck | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-alexion-pharmaceuticals-celgene-abbvie-and-merck-2018 | nan | nan | For Immediate Release
Chicago, IL - January 23, 2018 - 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 Alexion Pharmaceuticals, Inc.ALXN , Celgene CorporationCELG , AbbVieABBV and MerckMRK .
Here are highlights from Monday's Analyst Blog:
Will These 4 Large-Cap Drugs Stocks Beat Estimates This Quarter?
2017 was a good year for pharma and biotech stocks with the sector witnessing some positive developments that led to a much-awaited recovery.
A key reason for the sector's improved performance was the willingness of investors to look beyond the drug pricing controversy and focus more on fundamentals instead. Although the drug pricing controversy, which was a major overhang in 2016, will remain a headline risk, investors seem more comfortable with the issue. Moreover, a significantly higher number of FDA approvals in 2017 has restored investor confidence in the sector. The approval of the first gene cell therapy last year was a major breakthrough for the sector.
Hopes of more mergers and acquisitions (M&As) have also gone up with tax reform in place and big players on the lookout for companies with innovative pipelines/technology. There has already been quite a bit of M&A buzz this year about potential deals with Celgene rumored to be interested in buying Juno, Biogen in Acorda and Sanofi in Bioverativ. Meanwhile, Novo Nordisk recently confirmed that it is looking to acquire Belgium-based biopharma company Ablynx though Ablynx rejected Novo Nordisk's offer.
Looking forward, new product sales ramp up, R&D success and innovation, continued strong performance from key products, more M&A activity, growing demand for drugs especially for rare-to-treat diseases, an aging population and increased health care spending are some of the factors that should keep the momentum in 2018.
Headwinds include drug pricing scrutiny, pricing pressure, increasing competition, the growing presence of biosimilars, generic competition, a slowdown in the growth of legacy products, concerns regarding Amazon's interest in entering the healthcare arena and major pipeline setbacks.
4 Biotech & Pharma Stocks to Keep an Eye on This Earnings Season
According to the Zacks Earnings Trends article, the medical sector, which has been among the better performing sectors over the last several quarters, is expected to record earnings growth of 3% on revenue growth of 4.7% in the fourth quarter.
Given this scenario and with medical sector earnings round the corner, it would make sense to look at some pharma and biotech stocks that are expected to report a positive earnings surprise in the quarter.
Investing in such stocks could prove beneficial for investors as an earnings beat usually leads to significant share price appreciation.
With the help of the Zacks Stock Screener , we have zeroed-in on four pharma and biotech stocks that sport a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) and have a positive Earnings ESP . Earnings ESP is a very valuable tool for investors looking for stocks that are most likely to beat earnings estimates. Moreover, adding a Zacks Rank of #1, 2 or 3 has produced a positive surprise 70% of the time. While you can see the complete list of today's Zacks #1 Rank stocks here , you can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Alexion Pharmaceuticals, Inc.: Alexion has a strong presence in the rare diseases market. Marketed drugs include Soliris (for the treatment of patients with paroxysmal nocturnal hemoglobinuria ("PNH"), atypical hemolytic uremic syndrome (aHUS), and anti-acetylcholine receptor (AchR) antibody-positive generalized myasthenia gravis (gMG)), Strensiq (enzyme replacement therapy for patients with hypophosphatasia ("HPP")) and Kanuma (enzyme replacement therapy for patients with lysosomal acid lipase deficiency (LAL-D)).
Alexion is focusing on growing and maximizing its presence in the rare disease business. Core areas of focus include hematology, nephrology, neurology and metabolic disorders. Alexion has consistently surpassed earnings expectations in each of the last four quarters with an average surprise of 11.9%. The Zacks Rank #3 stock, which will report fourth quarter results on February 8, has an Earnings ESP of +5.93% for the quarter. While 2017 Soliris revenues are expected in the range of $3,090 million - $3,125 million, metabolic revenues are expected in the range of $385 - $400 million.
Celgene Corporation: Celgene is focused on the discovery, development and commercialization of treatments for cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Earlier this month, the company announced preliminary results for the fourth quarter with revenues expected to be about $3.5 billion and earnings to be approximately $2.00 per share. Celgene has surpassed earnings in each of the last four quarters with an average surprise of 2.5%. The Zacks Rank #3 stock, which will be reporting fourth quarter results on January 25, has an Earnings ESP of +0.94%.
AbbVie: AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. 2017 earnings are expected to be about $5.54 per share on revenue growth of approximately 10%. Humira is expected to remain a key growth driver with sales expected to cross $18 billion in 2017. AbbVie will be reporting its fourth quarter results on January 26.
The company has a decent track record having surpassed earnings expectations in each of the last four quarters with an average surprise of 1.1%. The Zacks Rank #3 stock has an Earnings ESP of +1.3% for the fourth quarter. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to.
Merck: Merck will be reporting fourth quarter results on February 2. The company has a strong earnings track record and is expected to deliver a surprise of +1.06% in the fourth quarter. Growth drivers include Keytruda, Gardasil, a few hospital and specialty products and the Animal Health division which should help offset the impact of the genericization of Zetia and Vytorin. Merck is also a Zacks Rank #3 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.
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 Alexion Pharmaceuticals, Inc.ALXN , Celgene CorporationCELG , AbbVieABBV and MerckMRK . AbbVie: AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. | Click to get this free report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Alexion Pharmaceuticals, Inc.ALXN , Celgene CorporationCELG , AbbVieABBV and MerckMRK . AbbVie: AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. | Click to get this free report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Alexion Pharmaceuticals, Inc.ALXN , Celgene CorporationCELG , AbbVieABBV and MerckMRK . AbbVie: AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. | Stocks recently featured in the blog include Alexion Pharmaceuticals, Inc.ALXN , Celgene CorporationCELG , AbbVieABBV and MerckMRK . AbbVie: AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. |
25740.0 | 2018-01-23 00:00:00 UTC | Will Core Segmental Growth Aid Stryker (SYK) in Q4 Earnings? | ABBV | https://www.nasdaq.com/articles/will-core-segmental-growth-aid-stryker-syk-in-q4-earnings-2018-01-23 | nan | nan | Stryker Corporation 's SYK fourth-quarter 2017 results are scheduled for release on Jan 30, 2018, after the market closes . In the said quarter, the company is expected to witness year-over-year revenue growth in all other business segments apart from Orthopedics, Medsurg and Neurotechnology and Spine.
Despite reporting year-over-year decline in revenues in the last quarter, the company beat the Zacks Consensus Estimate by 2 cents with a positive earnings surprise of 1.33%. Further, the company delivered positive earnings surprise of 1.82% in the trailing four quarters, on an average.
Also, a favorable price performance over the last year is also encouraging. The stock has gained 33.8% compared with the industry 's rally of 26.5%.
Company Announces Upbeat Preliminary Results for Q4
Stryker recently announced better-than-expected preliminary net sales results for fourth-quarter 2017. For full-year 2017, net sales are estimated at $12.4 billion, up 9.8% from the year-ago quarter on a constant-currency basis. The figure beat the Zacks Consensus Estimate of $12.38 billion.
Stryker Corporation Price and Consensus
Stryker Corporation Price and Consensus | Stryker Corporation Quote
Per the company's prediction, the Orthopaedics segment is expected to generate higher revenues by 6.8% at constant exchange rate (CER). MedSurg and Neurotechnology and Spine segments are expected to see revenues improve 9.8% and 10.3%, respectively, at CER. (read more: Stryker Posts Upbeat Preliminary Sales Figure for Q4 ).
The Zacks Consensus Estimate for revenues from U.S. sales is pegged at $2,484 million, which reflects a 12.2% increase from the year-ago quarter.
Also, the Zacks Consensus Estimate for revenues from International sales is pegged at $909 million, which reflects a 10.3% increase from the prior-year quarter.
Factors at Play
Robust Fundamental Growth: Management is of the opinion that the recent acquisitions of NOVADAQ and VEXIM will ensure high-end organic sales growth. The full-year organic sales growth is expected in the range of 6.5-7%.
Moreover, a recent definitive merger with Entellus Medical is likely to offer a more comprehensive portfolio of products, which will enable physicians to conveniently perform a broad range of ENT procedures.
The company continues to update robots in the field with Total Knee application. Per the preliminary sales result, 65% of the systems of Stryker have been upgraded to the Mako Total Knee application. The continued momentum contributed to the net sales of the Orthopaedics segment of the company.
Diversified Product Portfolio: Stryker's broad spectrum of products cushions the company from any significant sales shortfall. The company's pipeline includes products like Hip, Knee and Mako Robotic-Arm Assisted Surgeries. Additionally, various platforms of bone cement, sports-medicine, bones substitute, etc. fortify the company's market position.
Product Recall, A Negative: Recently, Stryker announced the voluntary recall of their product, Oral Care Lineup, offered by its Sage-Products Unit. Additionally, the company has placed a temporary hold on certain cloth-based products.
However, it is encouraging to note that the product-recall issue will not dampen management's intention to improve growth trajectory in the fourth quarter.
Our quantitative model conclusively shows earnings beat for Stryker this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. It can be illustrated below:
Zacks ESP: Earnings ESP for Stryker is +0.12%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Stryker carries a Zacks Rank #3. A favorable Zacks Rank increases the predictive power of ESP and the company's positive ESP makes surprise prediction feasible.
Stocks Worth a Look
Here are other medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
AbbVie Inc. ABBV has an earnings ESP of +1.30% and a Zacks Rank #2.
Fibrocell Science Inc. FCSC has an earnings ESP of +2.22% and a Zacks Rank #2.
Bio-Techne Corp. TECH has an earnings ESP of +1.86% and a Zacks Rank #2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ABBV has an earnings ESP of +1.30% and a Zacks Rank #2. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Bio-Techne Corp (TECH): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Fibrocell Science Inc (FCSC): Free Stock Analysis Report To read this article on Zacks.com click here. Despite reporting year-over-year decline in revenues in the last quarter, the company beat the Zacks Consensus Estimate by 2 cents with a positive earnings surprise of 1.33%. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Bio-Techne Corp (TECH): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Fibrocell Science Inc (FCSC): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an earnings ESP of +1.30% and a Zacks Rank #2. Company Announces Upbeat Preliminary Results for Q4 Stryker recently announced better-than-expected preliminary net sales results for fourth-quarter 2017. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Bio-Techne Corp (TECH): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Fibrocell Science Inc (FCSC): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an earnings ESP of +1.30% and a Zacks Rank #2. Despite reporting year-over-year decline in revenues in the last quarter, the company beat the Zacks Consensus Estimate by 2 cents with a positive earnings surprise of 1.33%. | AbbVie Inc. ABBV has an earnings ESP of +1.30% and a Zacks Rank #2. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Bio-Techne Corp (TECH): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Fibrocell Science Inc (FCSC): Free Stock Analysis Report To read this article on Zacks.com click here. Despite reporting year-over-year decline in revenues in the last quarter, the company beat the Zacks Consensus Estimate by 2 cents with a positive earnings surprise of 1.33%. |
25741.0 | 2018-01-23 00:00:00 UTC | Novartis Announces Positive Results on Migraine Candidate | ABBV | https://www.nasdaq.com/articles/novartis-announces-positive-results-on-migraine-candidate-2018-01-23 | nan | nan | Novartis AGNVS announced positive results from the phase IIIb study, LIBERTY, which assessed the efficacy and safety of erenumab (AMG 334) 140mg in patients with episodic migraine who had experienced two to four previous preventive treatment failures, due to lack of efficacy or intolerable side effects.
The study met its primary endpoint, with significantly more patients taking erenumab experiencing at least a 50% reduction from baseline in their monthly migraine days as compared to placebo. The trial met all secondary endpoints including reduction of monthly migraine days, lowering in days needing acute (rescue) medication, improvement in scores on the Migraine Physical Function Impact Diary (MPFID) tool, and 75% and 100% responder rates (number of patients experiencing at least a 75% or 100% reduction in monthly migraine days compared to placebo.) The safety data are consistent with previous studies of erenumab to date, showing a placebo-like safety profile.
Novartis will present full data at an upcoming scientific meeting.
Novartis' stock has rallied 3.2% in the last six months compared with the industry 's 10.% gain.
Erenumab, an investigational fully human monoclonal antibody is designed to selectively block the calcitonin gene-related peptide (CGRP) receptor, which plays a critical role in migraine activation. The candidate is being developed by Novartis in collaboration with Amgen, Inc. AMGN .
The candidate is the first investigational therapy targeting the CGRP pathway to have received Food and Drug Administration and European Medicines Agency (EMA) regulatory filing acceptance.
Upon approval, Novartis and Amgen will co-commercialize erenumab in the United States. Amgen has exclusive commercialization rights to the drug in Japan and Novartis has exclusive rights to commercialize in the rest of the world.
Novartis has a strong oncology portfolio of drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu, and Kisqali. The recent approval of Kymriah for acute lymphoblastic leukemia is a major boost for Novartis given the potential in the CAR-T therapy space. New products like Cosentyx and Entresto are expected to boost the top line. Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen's Enbrel.
Zacks Rank & Key Pick
Novartis currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the healthcare sector is Exelixis, Inc. EXEL with a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Exelixis' earnings per share estimates have moved up from 72 cents to 73 cents for 2018 over the last 60 days. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 572.92%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen's Enbrel. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. The study met its primary endpoint, with significantly more patients taking erenumab experiencing at least a 50% reduction from baseline in their monthly migraine days as compared to placebo. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen's Enbrel. Amgen has exclusive commercialization rights to the drug in Japan and Novartis has exclusive rights to commercialize in the rest of the world. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen's Enbrel. Novartis AGNVS announced positive results from the phase IIIb study, LIBERTY, which assessed the efficacy and safety of erenumab (AMG 334) 140mg in patients with episodic migraine who had experienced two to four previous preventive treatment failures, due to lack of efficacy or intolerable side effects. | Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen's Enbrel. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. Upon approval, Novartis and Amgen will co-commercialize erenumab in the United States. |
25742.0 | 2018-01-23 00:00:00 UTC | Stocks Showing Improving Market Leadership: Grifols Earns 82 RS Rating | ABBV | https://www.nasdaq.com/articles/stocks-showing-improving-market-leadership-grifols-earns-82-rs-rating-2018-01-23 | nan | nan | On Tuesday, Grifols ( GRFS ) received a positive adjustment to its Relative Strength ( RS ) Rating , from 78 to 82.
[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history reveals that the best-performing stocks typically have an 80 or better RS Rating as they launch their biggest climbs.
Looking For Winning Stocks? Try This Simple Routine
Grifols is trading within a buy zone after moving past a 24.30 entry in a cup without handle . The proper buying range is up to 5% above the initial entry. Once a stock moves above that range, it's best to hold off investing and wait for it to set up another buying opportunity.
Grifols posted 4% earnings growth in its most recent report, while sales growth came in at 11%.
The company earns the No. 3 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ) is the top-ranked stock within the group.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) is the top-ranked stock within the group. On Tuesday, Grifols ( GRFS ) received a positive adjustment to its Relative Strength ( RS ) Rating , from 78 to 82. Over 100 years of market history reveals that the best-performing stocks typically have an 80 or better RS Rating as they launch their biggest climbs. | AbbVie ( ABBV ) is the top-ranked stock within the group. On Tuesday, Grifols ( GRFS ) received a positive adjustment to its Relative Strength ( RS ) Rating , from 78 to 82. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ) is the top-ranked stock within the group. [ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ) is the top-ranked stock within the group. [ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? |
25743.0 | 2018-01-22 00:00:00 UTC | Will These 4 Large-Cap Drug Stocks Be Big Winners This Earnings Season? | ABBV | https://www.nasdaq.com/articles/will-these-4-large-cap-drug-stocks-be-big-winners-earnings-season-2018-01-22-0 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
2017 was a good year for pharma and biotech stocks with the sector witnessing some positive developments that led to a much-awaited recovery.
Moreover, a significantly higher number of FDA approvals in 2017 has restored investor confidence in the sector. The approval of the first gene cell therapy last year was a major breakthrough for the sector.
Hopes of more mergers and acquisitions (M&As) have also gone up with tax reform in place and big players on the lookout for companies with innovative pipelines/technology. There has already been quite a bit of M&A buzz this year about potential deals with Celgene rumored to be interested in buying Juno Therapeutics Inc (NASDAQ: JUNO ), Biogen Inc (NASDAQ: BIIB ) in Acorda and Sanofi SA (NYSE: SNY ) in Bioverativ. Meanwhile, Novo Nordisk recently confirmed that it is looking to acquire Belgium-based biopharma company Ablynx though Ablynx rejected Novo Nordisk's offer.
3 Biotech Stocks Start Healthy in '18: Will the Rally Last?
Looking forward, new product sales ramp up, R&D success and innovation, continued strong performance from key products, more M&A activity, growing demand for drugs especially for rare-to-treat diseases, an aging population and increased health care spending are some of the factors that should keep the momentum in 2018.
Headwinds include drug pricing scrutiny, pricing pressure, increasing competition, the growing presence of biosimilars, generic competition, a slowdown in the growth of legacy products, concerns regarding Amazon's interest in entering the healthcare arena and major pipeline setbacks.
4 Biotech & Pharma Stocks to Keep an Eye on This Earnings Season
According to the Zacks Earnings Trends article, the medical sector, which has been among the better performing sectors over the last several quarters, is expected to record earnings growth of 3% on revenue growth of 4.7% in the fourth quarter.
Given this scenario and with medical sector earnings round the corner, it would make sense to look at some pharma and biotech stocks that are expected to report a positive earnings surprise in the quarter.
Investing in such stocks could prove beneficial for investors as an earnings beat usually leads to significant share price appreciation.
Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: Alexion Pharmaceuticals, Inc. (ALXN)
Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN ) : Alexion has a strong presence in the rare diseases market. Marketed drugs include Soliris (for the treatment of patients with paroxysmal nocturnal hemoglobinuria ("PNH"), atypical hemolytic uremic syndrome (aHUS), and anti-acetylcholine receptor (AchR) antibody-positive generalized myasthenia gravis (gMG)), Strensiq (enzyme replacement therapy for patients with hypophosphatasia ("HPP")) and Kanuma (enzyme replacement therapy for patients with lysosomal acid lipase deficiency (LAL-D)).
Alexion is focusing on growing and maximizing its presence in the rare disease business. Core areas of focus include hematology, nephrology, neurology and metabolic disorders. Alexion has consistently surpassed earnings expectations in each of the last four quarters with an average surprise of 11.9%.
3 Top-Ranked Drug Stocks That Are Broker Favorites
The Zacks Rank #3 stock, which will report fourth quarter results on February 8, has an Earnings ESP of +5.93% for the quarter. While 2017 Soliris revenues are expected in the range of $3,090 million - $3,125 million, metabolic revenues are expected in the range of $385 - $400 million.
Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: Celgene Corporation (CELG)
Celgene Corporation (NASDAQ: CELG ) : Celgene is focused on the discovery, development and commercialization of treatments for cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation.
Earlier this month, the company announced preliminary results for the fourth quarter with revenues expected to be about $3.5 billion and earnings to be approximately $2.00 per share. Celgene has surpassed earnings in each of the last four quarters with an average surprise of 2.5%.
4 of the Best Stocks to Buy on Earnings Acceleration
The Zacks Rank #3 stock, which will be reporting fourth quarter results on January 25, has an Earnings ESP of +0.94%.
Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: AbbVie Inc (ABBV)
AbbVie Inc (NYSE: ABBV ) : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. 2017 earnings are expected to be about $5.54 per share on revenue growth of approximately 10%.
Humira is expected to remain a key growth driver with sales expected to cross $18 billion in 2017. AbbVie will be reporting its fourth quarter results on January 26. The company has a decent track record having surpassed earnings expectations in each of the last four quarters with an average surprise of 1.1%.
6 Industrial Stocks Likely to Beat Estimates in Q4
The Zacks Rank #3 stock has an Earnings ESP of +1.3% for the fourth quarter. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to.
Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: Merck & Co., Inc. (MRK)
Merck & Co., Inc. (NYSE: MRK ) : Merck will be reporting fourth quarter results on February 2. The company has a strong earnings track record and is expected to deliver a surprise of +1.06% in the fourth quarter.
Growth drivers include Keytruda, Gardasil, a few hospital and specialty products and the Animal Health division which should help offset the impact of the genericization of Zetia and Vytorin. Merck is also a Zacks Rank #3 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to. | Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to. | Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to. | Large-Cap Drug Stocks Could Be Big Winners This Earnings Season: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to. |
25744.0 | 2018-01-22 00:00:00 UTC | Healthcare ETFs to Watch As Q4 Earnings Unfold | ABBV | https://www.nasdaq.com/articles/healthcare-etfs-watch-q4-earnings-unfold-2018-01-22 | nan | nan | Healthcare is performing well with the start of the New Year thanks to encouraging industry trends and a favorable policy environment. Notably, popular ETFs like Health Care Select Sector SPDR Fund XLV , Vanguard Health Care ETF VHT , iShares U.S. Healthcare ETF IYH and Fidelity MSCI Health Care Index ETF FHLC have gained nearly 7% so far.
The bullish trend is likely to continue heading into the Q4 earnings season as some big names like Johnson and Johnson JNJ , Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. All these stocks collectively account for 38.4% share in XLV, 36.9% in IYH, 33.2% in VHT and 33.2% in FHLC (read: Tax Bill: What ETF Investors Need to Know ).
Let's dig deeper into the earnings picture of these companies that would drive the performance of the above-mentioned funds in the coming days:
According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Inside Our Surprise Prediction of These Stocks
JNJ has a Zacks Rank #3 and an Earnings ESP of -0.09%, indicating a lower chance of beating estimates this quarter. The stock has seen no earnings estimate revision for the yet-to-be-reported quarter but delivered an average negative earnings surprise of 3.12% for the past four quarters. It has an impressive Momentum Style Score of B and a Value and Growth Style Score of C each. Johnson and Johnson is slated to release its earnings on Jan 23 before the opening bell (see: all the Healthcare ETFs here ).
Pfizer has a Zacks Rank #3 and an Earnings ESP of +0.67%, indicating a reasonable chance of beating estimates this quarter. The stock has seen positive earnings estimate revision of a penny for to-be-reported quarter but delivered an average negative earnings surprise of 0.79% for the past four quarters. It has an impressive Growth, Value and Momentum Style Score of B, A and A, respectively. Pfizer is scheduled to report earnings on Jan 30 before the opening bell.
Merck is expected to report results on Feb 2 before the market opens. It has a Zacks Rank #3 and an Earnings ESP of +1.06%. The stock delivered a positive earnings surprise in the last four quarters, with an average beat of 7.76% but witnessed a negative earnings estimate revision of couple of cents over the past 90 days for the to-be-reported quarter. Merck has a Value, Growth and Momentum Style Score of C, F and D, respectively.
Amgen carries a Zacks Rank #3 and has an Earnings ESP of -0.41%, indicating less chances of beating estimates this quarter. Though the earnings surprise track over the past four quarters is robust with an average positive surprise of 5.25%, Amgen witnessed negative earnings estimate revision of four cents over the past 90 days for the quarter to be reported. The stock has a solid Value Style Score of B but the Growth and Momentum Style Score of D each looks dull. Amgen will report earnings on Feb 1 after market close (read: M&A Waves Pushing Biotech ETFs Higher ).
AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.30%. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 1.12% and saw no earnings estimate revision over the past three months for the to-be-reported quarter. The stock has a solid Value and Growth Style Score of B each but a Momentum Style Score of D is unimpressive. The company is scheduled to report on Jan 26 before the opening bell.
Gilead is expected to release earnings on Feb 6 after market close. It has a Zacks Rank #4 and an Earnings ESP of +1.37%. Gilead delivered positive earnings surprises of 9.07% over the last four quarters and saw negative earnings estimate revision of 28 cents over the past three months for the to-be-reported quarter. Though it has a solid Value Style Score of A, a Growth and Momentum Style Score of F each looks ugly.
Bristol-Myers will likely report earnings on Feb 5 before the opening bell. It has a Zacks Rank #3 and an Earnings ESP of -1.64%. The stock delivered average positive earnings surprises of 2.72% over the past four quarter, and witnessed positive earnings estimate revision of three cents for the to-be-reported quarter. It has a solid Momentum and Growth Style Score of A and B, respectively, but an unfavorable Value Style Score of C.
Summing Up
With earnings surprises well in the cards, the healthcare sector is expected to witness earnings growth of 3% in the fourth quarter, suggesting some upside for healthcare ETFs. In particular, all the four ETFs have a Zacks ETF Rank #3.
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Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Pfizer, Inc. (PFE): Free Stock Analysis Report
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AbbVie Inc. (ABBV): Free Stock Analysis Report
SPDR-HLTH CR (XLV): ETF Research Reports
VIPERS-HLTH CR (VHT): ETF Research Reports
ISHARS-US HLTHC (IYH): ETF Research Reports
FID-H CARE (FHLC): ETF Research Reports
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The bullish trend is likely to continue heading into the Q4 earnings season as some big names like Johnson and Johnson JNJ , Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.30%. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | The bullish trend is likely to continue heading into the Q4 earnings season as some big names like Johnson and Johnson JNJ , Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.30%. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The bullish trend is likely to continue heading into the Q4 earnings season as some big names like Johnson and Johnson JNJ , Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.30%. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The bullish trend is likely to continue heading into the Q4 earnings season as some big names like Johnson and Johnson JNJ , Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.30%. |
25745.0 | 2018-01-22 00:00:00 UTC | What's in the Cards for Varian Medical (VAR) in Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/whats-in-the-cards-for-varian-medical-var-in-q1-earnings-2018-01-22 | nan | nan | Varian Medical Systems Inc.VAR is set to report first-quarter fiscal 2018 results on Jan 24, after the market closes . In the previous quarter, the company reported adjusted earnings per share of $1.09, which missed the Zacks Consensus Estimate of $1.19. Further, adjusted earnings declined from $1.38 in the year-ago quarter.
On an average, the company delivered a negative earnings surprise of 6.6% in the trailing four quarters. Also, a lackluster price performance is a woe. Over the last year, the stock has returned 22.6% compared with the industry 's rally of 33.2%.
Let's see how things are shaping up prior to this announcement.
Varian Medical Systems, Inc. Price and Consensus
Varian Medical Systems, Inc. Price and Consensus | Varian Medical Systems, Inc. Quote
Factors at Play
Declining Financials:
Varian Medical experienced declining revenues in fourth-quarter of 2017. The trend is expected to continue in the quarter-to-be-reported as well. Lackluster performance by the company's Halcyon cancer-treatment device will hamper sales in Latin America. In fact, sales in the Halcyon platform declined 46% in Latin America in the fourth quarter, thanks to several tenders pushing out, mainly from public-sector deals. Revenues from Asia-Pacific and Japan are also expected to decline significantly due to plummeting orders of Halcyon.
Further, softness in the market for freestanding clinics is a headwind for Varian Medical in the to-be-reported quarter.
Performance in the proton-therapy unit has been dampened due to intense competition in the niche space. This is anticipated to be a major concern for Varian Medical.
Narrowing Customer Base:
The majority of Varian Medical's X-Ray tube and flat panel detector sales cater to a small number of (large imaging system) original equipment manufacturer (OEM) customers. The equipment manufacturing majors incorporate these X-Ray products into their own medical diagnostic imaging systems and industrial imaging systems. Due to the pattern of client concentration, a loss of any one of these clients may have an adverse effect on Varian Medical's operating results.
Earnings Whispers
Buoyed by the above factors, our proven model does not conclusively indicate earnings beat for Varian Medical in this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Varian Medical currently has an Earnings ESP of +0.76%. This is because the Most Accurate estimate is pegged at 99 cents, while the Zacks Consensus Estimate is at 98 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Varian Medical currently carries a Zacks Rank #4 (Sell). This decreases the predictive power of ESP and makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Stocks to Consider
Here are some companies you may want to consider, per our model, which have the right combination of elements to post earnings beat this quarter.
AbbVie Inc. ABBV has an Earnings ESP of +1.30% and a Zacks Rank #3.
Agios Pharmaceuticals Inc. AGIO has an earnings ESP of +0.12% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Alexion Pharmaceuticals ALXN has an earnings ESP of +5.93% and a Zacks Rank #3.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report
Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report
Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ABBV has an Earnings ESP of +1.30% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. Varian Medical Systems Inc.VAR is set to report first-quarter fiscal 2018 results on Jan 24, after the market closes . | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +1.30% and a Zacks Rank #3. Varian Medical Systems, Inc. Price and Consensus Varian Medical Systems, Inc. Price and Consensus | Varian Medical Systems, Inc. Quote Factors at Play Declining Financials: Varian Medical experienced declining revenues in fourth-quarter of 2017. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +1.30% and a Zacks Rank #3. Varian Medical Systems, Inc. Price and Consensus Varian Medical Systems, Inc. Price and Consensus | Varian Medical Systems, Inc. Quote Factors at Play Declining Financials: Varian Medical experienced declining revenues in fourth-quarter of 2017. | AbbVie Inc. ABBV has an Earnings ESP of +1.30% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. Varian Medical Systems, Inc. Price and Consensus Varian Medical Systems, Inc. Price and Consensus | Varian Medical Systems, Inc. Quote Factors at Play Declining Financials: Varian Medical experienced declining revenues in fourth-quarter of 2017. |
25746.0 | 2018-01-22 00:00:00 UTC | Will These 4 Large-Cap Drug Stocks Be Big Winners This Earnings Season? | ABBV | https://www.nasdaq.com/articles/will-these-4-large-cap-drug-stocks-be-big-winners-earnings-season-2018-01-22 | nan | nan | 2017 was a good year for pharma and biotech stocks with the sector witnessing some positive developments that led to a much-awaited recovery.
A key reason for the sector's improved performance was the willingness of investors to look beyond the drug pricing controversy and focus more on fundamentals instead. Although the drug pricing controversy, which was a major overhang in 2016, will remain a headline risk, investors seem more comfortable with the issue. Moreover, a significantly higher number of FDA approvals in 2017 has restored investor confidence in the sector. The approval of the first gene cell therapy last year was a major breakthrough for the sector.
Hopes of more mergers and acquisitions (M&As) have also gone up with tax reform in place and big players on the lookout for companies with innovative pipelines/technology. There has already been quite a bit of M&A buzz this year about potential deals with Celgene rumored to be interested in buying Juno JUNO , Biogen BIIB in Acorda and Sanofi SNY in Bioverativ. Meanwhile, Novo Nordisk recently confirmed that it is looking to acquire Belgium-based biopharma company Ablynx though Ablynx rejected Novo Nordisk's offer.
Looking forward, new product sales ramp up, R&D success and innovation, continued strong performance from key products, more M&A activity, growing demand for drugs especially for rare-to-treat diseases, an aging population and increased health care spending are some of the factors that should keep the momentum in 2018.
Headwinds include drug pricing scrutiny, pricing pressure, increasing competition, the growing presence of biosimilars, generic competition, a slowdown in the growth of legacy products, concerns regarding Amazon's interest in entering the healthcare arena and major pipeline setbacks.
4 Biotech & Pharma Stocks to Keep an Eye on This Earnings Season
According to the Zacks Earnings Trends article, the medical sector, which has been among the better performing sectors over the last several quarters, is expected to record earnings growth of 3% on revenue growth of 4.7% in the fourth quarter.
Given this scenario and with medical sector earnings round the corner, it would make sense to look at some pharma and biotech stocks that are expected to report a positive earnings surprise in the quarter.
Investing in such stocks could prove beneficial for investors as an earnings beat usually leads to significant share price appreciation.
With the help of the Zacks Stock Screener , we have zeroed-in on four pharma and biotech stocks that sport a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) and have a positive Earnings ESP . Earnings ESP is a very valuable tool for investors looking for stocks that are most likely to beat earnings estimates. Moreover, adding a Zacks Rank of #1, 2 or 3 has produced a positive surprise 70% of the time. While you can see the complete list of today's Zacks #1 Rank stocks here , you can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Alexion Pharmaceuticals, Inc. ALXN : Alexion has a strong presence in the rare diseases market. Marketed drugs include Soliris (for the treatment of patients with paroxysmal nocturnal hemoglobinuria ("PNH"), atypical hemolytic uremic syndrome (aHUS), and anti-acetylcholine receptor (AchR) antibody-positive generalized myasthenia gravis (gMG)), Strensiq (enzyme replacement therapy for patients with hypophosphatasia ("HPP")) and Kanuma (enzyme replacement therapy for patients with lysosomal acid lipase deficiency (LAL-D)).
Alexion is focusing on growing and maximizing its presence in the rare disease business. Core areas of focus include hematology, nephrology, neurology and metabolic disorders. Alexion has consistently surpassed earnings expectations in each of the last four quarters with an average surprise of 11.9%. The Zacks Rank #3 stock, which will report fourth quarter results on February 8, has an Earnings ESP of +5.93% for the quarter. While 2017 Soliris revenues are expected in the range of $3,090 million - $3,125 million, metabolic revenues are expected in the range of $385 - $400 million.
Celgene Corporation CELG : Celgene is focused on the discovery, development and commercialization of treatments for cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Earlier this month, the company announced preliminary results for the fourth quarter with revenues expected to be about $3.5 billion and earnings to be approximately $2.00 per share. Celgene has surpassed earnings in each of the last four quarters with an average surprise of 2.5%. The Zacks Rank #3 stock, which will be reporting fourth quarter results on January 25, has an Earnings ESP of +0.94%.
AbbVie ABBV : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. 2017 earnings are expected to be about $5.54 per share on revenue growth of approximately 10%. Humira is expected to remain a key growth driver with sales expected to cross $18 billion in 2017. AbbVie will be reporting its fourth quarter results on January 26. The company has a decent track record having surpassed earnings expectations in each of the last four quarters with an average surprise of 1.1%. The Zacks Rank #3 stock has an Earnings ESP of +1.3% for the fourth quarter. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to.
Merck MRK : Merck will be reporting fourth quarter results on February 2. The company has a strong earnings track record and is expected to deliver a surprise of +1.06% in the fourth quarter. Growth drivers include Keytruda, Gardasil, a few hospital and specialty products and the Animal Health division which should help offset the impact of the genericization of Zetia and Vytorin. Merck is also a Zacks Rank #3 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Juno Therapeutics, Inc. (JUNO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Juno Therapeutics, Inc. (JUNO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. | AbbVie ABBV : AbbVie, which is known for its blockbuster drug, Humira, is focused on the development of treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. AbbVie will be reporting its fourth quarter results on January 26. AbbVie's shares are up 71.6% over the last one year, significantly surpassing the 23.9% rally of the industry it belongs to. |
25747.0 | 2018-01-22 00:00:00 UTC | 3 Top Stocks Bloggers Are Raving Over Right Now | ABBV | https://www.nasdaq.com/articles/3-top-stocks-bloggers-are-raving-over-right-now-2018-01-22 | nan | nan | Most investors prefer to follow the recommendations of analysts that receive a lot of attention, analysts that work for leading financial institutions such as Goldman Sachs, Deutsche Bank and Credit Suisse (to name but a few). But there is a completely different group of financial experts who are also capable of delivering robust returns for investors –financial bloggers.
Here we combined the wisdom of both financial bloggers and the Street to find three top stocks. We used the nifty Nasdaq Smart Portfolio Stock Screener to scan for stocks which have a very Bullish sentiment from top bloggers and a Strong Buy consensus rating from top analysts. These are the best-performing analysts who consistently outperform the market based on their success rate and average return per rating. You can track these analysts to ensure you are based crucial investing decisions on analysts who tend to get it right.
From the list generated by these criteria, we selected these three compelling ‘Strong Buy’ stocks. Here we dig down into just why these stocks are so popular with top financial bloggers right now. Let’s take a closer look now:
Alcoa Inc (AA)
Aluminum giant Alcoa Inc has a perfect 100% bullish score from bloggers right now. This comes in way ahead of the basic materials sector average. Even the company’s disappointing Q4 results and guidance has not dented the optimism of bloggers -- or for that matter, the Street.
Top blogger Stephen Simpson published a striking piece on January 19 arguing that "lackluster earnings and guidance create an opportunity for Alcoa." He is one of the Top 100 bloggers tracked by TipRanks (out of over 6,000). While he acknowledges that Alcoa is not an easy stock to own, he nonetheless confident that the rewards outweigh the risk.
Simpson believes that aluminum should be in a global deficit position in 2018 and, crucially, that more clarity on Chinese supply will help settle the market.
"Alcoa has long-term opportunities in growing its upstream business and improving the profits of its aluminum operations," Simpson wrote. He sees $60 as a fair value for the stock, up from just $53 now.
And the Street seems to agree. In the last three months, top analysts have published 5 buy ratings on AA. This is versus just one hold rating. On average, these analysts are projecting that the stock will soar by 19% in the coming months to hit $63. CFRA’s Matthew Miller, who has a noticeably bullish $68 price target, highlights the company’s ability to reward shareholders as a reason to hang on to this complicated stock.
AbbVie (ABBV)
Over the last year, this Abbott Lab spin-off has exploded by 70%. Prices are now trading at almost $105, up from just $61 this time last year. AbbVie discovers, develops and markets both biopharmaceuticals and small molecule drugs.
From a blogger perspective we can see that overall, bloggers are 82% bullish on ABBV right now. While this is way above sector average, if we dig down into the stats the picture looks even more promising. As we can see from the screenshot below, the ‘Top Blogger Bearish Opinions’ are both five months old. In contrast, the ‘Top Blogger Bullish Opinions’ have all been published much more recently; within the last month to be precise.
These top bloggers call AbbVie a top dividend stock and one of the best big pharma stocks to by in 2018. The most recent piece from five-star blogger Gaurao Bhade gives three key reasons explaining just why he likes AbbVie so much right now.
First, he believes Humira will continue to be the market leading immunology drug in 2018. Second, ABBV "seems to be on the verge of witnessing a solid upsurge in demand for its oncology drugs in 2018." And at the same time, he is confident that AbbVie is set to make its mark in multiple high growth areas such as women's health and virology. But there are a few risks lurking that investors should track, advises Bhade. These are related to over-reliance and competition for Humira, as well as the risk of failure for its lead oncology asset, Rova-T.
Nonetheless, this Strong Buy stock still has big support from the Street. Indeed, in the last three months top analysts have published four consecutive buy ratings on ABBV. These analysts see the stock spiking by 9% to hit $114.
Alphabet Inc (GOOGL)
Last but by no means least, we have GOOGL, a stock that is now trading at close to $1,150! Google’s stock is up 41% over the last year and 208% over the last five years. For those of you wondering whether this valuation is justified, the answer from top bloggers is a resounding "Yes."
On January 16, top blogger Robert Riesen explained why Alphabet is "reasonably valued" right now, due to its 1) free cash flow 2) growth trajectory, and 3) relative valuation to other tech stocks. Most intriguingly, he also points out GOOGL’s potential extends far beyond its current scope:
“I also believe that Google is only valued on its current business, which is mostly advertising. That leaves plenty of room for upside if Google successfully penetrates a new, large market. Given a cash balance of $100 billion, that's surely a possibility for Google.”
He isn’t alone. Take a look at the screenshot below which shows that 97% blogger opinions on GOOGL are bullish -- way above the sector average.
As far as the Street is concerned, this Strong Buy stock has scored 19 recent buy ratings and just 3 hold ratings. With an average top analyst price target, these analysts see the stock rising a further 5% in the coming months. And some analysts are much more bullish than average, Stephen Ju from Credit Suisse, for example, sees the stock climbing 18% to $1,350.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 (ABBV) Over the last year, this Abbott Lab spin-off has exploded by 70%. AbbVie discovers, develops and markets both biopharmaceuticals and small molecule drugs. From a blogger perspective we can see that overall, bloggers are 82% bullish on ABBV right now. | AbbVie (ABBV) Over the last year, this Abbott Lab spin-off has exploded by 70%. AbbVie discovers, develops and markets both biopharmaceuticals and small molecule drugs. From a blogger perspective we can see that overall, bloggers are 82% bullish on ABBV right now. | These top bloggers call AbbVie a top dividend stock and one of the best big pharma stocks to by in 2018. AbbVie (ABBV) Over the last year, this Abbott Lab spin-off has exploded by 70%. AbbVie discovers, develops and markets both biopharmaceuticals and small molecule drugs. | Indeed, in the last three months top analysts have published four consecutive buy ratings on ABBV. AbbVie (ABBV) Over the last year, this Abbott Lab spin-off has exploded by 70%. AbbVie discovers, develops and markets both biopharmaceuticals and small molecule drugs. |
25748.0 | 2018-01-22 00:00:00 UTC | MTUM, BA, ABBV, MCD: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/mtum-ba-abbv-mcd-large-inflows-detected-etf-2018-01-22 | 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 Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $405.6 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 58,700,000 to 62,350,000). Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is lower by about 0.1%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $77.1487 per share, with $111.19 as the 52 week high point - that compares with a last trade of $111.14. 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.
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 MTUM, in trading today Boeing Co. (Symbol: BA) is off about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $405.6 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 58,700,000 to 62,350,000). 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 MTUM, in trading today Boeing Co. (Symbol: BA) is off about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is lower by about 0.1%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $77.1487 per share, with $111.19 as the 52 week high point - that compares with a last trade of $111.14. 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 MTUM, in trading today Boeing Co. (Symbol: BA) is off about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $405.6 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 58,700,000 to 62,350,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $77.1487 per share, with $111.19 as the 52 week high point - that compares with a last trade of $111.14. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $405.6 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 58,700,000 to 62,350,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $77.1487 per share, with $111.19 as the 52 week high point - that compares with a last trade of $111.14. |
25749.0 | 2018-01-21 00:00:00 UTC | 5 Highest-Growth Drugs of 2018 -- and Who Will Get Rich from Them | ABBV | https://www.nasdaq.com/articles/5-highest-growth-drugs-2018-and-who-will-get-rich-them-2018-01-21 | nan | nan | A billion dollars.
That's the minimum for the amount of additional sales a drug must have to make market research firm EvaluatePharma's ranking of the highest-growth drugs of 2018. EvaluatePharma looked at all of the drugs on the market to determine which should achieve the highest year-over-year sales growth. Five drugs made the top of the list.
Which drugs will generate the greatest sales growth this year? Here they are -- along with the big pharma companies that are poised to get rich (or, more accurately, richer) from them.
1. Keytruda
Merck (NYSE: MRK) will probably report 2017 sales for Keytruda of close to $3.5 billion. This year could be much bigger for the cancer drug. EvaluatePharma projects that Keytruda's sales will increase by $2.28 billion, a much higher jump than any other drug on the market.
Although diabetes drug Januvia has been Merck's top-selling product in the past, that should change in 2018, with Keytruda taking the top spot. Keytruda is also critical for Merck's pipeline, with several studies focusing on the drug in mid-stage and late-stage studies.
2. Humira
Humira ranked as the world's best-selling drug in 2017 . Revenue of over $18 billion pretty much guaranteed AbbVie 's (NYSE: ABBV) autoimmune disease drug the top spot. Another year at the top in 2018 seems to be in the bag as well, with EvaluatePharma estimating that Humira will pull in another $1.42 billion this year.
It wasn't too long ago that many doubted if Humira could continue its reign. A biosimilar to the drug won approval in the U.S. Several companies are also in the process of developing other Humira biosimilar versions. However, AbbVie closed a deal in 2017 that should give Humira clear sailing, at least in the U.S., for several more years.
3. Mavyret
AbbVie also has another big winner on EvaluatePharma's list of the highest-growth drugs of 2018 -- Mavyret. The hepatitis C drug won FDA approval in August 2017. AbbVie didn't provide details of sales of the drug in the third quarter, but EvaluatePharma thinks Mavyret will grow sales by $1.18 billion in its first full year on the market.
Mavyret is one of 10 drugs mentioned by AbbVie CEO Rick Gonzalez at the recent J.P. Morgan Healthcare Conference that the company believes will enable it to increase non-Humira sales to $35 billion by 2025. AbbVie should have stiff competition in the hepatitis C market from Gilead Sciences ' Epclusa, though.
4. Eliquis
Bristol-Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) jointly market anticoagulant Eliquis. The two companies should report combined sales in 2017 for the drug of more than $7 billion. EvaluatePharma projects that revenue total will increase by $1.12 billion this year.
What about competition from Johnson & Johnson 's Xarelto, especially in light of the potential of its label being updated to reflect efficacy in preventing major adverse cardiac events? Pfizer executive Albert Bourla stated in November that he thinks any impact to Eliquis will be "limited" and that the drug's momentum will continue.
5. Ibrance
AbbVie isn't the only big pharma with two drugs on the list. Pfizer shares that distinction, with EvaluatePharma forecasting that sales for the company's cancer drug Ibrance will increase by $1.08 billion in 2018. That jump would translate to revenue for Ibrance in the ballpark of $4.4 billion this year.
There are other CDK4/6 inhibitors on the market now in addition to Ibrance. However, Pfizer thinks that Ibrance will maintain an advantage in the marketplace. The company is evaluating the drug in three late-stage studies that, if successful, could give Ibrance additional indications.
Best pick to profit from these fast-growing drugs
AbbVie, Bristol-Myers Squibb, Merck, and Pfizer all stand to rake in a lot more money this year thanks to these fast-growing drugs. But which of these big pharma stocks offers the best opportunity for investors to also profit? My pick is AbbVie.
Not only does AbbVie claim two drugs on this list, but the company also has rising stars with Imbruvica and Venclexta. AbbVie's cancer drug Rova-T also landed a spot among the biggest new drugs of 2018 . The company hopes to launch the drug by the end of the year. EvaluatePharma projects that Rova-T will generate sales of $1.4 billion by 2022.
In addition, AbbVie's dividend yield stands at 2.83%. The yield was a lot higher, but the stock gained a whopping 54% in 2017, pushing the yield downward. I don't expect that impressive of a performance this year. However, AbbVie continues to be one of my favorite pharma stocks for the long run.
10 stocks we like better than AbbVie
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Keith Speights owns shares of AbbVie, Gilead Sciences, JPMorgan Chase, and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mavyret is one of 10 drugs mentioned by AbbVie CEO Rick Gonzalez at the recent J.P. Morgan Healthcare Conference that the company believes will enable it to increase non-Humira sales to $35 billion by 2025. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, JPMorgan Chase, and Pfizer. Revenue of over $18 billion pretty much guaranteed AbbVie 's (NYSE: ABBV) autoimmune disease drug the top spot. | Best pick to profit from these fast-growing drugs AbbVie, Bristol-Myers Squibb, Merck, and Pfizer all stand to rake in a lot more money this year thanks to these fast-growing drugs. Revenue of over $18 billion pretty much guaranteed AbbVie 's (NYSE: ABBV) autoimmune disease drug the top spot. However, AbbVie closed a deal in 2017 that should give Humira clear sailing, at least in the U.S., for several more years. | AbbVie didn't provide details of sales of the drug in the third quarter, but EvaluatePharma thinks Mavyret will grow sales by $1.18 billion in its first full year on the market. Best pick to profit from these fast-growing drugs AbbVie, Bristol-Myers Squibb, Merck, and Pfizer all stand to rake in a lot more money this year thanks to these fast-growing drugs. Revenue of over $18 billion pretty much guaranteed AbbVie 's (NYSE: ABBV) autoimmune disease drug the top spot. | Ibrance AbbVie isn't the only big pharma with two drugs on the list. Revenue of over $18 billion pretty much guaranteed AbbVie 's (NYSE: ABBV) autoimmune disease drug the top spot. However, AbbVie closed a deal in 2017 that should give Humira clear sailing, at least in the U.S., for several more years. |
25750.0 | 2018-01-21 00:00:00 UTC | Better Buy: Gilead Sciences, Inc. vs. Pfizer Inc. | ABBV | https://www.nasdaq.com/articles/better-buy-gilead-sciences-inc-vs-pfizer-inc-2018-01-21 | nan | nan | Your time horizon makes a huge difference when choosing between which stocks to buy. For example, suppose it's January 2011, and you're trying to decide between buying Gilead Sciences, Inc. (NASDAQ: GILD) or Pfizer Inc. (NYSE: PFE) . If your focus was only a 12-month period, Pfizer turned out to be the better pick. However, if you had a longer time horizon such as five years, Gilead stock's performance was more than five times better than Pfizer's.
Of course, we're now in January 2018, not January 2011. A longer-term focus still makes sense, though. Which is the better long-term pick between Gilead Sciences and Pfizer now? Here's how the two big drugmakers compare.
The case for Gilead Sciences
It's easy to point out Gilead's problems. Sales are plunging for the biotech's hepatitis C virus (HCV) franchise. As a result, Gilead's overall revenue and earnings continue to fall. Many investors have thrown in the towel on the once-hot stock.
However, there are still many reasons to like Gilead Sciences. Although the sales plunge for HCV drugs Harvoni and Sovaldi isn't over yet, newer HCV drugs Epclusa and Vosevi are enjoying strong momentum. Gilead CEO John Milligan even thinks that the entrance of AbbVie 's Mavyret on the market "sets the stage for smoothness to HCV sales for the future." Milligan went so far as to predict that 2018 could be "the beginning of a growth phase" for Gilead.
Meanwhile, Gilead continues to absolutely dominate in the HIV market. Genvoya had the strongest launch ever for an HIV drug. The company expects to win FDA approval for its latest HIV treatment, a bictegravir/F/TAF combo, within a few weeks. This drug should be the biggest new launch of 2018 if all goes as planned. Sales for bictegravir/F/TAF are expected to top $5 billion by 2022.
Thanks to its acquisition of Kite Pharma in 2017, Gilead now stands at the forefront of cell therapy. In October, Kite's Yescarta became only the second chimeric antigen receptor T cell (CAR-T) therapy to win FDA approval. There's a good chance that Gilead emerges as one of the top leaders in cancer drugs with Yescarta and other pipeline candidates picked up with the Kite acquisition.
The big biotech is also aiming to move into a couple of new areas. Gilead has three drugs in its pipeline targeting treatment of non-alcoholic steatohepatitis (NASH), including late-stage ASK-1 inhibitor selonsertib. NASH could be an especially lucrative indication if the company is successful. Gilead also hopes to elbow its way into the autoimmune disease market with JAK1 inhibitor filgotinib, which is currently in late-stage studies for treating rheumatoid arthritis, Crohn's disease, and ulcerative colitis.
Even with HCV sales falling, the drugs, along with Gilead's HIV franchise, still generates enormous cash flow. Gilead has a large cash stockpile that it can and will use to reward shareholders. The company's dividend currently yields 2.59%. Expect dividend increases in the future. There's also a really good chance that Gilead will use some of its cash to make further acquisitions to drive growth.
The case for Pfizer
Since we started with Gilead's weaknesses, it's only fair to point out some drawbacks for Pfizer. The drugmaker's biggest challenge is its essential health business segment. Sales are slipping for many of Pfizer's older drugs that have lost patent exclusivity. Pfizer has also faced headwinds for its sterile injectables business picked up with the 2015 acquisition of Hospira. The company's other business segment, innovative health, also has a few weak spots, especially with declining sales for autoimmune disease drug Enbrel.
With the dirty laundry out of the way, let's turn our attention to Pfizer's positives. I'd put cancer drug Ibrance at the top of the list. Market research firm EvaluatePharma projects that Ibrance will be one of the top five drugs in terms of sales growth in 2018. Pfizer is also enjoying strong sales momentum for smoking cessation product Chantix, anticoagulant Eliquis, and autoimmune-disease drug Xeljanz.
Acquisitions have also given Pfizer promising drugs to add to its lineup. Pfizer bought Medivation in 2016, picking up prostate cancer drug Xtandi. The same year, the big drugmaker acquired Anacor Pharmaceuticals, gaining Eucrisa in the process. Both Xtandi and Eucrisa should become blockbusters.
Pfizer's pipeline includes 28 late-stage programs. The company is hoping to secure additional indications for several already-approved drugs. Pfizer also has quite a few promising new candidates, with breast cancer drug talazoparib, diabetes drug ertugliflozin, and pain drug tanezumab especially standing out.
In 2013, Pfizer spun off its animal health business into a separate entity, Zoetis , a move that benefited shareholders tremendously. The company is now evaluating either spinning off or selling its consumer healthcare business , which could also benefit investors.
Like Gilead, Pfizer generates strong cash flow. The company also pays out one of the more attractive dividends around, with a current yield of 3.72%. In addition, Pfizer could be active soon on the acquisitions front, looking to boost its portfolio with assets that could fuel future growth.
Better buy
Pfizer has a couple of key advantages. First, it's increasing revenue and earnings, albeit relatively slowly because of the drag from its essential health segment. Second, the company has a more appealing dividend.
However, Gilead has a couple of advantages of its own. The biotech is more attractively valued, with shares trading at less than 12 times expected earnings. Gilead also has, in my view, the better pipeline candidates with the bictegravir/F/TAF combo, Kite's CAR-T therapies, and its emerging NASH franchise.
It's a tough decision. My gut instinct, though, is to go with Gilead. I think the stock has the potential to be a comeback story in the next couple of years. Over the long run, Gilead could become a dominant player in NASH and cell therapy.
Still, I like both Gilead Sciences and Pfizer. In fact, I own both stocks. My take is that investors wouldn't go wrong with buying either of them.
10 stocks we like better than Gilead Sciences
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*Stock Advisor returns as of January 2, 2018
Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gilead CEO John Milligan even thinks that the entrance of AbbVie 's Mavyret on the market "sets the stage for smoothness to HCV sales for the future." *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. There's a good chance that Gilead emerges as one of the top leaders in cancer drugs with Yescarta and other pipeline candidates picked up with the Kite acquisition. | Gilead CEO John Milligan even thinks that the entrance of AbbVie 's Mavyret on the market "sets the stage for smoothness to HCV sales for the future." *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. Even with HCV sales falling, the drugs, along with Gilead's HIV franchise, still generates enormous cash flow. | *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. Gilead CEO John Milligan even thinks that the entrance of AbbVie 's Mavyret on the market "sets the stage for smoothness to HCV sales for the future." However, if you had a longer time horizon such as five years, Gilead stock's performance was more than five times better than Pfizer's. | Gilead CEO John Milligan even thinks that the entrance of AbbVie 's Mavyret on the market "sets the stage for smoothness to HCV sales for the future." *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. There's also a really good chance that Gilead will use some of its cash to make further acquisitions to drive growth. |
25751.0 | 2018-01-19 00:00:00 UTC | Amgen/Allergan's Avastin Biosimilar Secures EU Approval | ABBV | https://www.nasdaq.com/articles/amgen-allergans-avastin-biosimilar-secures-eu-approval-2018-01-19 | nan | nan | Amgen, Inc.AMGN and partner Allergan AGN announced that the European Commission has granted marketing approval to its biosimilar version of Roche's RHHBY blockbuster cancer drug, Avastin (bevacizumab), Mvasi. The drug was approved in the United States in September.
Mvasi is approved in the EU for the treatment of multiple types of cancer. Note that Mvasi is the first bevacizumab biosimilar to be approved in the European Union.
The approval was in line with expectations considering the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency's (EMA) had rendered a positive opinion for the approval of Mvasi in November/
The approval was supported by a comprehensive data package that demonstrated similarity of Mvasi with bevacizumab.
Amgen has collaborated with Allergan for the worldwide development and commercialization of four oncology antibody biosimilar medicines. Other than Mvasi, Amgen/Allergan's portfolio also includes biosimilar versions of Herceptin (under review in the United States and EU) and Rituxan (in late stage studies)
Overall, Amgen has 10 biosimilars in its pipeline including biosimilar versions of Johnson and Johnson/Merck's Remicade and Alexion's Soliris. Amgen's biosimilar version of Abbvie's ABBV blockbuster rheumatoid arthritis drug Humira, Amjevita, was approved by the FDA in September 2016 and in the EU (trade name: Amgevita) in March 2017 for the same indications as Humira.
Amjevita is the first biosimilar version of Humira to be approved by the FDA as well as Amgen's first biosimilar medicine to be approved. Per a settlement agreement with AbbVie, Amgen will begin selling Amjevita in most countries in the EU this year and in the United States from January 2023.
Amgen's biosimilar opportunity is likely to translate into annual revenues of more than $3 billion. Amgen has also partnered Daiichi Sankyo for the commercialization of nine biosimilars in Japan.
In the past year, Amgen's shares have returned 21.3% compared with 4.2% increase registered by the industry .
Amgen carries a Zacks Rank #3 (Hold). 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. | Per a settlement agreement with AbbVie, Amgen will begin selling Amjevita in most countries in the EU this year and in the United States from January 2023. Amgen's biosimilar version of Abbvie's ABBV blockbuster rheumatoid arthritis drug Humira, Amjevita, was approved by the FDA in September 2016 and in the EU (trade name: Amgevita) in March 2017 for the same indications as Humira. (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Amgen's biosimilar version of Abbvie's ABBV blockbuster rheumatoid arthritis drug Humira, Amjevita, was approved by the FDA in September 2016 and in the EU (trade name: Amgevita) in March 2017 for the same indications as Humira. (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Per a settlement agreement with AbbVie, Amgen will begin selling Amjevita in most countries in the EU this year and in the United States from January 2023. | (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Amgen's biosimilar version of Abbvie's ABBV blockbuster rheumatoid arthritis drug Humira, Amjevita, was approved by the FDA in September 2016 and in the EU (trade name: Amgevita) in March 2017 for the same indications as Humira. Per a settlement agreement with AbbVie, Amgen will begin selling Amjevita in most countries in the EU this year and in the United States from January 2023. | Amgen's biosimilar version of Abbvie's ABBV blockbuster rheumatoid arthritis drug Humira, Amjevita, was approved by the FDA in September 2016 and in the EU (trade name: Amgevita) in March 2017 for the same indications as Humira. Per a settlement agreement with AbbVie, Amgen will begin selling Amjevita in most countries in the EU this year and in the United States from January 2023. (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25752.0 | 2018-01-19 00:00:00 UTC | The Zacks Analyst Blog Highlights: Johnson & Johnson, AbbVie, Amgen, Novo-Nordisk and Zoetis | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-johnson-johnson-abbvie-amgen-novo-nordisk-and-zoetis | nan | nan | For Immediate Release
Chicago, IL - Jan 19, 2018 - 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 Johnson & JohnsonJNJ , AbbVieABBV , Amgen Inc.AMGN , Novo-NordiskNVO and ZoetisZTS .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Can These 4 Large-Cap Drug Stocks Deliver an Encore in 2018?
Investing in sound large-cap pharma stocks seems judicious as they are fundamentally lucrative and ensure a steady stream of cash inflows for the investor.
The drug sector had a good run in 2017, bouncing back after drug pricing issues dampened its performance in 2016. Importantly, the sector saw a considerable increase in new drug approvals last year. The FDA approved 46 novel drugs last year, more than double of 2016's tally of 22.
The Large Cap Pharma industry witnessed an impressive rally in 2017, up 16.3% against a decline of 5.2% in 2016. The run was propelled by encouraging quarterly results, increased demand for new product sales, successful innovation and product line expansion. Strong clinical study results and continued strong performance of legacy products also boosted the sector.
These factors are expected to play an instrumental role in 2018 as well, which may take the large-cap drug sector to new highs. The industry is already up 3.9% so far this year.
Notably, the Large Cap Pharma industry carries a Zacks Industry Rank of #100, placing it among the top 39% of the 265 plus Zacks industries. Our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
The passing of the tax overhaul bill by the Congress is a cherry on the top. The slashing of the corporate tax rate from 35% to 21% is likely to further boost profit margins. Moreover, the cash repatriation window allowed in the bill will help companies to bring in cash stashed in foreign locations, leaving these companies with extra cash in hand. This may lead to strategic deals like merger and acquisitions this year, which were relatively fewer in 2017.
Most drug companies with a large market cap have seen their share price rise in 2018 so far. Here we present four companies, Johnson & Johnson, AbbVie, Zoetis and Novo Nordisk, which outperformed the industry last year and have the potential to repeat the same performance in 2018.
Johnson & Johnson
The company's stock was up 21.3% in 2017, which compared favorably with a gain of 16.3% recorded by the industry. The company has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The company's shares were boosted by the approval of two drugs, Tremfya for plaque psoriasis and Juluca for HIV, along with several line extensions to its major drugs including Xarelto, Simponi Aria, Stelara and Imbruvicain 2017.
The trend is expected to continue in 2018. J&J has several regulatory applications for label expansion of its key drugs under review. Potential approval to these line extensions will certainly boost the company's growth prospects. Meanwhile, there are several pivotal data readouts and regulatory milestones lined up for 2018.
Moreover, J&J's pharma segment's growth accelerated in third quarter of 2017 after slowing down in the first half due to a number of factors including competition for some key drugs like Remicade and Concerta. The upside is expected to continue in 2018.
AbbVie
The stock of the company was up 54.4% in 2017. The company holds a Zacks Rank #2 (Buy).
In 2017, the company reported a series of positive news including promising data from several pivotal studies, regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine, Mavyret and FDA approval for the sixth indication for Imbruvica and settlement of its Humira patent disputes with Amgen Inc..
AbbVie also expects several pivotal data readouts and regulatory milestones in 2018, which is expected to further aid the company. The data readout from the pivotal phase III TRINITY study on Rova-T in third-line or later small cell lung cancer will be an important catalyst for the stock. Moreover, a FDA decision is expected on the new drug application ("NDA") for elagolix for endometriosis, which was granted priority review in October last year.
AbbVie's blockbuster drug, Humira, has been performing well despite competitive pressure. The company expects the drug's performance to continue, which will boost the topline. Imbruvica is also doing consistently well with multibillion dollar potential. AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases.
Novo-Nordisk
Shares of the company increased 49.7% in 2017. The company carries a Zacks Rank #3.
This company was granted approval to expand the label of its diabetes drug, Victoza, to include treatment of major adverse cardiovascular events in adults with type II diabetes in August 2017. Moreover, a new diabetes drug, Fiasp, received approval in September 2017 for treating adults with diabetes. In December 2017, the FDA approved Ozempic, a semaglutide once-daily pre-filled pen to improve glycaemic control in type II diabetes patients. It also received approval for Rebinyn for hemophilia B in the United States and Refixia for the treatment of adolescents and adults with the same indication in Europe.
In 2018, the company expects a U.S. launch of Ozempic and an approval for the same in Europe, which will certainly boost the company's revenues.
Moreover, the company serves almost half of the insulin market and a quarter of the diabetes market. The growing diabetes market will certainly boost the topline.
Zoetis
The company's shares rose 34.6% in 2017. The company sports a Zacks Rank #1 (Strong Buy).
The company has a diversified portfolio of livestock and companion animal products. In2017, the company increased its share of the dermatology products for dogs market to 59%. The companion animal business has been performing well, along with the launch of Apoquel and Cytopoint. The company acquired Nexvet Biopharma last year, which boosted its pipeline of solutions for chronic pain management in dogs and cats. The company also expanded the reach of its poultry diagnostics products into major European markets.
In 2018, Zoetis topline is expected to benefit from Cytopoint, which was launched in Europe in the fourth quarter of 2017. The company expects cattle herd size to increase in 2018, which will drive growth.
Conclusion
With a strong product portfolio, consistently successful pipeline developments and anticipated growth in demand for drugs, these companies will likely attract investor attention this year as well.
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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 2017, the company reported a series of positive news including promising data from several pivotal studies, regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine, Mavyret and FDA approval for the sixth indication for Imbruvica and settlement of its Humira patent disputes with Amgen Inc.. AbbVie also expects several pivotal data readouts and regulatory milestones in 2018, which is expected to further aid the company. Stocks recently featured in the blog include Johnson & JohnsonJNJ , AbbVieABBV , Amgen Inc.AMGN , Novo-NordiskNVO and ZoetisZTS . Here we present four companies, Johnson & Johnson, AbbVie, Zoetis and Novo Nordisk, which outperformed the industry last year and have the potential to repeat the same performance in 2018. | Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Zoetis Inc. (ZTS): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Johnson & JohnsonJNJ , AbbVieABBV , Amgen Inc.AMGN , Novo-NordiskNVO and ZoetisZTS . Here we present four companies, Johnson & Johnson, AbbVie, Zoetis and Novo Nordisk, which outperformed the industry last year and have the potential to repeat the same performance in 2018. | In 2017, the company reported a series of positive news including promising data from several pivotal studies, regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine, Mavyret and FDA approval for the sixth indication for Imbruvica and settlement of its Humira patent disputes with Amgen Inc.. AbbVie also expects several pivotal data readouts and regulatory milestones in 2018, which is expected to further aid the company. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Zoetis Inc. (ZTS): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Johnson & JohnsonJNJ , AbbVieABBV , Amgen Inc.AMGN , Novo-NordiskNVO and ZoetisZTS . | AbbVie The stock of the company was up 54.4% in 2017. Stocks recently featured in the blog include Johnson & JohnsonJNJ , AbbVieABBV , Amgen Inc.AMGN , Novo-NordiskNVO and ZoetisZTS . Here we present four companies, Johnson & Johnson, AbbVie, Zoetis and Novo Nordisk, which outperformed the industry last year and have the potential to repeat the same performance in 2018. |
25753.0 | 2018-01-18 00:00:00 UTC | J&J (JNJ) Hits New 52-Week High: What's Driving the Stock? | ABBV | https://www.nasdaq.com/articles/jj-jnj-hits-new-52-week-high%3A-whats-driving-the-stock-2018-01-18 | nan | nan | Shares of Johnson & Johnson JNJ hit a new 52-week high of $148.32 on Jan 17 and eventually closed the day at $146.98. The stock hit the new high probably on a Reuters news which states that some Chinese bidders are planning to buy a J&J's diabetes care unit in the country in a deal which could be worth $4 billion
As it is, J&J stock has had a great run in the past year. Shares of J&J have rallied 28.1% over a year while the industry has registered an increase of 21.5%.
Promising data from several pivotal studies and rapid progress with its pipeline and line extensions over a year kept the stock on a growth trajectory. This positive trend is likely to continue in 2018 as well.
The company received approvals for two new drugs last year - Guselkumab/Tremfyain the United Statesas well as in the EU for plaque psoriasisand thefirst dual treatment for HIV, Juluca (dolutegravir + rilpivirine)in partnership with GlaxoSmithKline GSK in the United States. Juluca is under review in the EU.
J&J also received FDA approval for several line extensions - a lower dose of Xarelto, two new indications of Simponi Aria, use in adolescents for Stelara, combination use of Darzalex with Celgene Corporation's CELG multiple myeloma drug Pomalyst and the sixth indication for Imbruvica, among others. Investors should note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV .
The line extensions can expand the eligible patient populations of these drugs and drive sales.
Sales of the company's Pharma segment accelerated in the third quarter and the trend is likely to continue in the fourth quarter as well asin 2018. We believe that new products in all segments, label expansion of drugs like Imbruvica, Xarelto, Stelaraand Darzalex and contribution from recent acquisitions - mainly Actelion - will support top-line growth.
This year J&J expects to file for approval of depression candidate, esketaminewhile apalutamidefor pre-metastatic prostate cancerand Symtuza, a darunavir-based once-daily single-tablet regimen for HIVcould be approved by the FDA.
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock is likely to continue in 2018.
Johnson & Johnson Price
Johnson & Johnson Price | Johnson & Johnson Quote
Zacks Rank
J&J 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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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors should note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Promising data from several pivotal studies and rapid progress with its pipeline and line extensions over a year kept the stock on a growth trajectory. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Investors should note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Johnson & Johnson Price Johnson & Johnson Price | Johnson & Johnson Quote Zacks Rank J&J has a Zacks Rank #3 (Hold). | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Investors should note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . The stock hit the new high probably on a Reuters news which states that some Chinese bidders are planning to buy a J&J's diabetes care unit in the country in a deal which could be worth $4 billion As it is, J&J stock has had a great run in the past year. | Investors should note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Johnson & Johnson JNJ hit a new 52-week high of $148.32 on Jan 17 and eventually closed the day at $146.98. |
25754.0 | 2018-01-18 00:00:00 UTC | Can These 4 Large-Cap Drug Stocks Deliver an Encore in '18? | ABBV | https://www.nasdaq.com/articles/can-these-4-large-cap-drug-stocks-deliver-an-encore-in-18-2018-01-18 | nan | nan | Investing in sound large-cap pharma stocks seems judicious as they are fundamentally lucrative and ensure a steady stream of cash inflows for the investor.
The drug sector had a good run in 2017, bouncing back after drug pricing issues dampened its performance in 2016. Importantly, the sector saw a considerable increase in new drug approvals last year. The FDA approved 46 novel drugs last year, more than double of 2016's tally of 22.
The Large Cap Pharma industry witnessed an impressive rally in 2017, up 16.3% against a decline of 5.2% in 2016. The run was propelled by encouraging quarterly results, increased demand for new product sales, successful innovation and product line expansion. Strong clinical study results and continued strong performance of legacy products also boosted the sector.
Notably, the Large Cap Pharma industry carries a Zacks Industry Rank of #100, placing it among the top 39% of the 265 plus Zacks industries. Our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
The passing of the tax overhaul bill by the Congress is a cherry on the top. The slashing of the corporate tax rate from 35% to 21% is likely to further boost profit margins.Moreover, the cash repatriation window allowed in the bill will help companies to bring in cash stashed in foreign locations, leaving these companies with extra cash in hand. This may lead to strategic deals like merger and acquisitions this year, which were relatively fewer in 2017.
Most drug companies with a large market cap have seen their share price rise in 2018 so far. Here we present four companies, Johnson & Johnson JNJ , AbbVie Inc. ABBV , Zoetis Inc. ZTS and Novo Nordisk A/S NVO , which outperformed the industry last year and have the potential to repeat the same performance in 2018.
Johnson & Johnson
The company's stock was up 21.3% in 2017, which compared favorably with a gain of 16.3% recorded by the industry. The company has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The company's shares were boosted by the approval of two drugs, Tremfya for plaque psoriasis and Juluca for HIV, along with several line extensions to its major drugs including Xarelto, Simponi Aria, Stelara and Imbruvicain 2017.
The trend is expected to continue in 2018. J&J has several regulatory applications for label expansion of its key drugs under review. Potential approval to these line extensions will certainly boost the company's growth prospects. Meanwhile, there are several pivotal data readouts and regulatory milestones lined up for 2018.
Moreover, J&J's pharma segment's growth accelerated in third quarter of 2017 after slowing down in the first half due to a number of factors including competition for some key drugs like Remicade and Concerta. The upside is expected to continue in 2018.
AbbVie
The stock of the company was up 54.4% in 2017. The company holds a Zacks Rank #2 (Buy).
In 2017, the company reported a series of positive news including promising data from several pivotal studies, regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine, Mavyret and FDA approval for the sixth indication for Imbruvica and settlement of its Humira patent disputes with Amgen Inc. AMGN .
AbbVie also expects several pivotal data readouts and regulatory milestones in 2018, which is expected to further aid the company. The data readout from the pivotal phase III TRINITY study on Rova-T in third-line or later small cell lung cancer will be an important catalyst for the stock. Moreover, a FDA decision is expected on the new drug application ("NDA") for elagolix for endometriosis, which was granted priority review in October last year.
AbbVie's blockbuster drug, Humira, has been performing well despite competitive pressure. The company expects the drug's performance to continue, which will boost the topline. Imbruvica is also doing consistently well with multibillion dollar potential. AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases.
Novo-Nordisk
Shares of the company increased 49.7% in 2017. The company carries a Zacks Rank #3.
This company was granted approval to expand the label of its diabetes drug, Victoza, to include treatment of major adverse cardiovascular events in adults with type II diabetes in August 2017. Moreover, a new diabetes drug, Fiasp, received approval in September 2017 for treating adults with diabetes. In December 2017, the FDA approved Ozempic, a semaglutide once-daily pre-filled pen to improve glycaemic control in type II diabetes patients. It also received approval for Rebinyn for hemophilia B in the United States and Refixia for the treatment of adolescents and adults with the same indication in Europe.
In 2018, the company expects a U.S. launch of Ozempic and an approval for the same in Europe, which will certainly boost the company's revenues.
Moreover, the company serves almost half of the insulin market and a quarter of the diabetes market. The growing diabetes market will certainly boost the topline.
Zoetis
The company's shares rose 34.6% in 2017. The company sports a Zacks Rank #1 (Strong Buy).
The company has a diversified portfolio of livestock and companion animal products. In2017, the company increased its share of the dermatology products for dogs market to 59%. The companion animal business has been performing well, along with the launch of Apoquel and Cytopoint. The company acquired Nexvet Biopharma last year, which boosted its pipeline of solutions for chronic pain management in dogs and cats. The company also expanded the reach of its poultry diagnostics products into major European markets.
In 2018, Zoetis topline is expected to benefit from Cytopoint, which was launched in Europe in the fourth quarter of 2017. The company expects cattle herd size to increase in 2018, which will drive growth.
Conclusion
With a strong product portfolio, consistently successful pipeline developments and anticipated growth in demand for drugs, these companies will likely attract investor attention this year as well.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
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Novo Nordisk A/S (NVO): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Zoetis Inc. (ZTS): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here we present four companies, Johnson & Johnson JNJ , AbbVie Inc. ABBV , Zoetis Inc. ZTS and Novo Nordisk A/S NVO , which outperformed the industry last year and have the potential to repeat the same performance in 2018. AbbVie The stock of the company was up 54.4% in 2017. AbbVie also expects several pivotal data readouts and regulatory milestones in 2018, which is expected to further aid the company. | Here we present four companies, Johnson & Johnson JNJ , AbbVie Inc. ABBV , Zoetis Inc. ZTS and Novo Nordisk A/S NVO , which outperformed the industry last year and have the potential to repeat the same performance in 2018. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Zoetis Inc. (ZTS): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie The stock of the company was up 54.4% in 2017. | Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Zoetis Inc. (ZTS): Free Stock Analysis Report To read this article on Zacks.com click here. Here we present four companies, Johnson & Johnson JNJ , AbbVie Inc. ABBV , Zoetis Inc. ZTS and Novo Nordisk A/S NVO , which outperformed the industry last year and have the potential to repeat the same performance in 2018. AbbVie The stock of the company was up 54.4% in 2017. | Here we present four companies, Johnson & Johnson JNJ , AbbVie Inc. ABBV , Zoetis Inc. ZTS and Novo Nordisk A/S NVO , which outperformed the industry last year and have the potential to repeat the same performance in 2018. AbbVie The stock of the company was up 54.4% in 2017. AbbVie also expects several pivotal data readouts and regulatory milestones in 2018, which is expected to further aid the company. |
25755.0 | 2018-01-18 00:00:00 UTC | Top Research Reports for Apple, JPMorgan & AbbVie | ABBV | https://www.nasdaq.com/articles/top-research-reports-apple-jpmorgan-abbvie-2018-01-18 | nan | nan | Thursday, January 18, 2018
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple (AAPL), JPMorgan (JPM) and AbbVie (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Buy-rated Apple 's shares are up +49.5% over the past year, handily outperforming the S&P 500 (up +24.2%) and the Zacks Technology sector (up +29.6%). The company is benefiting from steady iPhone sales, spurt in Services segment and resurgence in Mac and iPad sales. The company is anticipated to benefit from the strong demand of iPhone X in mature markets, which will help it to sustain momentum in the near term.
Going forward, the Zacks analyst thinks foray into fast-growing technologies like autonomous vehicles, artificial intelligence (AI) & AR/VR are long-term drivers. Moreover, Apple's new investment plan will boost its subscription-based services business and put an end to criticism it is facing for not creating enough jobs in the United States.
Estimates have remained stable ahead of the company's Q1 earnings release. The company has positive record of earnings surprises in recent quarters.
(You can read the full research report on Apple here >>> ).
Shares of Buy-rated JPMorgan have outperformed the Zacks Major Regional Banks industry over the past six months (up +23.9% vs. +18.7%). This price performance is backed by impressive earnings surprise history, with the company surpassing expectations in each of the trailing four quarters.
The company's fourth-quarter 2017 results benefited mainly from higher interest income and investment banking fees, partially offset by lower trading revenues and mortgage banking fess along with a surge in provisions for loan losses. The Zacks analyst likes the bank's efforts to manage expenses.
Higher interest rates and rising loan demand will likely continue to benefit its financials. While the company faces persistent fee income growth challenges, mainly due to a slowdown in trading activities and dismal capital markets performance, lower tax rates will aid profitability in the quarters ahead.
(You can read the full research report on JPMorgan here >>> ).
Buy-rated AbbVie 's shares have gained +70.1% over the last one year, outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +22.9% over the same period. This strong performance is supported by a series of positive news including promising data from several pivotal studies, regulatory approvals in the U.S., Europe, and Japan for its competitive HCV medicine Mavyret and FDA approval for the sixth indication for Imbrivica and settlement of its Humira patent disputes with Amgen.
AbbVie's key drug Humira has been performing well based on strong demand trends for the drug, despite new competition. Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Also, several pivotal data readouts and regulatory milestones are expected in 2018.
However, HCV sales continue to be hurt by intensifying competition. Estimates have remained stable ahead of the Q4 earnings release. AbbVie has a positive record of earnings surprises in the recent quarters.
(You can read the full research report on AbbVie here >>> ).
Other noteworthy reports we are featuring today include MetLife (MET), Gilead (GILD) and Simon Property Group (SPG).
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
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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 Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Apple (AAPL) Banks on Service Business and US Expansion
Loan Growth, Investment Banking to Support JPMorgan (JPM)
Humira Driven Gains to Boost AbbVie (ABBV) , Pipeline in Focus
Featured Reports
BP Plc (BP) Banks on Upstream Projects Amid Oil Spill Woes
While the Zacks analyst is optimistic about BP's strong portfolio of upstream projects, the oil spill incident of 2010 continues to affect the firm.
W.R. Berkley (WRB) Grows On Rate Hike, Reserving Discipline
Per the Zacks analyst, W.R. Berkley is poised for growth banking on rate increases, reserving discipline, expanding international business and growing contribution from new startup units.
Portfolio Revamp Aids Simon Property (SPG) Amid Retail Blues
The Zacks analyst appreciates Simon Property's efforts to revamp its properties and settle the pending litigation with Starbucks. However, the online sales boom will likely impede top-line growth.
Yum! Brands (YUM) Rides on Digital Innovation & Franchising
The Zacks analyst expects Yum! Brands' efforts with its sales and digital initiatives to drive growth.
H.D. Smith Acquisition Boosts AmerisourceBergen (ABC)
Per the Zacks analyst, AmersourceBergen's latest takeover of H.D. Smith, the largest independent wholesaler in the nation will boost inorganic growth.
Acquisitions Boost Celanese (CE) Amid Tow Pricing Woes
While Celanese is exposed to headwinds from weak acetate tow pricing, SO.F.TER. and Nilit acquisitions should help the company to achieve its earnings growth target for FY17, per the Zacks analyst.
TJX Companies (TJX) Margins to Gain from Inventory Management
Per the Zacks analyst, TJX Companies has been gaining from strong merchandise margins, backed by its efficient inventory management.
New Upgrades
E-Commerce Growth, Dividends & Buybacks Buoy FedEx (FDX)
The Zacks analyst likes FedEx's efforts to reward shareholders. The growth in e-commerce is also aiding the company's top line. The new tax law is another positive for the company.
Business Streamlining, Solid Balance Sheet Aid MetLife (MET)
Per the Zacks analyst exit from U.S Retail unit, closing of UK Wealth Management business has freed MetLife from high-risk, non-core operations. Its strong capital position supports long term growth.
Cosan (CZZ) to Benefit From Strengthening Raizen Business
Per the Zacks analyst, Cosan's Raizen business will benefit from a solid network of Shell branded service stations, efforts to enhance distribution network and selective positioning of logistics.
New Downgrades
Weak HCV Franchise Weighs on Gilead (GILD)
Per the Zacks analyst, Gilead faces tough times as its HCV franchise is under pressure due to lower patient starts and increasing competition while generic competition looms large over HIV drugs.
Aliso Canyon Leak, Currency Risk Hurt Sempra Energy (SRE)
Per the Zacks analyst, Sempra Energy has been consistently incurring expenses due to massive leak at the Aliso Canyon storage facility. It also faces foreign currency risk due to presence in Mexico.
Aon plc (AON) Suffers From High Debt Level, Forex Volatility
Per the Zacks analyst, despite holding a leading position in the insurance brokerage market, Aon plc continues to suffer from high financial leverage and foreign exchange rate fluctuations.
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Simon Property Group, Inc. (SPG): Free Stock Analysis Report
MetLife, Inc. (MET): Free Stock Analysis Report
J P Morgan Chase & Co (JPM): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Apple Inc. (AAPL): 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.
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 16 major stocks, including Apple (AAPL), JPMorgan (JPM) and AbbVie (ABBV). Buy-rated AbbVie 's shares have gained +70.1% over the last one year, outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +22.9% over the same period. AbbVie's key drug Humira has been performing well based on strong demand trends for the drug, despite new competition. | Today's Research Daily features new research reports on 16 major stocks, including Apple (AAPL), JPMorgan (JPM) and AbbVie (ABBV). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Service Business and US Expansion Loan Growth, Investment Banking to Support JPMorgan (JPM) Humira Driven Gains to Boost AbbVie (ABBV) , Pipeline in Focus Featured Reports BP Plc (BP) Banks on Upstream Projects Amid Oil Spill Woes While the Zacks analyst is optimistic about BP's strong portfolio of upstream projects, the oil spill incident of 2010 continues to affect the firm. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report MetLife, Inc. (MET): Free Stock Analysis Report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Service Business and US Expansion Loan Growth, Investment Banking to Support JPMorgan (JPM) Humira Driven Gains to Boost AbbVie (ABBV) , Pipeline in Focus Featured Reports BP Plc (BP) Banks on Upstream Projects Amid Oil Spill Woes While the Zacks analyst is optimistic about BP's strong portfolio of upstream projects, the oil spill incident of 2010 continues to affect the firm. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report MetLife, Inc. (MET): Free Stock Analysis Report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple (AAPL), JPMorgan (JPM) and AbbVie (ABBV). | Today's Research Daily features new research reports on 16 major stocks, including Apple (AAPL), JPMorgan (JPM) and AbbVie (ABBV). Buy-rated AbbVie 's shares have gained +70.1% over the last one year, outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +22.9% over the same period. AbbVie's key drug Humira has been performing well based on strong demand trends for the drug, despite new competition. |
25756.0 | 2018-01-17 00:00:00 UTC | AbbVie Named Top Dividend Stock With Insider Buying and 2.77% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-named-top-dividend-stock-insider-buying-and-277-yield-abbv-2018-01-17 | nan | nan | In this series, we look through the most recent Dividend Channel''DividendRank'' report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to have a unique insider's view of the business, and presumably the only reason an insider would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money - maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So when stocks turn up that see insider buying, and are also top ranked, investors are wise to take notice. One such company is AbbVie Inc (Symbol: ABBV), which saw buying by Director Edward J. Rapp.
Back on July 31, Rapp invested $281,782.00 into 4,000 shares of ABBV, for a cost per share of $70.45. In trading on Wednesday, shares were changing hands as low as $102.55 per share, which is 45.6% above Rapp's purchase price. It should be noted that Rapp has collected $1.35/share in dividends since the time of their purchase, so they are currently up 47.5% on their purchase from a total return basis. AbbVie Inc shares are currently trading +1.16% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $59.27 per share, with $103.72 as the 52 week high point - that compares with a last trade of $103.63. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
The DividendRank report noted that among the coverage universe, ABBV shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points.
The report stated, '' Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research. ''
The annualized dividend paid by AbbVie Inc is $2.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/11/2018. Below is a long-term dividend history chart for ABBV, which the 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.
The Top DividendRank'ed Stocks With Insider Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The report also cited the strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points. One such company is AbbVie Inc (Symbol: ABBV), which saw buying by Director Edward J. Rapp. Back on July 31, Rapp invested $281,782.00 into 4,000 shares of ABBV, for a cost per share of $70.45. | By comparison, below is a table showing the prices at which insider buying was recorded over the last six months: The DividendRank report noted that among the coverage universe, ABBV shares displayed both attractive valuation metrics and strong profitability metrics. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. One such company is AbbVie Inc (Symbol: ABBV), which saw buying by Director Edward J. Rapp. | The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $59.27 per share, with $103.72 as the 52 week high point - that compares with a last trade of $103.63. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months: The DividendRank report noted that among the coverage universe, ABBV shares displayed both attractive valuation metrics and strong profitability metrics. One such company is AbbVie Inc (Symbol: ABBV), which saw buying by Director Edward J. Rapp. | By comparison, below is a table showing the prices at which insider buying was recorded over the last six months: The DividendRank report noted that among the coverage universe, ABBV shares displayed both attractive valuation metrics and strong profitability metrics. One such company is AbbVie Inc (Symbol: ABBV), which saw buying by Director Edward J. Rapp. Back on July 31, Rapp invested $281,782.00 into 4,000 shares of ABBV, for a cost per share of $70.45. |
25757.0 | 2018-01-17 00:00:00 UTC | Is Gilead Sciences, Inc. a Buy in 2018? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc-buy-2018-2018-01-17 | nan | nan | On the last day of trading in 2016, Gilead Sciences ' (NASDAQ: GILD) stock price closed at $71.61 per share. Fast-forward one year, and Gilead's share price at the end of 2017 was $71.64. Over the course of a year, investors had gained all of three pennies per share. Of course, the return was better including dividend payments, but it's hard to spin 2017 as a positive year for Gilead Sciences when many other stocks soared.
But Gilead CEO John Milligan has predicted that 2018 will be "the beginning of a growth phase" for the big biotech. If he's right, buying the biotech stock now could pay off. But is Milligan right? Could Gilead be a buy in 2018?
All the reasons to not buy Gilead
Here are the top two reasons you shouldn't buy Gilead stock in 2018: Harvoni and Sovaldi. The two hepatitis C drugs combined generated over $13 billion in 2016. The year before, they made over $19 billion. In 2017, Gilead will probably report combined revenue of around $6 billion for the two drugs.
Will Gilead make up for the loss of roughly $7 billion in revenue from 2016 to 2017 this year? Don't hold your breath. Yes, the biotech does have a couple of newer hepatitis C drugs that are performing well, with Epclusa and Vosevi. However, sales growth from these two drugs still won't be enough to offset losses for the rest of Gilead's hep-C franchise.
In addition, Gilead now has a formidable competitor in AbbVie (NYSE: ABBV) . Although AbbVie's Viekira didn't take too much market share away from Gilead, its newer drug, Mavyret, could be a different story. Like Epclusa, Mavyret treats all genotypes of hepatitis C. Even Milligan acknowledges that there will be a head-to-head battle between Gilead and AbbVie.
And if you're counting on Gilead's HIV drugs to make up the gap in 2018, think again. Sure, Genvoya has enjoyed the most successful launch of any HIV drug ever. Gilead also hopes to win FDA approval in just a few weeks for its bictegravir/F/TAF combo, which holds the potential to be the biggest new drug of the year . Remember, though, that these newer drugs will also cannibalize sales of Gilead's older HIV drugs. Some of the growth will be weighed down by loss of sales for drugs such as Truvada and Atripla.
Milligan could be right that 2018 will represent the beginning of a growth phase for Gilead. The bottom line, though, is that the biotech is unlikely to see revenue or earnings growth this year.
Framing the question differently
Everything you just read is 100% true. However, I think the question about buying Gilead stock in 2018 should be framed differently. Instead of comparing the biotech to its past, investors should look at Gilead's future. And instead of just using a one-year period for evaluating success, investors should have a long-term perspective.
Let's look at Gilead's future. Although hepatitis C sales have plunged, they will stabilize at some point -- possibly later this year. Gilead arguably still offers the best drugs available, even with Mavyret on the market. The biotech should also continue its dominance in HIV with the introduction of the bictegravir/F/TAF combo. This regimen, assuming it wins approval as expected, should be the most powerful treatment yet for HIV.
Even if Gilead's revenue and earnings aren't as high as they were at the peak for Harvoni and Sovalid, they're still impressive. The biotech is likely to generate more than $22 billion in sales in 2018, with earnings topping $10 billion. To put that into perspective, Gilead will probably make profits that are greater than the market caps of all but a dozen or so other biotechs.
And we haven't talked about Gilead's future prospects yet. Thanks to its acquisition of Kite Pharma, Gilead stands as a leader in the promising area of cell therapy. The company is also at the forefront of developing drugs for treatment of non-alcoholic steatohepatitis (NASH), which is rapidly becoming the most serious liver disease affecting Americans. In addition, Gilead's pipeline includes a potential blockbuster rheumatoid arthritis drug in filgotinib.
Finally, there's the company's cold, hard cash. Gilead reported $41.4 billion in cash, cash equivalents, and marketable securities at the end of the third quarter of 2017. The biotech used some of that amount to complete its acquisition of Kite in October. However, with its enormous cash flow, Gilead is still sitting on a huge pile of cash that will only get bigger unless the company does something with its money.
Of course, Gilead won't just sit on its cash indefinitely. The chances are high that Gilead will make more acquisitions, potentially in 2018, that drive future growth.
Buy in 2018?
So is Gilead Sciences stock a buy in 2018? I think it is -- at least for some investors.
If you want a huge pop this year, Gilead probably isn't for you. I suspect the operative word in John Milligan's prediction that 2018 will be the beginning of a growth phase for Gilead is "beginning." However, if you invest with a long-term perspective, Gilead Sciences looks like a bargain right now, considering the biotech's 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.
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, Gilead now has a formidable competitor in AbbVie (NYSE: ABBV) . Although AbbVie's Viekira didn't take too much market share away from Gilead, its newer drug, Mavyret, could be a different story. Like Epclusa, Mavyret treats all genotypes of hepatitis C. Even Milligan acknowledges that there will be a head-to-head battle between Gilead and AbbVie. | Although AbbVie's Viekira didn't take too much market share away from Gilead, its newer drug, Mavyret, could be a different story. In addition, Gilead now has a formidable competitor in AbbVie (NYSE: ABBV) . Like Epclusa, Mavyret treats all genotypes of hepatitis C. Even Milligan acknowledges that there will be a head-to-head battle between Gilead and AbbVie. | In addition, Gilead now has a formidable competitor in AbbVie (NYSE: ABBV) . Although AbbVie's Viekira didn't take too much market share away from Gilead, its newer drug, Mavyret, could be a different story. Like Epclusa, Mavyret treats all genotypes of hepatitis C. Even Milligan acknowledges that there will be a head-to-head battle between Gilead and AbbVie. | In addition, Gilead now has a formidable competitor in AbbVie (NYSE: ABBV) . Although AbbVie's Viekira didn't take too much market share away from Gilead, its newer drug, Mavyret, could be a different story. Like Epclusa, Mavyret treats all genotypes of hepatitis C. Even Milligan acknowledges that there will be a head-to-head battle between Gilead and AbbVie. |
25758.0 | 2018-01-16 00:00:00 UTC | Novartis (NVS) Announces Acceptance of Humira BLA by the FDA | ABBV | https://www.nasdaq.com/articles/novartis-nvs-announces-acceptance-of-humira-bla-by-the-fda-2018-01-16 | nan | nan | Novartis AGNVS generic arm, Sandoz announced that the FDA accepted its Biologics License Application (BLA) for the proposed biosimilar of AbbVie, Inc. ABBV Humira.
The biosimilar was submitted under the 351 (k) pathway.
The drug is already approved for the treatment of a number of inflammatory diseases including rheumatoid arthritis, plaque psoriasis, Crohn's disease and ulcerative colitis.
The data package submitted to the FDA comprises analytical, preclinical and clinical data and is expected to demonstrate that Sandoz proposed biosimilar adalimumab matches the reference biologic in terms of safety, efficacy and quality. It also included a pharmacokinetic study in healthy volunteers and a phase III confirmatory safety and efficacy study in patients with moderate to severe chronic plaque-type psoriasis.
Novartis' stock has rallied 4% in the past one year compared with the industry 's 9.1% gain.
The biosimilar version of Humira is also under review in the EU. We note Sandoz holds a leading position in the biosimilars space with a portfolio of five marketed biosimilars currently and a deep pipeline.
The biosimilar version of rituximab, Rixathon, was approved by the European Commission in June 2017. It is currently under review in the United States.
Meanwhile, Sandoz witnessed strong growth outside the United States buoyed by launches of Rixathon and Erelzi, the biosimilars of Amgen, Inc.'s AMGN Enbrel in Europe. However, pricing pressure intensified in the United States. The company expects low single-digit sales decline at Sandoz in the fourth quarter, mainly due to seasonal shipment phasing and continued pricing pressures in the United States.
Meanwhile, Novartis is mulling strategic options for Alcon which includes retaining the business separation via capital market transactions such as a spin-off or an initial public offering. The company believes that the Alcon division has revived well for now even though a separation via capital markets will create value for shareholders.
On the other hand, Novartis has a strong oncology portfolio of drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu, and Kisqali. The recent approval of Kymriah for acute lymphoblastic leukemia is a major boost for Novartis given the potential in the CAR-T therapy space.
Zacks Rank & Key Pick
Novartis currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the healthcare sector is Exelixis, Inc. EXEL with a Zacks Rank #1 (Strong buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Exelixis' earnings per share estimates have moved up from 72 cents to 73 cents for 2018 over the last 60 days. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 572.92%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Novartis AGNVS generic arm, Sandoz announced that the FDA accepted its Biologics License Application (BLA) for the proposed biosimilar of AbbVie, Inc. ABBV Humira. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects low single-digit sales decline at Sandoz in the fourth quarter, mainly due to seasonal shipment phasing and continued pricing pressures in the United States. | Novartis AGNVS generic arm, Sandoz announced that the FDA accepted its Biologics License Application (BLA) for the proposed biosimilar of AbbVie, Inc. ABBV Humira. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): 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. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis AGNVS generic arm, Sandoz announced that the FDA accepted its Biologics License Application (BLA) for the proposed biosimilar of AbbVie, Inc. ABBV Humira. We note Sandoz holds a leading position in the biosimilars space with a portfolio of five marketed biosimilars currently and a deep pipeline. | Novartis AGNVS generic arm, Sandoz announced that the FDA accepted its Biologics License Application (BLA) for the proposed biosimilar of AbbVie, Inc. ABBV Humira. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. Today's Stocks from Zacks' Hottest Strategies It's hard to believe, even for us at Zacks. |
25759.0 | 2018-01-12 00:00:00 UTC | SPY, BA, DIS, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/spy-ba-dis-abbv-etf-inflow-alert-2018-01-12 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P 500 ETF (Symbol: SPY) where we have detected an approximate $1.0 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 1,014,282,116 to 1,017,982,116). Among the largest underlying components of SPY, in trading today Boeing Co. (Symbol: BA) is up about 1.5%, Walt Disney Co. (Symbol: DIS) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.4%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $225.27 per share, with $277.19 as the 52 week high point - that compares with a last trade of $277.17. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPY, in trading today Boeing Co. (Symbol: BA) is up about 1.5%, Walt Disney Co. (Symbol: DIS) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.4%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $225.27 per share, with $277.19 as the 52 week high point - that compares with a last trade of $277.17. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPY, in trading today Boeing Co. (Symbol: BA) is up about 1.5%, Walt Disney Co. (Symbol: DIS) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is up by about 0.4%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $225.27 per share, with $277.19 as the 52 week high point - that compares with a last trade of $277.17. 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 SPY, in trading today Boeing Co. (Symbol: BA) is up about 1.5%, Walt Disney Co. (Symbol: DIS) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 SPDR S&P 500 ETF (Symbol: SPY) where we have detected an approximate $1.0 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 1,014,282,116 to 1,017,982,116). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $225.27 per share, with $277.19 as the 52 week high point - that compares with a last trade of $277.17. | Among the largest underlying components of SPY, in trading today Boeing Co. (Symbol: BA) is up about 1.5%, Walt Disney Co. (Symbol: DIS) is up about 0.3%, and AbbVie Inc (Symbol: ABBV) is up 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 SPDR S&P 500 ETF (Symbol: SPY) where we have detected an approximate $1.0 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 1,014,282,116 to 1,017,982,116). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $225.27 per share, with $277.19 as the 52 week high point - that compares with a last trade of $277.17. |
25760.0 | 2018-01-12 00:00:00 UTC | 3 of the Best Dividend Aristocrats for Retirement | ABBV | https://www.nasdaq.com/articles/3-best-dividend-aristocrats-retirement-2018-01-12 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Retirement investing is a bit different from regular investing, and not because it depends more on dividend investing. See, we've been led to believe inflation is 3%, when it's really closer to 10%. That means that retired investors don't think they need stocks that offer capital gains alongside dividends, but they most certainly do.
Dividend Aristocrats were an important part of the retired investor's portfolio then, because their cash flow is not only so fantastic that they can continue raising dividends year after year, but because they also have enough growth in some cases to boost annual returns to that important 10% level.
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I've got three Dividend Aristocrats that not only pay that yummy dividend, but that I think have a pretty decent shot at growing earnings enough that their stock prices should also rise to breach the 10% annual level.
Dividend Aristocrats for Retirement: Old Republic International Corporation (ORI)
Source: Pictures of Money via Flickr
Dividend Yield: 3.8%
The first stop for any retired investor, or a Dividend Aristocrats choice, should be an insurance stock like Old Republic International Corporation (NYSE: ORI ).
ORI is not just an insurance company, but one that has such a long history, that it now offers just about every kind of insurance any individual or business could ever want. Businesses of all stripes insure with ORI: forest products, education, transportation, healthcare, commercial construction, financial services, real estate, energy and manufacturing,
Businesses can also grab the necessary insurance for officers and directors, employee fidelity, asset protection, surety and E&O. It also handles the consumer side, including the highest margin products like home and extended auto warranty, and travel accident insurance.
It pays a 3.8% yield, and earnings growth has run between 6% and 10% the past few years.
Dividend Aristocrats for Retirement: VF Corp (VFC)
Source: Shutterstock
Dividend Yield: 2.4%
VF Corp (NYSE: VFC ) sounds about as boring of the Dividend Aristocrats as one can possibly find, and yet, you actually know its products. Ready? It's just the name of the holding company for some of the most popular outdoor and shoe consumer brands in the country.
They own The North Face, Eagle Creek, Timberland and Vans. If you know these products, you also know them to be of really high quality - the kind of go-to stuff that serious outdoors people will buy.
These products have a big advantage, and it's one of the reasons VF has been able to consistently generate cash flow and raise dividends. These are niche products, not subject to the usual whimsical tastes of other clothing retailers. They are name-brands associated with specific activities.
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The dividend is 2.4%, and analysts see a five-year annualized earnings growth rate of 7.2%, which pushes the total return to just about 10%. Free cash flow is a bit erratic, but the payout ratio is never higher than 60%.
Dividend Aristocrats for Retirement: AbbVie Inc (ABBV)
Source: Black Stripe via Wikimedia (Modified)
Dividend Yield: 2.8%
AbbVie Inc (NYSE: ABBV ) is the spinoff from Abbott Laboratories (NYSE: ABT ). The great thing about a legacy bio-pharmaceutical company as one of the Dividend Aristocrats is that once it has enough drugs in the world, and continues to research more, it produces tons of cash flow.
ABBV in particular is in areas that show no signs of slowing down: immunology, oncology and virology therapies. Moreover, it's trying to establish a foothold in neuroscience.
ABBV is a true growth stock on its own, with five-year annualized earnings growth pegged at 15%. ABBV has an active pipeline and it is truly amazing for a Dividend Aristocrat to also have this kind of growth. Add in the 2.8% dividend, and retired investors don't have to shy away from a terrific stock with dividend and growth all wrapped into one package.
Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years' experience in the stock market, and has written more than 1,800 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.
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The post 3 of the Best Dividend Aristocrats for Retirement 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Dividend Aristocrats for Retirement: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield: 2.8% AbbVie Inc (NYSE: ABBV ) is the spinoff from Abbott Laboratories (NYSE: ABT ). ABBV in particular is in areas that show no signs of slowing down: immunology, oncology and virology therapies. ABBV is a true growth stock on its own, with five-year annualized earnings growth pegged at 15%. | Dividend Aristocrats for Retirement: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield: 2.8% AbbVie Inc (NYSE: ABBV ) is the spinoff from Abbott Laboratories (NYSE: ABT ). ABBV in particular is in areas that show no signs of slowing down: immunology, oncology and virology therapies. ABBV is a true growth stock on its own, with five-year annualized earnings growth pegged at 15%. | Dividend Aristocrats for Retirement: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield: 2.8% AbbVie Inc (NYSE: ABBV ) is the spinoff from Abbott Laboratories (NYSE: ABT ). ABBV in particular is in areas that show no signs of slowing down: immunology, oncology and virology therapies. ABBV is a true growth stock on its own, with five-year annualized earnings growth pegged at 15%. | Dividend Aristocrats for Retirement: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield: 2.8% AbbVie Inc (NYSE: ABBV ) is the spinoff from Abbott Laboratories (NYSE: ABT ). ABBV in particular is in areas that show no signs of slowing down: immunology, oncology and virology therapies. ABBV is a true growth stock on its own, with five-year annualized earnings growth pegged at 15%. |
25761.0 | 2018-01-11 00:00:00 UTC | Miles White's Bold Moves Made Abbott Laboratories A Global Force | ABBV | https://www.nasdaq.com/articles/miles-whites-bold-moves-made-abbott-laboratories-global-force-2018-01-11 | nan | nan | When Miles White was named CEO of Abbott Laboratories ( ABT ) in 1998 at 43, he was the youngest head of a major health care company.
Today, he's one of the longest-serving chiefs in health care and has made a reputation as a master strategist, known for making bold moves at Abbott. And none was more dramatic than when he spun off the research-based pharmaceutical half of the firm as AbbVie ( ABBV ) in 2013. Before this, Abbott had a market capitalization at about half that of industry leaders Pfizer ( PFE ) and Merck ( MRK ).
It seemed crazy to many, but White perceived that developing new drugs had a completely different business rhythm than what the new Abbott would now focus on: devices, diagnostics, nutritional products and branded generic drugs. The result: Abbott's stock has since risen from 24 a share to around 59 a share, giving it a market cap of about $102 billion, while AbbVie's shares increased from 33 a share to near 100 a share, giving it a value approaching $159 billion. His creations combined are now worth around $260 billion, far more than Pfizer ($217 billion) or Merck ($156 billion). And White has been ranked by Barron's as one of the world's 30 best CEOs for nine straight years.
"It's about keeping the company current and relevant," White told IBD. "We continually shape our business to ensure we're where the needs and opportunities are for the future. For instance, our recent acquisition of St. Jude Medical makes us a leader across a range of growing medical device categories where new technology can make a huge difference - for the patient and for investors."
White grew up in Las Vegas and earned a Bachelor of Science in mechanical engineering at Stanford in 1978, and an MBA two years later. He joined McKinsey & Co. in Chicago as a consultant, but while he felt the work was fascinating, projects and clients came and went. White said he wanted something he "could feel connected to for a longer term, which would be more fulfilling."
White was hired by Abbott, based in the north Chicago suburb of Abbott Park, Ill., in 1984 as a director of sales in diagnostics, and four years later he was offered a chance to head the division's growing Asia-Pacific region - a prestigious position for a 33-year-old. But he turned it down because it meant moving to Japan; his wife wanted to open a children's bookstore in the U.S. White said he is a big believer in work-life balance and was confident that other opportunities for advancement would come his way. Indeed, 10 years later he was chosen to be the new CEO and the following year added the title of chairman of the board. (And his wife ran her bookstore for 19 years before selling it in 2008.)
Driving Transformation
Abbott had rarely done acquisitions or divestitures since its founding in 1888. A whirlwind of change followed after White took the helm, including:
Abbott purchasing Knoll in 2001, the pharmaceutical division of Germany's BASF.
Selling off its Selsun Blue, Clear Eyes and Murine brands in 2002.
Spinning off its hospital products division as Hospira in 2004 (bought by Pfizer for $17 billion in 2015), as well as acquiring TheraSense and merging with earlier acquisition MediSense to create its diabetes-care division.
Purchasing the vascular device business of Guidant Corp. in 2006.
But 2007 was dramatic and traumatic. Abbott acquired Kos Pharmaceuticals, a maker of cardiovascular drugs, for $3.7 billion in cash, but a deal to sell its core laboratory and point-of-care diagnostics divisions to General Electric ( GE ) fell through. White decided to revive these challenged divisions instead, investing in research and development, streamlining operations, and reorganizing products and services into a new diagnostics division. In August 2016 it began launching a family of next-generation instruments, informatics and services with common software and hardware platforms designed to be easy to use and more efficient, which White called "a game-changer for the industry."
Among other acquisitions, in 2010 Abbott paid $6.2 billion for the pharmaceuticals unit of Belgium-based Solvay, expanding its presence in emerging markets. The same year, a plan was announced to purchase a unit of Piramal Healthcare for $3.8 billion, which would make Abbott the biggest pharmaceutical company in India.
The success of the company's acquisitions may largely depend on an ability to anticipate consumers' medical needs, understand where the practice of medicine is headed, and aggressively position the company to benefit through internal and external investment.
"It's not just about acquiring companies," White said. "It's about what you do with them. How can you do more with that business? How can you make it better? How can it improve your existing operations?
"We've developed a very disciplined integration process through which we learn how best to bring new assets into Abbott and help them expand and reach their potential, faster and better than they could have before."
All of this and more were just preliminaries to spinning off half the company, for which Abbott took a 2012 third-quarter charge of $478 million. AbbVie was officially listed on the New York Stock Exchange on Jan. 2, 2013.
"What makes White such a savvy deal-maker?" asked Jim Cramer on his "Mad Money" show on CNBC in November 2017. "He has a real talent for anticipating consumers' future medical needs and then aggressively positioning his company to benefit from them. Within four years of becoming CEO, Abbott released Humira, which would go on to treat forms of arthritis, plaque psoriasis and Crohn's disease, among other ailments. In 2016, now part of AbbVie, it made $16.1 billion in sales, making it the best-selling drug in the world. But White had the foresight to spin off this part of his company ahead of the explosion of the debate about drug prices."
But guiding a global enterprise through massive change can result in mistakes, and Abbott's biggest occurred in the midst of the drama leading to the split. In October 2012, Abbott was fined $500 million for marketing Depakote, a brand of valproic acid, the world's most widely prescribed anti-epileptic drug, for conditions not approved by the Food and Drug Administration. As part of a settlement that cost it a total of $1.5 billion, the company agreed to strengthen its internal controls.
The New Abbott
After separating from AbbVie in January 2013, the new Abbott emerged with a focus on not only diagnostic products and services, but medical devices, nutritional lines and branded generic medicines. The latter is the Established Pharmaceuticals Division, which sells to developing markets, where a brand name may be trusted more than an unknown, due to high quality and efficacy standards, but which doesn't have the high costs of R&D-based pharma. The division now offers more than 1,500 products, with 400 in development. In 2014, it acquired CFR Pharmaceuticals for $2.9 billion, more than doubling its Latin American branded-generics pharmaceutical presence.
Abbott is also the world leader in adult nutritional products, including Ensure and ZonePerfect, as well as the U.S. leader in baby nutrition with Similac and other lines, and for special dietary needs with Glucerna and Juven.
The company is also a leader in diabetes care, introducing a revolutionary continuous glucose monitoring device, FreeStyleLibre, in September.
In 2017, the company purchased St. Jude Medicine for $25 billion in cash and stock, establishing Abbott as a leader in the medical device arena. It also closed Alere for $5.3 billion, which made it the leader in the $7 billion point-of-care diagnostics market.
"We've reinvented the company multiple times over the past 20 years," White said. "It's a continuous process of shaping the company for the future. We work very deliberately to ensure that we remain relevant and current to the people we serve and to the changes taking place in our environment. We're in several different businesses today than we were decades ago, and they were all chosen specifically for their relevance to where the science was going, where demographic and socioeconomic factors were going, and where our customers were going. And that's why we're still growing strong and our stock is at an all-time high."
Today, Abbott employs 94,000 workers in over 150 countries. In 2016, its revenue was $20.9 billion and net income was $1.4 billion.
White's Keys
CEO and chairman of Abbott Laboratories, a global leader in medical devices, diagnostics, nutritional products and branded generic medicines.
Overcame: The failed sale of the challenged diagnostics businesses, which he turned around by investing in innovation and becoming a highly profitable, consistent grower for the company.
Lesson: Envision a long-term big goal and work out the detailed steps to get there, even if it means defying the industry's consensus.
"You need to continually ask yourself, 'Is there a better way?' Because the answer is always yes, even though exactly how might not yet be apparent."
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And none was more dramatic than when he spun off the research-based pharmaceutical half of the firm as AbbVie ( ABBV ) in 2013. The result: Abbott's stock has since risen from 24 a share to around 59 a share, giving it a market cap of about $102 billion, while AbbVie's shares increased from 33 a share to near 100 a share, giving it a value approaching $159 billion. AbbVie was officially listed on the New York Stock Exchange on Jan. 2, 2013. | The New Abbott After separating from AbbVie in January 2013, the new Abbott emerged with a focus on not only diagnostic products and services, but medical devices, nutritional lines and branded generic medicines. And none was more dramatic than when he spun off the research-based pharmaceutical half of the firm as AbbVie ( ABBV ) in 2013. The result: Abbott's stock has since risen from 24 a share to around 59 a share, giving it a market cap of about $102 billion, while AbbVie's shares increased from 33 a share to near 100 a share, giving it a value approaching $159 billion. | And none was more dramatic than when he spun off the research-based pharmaceutical half of the firm as AbbVie ( ABBV ) in 2013. The result: Abbott's stock has since risen from 24 a share to around 59 a share, giving it a market cap of about $102 billion, while AbbVie's shares increased from 33 a share to near 100 a share, giving it a value approaching $159 billion. AbbVie was officially listed on the New York Stock Exchange on Jan. 2, 2013. | In 2016, now part of AbbVie, it made $16.1 billion in sales, making it the best-selling drug in the world. And none was more dramatic than when he spun off the research-based pharmaceutical half of the firm as AbbVie ( ABBV ) in 2013. The result: Abbott's stock has since risen from 24 a share to around 59 a share, giving it a market cap of about $102 billion, while AbbVie's shares increased from 33 a share to near 100 a share, giving it a value approaching $159 billion. |
25762.0 | 2018-01-11 00:00:00 UTC | Here's What AbbVie's Management Just Said About Its Future | ABBV | https://www.nasdaq.com/articles/heres-what-abbvies-management-just-said-about-its-future-2018-01-11 | nan | nan | AbbVie Inc. (NYSE: ABBV) was a top performer last year, thanks to growing confidence that its best-selling drug, Humira, can escape biosimilar competition until 2022. This week, AbbVie's management fueled investor optimism further by outlining financials for the future that included a bullish outlook for Humira sales and billions in revenue from new drugs.
What's the back story?
AbbVie's one of the largest biopharma companies in the world, but it generates more than 60% of its sales from Humira alone. Humira generates over $18 billion on annualized sales, as it's widely used to treat a variety of autoimmune diseases, including rheumatoid arthritis, and it costs tens of thousands of dollars per year.
Patents protecting Humira, however, have begun expiring, and that's caused concern that Humira's remaining patents wouldn't be strong enough to prevent upstarts from launching cheaper biosimilar copycats.
Those concerns abated somewhat in 2017, after the U.S. Patent Office deniedCoherus Biosciences ' request to challenge AbbVie's patent in September. The Patent Office's decision prompted another AbbVie competitor, Amgen (NASDAQ: AMGN) , to agree shortly thereafter to a non-exclusive license that prohibits it from marketing a Humira biosimilar in the U.S. until 2023.
What management's saying
Amgen does have the right to begin selling its Humira biosimilar in Europe this year, but AbbVie still told investors at the annual J.P. Morgan Healthcare conference this week that it believes global Humira sales will grow to nearly $21 billion in 2020.
Humira sales will slip once biosimilars launch in the U.S., but management's also saying it's confident it can manage the decline. As a result, management believes Humira will be a "significant part" of AbbVie's cash-generation story through at least 2025.
Confidence in Humira's runway is particularly encouraging to investors, given that it suggests sales from new drugs that are coming out of AbbVie's pipeline won't be offset by declining Humira demand. Management says non-Humira revenue will climb from about $9.6 billion in 2017 to over $16 billion in 2020, and if approvals go its way, non-Humira sales could eclipse $35 billion in 2025.
That sales growth will be due to sales momentum for Imbruvica, Venclexta, Mavyret, and Zinbryta and the positive impact of new drugs, including Rova-T, upadacitinib, and risankizumab.
The company thinks that it could secure an approval for Rova-T in third-line small-cell lung cancer either later this year or early next year and that approvals for upadacitinib and risankizumab, two possible Humira successors, could occur as soon as 2019.
It's anyone's guess if trials evaluating those new drugs will pan out as planned, but if they do, those drugs could be big winners. Management thinks Rova-T's peak sales opportunity in solid-tumor cancers could be in the multiple billions of dollars per year. The peak opportunity for upadacitinib and risankizumab, however, could be even bigger. Management says those two drugs have a shot at generating $6.5 billion and $5 billion in sales at their peak, respectively.
What's the takeaway?
AbbVie has a great track record of returning money to investors through dividends, and management's outlook adds credence to the thinking that isn't going to change anytime soon. If Humira maintains its market share for long enough to pass the baton to AbbVie's other drugs, then cash should keep flowing in support of future dividend increases. The combination of top-line growth from AbbVie's pipeline and dividend growth makes AbbVie a great stock to consider for both growth and income portfolios.
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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 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's management fueled investor optimism further by outlining financials for the future that included a bullish outlook for Humira sales and billions in revenue from new drugs. The Patent Office's decision prompted another AbbVie competitor, Amgen (NASDAQ: AMGN) , to agree shortly thereafter to a non-exclusive license that prohibits it from marketing a Humira biosimilar in the U.S. until 2023. AbbVie Inc. (NYSE: ABBV) was a top performer last year, thanks to growing confidence that its best-selling drug, Humira, can escape biosimilar competition until 2022. | This week, AbbVie's management fueled investor optimism further by outlining financials for the future that included a bullish outlook for Humira sales and billions in revenue from new drugs. The combination of top-line growth from AbbVie's pipeline and dividend growth makes AbbVie a great stock to consider for both growth and income portfolios. AbbVie Inc. (NYSE: ABBV) was a top performer last year, thanks to growing confidence that its best-selling drug, Humira, can escape biosimilar competition until 2022. | This week, AbbVie's management fueled investor optimism further by outlining financials for the future that included a bullish outlook for Humira sales and billions in revenue from new drugs. What management's saying Amgen does have the right to begin selling its Humira biosimilar in Europe this year, but AbbVie still told investors at the annual J.P. Morgan Healthcare conference this week that it believes global Humira sales will grow to nearly $21 billion in 2020. Confidence in Humira's runway is particularly encouraging to investors, given that it suggests sales from new drugs that are coming out of AbbVie's pipeline won't be offset by declining Humira demand. | This week, AbbVie's management fueled investor optimism further by outlining financials for the future that included a bullish outlook for Humira sales and billions in revenue from new drugs. What management's saying Amgen does have the right to begin selling its Humira biosimilar in Europe this year, but AbbVie still told investors at the annual J.P. Morgan Healthcare conference this week that it believes global Humira sales will grow to nearly $21 billion in 2020. AbbVie Inc. (NYSE: ABBV) was a top performer last year, thanks to growing confidence that its best-selling drug, Humira, can escape biosimilar competition until 2022. |
25763.0 | 2018-01-11 00:00:00 UTC | Jeff Sessions is Taking Some Steam Out of the Marijuana Stocks Rally | ABBV | https://www.nasdaq.com/articles/jeff-sessions-taking-some-steam-out-marijuana-stocks-rally-2018-01-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Australia earlier this month joined the growing list of nations that have legalized medical marijuana. And as more countries are added to the list - as well as a smaller number approving or decriminalizing recreational use - many investors see upside remaining in cannabis-related stocks despite a recent rally.
The Marijuana Index is a series of equally weighted stock indexes that track the leading cannabis stocks in the U.S. and Canada.
GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH ), with a market cap of $3.34 billion, produces a multiple sclerosis treatment using nabiximols, an herbal preparation containing a defined quantity of specific cannabinoids with potential analgesic activity. Its Sativex is the first cannabis-derived drug that won market approval in any country.
However, in December, GW Pharma and Japan's Otsuka Pharmaceutical ended their licensing agreement for selling naboximols after the Phase 3 clinical trial studying the treatment of pain in cancer patients did not beat the placebo. But the development of the drug in the hands of only one company may speed up its development. The strong market interest in companies producing cannabis may give GWPH stock a positive lift, too. Already, the stock is up over 40% from yearly lows and closed recently at around $131, close to its yearly high of $140.52.
Valuation Analysis on GW Pharmaceuticals
Though GWPH has little debt, the company does not make any money. It lost 17 cents a share in the third quarter on revenue of just $3.14 million. Until the company has a blockbuster drug on its hands, it will continue bleeding money every quarter. Valuations on GWPH stock are clearly held up on hopes that such a drug will soon be on the market. In its Q3 press release, GW Pharmaceuticals centered its potential with the progress for Epidiolex. Its CEO wrote:
"I am pleased to report the NDA submission process for Epidiolex is now underway with the final sections of the submission expected to be completed in October. With a clear view now towards our anticipated approval, we are making excellent progress with preparations to ensure a highly successful launch in 2018."
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On Dec. 28 the company announced that the FDA accepted Epidiolex for priority review. If approved, the drug will treat patients suffering from one of two epilepsy conditions, Lennox-Gastaut syndrome (LGS) and Dravet syndrome.
Cannabis-Related Investments
Investors may pickAbbVie Inc (NYSE: ABBV ), due to its cannabis-based drug Marinol, or Scotts Miracle-Gro Co (NYSE: SMG ), since its fertilizers facilitate the growth of marijuana plants. Investing in Johnson & Johnson (NYSE: JNJ ) or Amgen Inc. (NASDAQ: AMGN ) is another way of getting exposure, not to the marijuana market but the pain relief market. Amgen's Enbrel drug is an alternative to NSAID-based drugs.
At this point in time, chasing marijuana stocks listed in Canada could prove very risky. Investors jumping now on pot stocks may be too late. As more countries legalize pot, supply will shoot higher, pushing prices lower. This will happen regardless of when or if the U.S. legalizes marijuana, too.
The Canadian marijuana stocks are especially risky. Some stocks are up in the double-digits in just a few months but make no profits at all. Buying into these highly speculative stocks will leave investors with losses if the rally suddenly fades and the market looks for the next hot thing.
Constellation Brands, Inc. Stock Is Falling … Catch It for Big Gains
In short, the rally in pot stocks is similar to the cryptocurrency craze.
What's Ahead for Legalized Marijuana?
On Jan. 4, U.S. Attorney General Jeff Sessions reversed an Obama administration policy which enabled states to legalize marijuana without federal intervention. Opposition to the move was fast and furious, coming just days after California expanded cannabis sales to the recreational market, estimated to be worth more than $6 billion a year and generating $1 billion in annual state tax revenue, as the industry grows.
Investors must exercise extra care with companies remotely connected to marijuana. Those stocks may have soared but only those with solid fundamentals will hold those gains.
As of this writing, Chris Lau did not hold a position in any of the aforementioned securities.
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The post Jeff Sessions is Taking Some Steam Out of the Marijuana Stocks Rally 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cannabis-Related Investments Investors may pickAbbVie Inc (NYSE: ABBV ), due to its cannabis-based drug Marinol, or Scotts Miracle-Gro Co (NYSE: SMG ), since its fertilizers facilitate the growth of marijuana plants. And as more countries are added to the list - as well as a smaller number approving or decriminalizing recreational use - many investors see upside remaining in cannabis-related stocks despite a recent rally. GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH ), with a market cap of $3.34 billion, produces a multiple sclerosis treatment using nabiximols, an herbal preparation containing a defined quantity of specific cannabinoids with potential analgesic activity. | Cannabis-Related Investments Investors may pickAbbVie Inc (NYSE: ABBV ), due to its cannabis-based drug Marinol, or Scotts Miracle-Gro Co (NYSE: SMG ), since its fertilizers facilitate the growth of marijuana plants. The strong market interest in companies producing cannabis may give GWPH stock a positive lift, too. Investing in Johnson & Johnson (NYSE: JNJ ) or Amgen Inc. (NASDAQ: AMGN ) is another way of getting exposure, not to the marijuana market but the pain relief market. | Cannabis-Related Investments Investors may pickAbbVie Inc (NYSE: ABBV ), due to its cannabis-based drug Marinol, or Scotts Miracle-Gro Co (NYSE: SMG ), since its fertilizers facilitate the growth of marijuana plants. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Australia earlier this month joined the growing list of nations that have legalized medical marijuana. The Marijuana Index is a series of equally weighted stock indexes that track the leading cannabis stocks in the U.S. and Canada. | Cannabis-Related Investments Investors may pickAbbVie Inc (NYSE: ABBV ), due to its cannabis-based drug Marinol, or Scotts Miracle-Gro Co (NYSE: SMG ), since its fertilizers facilitate the growth of marijuana plants. Its Sativex is the first cannabis-derived drug that won market approval in any country. Valuation Analysis on GW Pharmaceuticals Though GWPH has little debt, the company does not make any money. |
25764.0 | 2018-01-11 00:00:00 UTC | Earnings Season Watch List: AbbVie | ABBV | https://www.nasdaq.com/articles/earnings-season-watch-list-abbvie-2018-01-11 | nan | nan | To get ready for earnings season, focus on stocks in or near a potential buy range ahead of their next quarterly report. AbbVie ( ABBV ) currently fits that bill. The company is expected to report on Jan. 25. It's trading around 1% above a 98.36 buy point from a second-stage flat base .
[ibd-display-video id=2360792 width=50 float=left autostart=true] Keep in mind that it's risky to buy any stock just before it reports. You can minimize your exposure by waiting to see how the company reports and how the market reacts.
See How IBD Helps You Make More Money In Stocks
AbbVie saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 13% to 17%. Revenue rose from 8% to 9%.
Consensus analyst estimates call for earnings growth of 19% for the quarter, and 15% growth for the full year. Annual growth estimates were recently revised lower.
AbbVie has a 96 Composite Rating and holds the No. 1 rank among its peers in the Medical-Ethical Drugs industry group. Zoetis ( ZTS ) and Grifols ( GRFS ) are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | See How IBD Helps You Make More Money In Stocks AbbVie saw both earnings and sales growth rise last quarter. AbbVie ( ABBV ) currently fits that bill. AbbVie has a 96 Composite Rating and holds the No. | AbbVie ( ABBV ) currently fits that bill. See How IBD Helps You Make More Money In Stocks AbbVie saw both earnings and sales growth rise last quarter. AbbVie has a 96 Composite Rating and holds the No. | See How IBD Helps You Make More Money In Stocks AbbVie saw both earnings and sales growth rise last quarter. AbbVie ( ABBV ) currently fits that bill. AbbVie has a 96 Composite Rating and holds the No. | AbbVie ( ABBV ) currently fits that bill. See How IBD Helps You Make More Money In Stocks AbbVie saw both earnings and sales growth rise last quarter. AbbVie has a 96 Composite Rating and holds the No. |
25765.0 | 2018-01-11 00:00:00 UTC | Why TG Therapeutics Rallied 15.7% Today | ABBV | https://www.nasdaq.com/articles/why-tg-therapeutics-rallied-157-today-2018-01-11 | nan | nan | What happened
Shares of TG Therapeutics (NASDAQ: TGTX) jumped 15.7% Thursday after management updated the progress it's making with its cancer drug pipeline at the JP Morgan healthcare conference earlier in the day.
So what
The clinical-stage biotech's stock tumbled last fall because investors' optimism began to dim about the prospects of its drug candidate, TG-1101, securing an accelerated FDA OK based on objective response rates.
In early 2017, expectations for such an early FDA OK swelled after TG Therapeutics reported that adding TG-1101, or ublituximab, to AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) top-selling Imbruvica resulted in an objective response rate (ORR) of 78% in chronic lymphocytic leukemia patients. On its own, the ORR for Imbruvica was 45%.
On Thursday, management presented its latest thoughts on ublituximab's future at the JP Morgan conference, and apparently assuaged some of the concern that there may be a long road ahead to the FDA. Specifically, management updated its ORR results, reporting that they improved to 81%. Additionally, the percentage of complete responders to ublituximab inched up to 10% from 8% previously.
Management also told investors that it expects data from its doublet study of ublituximab plus umbralisib in the second quarter. If that data is positive, then the drug combination could offer an attractive alternative to existing options in new and relapsing CLL because of a potentially better safety profile.
Now what
There's a big need for new CLL treatments, so it's possible that the FDA will consider a surrogate endpoint like ORR, rather than require progression-free survival or overall survival data.
If the FDA is willing, that could clear the way for two new drug filings for approval this year. First, ublituximab could get filed as early as the third quarter for high-risk CLL. Second, if data from the company's doublet trial is good, then management plans to file for a go-ahead by the end of 2018.
TG Therapeutics' CLL drugs appear to be delivering solid efficacy and safety, and since treating that cancer subclass is already a 10-figure market, there's certainly an opportunity for commercial success. However, there's still a chance its plans will get derailed, and that makes this a bit risky of a stock to buy. Nevertheless, I think that TG Therapeutics $650 million market cap may undervalue the peak sales potential of its drugs, so aggressive investors might want to consider picking up some shares.
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Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early 2017, expectations for such an early FDA OK swelled after TG Therapeutics reported that adding TG-1101, or ublituximab, to AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) top-selling Imbruvica resulted in an objective response rate (ORR) of 78% in chronic lymphocytic leukemia patients. What happened Shares of TG Therapeutics (NASDAQ: TGTX) jumped 15.7% Thursday after management updated the progress it's making with its cancer drug pipeline at the JP Morgan healthcare conference earlier in the day. So what The clinical-stage biotech's stock tumbled last fall because investors' optimism began to dim about the prospects of its drug candidate, TG-1101, securing an accelerated FDA OK based on objective response rates. | In early 2017, expectations for such an early FDA OK swelled after TG Therapeutics reported that adding TG-1101, or ublituximab, to AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) top-selling Imbruvica resulted in an objective response rate (ORR) of 78% in chronic lymphocytic leukemia patients. What happened Shares of TG Therapeutics (NASDAQ: TGTX) jumped 15.7% Thursday after management updated the progress it's making with its cancer drug pipeline at the JP Morgan healthcare conference earlier in the day. Specifically, management updated its ORR results, reporting that they improved to 81%. | In early 2017, expectations for such an early FDA OK swelled after TG Therapeutics reported that adding TG-1101, or ublituximab, to AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) top-selling Imbruvica resulted in an objective response rate (ORR) of 78% in chronic lymphocytic leukemia patients. What happened Shares of TG Therapeutics (NASDAQ: TGTX) jumped 15.7% Thursday after management updated the progress it's making with its cancer drug pipeline at the JP Morgan healthcare conference earlier in the day. 10 stocks we like better than TG Therapeutics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | In early 2017, expectations for such an early FDA OK swelled after TG Therapeutics reported that adding TG-1101, or ublituximab, to AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) top-selling Imbruvica resulted in an objective response rate (ORR) of 78% in chronic lymphocytic leukemia patients. What happened Shares of TG Therapeutics (NASDAQ: TGTX) jumped 15.7% Thursday after management updated the progress it's making with its cancer drug pipeline at the JP Morgan healthcare conference earlier in the day. First, ublituximab could get filed as early as the third quarter for high-risk CLL. |
25766.0 | 2018-01-11 00:00:00 UTC | 7 Must-See Numbers from AbbVie's J. P. Morgan Presentation | ABBV | https://www.nasdaq.com/articles/7-must-see-numbers-abbvies-j-p-morgan-presentation-2018-01-11 | nan | nan | One year ago, AbbVie (NYSE: ABBV) CEO Rick Gonzalez spoke at the J. P. Morgan Healthcare Conference. He highlighted seven reasons that I viewed as reasons why AbbVie stock could soar in 2017 . And that's exactly what happened. With its dividends included, AbbVie generated a total return last year of 60%.
Gonzalez presented again at the J. P. Morgan conference on Wednesday. Even after its stellar performance in 2017, he maintained that AbbVie is "a unique investment opportunity." Why? The following seven numbers Gonzalez mentioned pretty much tell the story.
Three
Like the mutual fund disclaimers say, past performance is no guarantee of future results. But a strong track record certainly matters with both mutual funds and stocks. For AbbVie, the most important number to know about the company's track record is three. That's the number of areas where Gonzalez said AbbVie ranks either No. 1 or No. 2 among its peers in the biopharmaceutical industry.
Gonzelez reeled off the categories where AbbVie has been a top performer in 2017, over the last three years, and over the last five years: percentage revenue growth, percentage adjusted earnings-per-share growth, and total shareholder return. The most important category is the last one, and AbbVie has ranked No. 1 in all three time periods.
20
How will AbbVie grow in the future? Gonzalez stated that the company expects to launch at least 20 new products or indications by 2020. These launches include multiple programs in immunology and oncology, areas where AbbVie already has a solid market position.
A couple of new products could launch this year. Rova-T just might squeeze in a launch before the end of 2018 as a third-line treatment of small cell lung cancer. And elagolix seems likely to hit the market later this year in treating endometriosis.
23
AbbVie's oncology success so far has been in treating blood cancers. However, Gonzalez noted that the biotech has 23 active clinical programs in solid tumors across multiple treatment approaches, including antibody drug conjugates, bispecific antibodies, oncolytic viruses, and targeted small-molecule kinases.
Eight of these solid tumor assets were picked up with AbbVie's 2016 acquisition of Stemcentrx. The most promising of those is lead candidate Rova-T. Gonzalez said that Rova-T has a multi-billion dollar sales potential.
50%
AbbVie currently has a strong operating margin of 38%. Gonzalez said the company was on track to deliver on its target of a 50% operating margin by 2020. Right now, only one biopharmaceutical company with a market cap of greater than $100 billion has an operating margin of 50% or higher -- Gilead Sciences .
$7 billion
One key ingredient to AbbVie's future growth is Imbruvica. Gonzalez stated that the drug is on track to generate peak revenue for AbbVie of at least $7 billion.
In 2016, Imbruvica made combined revenue totaling $3 billion for AbbVie and partner Johnson & Johnson . For 2017, Imbruvica should pull in over $2.5 billion for AbbVie and approaching $2 billion for J&J.
$21 billion
Humira reigned yet again in 2017 as the world's top-selling drug , generating over $18 billion in sales. Gonzalez reiterated the outlook that AbbVie shared a few months ago projecting that Humira's global sales will approach $21 billion by 2020.
Even though Humira will begin to face competition from biosimilars in Europe later this year and in the U.S. beginning in 2023, Gonzalez said that AbbVie expects "manageable erosion" in sales. He stated that Humira will continue to generate significant cash flow through 2025 and beyond.
$35 billion
Perhaps the most important number mentioned by Gonzalez at the J. P. Morgan conference was $35 billion. That's the risk-adjusted level of non-Humira sales that AbbVie projects for 2025. To put this number in perspective, AbbVie will probably report revenue of around $31 billion in 2017 -- with the $18 billion or so of Humira sales included.
Gonzalez listed 10 drugs that should be key for AbbVie achieving its goal. Already-approved drugs Imbruvica, Venclexta, Mavyret, and Zinbryta were at the top of the list, with potential additional indications for Imbruvica and Venclexta. Important pipeline candidates on the list were Rova-T, elagolix, and promising late-stage autoimmune disease drugs risankizumab and upadacitinib.
Key takeaway
My key takeaway from Rick Gonzalez's presentation at the J. P. Morgan conference was that AbbVie's plan seems achievable. In my opinion, he's right that the stock is a unique investment opportunity. These seven numbers show why.
But there are a couple of other numbers that should also be important to long-term investors: 2.81% and 77%. The former is AbbVie's current dividend yield, while the latter is how much the company has increased its dividend over the last five years. Not only does AbbVie look like a strong growth stock, it's also a great income stock. I don't think AbbVie will soar more than 50% again in 2018, but I fully expect the stock to be a big winner over the long run.
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Keith Speights owns shares of AbbVie, Gilead Sciences, and JPMorgan Chase. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gonzalez reiterated the outlook that AbbVie shared a few months ago projecting that Humira's global sales will approach $21 billion by 2020. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and JPMorgan Chase. One year ago, AbbVie (NYSE: ABBV) CEO Rick Gonzalez spoke at the J. P. Morgan Healthcare Conference. | With its dividends included, AbbVie generated a total return last year of 60%. Key takeaway My key takeaway from Rick Gonzalez's presentation at the J. P. Morgan conference was that AbbVie's plan seems achievable. One year ago, AbbVie (NYSE: ABBV) CEO Rick Gonzalez spoke at the J. P. Morgan Healthcare Conference. | Gonzalez stated that the drug is on track to generate peak revenue for AbbVie of at least $7 billion. Gonzalez reiterated the outlook that AbbVie shared a few months ago projecting that Humira's global sales will approach $21 billion by 2020. To put this number in perspective, AbbVie will probably report revenue of around $31 billion in 2017 -- with the $18 billion or so of Humira sales included. | For AbbVie, the most important number to know about the company's track record is three. $7 billion One key ingredient to AbbVie's future growth is Imbruvica. One year ago, AbbVie (NYSE: ABBV) CEO Rick Gonzalez spoke at the J. P. Morgan Healthcare Conference. |
25767.0 | 2018-01-10 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for January 11, 2018 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-ex-dividend-date-scheduled-january-11-2018-2018-01-10 | nan | nan | AbbVie Inc. ( ABBV ) will begin trading ex-dividend on January 11, 2018. A cash dividend payment of $0.71 per share is scheduled to be paid on February 15, 2018. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 10.94% increase over prior dividend payment.
The previous trading day's last sale of ABBV was $100.24, representing a -1.03% decrease from the 52 week high of $101.28 and a 69.12% increase over the 52 week low of $59.27.
ABBV is a part of the Health Care sector, which includes companies such as Johnson & Johnson ( JNJ ) and TiGenix ( TIG ). ABBV's current earnings per share, an indicator of a company's profitability, is $4.11. Zacks Investment Research reports ABBV's forecasted earnings growth in 2017 as 15.12%, compared to an industry average of 6.2%.
For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
First Trust Nasdaq Pharmaceuticals ETF ( FTXH )
iShares U.S. Healthcare ETF ( IYH )
Vanguard Health Care ETF ( VHT )
First Trust Hedged BuyWrite Income ETF ( FTLB )
First Trust BuyWrite Income ETF ( FTHI ).
The top-performing ETF of this group is FTXH with an increase of 10.58% over the last 100 days. It also has the highest percent weighting of ABBV at 9.34%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2017 as 15.12%, compared to an industry average of 6.2%. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. | The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF ( FTXH ) iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF ( VHT ) First Trust Hedged BuyWrite Income ETF ( FTLB ) First Trust BuyWrite Income ETF ( FTHI ). 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 ) will begin trading ex-dividend on January 11, 2018. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF ( FTXH ) iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF ( VHT ) First Trust Hedged BuyWrite Income ETF ( FTLB ) First Trust BuyWrite Income ETF ( FTHI ). | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. AbbVie Inc. ( ABBV ) will begin trading ex-dividend on January 11, 2018. The previous trading day's last sale of ABBV was $100.24, representing a -1.03% decrease from the 52 week high of $101.28 and a 69.12% increase over the 52 week low of $59.27. |
25768.0 | 2018-01-10 00:00:00 UTC | Biotech Stock Roundup: Celgene to Acquire Impact, J.P. Morgan Healthcare Conference in Focus | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-celgene-acquire-impact-jp-morgan-healthcare-conference-focus-2018-01 | nan | nan | This week, the focus is on the 36th annual J.P. Morgan healthcare conference where several biotech and pharma companies provided a preliminary look at their results for 2017 and have also provided pipeline updates as well as their outlooks for 2018. Meanwhile, Celgene CELG was in the news with the company announcing its intention to acquire Impact Biomedicines.
Recap of the Week's Most Important Stories
Celgene to Buy Impact: Celgene has started the year with an acquisition announcement - the company will be acquiring Impact Biomedicines, which is developing fedratinib for myelofibrosis and polycythemia vera. The deal terms include an upfront payment of approximately $1.1 billion and contingent payments of up to $1.25 billion based on the achievement of regulatory approval milestones for myelofibrosis. Celgene could make additional payments based on approvals for label expansion and the achievement of sales-based milestones. Plans are on to submit a new drug application to the FDA in mid-2018. Celgene is looking to boost its pipeline with this acquisition. The company had a rough 2017 with shares declining 12.1% over the last one year. Issues like pipeline setbacks as well as the weak performance of Otezla have been weighing on the stock (Read more: Celgene to Acquire Impact Biomedicines to Boost Pipeline ).
Key Takeaways from J.P. Morgan Healthcare Conference: Several biotech companies were present at the 36th annual J.P. Morgan healthcare conference. Most of these companies provided a preliminary look at fourth quarter results and their outlook for 2018. Among key updates, Acorda ACOR could start facing generic competition for its flagship drug, Ampyra, any time after Jul 30, 2018. The company is currently seeking FDA approval for Inbrija for which a response could be out in February (Read more: Acorda's Shares Down on Disappointing Ampyra View for 2018 ). Vertex VRTX , which holds a strong position in the cystic fibrosis ("CF") market, is looking to strengthen its position further with the potential approval of tezacaftor/ivacaftor in the United States - a decision from the FDA is expected on Feb 28, 2018. Vertex could also be one of the companies that will pursue acquisition deals this year. Celgene also provided its preliminary results and 2018 outlook (Read more: Celgene Provides 2017 Preliminary Results & 2018 View ). Vertex is a Zacks Rank #1 (Strong Buy) stock - you can see the complete list of today's Zacks #1 Rank stocks here .
Axovant Plunges on Intepirdine Discontinuation: Axovant Sciences's AXON shares lost more than 50% of their value with the company announcing disappointing results on its lead pipeline candidate intepirdine. The candidate failed to meet the primary efficacy endpoints in studies that were conducted in patients with dementia with Lewy bodies ("DLB") and patients with dementia and gait impairment. Based on this, Axovant has decided to discontinue the development of intepirdine.
This is not the first time that Axovant has faced a setback in its development efforts for intepirdine. Last year in September, the company had said that intepirdine failed to meet its co-primary efficacy endpoints in a late-stage study being conducted in mild to moderate Alzheimer's disease ("AD") patients who were receiving background donepezil therapy. At that time too, the company's shares had plunged significantly (73.9%). Axovant's shares are down 81.7% over the last one year compared to the 3.3% decline recorded by the industry it belongs to.
Regeneron & Sanofi Boost R&D Investment in Dupixent and Cemiplimab: Regeneron Pharmaceuticals REGN and partner Sanofi have decided to boost their investment in the development of cemiplimab (a PD-1 antibody) in oncology and Dupixent (an IL-4/IL-13 pathway-blocking antibody) in type 2 allergic diseases. Based on this decision, investment in cemiplimab will shoot up to at least $1.64 billion, an increase of approximately $1 billion from the initial agreement, with both companies contributing equally. Cemiplimab is being studied as monotherapy as well as in combination with other therapies in a wide range of cancers including advanced skin cancers, non-small cell lung cancer, cervical cancer and lymphomas. Regulatory applications for cemiplimab in advanced cutaneous squamous cell carcinoma are scheduled to be submitted in the European Union and the United States in the first quarter of 2018.
Meanwhile, Dupixent, currently approved for eczema, has the potential to be evaluated for additional indications including chronic obstructive pulmonary disease, peanut allergy and grass allergy and in patients who have multiple allergic conditions. This is in addition to ongoing development in pediatric atopic dermatitis, pediatric asthma, eosinophilic esophagitis and nasal polyposis. Regeneron and Sanofi are currently seeking FDA approval for Dupixent in uncontrolled, persistent asthma in patients at least 12 years old.
Another candidate that should benefit from the additional investment is REGN3500, an IL-33 antibody, with potential indications including atopic dermatitis, asthma and chronic obstructive pulmonary disease.
AbbVie Eczema Drug Gets BTD: AbbVie's ABBV investigational, once-daily oral JAK1-selective inhibitor, upadacitinib, has been granted Breakthrough Therapy Designation ("BTD") by the FDA for use in adult patients with moderate to severe atopic dermatitis who are candidates for systemic therapy.
Breakthrough Therapy Designation helps fasten the development and review of drugs which are being evaluated for the treatment of serious conditions and where preliminary clinical evidence indicates that the drug may be substantially better than existing treatments on clinically significant endpoint(s). Upadacitinib is scheduled to move into a late-stage program for atopic dermatitis in the first half of the year (Read more: AbbVie's Upadacitinib Gains Breakthrough Therapy Designation ).
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The NASDAQ Biotechnology Index declined 0.3% over the last four trading sessions. Among major biotech stocks, Regeneron declined 6.4% while Gilead GILD gained 4.6%. Over the last six months, Biogen was up 22.9% while Regeneron lost 26.3% (See the last biotech stock roundup here: GWPH Submits Epidiolex in the EU, Sangamo Inks Deal with Pfizer ).
What's Next in the Biotech World?
Watch out for the usual regulatory and pipeline updates as well as preliminary result announcements and 2018 outlooks ahead of the release of fourth quarter results.
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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 Eczema Drug Gets BTD: AbbVie's ABBV investigational, once-daily oral JAK1-selective inhibitor, upadacitinib, has been granted Breakthrough Therapy Designation ("BTD") by the FDA for use in adult patients with moderate to severe atopic dermatitis who are candidates for systemic therapy. Upadacitinib is scheduled to move into a late-stage program for atopic dermatitis in the first half of the year (Read more: AbbVie's Upadacitinib Gains Breakthrough Therapy Designation ). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report Axovant Sciences Ltd. (AXON): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report Axovant Sciences Ltd. (AXON): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Eczema Drug Gets BTD: AbbVie's ABBV investigational, once-daily oral JAK1-selective inhibitor, upadacitinib, has been granted Breakthrough Therapy Designation ("BTD") by the FDA for use in adult patients with moderate to severe atopic dermatitis who are candidates for systemic therapy. Upadacitinib is scheduled to move into a late-stage program for atopic dermatitis in the first half of the year (Read more: AbbVie's Upadacitinib Gains Breakthrough Therapy Designation ). | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report Axovant Sciences Ltd. (AXON): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Eczema Drug Gets BTD: AbbVie's ABBV investigational, once-daily oral JAK1-selective inhibitor, upadacitinib, has been granted Breakthrough Therapy Designation ("BTD") by the FDA for use in adult patients with moderate to severe atopic dermatitis who are candidates for systemic therapy. Upadacitinib is scheduled to move into a late-stage program for atopic dermatitis in the first half of the year (Read more: AbbVie's Upadacitinib Gains Breakthrough Therapy Designation ). | AbbVie Eczema Drug Gets BTD: AbbVie's ABBV investigational, once-daily oral JAK1-selective inhibitor, upadacitinib, has been granted Breakthrough Therapy Designation ("BTD") by the FDA for use in adult patients with moderate to severe atopic dermatitis who are candidates for systemic therapy. Upadacitinib is scheduled to move into a late-stage program for atopic dermatitis in the first half of the year (Read more: AbbVie's Upadacitinib Gains Breakthrough Therapy Designation ). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report Axovant Sciences Ltd. (AXON): Free Stock Analysis Report To read this article on Zacks.com click here. |
25769.0 | 2018-01-10 00:00:00 UTC | Better Stock: AbbVie Inc (ABBV) vs. Johnson & Johnson (JNJ) | ABBV | https://www.nasdaq.com/articles/better-stock-abbvie-inc-abbv-vs-johnson-johnson-jnj-2018-01-10 | nan | nan | The last five years have been kind to nearly all investors. But health-focused companies like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) have been particularly profitable indeed. Inclusive of dividends, these two have more than doubled and tripled, respectively.
But which stock is the better buy today? There's no way to answer that question with 100% certainty. However, by examining it through three different lenses, we can get a better idea of what we're getting when we buy shares.
Sustainable competitive advantage
If there's one aspect of a stock that long-term shareholders should devote most of their time to, it's a company's sustainable competitive advantage, or moat. In its most basic sense, a moat is what keeps customers coming back to the same company over and over while holding the competition at bay.
AbbVie's key moat comes in the form of the patents that the company has on key drugs. Those patents came in handy in late 2017 when AbbVie got Amgen to back off plans to offer a drug similar to AbbVie's Humira. The company also has a psoriasis drug coming out -- risankizumab -- that promises to be at least twice as effective as the current market leader. Treatments for leukemia patients -- via Imbruvica and, more recently, Venclexta -- have also shown great promise.
But as much promise as AbbVie's drugs have, the moat they provide is forever tenuous. Had the Amgen situation gone the other way, AbbVie could have been looking at steep declines in Humira sales in 2018. There is little way to predict with any level of accuracy how these decisions will play out.
That's why I think Johnson & Johnson's moat is wider. The company has three divisions. One of them -- pharmaceuticals -- is exposed to the same threats as AbbVie. That division accounted for almost half of revenue last quarter. It enjoyed a stellar 2017 , with the significant acquisition of Actelion and continued strong sales of Remicade despite biosimilar competition.
But Johnson & Johnson also has consumer and medical devices divisions, which accounted for 17% and 34% of sales last quarter, respectively. The consumer division is protected by a portfolio of very strong brands, including Tylenol, BandAid, Benadryl, and Listerine. The medical device portfolio is protected by high switching costs, as hospitals and medical care centers fork over big bucks for the company's DePuy surgical products.
At the end of the day, that diversity creates -- in my opinion -- a wider moat.
Winner = Johnson & Johnson
Financial fortitude
There are really only two things healthcare investors want to see happen with excess cash. The first is pumping that cash back into the company, primarily in the form of R&D spending. This helps ensure a company has a pipeline of drugs or devices that are market-leading.
The other is to see that cash returned via dividends, which both of these companies already do.
But there's something to be said for keeping plain old cash lying around. That's because all companies -- especially in this industry -- will happen upon difficult economic times. When those times hit, players with huge war chests can actually emerge stronger by buying up rivals, repurchasing shares at a discount, or simply outspending the competition to gain long-term market share.
Keeping in mind that Johnson & Johnson is valued at more than twice the size of AbbVie, here's how the two stack up.
Data source: Yahoo! Finance. Cash represents cash and short- and long-term investments. Free cash flow presented on trailing twelve month basis.
One look at each company's free cash flow should be enough to tell you that they're both in excellent shape. That being said, AbbVie -- the smaller player -- is using far more leverage right now than Johnson & Johnson. While that spending could translate into outperformance over the long run, it makes the company more fragile to economic downturns, whether macro or company-specific.
Winner = Johnson & Johnson
Valuation
Finally we have valuation. This is a bit of a murky science, as no single metric can truly capture how "cheap" or "expensive" a stock is. The best we can do is consult as many data points as make sense to get a more holistic picture. Here are five of my favorite.
Data source: Yahoo! Finance, E*Trade. P/E presented using non-GAAP EPS. N/A =
Not applicable.
On the surface, these two are pretty evenly matched. Their price-to-earnings and free cash flow ratios are virtually identical. And both have very solid dividends, with only half of their free cash flow being eaten up to make the quarterly payments to shareholders.
But when growth is taken into consideration via the PEG Ratio, AbbVie trades at a significant discount to Johnson & Johnson. That's enough for me to give AbbVie the nod here.
Winner = AbbVie
My winner is...
So there you have it. Perhaps I'm being a bit more conservative by siding with the slower growth company, but I believe Johnson & Johnson's moat and financial fortitude are enough to give it an edge over AbbVie's drug portfolio and attractive price tag.
That being said, I'm not particularly enthusiastic about either company, as I tend to shy away from pharmaceutical players altogether. It can be very difficult to tell which products will be market hits and which won't, and I tend to put those in the "too hard" pile -- which is why I haven't made CAPS calls on either company for my own portfolio.
If, however, you do have a greater level of comfort with the industry, I suggest starting out with Johnson & Johnson, as the conglomerate gives you diversified exposure to much of the industry.
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Brian Stoffel has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But health-focused companies like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) have been particularly profitable indeed. AbbVie's key moat comes in the form of the patents that the company has on key drugs. Those patents came in handy in late 2017 when AbbVie got Amgen to back off plans to offer a drug similar to AbbVie's Humira. | AbbVie's key moat comes in the form of the patents that the company has on key drugs. But when growth is taken into consideration via the PEG Ratio, AbbVie trades at a significant discount to Johnson & Johnson. But health-focused companies like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) have been particularly profitable indeed. | But health-focused companies like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) have been particularly profitable indeed. Perhaps I'm being a bit more conservative by siding with the slower growth company, but I believe Johnson & Johnson's moat and financial fortitude are enough to give it an edge over AbbVie's drug portfolio and attractive price tag. AbbVie's key moat comes in the form of the patents that the company has on key drugs. | But health-focused companies like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) have been particularly profitable indeed. AbbVie's key moat comes in the form of the patents that the company has on key drugs. Those patents came in handy in late 2017 when AbbVie got Amgen to back off plans to offer a drug similar to AbbVie's Humira. |
25770.0 | 2018-01-09 00:00:00 UTC | 4 Best Marijuana Stocks to Play the Green Rush | ABBV | https://www.nasdaq.com/articles/4-best-marijuana-stocks-to-play-the-green-rush-2018-01-09 | nan | nan | Whether its eating a gooey, chocolatey brownie or taking a few hits off a freshly rolled joint, it's common knowledge that a lot of people like to get high. Many investors, however, have yet to "light up." Some hesitate from adding marijuana stocks to their portfolio on apprehensions that pot companies are involved in scams or that it's still deemed illegal by the federal government.
Let's not forget that this market has turned into a big money-maker. Not only is it one of the fastest growing industries in the U.S., but it also received a major boost after the 2016 election, where marijuana was declared legal for recreational and medical purposes in seven additional states.
Marijuana sales have the potential to greatly add to the government's treasury as well, and it will be immensely helpful in medical fields. Nowadays, it is also easier for banks for provide services for legal marijuana businesses. Banking on this optimism, we have selected the largest, most stable, and legal cannabis related companies that will rake in high returns for you.
Focus on Legalization
When Americans headed to the polls during the last presidential election, nine states-Arizona, California, Maine, Massachusetts, Nevada, Arkansas, Florida, and North Dakota-were set to vote on medical and recreational cannabis initiatives. Gallup polls ahead of the election showed that voters backing full legalization soared from a meager 12% in 1969 to 60% in recent times.
When the results came in, Maine, California, Massachusetts, and Nevada all passed measures to legalize recreational marijuana use, while Arizona's highly contested Proposition 205 recreational marijuana measure failed. Florida, North Dakota, and Arkansas all voted to legalize medical marijuana usage, and Montana voted to expand the state's medical marijuana laws.
In fact, the number of states legalizing marijuana has been rising at a steady pace since 2000. Prior to that year, only three states-California, Maine, and Oregon-had made medical cannabis legal. In the last six years, however, around 15 states have officially authorized medical marijuana, and 25 states have adopted medical marijuana programs, including the District of Columbia. Just last year, medical marijuana was legalized in Ohio and Pennsylvania.
Tax Revenue to Improve
Sales from legalizing marijuana could help significantly boost the government's tax revenues. In states like Colorado and Washington, the government collected roughly $70 million in tax revenue from recreational marijuana sales back in 2014, according to CNN and Time Magazine .
The legal marijuana industry is growing at a rapid pace, and gained 25% to $5.7 billion in 2015, making it one of the fastest-paced industries in the U.S., according to ArcView Group; the market research firm added that the industry was expected to grow by $7.1 billion last year. Financial behemoth Bank of American BAC even said that the U.S. marijuana market could reach a net worth of $30 billion annually by 2020, almost three times the yearly revenue of the National Football League.
4 Marijuana Stocks to Consider
Given such bullish trends, the movement to legalize marijuana has definitely picked up steam. Below are four cannabis-linked stocks that are poised to benefit from legalization.
AbbVie Inc. ABBV is a biopharmaceutical company that already has a cannabis-based drug approved by the FDA. Called Marinol, the drug relieves nausea and vomiting in patients undergoing chemotherapy; it is also used for AIDS patients who have lost their appetites.
Corbus Pharmaceuticals Inc. CRBP , a biopharmaceutical company, focuses on the development and commercialization of therapeutics to treat life threatening inflammatory-fibrotic diseases. Its key product, the oral endocannabinoid-memetic drug Resunab, helps treat systemic sclerosis, a chronic autoimmune rheumatic disease.
Another leader in the industry is Insys Therapeutics Inc. INSY , known for developing and commercializing pharmaceutical products that target the unmet needs of cancer patients. Its first synthetic cannabinoid candidate, Syndros, was approved by the FDA as a treatment for anorexia associated with weight loss in AIDS patients, and nausea and vomiting associated with cancer chemotherapy in patients who have failed to respond adequately to conventional treatments.
Zynerba Pharmaceuticals ZYNE is a specialty pharmaceutical company that focuses on developing and commercializing proprietary synthetic cannabinoid therapeutics. It has developed a candidate temporarily named ZYN002, which is in clinical trials for the treatment of refractory epilepsy, Fragile X syndrome, and osteoarthritis.
Investors could also consider looking at the industry's first ETF from Horizons ETFs Management Inc., which is based in Canada. Horizons Medical Marijuana Life Sciences ETF trades on the Toronto Stock Exchange under the ticker 'HMMJ,' but provides exposure to North American-listed stocks that are involved with medical marijuana bioengineering and production. HMMJ has surged over 142% in the past one year.
Bottom Line
There is no doubt about the profit potential in weed. The industry is moving at a rapid pace, with new developments in growing technology and medical treatments popping up quickly and consistently.
But it's important to recognize that many of these cannabis-based treatments are still in their trial stages, and have yet to translate to financial success for many of the biopharmaceutical companies listed above.
These therapies show great promise, but the future of marijuana in the medical and biopharma industries depends, of course, on legalization. If marijuana is ever rescheduled-check out how the United States schedules, or classifies, controlled substances here -and deemed to have medical benefits, these companies could finally see their synthetic or organic cannabis-based treatments enter the market, and most importantly, their bottom lines benefit.
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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 is a biopharmaceutical company that already has a cannabis-based drug approved by the FDA. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Corbus Pharmaceuticals Holdings, Inc. (CRBP): Free Stock Analysis Report Zynerba Pharmaceuticals, Inc. (ZYNE): Free Stock Analysis Report To read this article on Zacks.com click here. Focus on Legalization When Americans headed to the polls during the last presidential election, nine states-Arizona, California, Maine, Massachusetts, Nevada, Arkansas, Florida, and North Dakota-were set to vote on medical and recreational cannabis initiatives. | Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Corbus Pharmaceuticals Holdings, Inc. (CRBP): Free Stock Analysis Report Zynerba Pharmaceuticals, Inc. (ZYNE): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is a biopharmaceutical company that already has a cannabis-based drug approved by the FDA. Focus on Legalization When Americans headed to the polls during the last presidential election, nine states-Arizona, California, Maine, Massachusetts, Nevada, Arkansas, Florida, and North Dakota-were set to vote on medical and recreational cannabis initiatives. | Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Corbus Pharmaceuticals Holdings, Inc. (CRBP): Free Stock Analysis Report Zynerba Pharmaceuticals, Inc. (ZYNE): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is a biopharmaceutical company that already has a cannabis-based drug approved by the FDA. Florida, North Dakota, and Arkansas all voted to legalize medical marijuana usage, and Montana voted to expand the state's medical marijuana laws. | AbbVie Inc. ABBV is a biopharmaceutical company that already has a cannabis-based drug approved by the FDA. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Corbus Pharmaceuticals Holdings, Inc. (CRBP): Free Stock Analysis Report Zynerba Pharmaceuticals, Inc. (ZYNE): Free Stock Analysis Report To read this article on Zacks.com click here. Not only is it one of the fastest growing industries in the U.S., but it also received a major boost after the 2016 election, where marijuana was declared legal for recreational and medical purposes in seven additional states. |
25771.0 | 2018-01-09 00:00:00 UTC | Ex-Dividend Reminder: Patterson Companies, AbbVie and Abbott Laboratories | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder-patterson-companies-abbvie-and-abbott-laboratories-2018-01-09 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , on 1/11/18, Patterson Companies Inc (Symbol: PDCO), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/26/18, AbbVie Inc will pay its quarterly dividend of $0.71 on 2/15/18, and Abbott Laboratories will pay its quarterly dividend of $0.28 on 2/15/18. As a percentage of PDCO's recent stock price of $37.61, this dividend works out to approximately 0.69%, so look for shares of Patterson Companies Inc to trade 0.69% lower - all else being equal - when PDCO shares open for trading on 1/11/18. Similarly, investors should look for ABBV to open 0.71% lower in price and for ABT to open 0.47% lower, all else being equal.
Below are dividend history charts for PDCO, ABBV, and ABT, showing historical dividends prior to the most recent ones declared.
Patterson Companies Inc (Symbol: PDCO) :
AbbVie Inc (Symbol: ABBV) :
Abbott Laboratories (Symbol: ABT) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.77% for Patterson Companies Inc, 2.85% for AbbVie Inc, and 1.90% for Abbott Laboratories.
In Tuesday trading, Patterson Companies Inc shares are currently down about 0.5%, AbbVie Inc shares are trading flat, and Abbott Laboratories shares are up about 0.3% on the day.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 2.77% for Patterson Companies Inc, 2.85% for AbbVie Inc, and 1.90% for Abbott Laboratories. Looking at the universe of stocks we cover at Dividend Channel , on 1/11/18, Patterson Companies Inc (Symbol: PDCO), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/26/18, AbbVie Inc will pay its quarterly dividend of $0.71 on 2/15/18, and Abbott Laboratories will pay its quarterly dividend of $0.28 on 2/15/18. | Looking at the universe of stocks we cover at Dividend Channel , on 1/11/18, Patterson Companies Inc (Symbol: PDCO), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/26/18, AbbVie Inc will pay its quarterly dividend of $0.71 on 2/15/18, and Abbott Laboratories will pay its quarterly dividend of $0.28 on 2/15/18. Patterson Companies Inc (Symbol: PDCO) : AbbVie Inc (Symbol: ABBV) : Abbott Laboratories (Symbol: ABT) : In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel , on 1/11/18, Patterson Companies Inc (Symbol: PDCO), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/26/18, AbbVie Inc will pay its quarterly dividend of $0.71 on 2/15/18, and Abbott Laboratories will pay its quarterly dividend of $0.28 on 2/15/18. Patterson Companies Inc (Symbol: PDCO) : AbbVie Inc (Symbol: ABBV) : Abbott Laboratories (Symbol: ABT) : In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel , on 1/11/18, Patterson Companies Inc (Symbol: PDCO), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 2.77% for Patterson Companies Inc, 2.85% for AbbVie Inc, and 1.90% for Abbott Laboratories. Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/26/18, AbbVie Inc will pay its quarterly dividend of $0.71 on 2/15/18, and Abbott Laboratories will pay its quarterly dividend of $0.28 on 2/15/18. |
25772.0 | 2018-01-09 00:00:00 UTC | AbbVie's Upadacitinib Gains Breakthrough Therapy Designation | ABBV | https://www.nasdaq.com/articles/abbvies-upadacitinib-gains-breakthrough-therapy-designation-2018-01-09 | nan | nan | AbbVieABBV announced that the FDA has granted Breakthrough Therapy Designation ("BTD") to its investigational JAK1 inhibitor, upadacitinib (ABT-494) for the treatment of severe atopic dermatitis
The designation aims to expedite the development and review of drugs intended to treat serious or life-threatening conditions and provide patients access to these as soon as possible.
AbbVie's shares have increased 55.2% in the past year, outperforming the industry 's gain of 16.3% during that period.
The study's primary outcome was the mean percentage change in Eczema Area and Severity Index ("EASI") score, a tool used to measure the extent of disease severity. In the study, upadacitinib showed greater mean percentage change from baseline in EASI score compared with placebo at 16 weeks. Also, 50% of the patients receiving 30 mg once-daily dose of upadacitinib showed almost clear skin. Additionally, the study met secondary endpoints, demonstrating a significant reduction in skin itching.
Upadacitinib is also being investigated in six phase III studies for rheumatoid arthritis. Other studies are also underway for the treatment of Crohn's disease, ulcerative colitis and psoriatic arthritis.
Per National Eczema Association, around 28 million people in the United States are affected with atopic dermatitis.
We remind investors that Regeneron Pharmaceuticals, Inc. REGN along with partner Sanofi SNY had launched Dupixent injection for treating atopic dermatitis early in 2017. Thus, upadacitinib has to contend with competitive pressure in the market, once approved.
AbbVie Inc. Price
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Zacks Rank & Stocks to Consider
AbbVie carries a Zacks Rank #3 (Hold).
A better-ranked stock in the pharma sector is Celldex Therapeutics, Inc. CLDX , carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Celldex's loss estimates remained stable at 93 cents for 2017 and at 90 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 15.36%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVieABBV announced that the FDA has granted Breakthrough Therapy Designation ("BTD") to its investigational JAK1 inhibitor, upadacitinib (ABT-494) for the treatment of severe atopic dermatitis The designation aims to expedite the development and review of drugs intended to treat serious or life-threatening conditions and provide patients access to these as soon as possible. AbbVie's shares have increased 55.2% in the past year, outperforming the industry 's gain of 16.3% during that period. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie carries a Zacks Rank #3 (Hold). | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Celldex Therapeutics, Inc. (CLDX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV announced that the FDA has granted Breakthrough Therapy Designation ("BTD") to its investigational JAK1 inhibitor, upadacitinib (ABT-494) for the treatment of severe atopic dermatitis The designation aims to expedite the development and review of drugs intended to treat serious or life-threatening conditions and provide patients access to these as soon as possible. | AbbVieABBV announced that the FDA has granted Breakthrough Therapy Designation ("BTD") to its investigational JAK1 inhibitor, upadacitinib (ABT-494) for the treatment of severe atopic dermatitis The designation aims to expedite the development and review of drugs intended to treat serious or life-threatening conditions and provide patients access to these as soon as possible. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Celldex Therapeutics, Inc. (CLDX): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVieABBV announced that the FDA has granted Breakthrough Therapy Designation ("BTD") to its investigational JAK1 inhibitor, upadacitinib (ABT-494) for the treatment of severe atopic dermatitis The designation aims to expedite the development and review of drugs intended to treat serious or life-threatening conditions and provide patients access to these as soon as possible. AbbVie's shares have increased 55.2% in the past year, outperforming the industry 's gain of 16.3% during that period. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie carries a Zacks Rank #3 (Hold). |
25773.0 | 2018-01-09 00:00:00 UTC | Notable Tuesday Option Activity: MCK, ABBV, BIIB | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity-mck-abbv-biib-2018-01-09 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in McKesson Corp (Symbol: MCK), where a total volume of 12,067 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 80.7% of MCK's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $165 strike put option expiring May 18, 2018 , with 5,014 contracts trading so far today, representing approximately 501,400 underlying shares of MCK. Below is a chart showing MCK's trailing twelve month trading history, with the $165 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,708 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 78% of ABBV's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $105 strike call option expiring January 19, 2018 , with 10,591 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange:
And Biogen Inc (Symbol: BIIB) saw options trading volume of 8,443 contracts, representing approximately 844,300 underlying shares or approximately 75% of BIIB's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $340 strike call option expiring January 19, 2018 , with 1,614 contracts trading so far today, representing approximately 161,400 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $340 strike highlighted in orange:
For the various different available expirations for MCK options , ABBV options , or BIIB 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.
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 $105 strike call option expiring January 19, 2018 , with 10,591 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing MCK's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,708 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 78% of ABBV's average daily trading volume over the past month, of 4.2 million shares. | Below is a chart showing MCK's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,708 contracts thus far today. Particularly high volume was seen for the $105 strike call option expiring January 19, 2018 , with 10,591 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange: And Biogen Inc (Symbol: BIIB) saw options trading volume of 8,443 contracts, representing approximately 844,300 underlying shares or approximately 75% of BIIB's average daily trading volume over the past month, of 1.1 million shares. | Particularly high volume was seen for the $105 strike call option expiring January 19, 2018 , with 10,591 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange: And Biogen Inc (Symbol: BIIB) saw options trading volume of 8,443 contracts, representing approximately 844,300 underlying shares or approximately 75% of BIIB's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing MCK's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,708 contracts thus far today. | That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 78% of ABBV's average daily trading volume over the past month, of 4.2 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange: And Biogen Inc (Symbol: BIIB) saw options trading volume of 8,443 contracts, representing approximately 844,300 underlying shares or approximately 75% of BIIB's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing MCK's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 32,708 contracts thus far today. |
25774.0 | 2018-01-09 00:00:00 UTC | Is AbbVie Stock Still A Strong Buy? | ABBV | https://www.nasdaq.com/articles/abbvie-stock-still-strong-buy-2018-01-09 | nan | nan | What happened
Large cap stocks that come with top flight dividends don't normally gain 54% in a single year. However, that's exactly what the dividend aristocrat AbbVie (NYSE: ABBV) did in 2017, according to data from S&P Global Market Intelligence . Thanks to a global patent resolution with Amgen (NASDAQ: AMGN) that removed the immediate threat of copycat versions of Humira entering the U.S. market, AbbVie's stock took off like a rocket last year.
Per the agreement, Amgen will delay the launch of its Humira biosimilar, called Amjevita, in the U.S. until 2023. However, Amgen's drug is scheduled to hit the market in Europe in the fourth-quarter of this year.
So what
The key takeaway is that AbbVie now has an extra few years to flesh out its oncology portfolio in an effort to drive growth once Humira's sales do eventually start to slide. Humira, after all, is slated to make up over half of the company's revenues in the next two to three years, despite the strong commercial trajectories for its game-changing blood cancer drugs, Imbruvica and Venclexta.
Now what
AbbVie's strategic long-term goal is to do the unthinkable: Generate industry-leading levels of revenue growth even after its flagship product (Humira) loses exclusivity. Although all of its peers have struggled mightily once their best-selling products started to face generic competition, AbbVie may, in fact, be able to pull off this unprecedented feat. The drugmaker does have an exceptionally deep clinical pipeline in both immunology and oncology, after all. So, despite AbbVie's monstrous rise in 2017, this top dividend and growth stock is arguably still a compelling buy at current levels.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Thanks to a global patent resolution with Amgen (NASDAQ: AMGN) that removed the immediate threat of copycat versions of Humira entering the U.S. market, AbbVie's stock took off like a rocket last year. So what The key takeaway is that AbbVie now has an extra few years to flesh out its oncology portfolio in an effort to drive growth once Humira's sales do eventually start to slide. However, that's exactly what the dividend aristocrat AbbVie (NYSE: ABBV) did in 2017, according to data from S&P Global Market Intelligence . | So, despite AbbVie's monstrous rise in 2017, this top dividend and growth stock is arguably still a compelling buy at current levels. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. However, that's exactly what the dividend aristocrat AbbVie (NYSE: ABBV) did in 2017, according to data from S&P Global Market Intelligence . | Thanks to a global patent resolution with Amgen (NASDAQ: AMGN) that removed the immediate threat of copycat versions of Humira entering the U.S. market, AbbVie's stock took off like a rocket last year. So, despite AbbVie's monstrous rise in 2017, this top dividend and growth stock is arguably still a compelling buy at current levels. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Thanks to a global patent resolution with Amgen (NASDAQ: AMGN) that removed the immediate threat of copycat versions of Humira entering the U.S. market, AbbVie's stock took off like a rocket last year. So, despite AbbVie's monstrous rise in 2017, this top dividend and growth stock is arguably still a compelling buy at current levels. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and AbbVie wasn't one of them! |
25775.0 | 2018-01-08 00:00:00 UTC | Galapagos Reports Topline Data From Osteoarthritis Study | ABBV | https://www.nasdaq.com/articles/galapagos-reports-topline-data-from-osteoarthritis-study-2018-01-08 | nan | nan | Galapagos NVGLPG announced positive top-line data from phase Ib study evaluating its osteoarthritis ("OA") candidate, GLPG1972. The candidate reduced the level of ARGS neoepitope, a cartilage breakdown biomarker, by more than half in its highest dosage.
Shares of the company have risen 43.1% in the past year, outperforming the industry 's decline of 1.7% in that period.
GLPG1972 works by targeting ADAMTS-5, a cartilage degrading enzyme.
Meanwhile, Galapagos is working on designing the phase II program to further evaluate the candidate in OA. The study is expected to start by the end of this year.
Apart from GLPG1972, Galapagos is also developing another candidate, filgotinib in Sjogren's syndrome, non-infectious uveitis, ankylosing spondylitis, and psoriatic arthritis. The company has a global collaboration with Gilead Sciences, Inc. GILD for the development and commercialization of filgotinib in inflammatory indications.
Moreover, Galapagos is developing GLPG2222 in cystic fibrosis ("CF") patients who are on long-term stable treatment with Vertex Pharmaceuticals Incorporated's VRTX CF drug, Kalydeco. In November last year, Galapagos announced positive top-line data from a phase II study, demonstrating an improvement of 2.2% in lung function compared to baseline.
The company has three CF candidate including GLPG2222, which are being developed in partnership with AbbVie Inc. ABBV .
Galapagos NV Price
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Galapagos carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has three CF candidate including GLPG2222, which are being developed in partnership with AbbVie Inc. ABBV . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Galapagos NVGLPG announced positive top-line data from phase Ib study evaluating its osteoarthritis ("OA") candidate, GLPG1972. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. The company has three CF candidate including GLPG2222, which are being developed in partnership with AbbVie Inc. ABBV . In November last year, Galapagos announced positive top-line data from a phase II study, demonstrating an improvement of 2.2% in lung function compared to baseline. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. The company has three CF candidate including GLPG2222, which are being developed in partnership with AbbVie Inc. ABBV . Galapagos NVGLPG announced positive top-line data from phase Ib study evaluating its osteoarthritis ("OA") candidate, GLPG1972. | The company has three CF candidate including GLPG2222, which are being developed in partnership with AbbVie Inc. ABBV . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. In November last year, Galapagos announced positive top-line data from a phase II study, demonstrating an improvement of 2.2% in lung function compared to baseline. |
25776.0 | 2018-01-07 00:00:00 UTC | 5 Biggest New Drugs of 2018 -- and How You Can Profit From Their Makers | ABBV | https://www.nasdaq.com/articles/5-biggest-new-drugs-2018-and-how-you-can-profit-their-makers-2018-01-07 | nan | nan | Get ready for a wave of new blockbuster drugs in 2018.
At least nine new drugs are expected to launch this year that have the potential for sales to top $1 billion by 2022, according to market research firm EvaluatePharma. Gilead Sciences (NASDAQ: GILD) , Novo Nordisk (NYSE: NVO) , Incyte (NASDAQ: INCY) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) stand to make plenty of money from five of those drugs, assuming everything goes smoothly with the regulatory approval process. Here's which drugs should be the biggest of all -- and how you can profit from the companies that make them.
1. Bictegravir/F/TAF
Gilead Sciences' bictegravir/F/TAF combination stands at the top of the list of highly anticipated drug launches of 2018. The big biotech expects a decision from the FDA for its new HIV drug by Feb. 12. EvaluatePharma projects bictegravir/F/TAF could generate sales topping $5 billion by 2022.
The drug should be the latest in a string of blockbuster HIV drugs developed by Gilead. However, the company's CEO, John Milligan, thinks that it will be its best ever. Milligan stated in November that the bictegravir/F/TAF combo will become "the most important product out there" in the HIV market. It's no wonder that the biotech has referred to the drug as its "Mount Everest."
2. Semaglutide (Ozempic)
Novo Nordisk's semaglutide could be the second-biggest launch of the year. The Danish drugmaker won FDA approval for the type 2 diabetes drug on Dec. 5. Novo Nordisk expects to launch semaglutide under the brand name Ozempic in the first quarter of 2018. EvaluatePharma thinks Ozempic could haul in more than $2.7 billion in annual sales by 2022.
Ozempic is a longer-acting version of Novo Nordisk's enormously successful diabetes drug, Victoza. But while Victoza must be taken once daily, Ozempic only has to be taken once per week. This convenience, combined with excellent efficacy in reducing blood sugar levels and helping patients lose weight, should make Ozempic a big winner for Novo Nordisk.
3. Epacadostat
Incyte's epacadostat is probably the most eagerly anticipated cancer immunotherapy to watch this year. EvaluatePharma projects 2022 sales of close to $2 billion. However, Incyte probably won't make a lot of money from its promising IDO inhibitor in 2018.
Results from a late-stage study of epacadostat in combination with Merck 's Keytruda as a first-line treatment of metastatic melanoma are expected in the first half of the year. To launch before the end of 2018, Incyte and Merck would need three things to happen: (1) achieving positive results in the late-stage study, (2) filing for regulatory approval almost immediately afterward, and (3) gaining priority review from the FDA for a decision within six months instead of the standard 10 months. All three prerequisites could be checked off successfully, but even if they are, Incyte will only see a short period for sales of epacadostat this year.
4. Rova-T
AbbVie already claims a tremendously successful cancer drug with Imbruvica. The company hopes to add another to its lineup this year with Rova-T (rovalpituzumab tesirine), which EvaluatePharma thinks will make over $1.4 billion by 2022. AbbVie has even higher hopes for the drug, estimating that Rova-T could eventually hit peak sales of $5 billion.
But will AbbVie launch Rova-T this year? Maybe. The company should announce results from its pivotal study evaluating the drug as a third-line treatment of small cell lung cancer in the second quarter. Assuming all goes well, AbbVie expects to launch Rova-T either in late 2018 or early 2019.
5. Ozanimod
Celgene plans to expand into a new indication -- multiple sclerosis (MS) -- with ozanimod. It could be a lucrative addition: EvaluatePharma expects the drug will generate revenue close to $1.3 billion by 2022. Celgene planned to file for U.S. regulatory approval by the end of 2017 (although there hasn't been an official announcement of the submission), with a European filing coming in the first half of this year.
Ozanimod could carve out a niche in the MS market as an oral medication with solid efficacy and a good overall safety profile. Celgene also hopes the drug will prove to be successful in treating ulcerative colitis and Crohn's disease. If ozanimod eventually wins approval for all three indications, it could become Celgene's next megablockbuster in a few years.
How you can make money, too
It's no big secret how investors can profit from the launches of new drugs: Just buy the stocks of the drugmakers before the launches. However, how much money you can make varies significantly.
AbbVie and Novo Nordisk both saw their stock prices soar more than 50% in 2017. However, Gilead and Incyte only had low single-digit percentage gains last year, while Celgene stock fell nearly 10%. Successful launches of new drugs would arguably have more impact for the lower performers from last year.
But you also need to consider the impact of the new drugs for each company. EvaluatePharma's projection of $1.4 billion in sales for Rova-T by 2022 amounts to only 5% of AbbVie's estimated total 20217 revenue. That's not enough to move the needle much. On the other hand, a successful launch of epacadostat could be huge for Incyte.
Which are the best bets? I like AbbVie, but Rova-T isn't the main reason to buy the stock. Incyte's future hinges in large part on how well epacadostat performs in combination with Keytruda in treating melanoma. Positive results would likely light a fire beneath the stock, but there is definitely a risk that things won't turn out that well.
In my view, Gilead Sciences and Celgene are the best alternatives for investors to play the expected new drug launches this year. I think Gilead Sciences is a bargain. A solid launch of the bictegravir/F/TAF combo could be quite helpful for the stock, especially if Gilead's hepatitis C franchise sales are smoother as John Milligan predicted in November . Celgene had a lot of bad news in the last few months of 2017. I think that approval and a successful rollout of ozanimod should give the stock a nice boost.
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Keith Speights owns shares of AbbVie, Celgene, and Gilead Sciences. The Motley Fool owns shares of and recommends Celgene and Gilead Sciences. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gilead Sciences (NASDAQ: GILD) , Novo Nordisk (NYSE: NVO) , Incyte (NASDAQ: INCY) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) stand to make plenty of money from five of those drugs, assuming everything goes smoothly with the regulatory approval process. Rova-T AbbVie already claims a tremendously successful cancer drug with Imbruvica. AbbVie has even higher hopes for the drug, estimating that Rova-T could eventually hit peak sales of $5 billion. | Gilead Sciences (NASDAQ: GILD) , Novo Nordisk (NYSE: NVO) , Incyte (NASDAQ: INCY) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) stand to make plenty of money from five of those drugs, assuming everything goes smoothly with the regulatory approval process. Rova-T AbbVie already claims a tremendously successful cancer drug with Imbruvica. AbbVie has even higher hopes for the drug, estimating that Rova-T could eventually hit peak sales of $5 billion. | Gilead Sciences (NASDAQ: GILD) , Novo Nordisk (NYSE: NVO) , Incyte (NASDAQ: INCY) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) stand to make plenty of money from five of those drugs, assuming everything goes smoothly with the regulatory approval process. Rova-T AbbVie already claims a tremendously successful cancer drug with Imbruvica. AbbVie has even higher hopes for the drug, estimating that Rova-T could eventually hit peak sales of $5 billion. | Gilead Sciences (NASDAQ: GILD) , Novo Nordisk (NYSE: NVO) , Incyte (NASDAQ: INCY) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) stand to make plenty of money from five of those drugs, assuming everything goes smoothly with the regulatory approval process. Rova-T AbbVie already claims a tremendously successful cancer drug with Imbruvica. AbbVie has even higher hopes for the drug, estimating that Rova-T could eventually hit peak sales of $5 billion. |
25777.0 | 2018-01-07 00:00:00 UTC | 2 Top Dividend Stocks to Buy in 2018 | ABBV | https://www.nasdaq.com/articles/2-top-dividend-stocks-buy-2018-2018-01-07 | nan | nan | Dividend stocks are a critical part of a well-structured portfolio because of their ability to generate passive sources of income, or alternatively, compound returns on capital via a dividend reinvestment plan . Picking top dividend stocks , though, is anything but a straightforward process.
The good news is that the best dividend stocks have historically shared a few underlying qualities that make them stand out from the crowd. The key traits that most elite income stocks have in common are stable and growing free cash flows, a strong track record of regular increases to the dividend, and a positive long-term outlook.
So what's the best space to uncover the most compelling dividend plays right now? In my view, the biopharmaceutical industry arguably occupies the top spot when it comes to dividend stocks. Biopharmaceutical giants like AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) , after all, both possess an intriguing mix of strong free cash flows, exceptional dividend track records, and better-than-average growth prospects over the next decade. Read on to learn more.
Top of its class
AbbVie is a solid dividend stock to buy (or continue holding) for a few reasons. First off, the drugmaker has grown its dividend at the fastest pace among large cap pharmas since being carved out of Abbott Laboratories in 2013. Its modest trailing payout ratio of 60.4% also implies that further increases are feasible moving forward -- especially since the company's free cash flow is forecast to grow at industry-leading levels in the next two to three years. AbbVie, for what it's worth, is living up to its status as a dividend aristocrat, bestowed upon it by Abbott.
While top-flight dividend programs are unusual in the pharma space because of the enormous costs associated with clinical trials, AbbVie has managed to find a nice balance between maintaining its upper-tier dividend and investing in its vast clinical pipeline. In fact, AbbVie's late-stage clinical pipeline was pegged as the most valuable within its peer group last year, according to EvaluatePharma.
That's especially good news for the company's longer-term growth prospects. AbbVie, after all, is still heavily reliant on the anti-inflammatory megablockbuster, Humira, for the bulk of its sales. As the company's diverse oncology pipeline matures, however, AbbVie's revenue stream should start to better reflect its status as a top dog in the clinic. Fortunately, AbbVie now has until the end of 2022 to complete its ongoing pivot to oncology, thanks to the global patent resolution with Amgen over Humira's intellectual property portfolio last year.
AbbVie is arguably worth buying because of its generous dividend yield of 2.94%, rapidly growing footprint in the high-value oncology market, and the substantially lower risk of copycat versions of Humira breaking into the all-important U.S. market this year.
Amgen's dividend is set to rise
Amgen's $39 billion overseas cash stockpile is among the largest within the biopharmaceutical arena. So it wasn't surprising to hear that the company announced a sizable hike to its dividend last month -- once the tax reform legislation appeared to be a slam dunk. As a result, Amgen now sports a slightly above-average (for a pharma stock) forward-looking yield of 3.04%.
Perhaps the best part about Amgen's juicy dividend, though, is that the drugmaker's trailing payout ratio of 40.2% is close to the bottom of its blue chip biotech and big pharma peer groups. So with plenty of repatriated cash to play with moving forward and stable free cash flow, Amgen could boost its dividend yet again within the next twelve months.
The downside is that Amgen's cardiovascular drug, Repatha, has so far failed to live up to expectations, and the biotech's bid to build a thriving biosimilar business has also gotten off to a painfully slow start.
On the bright side, Repatha's recent label expansion as a preventative treatment for cardiovascular disease should light a fire under its commercial trajectory this year. The U.S. biosimilar market is also just getting on its proverbial feet from a regulatory standpoint. And when all the legal and regulatory kinks are worked out, Amgen should benefit immensely from this high-value space.
In all, Amgen should entice dividend investors this year due to its upper-echelon yield that appears set to edge even higher in the years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biopharmaceutical giants like AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) , after all, both possess an intriguing mix of strong free cash flows, exceptional dividend track records, and better-than-average growth prospects over the next decade. Top of its class AbbVie is a solid dividend stock to buy (or continue holding) for a few reasons. AbbVie, for what it's worth, is living up to its status as a dividend aristocrat, bestowed upon it by Abbott. | Biopharmaceutical giants like AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) , after all, both possess an intriguing mix of strong free cash flows, exceptional dividend track records, and better-than-average growth prospects over the next decade. Top of its class AbbVie is a solid dividend stock to buy (or continue holding) for a few reasons. AbbVie, for what it's worth, is living up to its status as a dividend aristocrat, bestowed upon it by Abbott. | Biopharmaceutical giants like AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) , after all, both possess an intriguing mix of strong free cash flows, exceptional dividend track records, and better-than-average growth prospects over the next decade. While top-flight dividend programs are unusual in the pharma space because of the enormous costs associated with clinical trials, AbbVie has managed to find a nice balance between maintaining its upper-tier dividend and investing in its vast clinical pipeline. AbbVie is arguably worth buying because of its generous dividend yield of 2.94%, rapidly growing footprint in the high-value oncology market, and the substantially lower risk of copycat versions of Humira breaking into the all-important U.S. market this year. | AbbVie is arguably worth buying because of its generous dividend yield of 2.94%, rapidly growing footprint in the high-value oncology market, and the substantially lower risk of copycat versions of Humira breaking into the all-important U.S. market this year. Biopharmaceutical giants like AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN) , after all, both possess an intriguing mix of strong free cash flows, exceptional dividend track records, and better-than-average growth prospects over the next decade. Top of its class AbbVie is a solid dividend stock to buy (or continue holding) for a few reasons. |
25778.0 | 2018-01-05 00:00:00 UTC | Will J&J (JNJ) Continue to Tread Growth Path This Year? | ABBV | https://www.nasdaq.com/articles/will-jj-jnj-continue-to-tread-growth-path-this-year-2018-01-05 | nan | nan | Johnson & Johnson'sJNJ stock was up 21.3% in 2017, which compared favorably with a gain of 16.3% recorded by the industry .
What Drove the Stock in 2017?
Two new drugs were approved last year - Guselkumab/Tremfya in the United States as well as in the EU for plaque psoriasis and the first dual treatment for HIV, Juluca (dolutegravir + rilpivirine) in partnership with GlaxoSmithKline GSK in the United States. Juluca is under review in the EU.
J&J also gained FDA approval for several line extensions - a lower dose of Xarelto, two new indications of Simponi Aria, use in adolescents for Stelara, combination use of Darzalex with Celgene's CELG multiple myeloma drug Pomalyst and the sixth indication for Imbruvica, among others. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV .
The line extensions can expand the eligible patient populations of these drugs and drive their sales higher in future quarters.
In 2017, J&J also submitted regulatory applications for label expansion of key drugs including Darzalex (in first-line setting for multiple myeloma), Xarelto (for chronic coronary artery disease and/or peripheral artery disease), Invokana (to include the cardiovascular indication), Zytiga (for earlier stages of metastatic prostate cancer). It might get FDA nod for these line extensions this year.
Factors Likely to Support the Rally in 2018
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock is likely to continue in 2018.
This year J&J expects to file for approval of depression candidate, esketamine while apalutamide for pre-metastatic prostate cancer and Symtuza, a darunavir-based once-daily single-tablet regimen for HIV could be approved by the FDA.
J&J's domestic Pharma segment sales decelerated in the first half of 2017 as a number of key growth drivers like Remicade and Concerta faced competition. However, sales growth accelerated in the third quarter and we are likely to see the positive impact of the trend in fourth-quarter results and probably in 2018. We believe that new products in all segments, label expansion of drugs like Imbruvica, Xarelto, Stelara and Darzalex and contribution from recent acquisitions - mainly Actelion - will support top-line growth.
All these factors bode well for the stock. J&J carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks Editor-in-Chief Goes ""All In"" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Factors Likely to Support the Rally in 2018 With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock is likely to continue in 2018. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . We believe that new products in all segments, label expansion of drugs like Imbruvica, Xarelto, Stelara and Darzalex and contribution from recent acquisitions - mainly Actelion - will support top-line growth. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . J&J also gained FDA approval for several line extensions - a lower dose of Xarelto, two new indications of Simponi Aria, use in adolescents for Stelara, combination use of Darzalex with Celgene's CELG multiple myeloma drug Pomalyst and the sixth indication for Imbruvica, among others. | Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. J&J also gained FDA approval for several line extensions - a lower dose of Xarelto, two new indications of Simponi Aria, use in adolescents for Stelara, combination use of Darzalex with Celgene's CELG multiple myeloma drug Pomalyst and the sixth indication for Imbruvica, among others. |
25779.0 | 2018-01-05 00:00:00 UTC | Key Biosimilar Approvals in 2017: Progress Report | ABBV | https://www.nasdaq.com/articles/key-biosimilar-approvals-in-2017%3A-progress-report-2018-01-05 | nan | nan | The biosimilar space was in focus in 2017 on key FDA approvals.
Biosimilars contain a version of the active substance of an already approved original biological drug. Development of biosimilars is technically more challenging than the development of generic drugs as the former requires clinical studies in patients and are engineered to match the reference drug in quality, safety and efficacy. Due to the complex nature of the product, the development and the regulatory pathway of biosimilars differ significantly from that of generics. A biosimilar is usually less expensive than the branded drug. Thus, the market for the same is highly lucrative. With the acceleration in approvals of biosimilars, the market has thus attracted a lot many players which are witnessing rapid growth. Here we go through the progress report for 2017.
Merck & Co., Inc . MRK launched Reneflexis, a biosimilar version of Remicade (infliximab), in the United States in July 2017 after approval in April. The FDA also granted tentative approval for Lusduna Nexvue, the biosimilar version of Lantus, basal insulin in a pre-filled dosing device. Merck currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Remicade has been seeing intense competition in the biosimilars space of late. We note that Pfizer, Inc . PFE supplies Inflectra, a biosimilar version of Remicade. Pfizer is a strong player in the biosimilars market. In December 2017, Pfizer got FDA approval for another of its Remicade's biosimilar, Ixifi, as a treatment for rheumatoid arthritis, Crohn's disease, pediatric Crohn's disease, ulcerative colitis, ankylosing spondylitis, psoriatic arthritis and plaque psoriasis. The company has a portfolio of three marketed biosimilar medicines outside the United States, including Inflectra, Retacrit (epoetin zeta) and Nivestim (filgrastim) along with a strong pipeline of 13 distinct biosimilar molecules in various stages of development. Pfizer currently carries a Zacks Rank #3.
Generic leader Mylan NVMYL is also exploring the biosimilars market - that has the potential to grow to $20 billion by 2020. Early last December, Mylan and partner Biocon Ltd. announced the FDA approval of Ogivri (trastuzumab-dkst), a biosimilar version of Herceptin (trastuzumab). Ogivri has been approved for all indications included in the label of the reference product, Herceptin, including the treatment of HER2-overexpressing breast cancer and metastatic stomach cancer. Ogivri is the first FDA-approved biosimilar of Herceptin and the first biosimilar from Mylan and Biocon's joint portfolio. Mylan currently carries a Zacks Rank #3.
Meanwhile, Amgen Inc . AMGN and Allergan plc . AGN won FDA approval for the biosimilar version of Avastin in September 2017 for the treatment of multiple types of cancer. We note that Mvasi is the first biosimilar approved in the United States for the treatment of cancer. Amgen's biosimilar version of Humir, Amjevita, is already approved by the FDA and will be launched in the United States on Jan 31, 2023, after the company resolved litigation with the AbbVie, Inc. ABBV The companies have also submitted a BLA to the FDA for ABP 980, a biosimilar candidate to Herceptin in July 2017. We note that the companies are collaborating on four oncology biosimilars, including ABP 980, which is the second to be submitted for FDA approval. The companies also submitted a Marketing Authorization Application to the European Medicines Agency for the candidate in 2017. We note that Amgen has a total of 10 biosimilars in its pipeline, two of which have been approved by the FDA. Amgen currently carries a Zacks Rank #3.
Boehringer Ingelheim's Cyltezo (adalimumab-adbm), another biosimilar of Humira, was also approved by the FDA in August 2017.
Medical - Generic Drugs Industry 5YR % Return
Medical - Generic Drugs Industry 5YR % Return
Conclusion
Owing to the slew of FDA approvals, we expect investors to remain focused on this space in the near future.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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Pfizer, Inc. (PFE): Free Stock Analysis Report
Allergan PLC. (AGN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amgen's biosimilar version of Humir, Amjevita, is already approved by the FDA and will be launched in the United States on Jan 31, 2023, after the company resolved litigation with the AbbVie, Inc. ABBV The companies have also submitted a BLA to the FDA for ABP 980, a biosimilar candidate to Herceptin in July 2017. (AGN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report To read this article on Zacks.com click here. The FDA also granted tentative approval for Lusduna Nexvue, the biosimilar version of Lantus, basal insulin in a pre-filled dosing device. | (AGN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report To read this article on Zacks.com click here. Amgen's biosimilar version of Humir, Amjevita, is already approved by the FDA and will be launched in the United States on Jan 31, 2023, after the company resolved litigation with the AbbVie, Inc. ABBV The companies have also submitted a BLA to the FDA for ABP 980, a biosimilar candidate to Herceptin in July 2017. Medical - Generic Drugs Industry 5YR % Return Medical - Generic Drugs Industry 5YR % Return Conclusion Owing to the slew of FDA approvals, we expect investors to remain focused on this space in the near future. | Amgen's biosimilar version of Humir, Amjevita, is already approved by the FDA and will be launched in the United States on Jan 31, 2023, after the company resolved litigation with the AbbVie, Inc. ABBV The companies have also submitted a BLA to the FDA for ABP 980, a biosimilar candidate to Herceptin in July 2017. (AGN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report To read this article on Zacks.com click here. The company has a portfolio of three marketed biosimilar medicines outside the United States, including Inflectra, Retacrit (epoetin zeta) and Nivestim (filgrastim) along with a strong pipeline of 13 distinct biosimilar molecules in various stages of development. | Amgen's biosimilar version of Humir, Amjevita, is already approved by the FDA and will be launched in the United States on Jan 31, 2023, after the company resolved litigation with the AbbVie, Inc. ABBV The companies have also submitted a BLA to the FDA for ABP 980, a biosimilar candidate to Herceptin in July 2017. (AGN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report To read this article on Zacks.com click here. Pfizer is a strong player in the biosimilars market. |
25780.0 | 2018-01-05 00:00:00 UTC | Biotech: The Tide Is Turning | ABBV | https://www.nasdaq.com/articles/biotech-tide-turning-2018-01-05 | nan | nan | By SA Marketplace :
2017 has been an exciting year in the markets. All-time highs seem to fall every week, the market has shaken off three Federal Reserve rate hikes as no big deal, and there is so much Bitcoin to talk about that it makes a head spin.
It's also been an exciting year on the Seeking Alpha Marketplace. Marketplace is our platform for authors to offer investing services that go beyond what they can do in public articles. In 2017, we went from 75 authors on the platform to 157. Those authors have a wide range of expertise and backgrounds. And while 2017 has felt like a year where everything has gone in one direction - up - we wanted to draw on this diverse array of backgrounds.
So, we're doing a Year End Marketplace Roundtable series. Over the next 2 weeks or so, we will be featuring expert panels giving their outlook on 2018 in corners of the market ranging from Tech to Energy, Dividends to Alternative Strategies, Gold to Value investing. We hope you'll find these discussions useful no matter how you invest.
Today's Roundtable discusses biotech. Will 2018 be a year for mergers and acquisitions in the space, and will this be the year investing in biotech becomes "chic" again? Read on to find out what our panelists have to say.
Our panel:
Dr. Tran BioSci , author of Integrated BioSci Investing
Terry Chrisomalis , author of Biotech Analysis Central
Jerome Verony , author of Second-Level Investing
ONeil Trader , author of Growth Stock Forum
Avisol Capital Partners , author of The Total Pharma Tracker
Slingshot Insights , author of Become the Smart Money
Editors' Note - questions were sent out on November 30th and answered in early to mid December, as the U.S. tax reform bill was still pending.
Seeking Alpha: We entered 2017 with a lot of talk about lowering drug prices and fundamental changes to America's healthcare system. We leave 2017 with not much change on either front; how have you adjusted to these changing winds and where has this had an impact on your investing, if at all?
Dr. Tran BioSci: First of all, I appreciate Seeking Alpha for the opportunity to share with readers my perspective. It's an honor to be here. Without further ado, I'll jump into the questions.
Despite the increasing cost of healthcare that, in and of itself, exerts pressure on policymakers to lower the pricing of branded therapeutics, I believe that the focusing on disease prevention is more fruitful than lowering drug pricing. The innovation process (from bench research to marketing) takes roughly a decade while yielding less than 5% success rate and incurs over a billion dollars. Lowering drug pricing would hamper innovation. On the other hand, focusing on disease prevention would surely cut down healthcare costs. Discussions are healthy and constructive; however, I still bet on therapeutics innovation (and I keep my investing approach the same).
Terry Chrisomalis: Even though nothing changed on this front in 2017, it doesn't mean that action is not being taken behind the scenes. The most important thing to consider is that regulators will continue to go after higher drug prices in the coming years. This changed my investment thesis to move away from companies that have priced their drugs higher than the industry average. The best thing you can do is position yourself away from higher drug price companies now to avoid problems in the future.
For example, I have been staying away from generic drug makers such as Teva ( TEVA ), Mylan ( MYL ), and a few others. In my opinion, they are likely to be hit the most when regulators go after high drug prices. For example, Mylan was caught raising the price of its EpiPen, where the price had risen by 500% in just under a decade. It went from being around $103 back in 2009 all the way to $608.61 in 2016. The same can be said for Teva, which has continued to increase its price for Copaxone. Since 1996, Copaxone has risen by 1006%.
The problem is that these generic drug makers are already facing pricing pressure from other generics. If regulators are able to achieve their goal in 2018 in going after higher drug prices, then generics will be the first to have many problems. In addition, all the other companies that rely on charging a lot, such as rare disease treatments, will also be affected. For example, regulators are concerned about rare disease treatments costing $300,000 or more per year. Spark Therapeutics ( ONCE ) recently obtained FDA panel approval to treat a rare eye disease known as inherited retinal disorder. There has been no set price yet, but many analysts believe that Spark is attempting to price treatment for this rare disease at $1 million. Such action by regulators going after high drug prices will also greatly affect these rare disease companies. It is best to change your portfolio strategy now to avoid pitfalls and problems in the coming years.
Jerome Verony: Next to zero impact. When asked a similar question during my interview for Seeking Alpha PRO in August, I said: "In the near term, pricing concerns will linger and flare up from time to time as they make for excellent political fodder. Concrete legislative action is much more difficult to implement and I don't expect dramatic shifts in the U.S. any time soon." In hindsight, this remains a valid assessment. I tend to focus on companies that are successfully homing in on niche opportunities with a high unmet need, and that ideally benefit from orphan drug designation and other legal carve-outs, which allows my readers to be relatively indifferent with regard to potential pricing headwinds.
ONeil Trader: Yes, it had an impact. I have been avoiding and continue to avoid areas where I thought the impact could be the worst. The generics industry, for example.
Avisol Capital Partners: I have just become more cautious heading into major catalysts like PDUFAs. That is because there's a perception today that even if a drug gets approved, the company may not have pricing power given the politics around drug pricing. So, I don't go into the catalyst expecting much. I try to take out my profit from the play as much as possible, as early as I can. That's just the way it is these days. You have to deal with it because you cannot control those headwinds. However, having said that, I must also say that these things make the future a little more predictable. This has become more of a stock picker's market, which is where niche services like ours have a great deal to contribute.
Slingshot Insights: We came into 2017 very skeptical of Congress' ability to address high prescription drug prices. The rumored fixes were not likely to be very impactful if implemented or likely to gain widespread political support, in our opinion. The drug distribution industry is not well understood by legislators or the public. We continue to think that more disruptive forces on the distribution and supply side are more likely to reduce overall spend than legislation.
SA: What sub-set of biotech most interests you as you reflect on 2017 and look ahead to next year?
DTB: While there are many promising biosciences, I'm most interested in the therapeutic developers of Chimeric Antigen Receptor/T Cells Receptor ("CAR-T") - companies that provide hope to countless patients suffering from highly difficult to treat cancers as well as autoimmune diseases. To date, two CAR-Ts were FDA approved: Novartis' (NYSE: NVS ) Kymriah and Gilead Sciences' (NASDAQ: GILD ) Yescarta.
One of our biggest bets (but not our biggest winner) is Kite Pharma (NASDAQ: KITE ), the leading CAR-T developer, now acquired by Gilead Sciences: the stock delivered a whopping 82% profit in just a few months for Integrated BioSci Investing subscribers.
Notably, CAR-T is a stellar cancer-treatment breakthrough since the introduction of chemotherapy more than half a century prior. And the recent historic events opened doors to other similar firms. Other notable CAR-T innovators include Juno Therapeutics (NASDAQ: JUNO ), Atara Biotherapeutics (NASDAQ: ATRA ), and CRISPR Therapeutics (NASDAQ: CRSP ). Even companies servicing CAR-T logistics like Alpine Immune Sciences (NASDAQ: ALPN ) will benefit greatly as the new fundamental shift to focus on individualized medicine to roll out.
TC: I'm particularly fond of RNA interference or RNAi, because Alnylam ( ALNY ) was able to achieve a first by passing a phase 3 trial using an RNAi drug. That means that it could soon become the first RNAi company to obtain FDA approval. RNAi is the sub-set of biotech that interests me the most right now because of how RNAi is able to target diseases in different ways by turning off their genes.
Other RNAi companies that I would like to watch in the coming year are Arrowhead Pharmaceuticals ( ARWR ) and Arbutus Biopharma ( ABUS ), both of which are going after liver diseases. One side note I would like to mention is that Alnylam used Arbutus' Lipid nanoparticle (LPN) technology to be able to deliver patisiran to patients effectively to treat a rare nerve disorder known as familial amyloid polyneuropathy ((FAP)). RNAi was discovered in 2006, and many biotech companies have popped up since then attempting to improve upon this new type of science. RNAi works by silencing genes of a cell so that the expression of such a gene won't occur. I'm looking forward to Alnylam becoming the first RNAi company to receive FDA approval and make U.S. history.
JV: Neuroscience. The GABAergic hypothesis in depressive disorders continues to unfold thanks to Sage's pioneering work. In other words, we're looking at a new paradigm for treating depressive disorders, which is a really big deal. Benefiting from that new paradigm is Marinus Pharmaceuticals ( MRNS ) and its lead drug Ganaxolone, which explores the same GABA-A pathway in depression all the while advancing its distinct rare disease portfolio in ultra-orphan, pediatric indications.
Another recent advance in depression is Johnson & Johnson's ( JNJ ) Eskatime, which has been awarded not one, but two breakthrough therapy designations by the FDA. Oncology will continue to benefit from tremendous momentum thanks to advances in immuno-oncology and the ongoing exploration of combination therapy. Members of my premium service benefit from a number of high-quality picks in that space.
OT: I remain focused on areas with high unmet need - specialty and rare disease companies and avoiding crowded areas. Given the now ever-present pricing pressure, which is making life for biotech/pharma companies difficult in crowded areas, it makes sense to focus on products where competition is non-existent or limited or where the current standard of care is not adequate.
ACP: As part of my newly-gained caution, what I look for nowadays are small companies with a revenue-generating product. It doesn't matter how minuscule that revenue may be; just the fact that the company has done it once gives me confidence in its potential to do it again.
Take Omeros ( OMER ), for example. Here's a small company with an existing product that produces a few million dollars in yearly revenues. Supporting that is OMS721, the company's lead drug candidate targeting a number of complement-mediated thrombotic diseases. Now, OMS721 is not going to see any upside in at least one whole year. However, Omidria - that's the existing product - gives me extra confidence in Omeros' ability to do well by OMS721. So that's the subset of biotech I am looking at these days - the subset of undercovered small biotech with at least one self-developed existing revenue-generating product in the market.
SI: Our members continue to focus on the immuno-oncology space as an area of significant and meaningful innovation. With the first CAR-T therapies approved in 2017, we see this as an area for increased success and large-cap focus.
SA: What was the big story or lesson learned for you in 2017?
DTB: Diversification, diversification, and more diversification. I believe in Warren Buffett's philosophy, so I recommend investors to bet heavily on companies that I thoroughly research. Buffett believes that one does not need to extensively diversify after extensive research due diligence is in place.
In my opinion, that is true for nearly all industries; however, the bioscience sector is a different beast (especially for young companies with drugs in development). Hence, young biosciences needed to be treated accordingly. As I alluded, bioscience investors should exercise adequate diversifications (to increase one's chances of finding multi-folds winners). Diversification delivered a gargantuan win for Integrated BioSci Investing, in the form of over 182% profits with Nektar Therapeutics (NASDAQ: NKTR ). Equally as important, diversification helped us absorb the loss of over 80% when Versartis (NASDAQ: VSAR ) failed to post positive data by a thin margin. Diversification aside, extensive due diligence with an edge in the medical and scientific analysis is important to achieving stellar returns.
TC: I would say that the big story is that there were a lot of biotech companies that bounced back after their stocks fell. You should never count out a biotech company after its stock price has fallen by a large amount. This is especially true of pharmaceutical companies with larger pipelines. All it takes is one set of good results or news to swing a biotech stock up by 100% or more.
Investing in the biotech sector is kind of like a roller coaster ride; it has huge ups and downs. For example, in the beginning of 2017 (January), Esperion Therapeutics ( ESPR ) traded in the low teens. From January 2017 till now, about a one-year period, it has gained 354%. In June 2016, things looked bleak for the company, as it said that it would have to run a safety trial for eventual approval of its drug. Well about a year later, things are going smoothly and the stock has recovered. This was one of a few major stories in 2017 that I have looked into closely and appreciated as a major story.
JV: Never underestimate momentum! Whether we're looking at biotech stocks or a new phenomenon like crypto-currencies, stories matter as much as underlying, fundamental value. I remain focused on underlying value and special, event-driven situations but I'm also mindful of incorporating the momentum aspect into my analysis going forward. MRNS is a great example of a stock that benefits from improving fundamentals and a lot of momentum at the same time.
OT: Ignore headlines and short-term sentiment (both positive and negative); focus on fundamentals.
ACP: A bunch of us at ACP are doctors with years of clinical experience and so we are usually pretty good at predicting approval probabilities. However, in 2017, we learned that even when we predict an approval correctly, timing is everything. So, at least twice, we predicted an approval correctly, bought into the stock, didn't sell out before approval because we were so confident, were proven right - the drug got approved - and then the stock tanked. Now I am not saying those stocks won't recover. However, we don't like our money getting locked down like that. So, what we learned - re-learned, to be precise - is to time our entry and exit right. You can be right about everything and still lose money if you don't get out at the right time.
SI: The failure for any significant change in the healthcare landscape from the government was something we anticipated, but think surprised people.
SA: What are you preparing for in 2018? Any big themes to watch out for?
DTB: As I alluded to earlier, it is not far from the truth that more CAR-Ts will gain regulatory approvals going forward (and we'll witness increasing number of new individualized cancer treatments to hit the news). Going into 2018, I expect the market will be in an anticipation mode for the unlocking value of those aforesaid prospects. Hence, I expect CAR-T developers to deliver increasing value to investors next year. Beyond that, it is most likely that CAR-T will deliver hope for countless patients worldwide.
TC: I am preparing to see a lot more mergers in 2018. It seems as though 2017 was a little lighter in terms of biotech mergers. It is believed that 2016 had more mergers/acquisitions. There were some big deals here and there, but I believe that in 2018, there should be an upswing in mergers, especially since many big pharmaceutical companies are losing a lot of their patents or have a reduction in their pipeline due to drug failures.
Another reason would be if the tax reform ends up being passed here in the United States. That's because if the corporate tax rate is reduced from 35% to 20%, it will mean more profits for pharmaceutical companies. In tandem, such companies could put their cash to work by either merging with a company for flat out acquiring one. Gilead's acquisition of Kite Pharma for $11.9 billion was a major deal in 2017. It did so to get its hand on the new hot treatment for immunotherapy known as CAR-T or chimeric antigen receptor. I see 2018 as being a better year for mergers, and that means more profits for investors.
JV: Fundamentally, I'll continue to focus on high-quality, under-the-radar companies that provide opportunities for significant appreciation over a one-year period. Discovery and due diligence are gradual processes for me, and my readers will continue from that ongoing work next year. One "project" that is picking up steam is helping readers benefit from expert opinions and corporate access more and more, in the form of interview transcripts. Most recently, I was able to interview the CEO of Zymeworks ( ZYME ) on their science and their plans for the near future.
OT: The opioid crisis is a major theme and I have positioned a part of my portfolio in companies addressing the issue or that have the potential (drugs in development) to address the issue by offering non-opioid options for the treatment of pain. Gene therapy is a hot field right now, but I have modest exposure there due to high valuations - if that changes, I would look to increase exposure there.
ACP: With the christening of a new FDA commissioner in mid-2017, we see that suddenly, approvals have become less scarce. Scott Gottlieb, MD, has been good for biotech. Although we are still not at pre-2014 levels, we are doing better than last year.
The tides, I must say, have turned, and I look forward to 2018 as being the year when investing in biotech becomes chic again. There are more IPOs, and more funds - even generalist money - are going into biotech. Pricing issues, once a major terror, are slowly losing their fangs. Trump, our upstart American President, has not been bad for biotech. Having said that, remember that the EMA is moving from London to Amsterdam as part of Brexit. So, expect some delays in approvals in that geography in 2018.
SI: We think that M&A will be a major trend in 2018 driven by 3 main forces. First, the passage of the tax reform bill will increase established players' access to capital. Secondly, the lack of significant changes in the distribution or payment of healthcare should support investment in new drugs and technologies. Lastly, innovation continues to come from small, focused companies rather than the pipelines of large-cap players. These innovative technologies will be purchased and then supported through launch.
SA: What is one of your best ideas for 2018, and what is the story?
DTB: While there are many potentially highly profitable ideas that I discussed with subscribers of Integrated BioSci Investing (and more to come), I vote the best idea of 2018 is Protalix BioTherapeutics (NYSE: PLX ). Based in Karmiel, Israel, Protalix is innovating a disruptive portfolio of enzyme replacement therapies ("ERT") to service various orphan conditions, including cystic fibrosis, gaucher as well as Fabry diseases.
While the stock was beaten down in the second half of 2017, it still gained over 21% for the year. 2018 can be a special year for Protalix, as lead molecule PRX-102 (potentially to replace the standard of care for Fabry disease) will post its phase 3 trial results. If the data turns out positive as we prognosticated, the stock has the potential to increase multiple-fold (due to its small market cap and the blockbuster market that it will most likely procure). The early data suggested that PRX-102 exhibits substantially fewer antibodies formation (and antibodies that only remain temporary in the patient's blood), thus making it more efficacious and safe than conventional ERTs.
Protalix recently found a marketing partner (Chiesi) for PRX-102, which adds further merit to the investing thesis (as well as provides the company with needed resources and more funding for this therapeutic innovation).
I wish to send my warm appreciation to SA, Integrated BioSci Investing subscribers, and featured experts like Biotech Beast, Decision Analytics, Terry Chrisomalis, other fellow SA authors, and readers. I received much support from you all in 2017. It has been an exciting year, full of hopes and surprises, much profits and learning. I look forward to delivering more stellar research and consulting, as well as learning from you all.
TC: My best idea for 2018 would be Conatus Pharmaceuticals ( CNAT ). The reason why is because it has a pivotal phase 2 trial result to report in the first half of 2018. It is a major inflection point for the company, because it will prove whether or not its drug emricasan is effective in liver diseases. A good set of results from the phase 2 POLT-HCV-SVR study will likely result in the stock trading higher. It is one of the few biotech companies that is going after both NASH Cirrhosis and NASH fibrosis. There are plenty of other biotech companies going after NASH fibrosis - maybe 100 or more (estimate) - but NASH cirrhosis is an untapped field.
The only other player that I know of going after NASH Cirrhosis is Galectin Therapeutics ( GALT ), which reported its data. The problem is that it showed that it might achieve statistical significance in a sub-population of NASH cirrhosis patients, but failed to achieve its primary endpoint in the phase 2 trial for the entire NASH cirrhosis population. That means it will have to run a large phase 3 trial to determine if its drug GR MD 02 can help improve the liver of these patients with NASH cirrhosis.
That leaves Conatus as one of the few biotechs left to target NASH cirrhosis. If the results are highly positive, it will not only prove that emricasan works in liver diseases, but it will also validate the rest of the pipeline targeting other liver indications. The other three targets are NASH fibrosis, NASH cirrhosis portal hypertension, and NASH cirrhosis itself. I feel that Conatus has a good shot at succeeding, and is probably a big reason why Novartis has already partnered with Conatus for its emricasan program. If the phase 2 results come out positive, that will lead Novartis to be responsible for the phase 3 study for that indication, and all other liver indications for emricasan.
JV: Marinus Pharmaceuticals is on a perfect trajectory - it has a drug candidate that addresses ultra-orphan, pediatric indications (CDKL5 & PCDH19 Epilepsy) and benefits from validation of a very similar asset in multiple, large depressive disorders (PPD & MDD). Their cash runway extends to 2020 and they're in the process of making some important hires. The stock ( MRNS ) is being added to the NASDAQ Biotech Index ( IBB ) effective December 18, which will provide further capital inflows in 2018. Last but not least, smart investors including Bain Capital and Deerfield have filed large stakes in H2 2017.
With important catalysts (data readouts and regulatory updates) just around the corner, this is one stock you don't want to miss out on in 2018. I established a position in H1 2017 and I'm still holding on to more than 90% of my shares despite the significant run-up as there's still lots of room for appreciation.
OT: It's really hard to pick one as there are several stocks I really like for 2018, but if I had to pick one, it would be Neurocrine Biosciences ( NBIX ). It probably doesn't have the most significant upside potential among the stocks in my portfolio, but it has a lot of positive things going in its favor - the company recently launched Ingrezza, a treatment for tardive dyskinesia and the uptake has been quite strong and this drug is a potential blockbuster. Neurocrine also has another potential blockbuster, elagolix, which it partnered with AbbVie ( ABBV ) and which should receive approval for endometriosis in 1H 2018 and report top-line results for uterine fibroids in the following weeks. We should also know the fate of the company's third product candidate opicapone after the meeting with the FDA in Q1 2018 - whether Neurocrine will have to do a new phase 3 trial or if it can submit with phase 3 data on hand. And finally, the pipeline will expand with one or two candidates entering the clinic and other trials advancing, like Ingrezza in pediatric Tourette syndrome.
ACP: I first covered Omeros on Seeking Alpha when it was trading near $13 couple months ago. Just today (response submitted on December 18, 2017), as I published a complete research report on the stock for my subscribers, the stock is up almost 80%, trading near $20. My base case scenario values the stock at $35 in an 18-month time frame; bullish case, I see $100.
The story is simple; this is a
This is the same market where we have the world's most expensive drug, Soliris, making billions of dollars every year. OMS721 is claimed to have some advantages over Soliris. One, it doesn't alter the classic immune pathways - meaning, it leaves the immune system in proper working condition so there's less risk of treatment-emergent infections, which could be fatal. Second, it is taken subcutaneously, or in the case of about-to-be developed small molecules, orally even. Plus of course Soliris is priced at over $750,000 in some geographies. My base case model assumes only $150,000 as the price of OMS721 and gets $35 as the price target. Of course that is laughably conservative. So that's the story. We try to cover stocks like these in two detailed, analyst-firm style research reports every month. These go to our subscribers.
SI: SI doesn't make single name stock picks, but we think highly innovative therapies with meaningful patient impact will be the best performing assets. This means cures, disease modification, or platform plays that bend the curve of cost and life expectancy will be most sought after.
Thanks again to our panel. If you're interested in any of their work, check out the links below:
Dr. Tran BioSci , author of Integrated BioSci Investing
Terry Chrisomalis , author of Biotech Analysis Central
Jerome Verony , author of Second-Level Investing
ONeil Trader , author of Growth Stock Forum
Avisol Capital Partners , author of The Total Pharma Tracker
Slingshot Insights , author of Become the Smart Money
Follow the SA Marketplace account if you enjoy getting interviews and roundtable discussions with some of our top authors, as well as updates on what's going on with the Marketplace. We're wrapping up our year-end series tomorrow, and will be back to regular features next week.
Tomorrow's Theme: Top Picks for 2018
See also ConocoPhillips: My Top Energy Bet For 2018 on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Neurocrine also has another potential blockbuster, elagolix, which it partnered with AbbVie ( ABBV ) and which should receive approval for endometriosis in 1H 2018 and report top-line results for uterine fibroids in the following weeks. I tend to focus on companies that are successfully homing in on niche opportunities with a high unmet need, and that ideally benefit from orphan drug designation and other legal carve-outs, which allows my readers to be relatively indifferent with regard to potential pricing headwinds. DTB: While there are many promising biosciences, I'm most interested in the therapeutic developers of Chimeric Antigen Receptor/T Cells Receptor ("CAR-T") - companies that provide hope to countless patients suffering from highly difficult to treat cancers as well as autoimmune diseases. | Neurocrine also has another potential blockbuster, elagolix, which it partnered with AbbVie ( ABBV ) and which should receive approval for endometriosis in 1H 2018 and report top-line results for uterine fibroids in the following weeks. Our panel: Dr. Tran BioSci , author of Integrated BioSci Investing Terry Chrisomalis , author of Biotech Analysis Central Jerome Verony , author of Second-Level Investing ONeil Trader , author of Growth Stock Forum Avisol Capital Partners , author of The Total Pharma Tracker Slingshot Insights , author of Become the Smart Money Editors' Note - questions were sent out on November 30th and answered in early to mid December, as the U.S. tax reform bill was still pending. DTB: While there are many promising biosciences, I'm most interested in the therapeutic developers of Chimeric Antigen Receptor/T Cells Receptor ("CAR-T") - companies that provide hope to countless patients suffering from highly difficult to treat cancers as well as autoimmune diseases. | Neurocrine also has another potential blockbuster, elagolix, which it partnered with AbbVie ( ABBV ) and which should receive approval for endometriosis in 1H 2018 and report top-line results for uterine fibroids in the following weeks. Our panel: Dr. Tran BioSci , author of Integrated BioSci Investing Terry Chrisomalis , author of Biotech Analysis Central Jerome Verony , author of Second-Level Investing ONeil Trader , author of Growth Stock Forum Avisol Capital Partners , author of The Total Pharma Tracker Slingshot Insights , author of Become the Smart Money Editors' Note - questions were sent out on November 30th and answered in early to mid December, as the U.S. tax reform bill was still pending. That is because there's a perception today that even if a drug gets approved, the company may not have pricing power given the politics around drug pricing. | Neurocrine also has another potential blockbuster, elagolix, which it partnered with AbbVie ( ABBV ) and which should receive approval for endometriosis in 1H 2018 and report top-line results for uterine fibroids in the following weeks. That is because there's a perception today that even if a drug gets approved, the company may not have pricing power given the politics around drug pricing. Hence, I expect CAR-T developers to deliver increasing value to investors next year. |
25781.0 | 2018-01-04 00:00:00 UTC | Can AbbVie (ABBV) Stock Keep the Momentum Alive in 2018? | ABBV | https://www.nasdaq.com/articles/can-abbvie-abbv-stock-keep-the-momentum-alive-in-2018-2018-01-04 | nan | nan | AbbVie Inc.ABBV shares are expected to be northbound in 2018, carrying on the momentum achieved last year. The stock was up 54.4% in 2017, comparing favorably with a gain of 16.3% recorded by the industry .
AbbVie carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Last year's share price surge was supported by a series of positive news. AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis.
Meanwhile, AbbVie gained regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine Mavyret and FDA approval for the sixth indication for cancer drug Imbruvica in 2018.
AbbVie also settled its patent disputes with Amgen AMGN , which delayed the launch of the latter's biosimilar version of AbbVie's blockbuster arthritis drug, Humira in the United States to 2023 and in most countries in the EU to October 2018.
This agreement has removed a major overhang on AbbVie's shares. Moreover, the agreement gave AbbVie ample time to focus on developing its pipeline and launching new products that will help make up for the loss of revenues once biosimilar Humira enters the market.
Factors Likely to Support the Rally in 2018
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock should continue in 2018. An important catalyst for the stock will be data from a pivotal phase III (TRINITY) study on Rova-T in third-line or later small cell lung cancer (SCLC) in the first half of the year. An important regulatory milestone will be the FDA decision on elagolixin the second quarter. Please note that the new drug application (NDA) for elagolix for endometriosis was granted priority review by the FDA in October last year.
Importantly Humira has been generating strong sales. Despite new competition, AbbVie raised its long-term target for Humira sales in October based on strong demand trends for the drug. Imbruvica, AbbVie's second most important drug, is also doing consistently well and has multibillion dollar potential. AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. All these factors bode well for 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Moreover, the agreement gave AbbVie ample time to focus on developing its pipeline and launching new products that will help make up for the loss of revenues once biosimilar Humira enters the market. AbbVie Inc.ABBV shares are expected to be northbound in 2018, carrying on the momentum achieved last year. AbbVie carries a Zacks Rank #2 (Buy). | AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV shares are expected to be northbound in 2018, carrying on the momentum achieved last year. | AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis. AbbVie also settled its patent disputes with Amgen AMGN , which delayed the launch of the latter's biosimilar version of AbbVie's blockbuster arthritis drug, Humira in the United States to 2023 and in most countries in the EU to October 2018. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV shares are expected to be northbound in 2018, carrying on the momentum achieved last year. AbbVie carries a Zacks Rank #2 (Buy). AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis. |
25782.0 | 2018-01-04 00:00:00 UTC | ABBV Crosses Above Average Analyst Target | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-average-analyst-target-2018-01-04 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $98.69, changing hands for $99.95/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher - if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $84.00. And then on the other side of the spectrum one analyst has a target as high as $115.00. The standard deviation is $10.322.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $98.69/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $98.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com . Get the latest Zacks research report on ABBV - FREE .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $98.69, changing hands for $99.95/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $98.69/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $98.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $98.69, changing hands for $99.95/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. | There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. And so with ABBV crossing above that average target price of $98.69/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $98.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $98.69, changing hands for $99.95/share. | There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $98.69, changing hands for $99.95/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
25783.0 | 2018-01-04 00:00:00 UTC | 3 Large-Cap Pharma Stocks to Watch Out for This New Year | ABBV | https://www.nasdaq.com/articles/3-large-cap-pharma-stocks-to-watch-out-for-this-new-year-2018-01-04 | nan | nan | The year 2017 has turned out to be pretty impressive for the pharma/biotech stocks. Though the industry was hampered by drug pricing issues in 2016, it bounced back and made a considerable headway in 2017, courtesy of a slew of FDA approvals. The regulatory body approved 46 novel drugs last year, easily surpassing 2016's total tally of 22.
Particularly, large-cap players in the industry raked in stellar returns, up 15.8% in the last 12 months. Nonetheless, the same space also posted a 5.2% decline in 2016.
Upbeat quarterly results, rise in demand for new product sales, successful innovation and product line expansion, strong clinical study results as well as a continued strong performance of legacy products propelled the large-cap drug sector to scale new highs in 2017. Moreover, these tailwinds are expected to drive the sector's growth in 2018.
Meanwhile, jubilant Republicans have of late passed the tax overhaul bill for the first time in 30 years. The bill slashes corporate tax rates from 35% to 21%. Such tax reduction is likely to further boost profit margins of these companies with more cash left in hand. This, in turn can also be used for striking strategic deals this year, which were relatively fewer in 2017.
Notably, the Large Cap Pharma sub-industry carries a Zacks Industry Rank of #104, placing it among the top 39% of the 265 plus Zacks industries. Our backtesting shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
Banking on such positive trends, investing in sound large-cap pharma stocks this year seems judicious. We have therefore identified three Large Cap stocks based on a favorable combination of a solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and a strong VGM Score of A or B. These stocks are backed by sound fundamentals and ensure a steady stream of cash inflows.
Back-tested results show that only stocks with an impressive VGM Style Score of A or B when combined with a bullish Zacks Rank of 1 or 2, offer the best upside potential.
Below are the selected three companies, poised to continue their winning streak this year:
AbbVie Inc.ABBV
This Illinois-based biopharmaceutical company is a lucrative option. The stock has a Zacks Rank #2 (Buy) and a VGM Score of B. Shares of the company have soared 57.9% in a year's time. Moreover, the stock's earnings and sales are further estimated to increase 18.2% and 11.8%, respectively, in 2018.
These positive trends were supported by a series of positive news in the past few months. AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen AMGN .
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock is expected to continue this year.
Novo-Nordisk A/SNVO
We also recommend Novo Nordisk, the Denmark-based global healthcare company and a leader in the worldwide diabetes market. Shares of the company have surged 51.2% in a year's time. Moreover, the stock's earnings and sales are further estimated to increase 5.3% and 1.5%, respectively, in 2018.
Currently the stock, with VGM Score of B, carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Novo-Nordisk has been in news for the past few months based on the encouraging progress of its diabetes pipeline. In December 2017, Novo Nordisk announced that the FDA has approved its semaglutide once-daily pre-filled pen to improve glycaemic control in type II diabetes patients. It will be marketed by the trade name of Ozempic.
The company expects to launch Ozempic in the United States in the beginning of 2018. Meanwhile, in September, the FDA had approved Fiasp (fast-acting insulin aspart) for treating adults with diabetes.
In August, the FDA had approved label expansion of the company's diabetes drug, Victoza, now approved to reduce the risk of major adverse cardiovascular events in adults with type II diabetes.
The company's label expansion efforts and the corresponding approvals bode well for its growth.
Roche Holding AGRHHBY
Investors can count on Switzerland-based Roche Holding with a VGM Score of B. The company is a Zacks #2 Ranked player with its shares having gained 10.1% in the last 12 months.
Roche dominates the breast cancer space with strong demand for its HER2 franchise drugs like Herceptin, Perjeta and Kadcyla. The company also has a dominant position in lung cancer market.
The company is looking for a label expansion of drugs namely, Actemra, which was approved for the treatment of giant cell arteritis last May. This is the sixth FDA approval for Actemra since the medicine was launched in 2010.
Moreover, the recent FDA approval of Hemlibra for routine prophylaxis to prevent or reduce the frequency of bleeding episodes in patients with haemophilia A is encouraging. Also, the potential acquisition of Ignyta - announced a couple of weeks earlier - is likely to strengthen Roche 's pipeline as the integration will add a mid-stage cancer candidate entrectinib to its portfolio.
Continuous label expansions of key drugs, regular approvals and a robust pipeline are expected to drive the stock in 2018.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen AMGN . Below are the selected three companies, poised to continue their winning streak this year: AbbVie Inc.ABBV This Illinois-based biopharmaceutical company is a lucrative option. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Below are the selected three companies, poised to continue their winning streak this year: AbbVie Inc.ABBV This Illinois-based biopharmaceutical company is a lucrative option. AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen AMGN . | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Below are the selected three companies, poised to continue their winning streak this year: AbbVie Inc.ABBV This Illinois-based biopharmaceutical company is a lucrative option. AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen AMGN . | Below are the selected three companies, poised to continue their winning streak this year: AbbVie Inc.ABBV This Illinois-based biopharmaceutical company is a lucrative option. AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen AMGN . Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25784.0 | 2018-01-04 00:00:00 UTC | 18 Reasons I Like Biotech Stocks in 2018 | ABBV | https://www.nasdaq.com/articles/18-reasons-i-biotech-stocks-2018-2018-01-04 | nan | nan | Investing in biotech stocks comes with its own set of rules . Some people think biotech stocks are too risky. Not me. In my view, the potential for returns more than compensates for the risks -- with the right biotechs, at least.
I liked biotech stocks in 2017, and I still like them now that a new year has begun. Here are 18 reasons I continue to think biotech stocks are smart picks in 2018.
1. Solid momentum from 2017
The Nasdaq Biotechnology Index jumped more than 21% in 2017. That's solid momentum that I suspect will continue. And despite the nice gains, biotech stocks as a group have pulled back over the last couple of months from their 52-week highs set in early October.
2. There are still bargains to be found
Even with many biotech stocks enjoying solid returns last year, there are still bargains to be found. Gilead Sciences (NASDAQ: GILD) , for example, trades at less than 11 times expected earnings. Celgene 's (NASDAQ: CELG) forward earnings multiple is a little over 12, with the stock looking even more attractively valued considering the biotech's growth prospects.
3. Tax reform means higher earnings
Whether you personally love or hate the GOP's tax cuts, it should be good news for many U.S. biotechs. With the corporate tax rate lowered from 35% to 21% beginning in 2018, that should mean improved earnings for many companies in the industry. And higher earnings often translates to higher share prices.
4. Some are likely to make acquisitions
2017 was a relatively quiet year for biotech mergers and acquisitions. I expect more activity this year, thanks in large part to the aforementioned corporate tax reform. Which big biotechs are likely to make deals? Just throw a dart at a list of biotech stocks with market caps of $30 billion or more. Chances are that you'll hit one that could make a significant acquisition in 2018.
5. Some are likely to be acquired
While acquisitions could provide a boost to big biotech stocks like Gilead, they could mean enormous returns for smaller biotechs finding themselves as targets for the larger players. There are quite a few that I think could be in the cross-hairs. In particular, I suspect Madrigal Pharmaceuticals (NASDAQ: MDGL) could attract considerable interest. Madrigal announced promising phase 2 results in December for MGL-3196 in treating non-alcoholic steatohepatitis, a potentially lucrative indication on which several huge drugmakers have already invested heavily.
6. Solid growth prospects for many existing drugs
Many of the biggest drugs of 2017 will be even more successful this year. AbbVie (NYSE: ABBV) is on track to make $18 billion from top-selling Humira for 2017. I expect Humira will rake in close to $20 billion this year. Celgene's Revlimid, the No. 2 best-selling drug last year, appears likely to increase sales to more than $9 billion -- another double-digit percentage year-over-year increase.
7. Great new products on the way
Several biotechs should launch drugs in 2018 that could become the biggest blockbusters of the future. Probably the most exciting launch of all is Gilead's bictegravir/F/TAF combo. An approval decision from the FDA is expected by February for the HIV therapy. If approved as expected, Gilead could make $5 billion annually from bictegravir/F/TAF by 2022.
8. Tremendous pipeline potential
Even more exciting is the pipeline potential for biotechs. For example, there are nearly 2,000 cancer immunotherapies in clinical or pre-clinical testing. And that's just one area. Ligand Pharmaceuticals (NASDAQ: LGND) could be a poster child of pipeline potential. The biotech claims a market cap of less than $3 billion but has a pipeline including dozens of drugs across multiple indications using its technologies.
9. Lots of cash for the big players
While gravitational forces make the world go 'round, cash is pretty important for doing the same thing for biotech stocks. I like that many big biotechs are currently sitting on lots of cash and could have even more thanks to tax reform. What I like even better is what the companies could do with that cash, including buybacks, acquisitions (see point No. 4), and, for a select few, paying dividends.
10. Surprisingly strong dividends available
That leads me to the next reason I like some biotech stocks -- their dividends. Two that have already been mentioned, AbbVie and Gilead Sciences, pay excellent dividends. AbbVie's yield currently stands just under 3%, while Gilead's dividend yields only a little less at 2.9%.
11. Drug pricing changes: all talk and no action
Investors have been anxious at times over the past couple of years about the prospects for major drug pricing changes by the U.S. government, which caused biotech stock prices to drop. I'm not too worried about drastic changes in 2018, though. My hunch is that there will be a lot more talk than action on drug pricing this year.
12. A better, faster FDA
I do think the FDA deserves an "attaboy." New FDA chief Scott Gottlieb has hinted at more flexibility in approving drugs quickly by methods such as using data from smaller and faster clinical trials. That should be a good thing for many biotech stocks in 2018 and beyond.
13. They help sick people
Sometimes we can get lost in the minutiae of investing and miss the big picture. The big picture is that there are still a lot of sick people throughout the world who need prescription medications. I like owning a piece of a company that makes a positive difference -- and, despite some controversies over pricing and other matters, biotechs make a positive difference for many people. Just ask patients who have been cured of hepatitis C by Gilead's drugs or patients whose cancer went into remission because of new immunotherapies.
14. There will be even more sick people
Returning to the colder, harder investing focus, the reality is that even with more effective therapies there will be more sick people in 2018 than there were last year. And there will be more in coming years with aging populations in the U.S. and across the globe. That translates to increased demand for biotechs.
15. They're more stable than bitcoin
You'll sometimes hear about how volatile biotech stocks are. And they can be quite volatile. But I think over the long run, in aggregate, they'll be less volatile and more stable than cryptocurrencies like bitcoin.
16. Several lower-risk ways to invest
Some might challenge the previous point by noting individual biotech stocks that have exhibited significantly more volatility than bitcoin. However, another reason I like biotech stocks is that there are several lower-risk alternatives for investing in them. I'm speaking, of course, about biotech ETFs. My favorite right now is the SPDR S&P Biotech ETF , but there are other top biotech ETFs to consider as well.
17. I write about them
I don't like biotech stocks just because I write about them, but I do write about them because I like them. Biotech is a fascinating world to me. Investing in biotech stocks is even more intriguing. So even if I didn't have a penny to invest, I'd still like biotech stocks.
18. They've made me lots of money in the past -- and should continue to do so
Finally, the clincher: I like biotech stocks for 2018 because they've made plenty of money for me in the past -- and I expect to make plenty more this year and in the future. One of my top winners from 2017 was AbbVie, which generated a total return of 60%. The SPDR S&P Biotech ETF generated a return of more than 40% for me last year. Even Celgene (which fell nearly 10% in 2017 -- my biggest loser) has still generated nice returns since I bought the stock a few years ago. Not every biotech stock will be a winner, of course. I think that biotech stocks in general, though, will perform well in 2018 and over the long run. That's the best reason of all to like them.
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Keith Speights owns shares of AbbVie, Celgene, Gilead Sciences, and SPDR S&P Biotech. The Motley Fool owns shares of and recommends Celgene and 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.
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) is on track to make $18 billion from top-selling Humira for 2017. Two that have already been mentioned, AbbVie and Gilead Sciences, pay excellent dividends. AbbVie's yield currently stands just under 3%, while Gilead's dividend yields only a little less at 2.9%. | *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Celgene, Gilead Sciences, and SPDR S&P Biotech. AbbVie (NYSE: ABBV) is on track to make $18 billion from top-selling Humira for 2017. Two that have already been mentioned, AbbVie and Gilead Sciences, pay excellent dividends. | *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Celgene, Gilead Sciences, and SPDR S&P Biotech. AbbVie (NYSE: ABBV) is on track to make $18 billion from top-selling Humira for 2017. Two that have already been mentioned, AbbVie and Gilead Sciences, pay excellent dividends. | AbbVie (NYSE: ABBV) is on track to make $18 billion from top-selling Humira for 2017. Two that have already been mentioned, AbbVie and Gilead Sciences, pay excellent dividends. AbbVie's yield currently stands just under 3%, while Gilead's dividend yields only a little less at 2.9%. |
25785.0 | 2018-01-03 00:00:00 UTC | Biggest Blockbuster Drugs of All Time | ABBV | https://www.nasdaq.com/articles/biggest-blockbuster-drugs-all-time-2018-01-03 | nan | nan | A prescription drug that surpasses $1 billion in sales is known as a blockbuster. It's a rare feat, but when a pharmaceutical company finds a true blockbuster drug the payoff is enormous. How enormous? Check out the three best-selling prescription drugs of all time.
SEE ALSO: 15 All-Time Best-Selling Prescription Drugs
Blockbuster Drug #1: Lipitor
Company: Pfizer ( PFE )
Treats: High cholesterol
Lifetime sales: $150.1 billion
Originally developed by Warner-Lambert, Lipitor was approved in the U.S. in 1997. Pfizer acquired its rival in 2000 to gain sole ownership of the cholesterol-fighting drug - and it was well worth it. At one point, Lipitor accounted for one-fourth of Pfizer's sales. The patent expired in 2011.
Blockbuster Drug #2: Humira
Company: AbbVie ( ABBV )
Treats: Ankylosing spondylitis, arthritis, Crohn's disease, plaque psoriasis, ulcerative colitis
Lifetime sales: $109.2 billion
Doctors praise Humira's ability to combat damaging inflammation caused by a number of diseases. Sales will likely peak in 2018 as the drug begins to lose patent protection, but it's been a heck of a run. Humira is owned by AbbVie, an industry giant that was spun off from Abbott Labs in 2013.
Blockbuster Drug #3: Advair
Company: GlaxoSmithKline ( GSK )
Treats: Chronic obstructive pulmonary disease, asthma
Lifetime sales: $95.7 billion
Advair has been a huge seller since its approval in 2001. And even though its U.S. patent expired in 2010, no successful generic competitor has surfaced. Copying the drug isn't the problem. Rather, rivals have yet to figure out how to copy the inhaler. Until they do, Glaxo investors can breathe easy.
SEE ALSO: 10 Blockbuster Drugs of the Future
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Blockbuster Drug #2: Humira Company: AbbVie ( ABBV ) Treats: Ankylosing spondylitis, arthritis, Crohn's disease, plaque psoriasis, ulcerative colitis Lifetime sales: $109.2 billion Doctors praise Humira's ability to combat damaging inflammation caused by a number of diseases. Humira is owned by AbbVie, an industry giant that was spun off from Abbott Labs in 2013. It's a rare feat, but when a pharmaceutical company finds a true blockbuster drug the payoff is enormous. | Blockbuster Drug #2: Humira Company: AbbVie ( ABBV ) Treats: Ankylosing spondylitis, arthritis, Crohn's disease, plaque psoriasis, ulcerative colitis Lifetime sales: $109.2 billion Doctors praise Humira's ability to combat damaging inflammation caused by a number of diseases. Humira is owned by AbbVie, an industry giant that was spun off from Abbott Labs in 2013. SEE ALSO: 15 All-Time Best-Selling Prescription Drugs Blockbuster Drug #1: Lipitor Company: Pfizer ( PFE ) Treats: High cholesterol Lifetime sales: $150.1 billion Originally developed by Warner-Lambert, Lipitor was approved in the U.S. in 1997. | Blockbuster Drug #2: Humira Company: AbbVie ( ABBV ) Treats: Ankylosing spondylitis, arthritis, Crohn's disease, plaque psoriasis, ulcerative colitis Lifetime sales: $109.2 billion Doctors praise Humira's ability to combat damaging inflammation caused by a number of diseases. Humira is owned by AbbVie, an industry giant that was spun off from Abbott Labs in 2013. SEE ALSO: 15 All-Time Best-Selling Prescription Drugs Blockbuster Drug #1: Lipitor Company: Pfizer ( PFE ) Treats: High cholesterol Lifetime sales: $150.1 billion Originally developed by Warner-Lambert, Lipitor was approved in the U.S. in 1997. | Blockbuster Drug #2: Humira Company: AbbVie ( ABBV ) Treats: Ankylosing spondylitis, arthritis, Crohn's disease, plaque psoriasis, ulcerative colitis Lifetime sales: $109.2 billion Doctors praise Humira's ability to combat damaging inflammation caused by a number of diseases. Humira is owned by AbbVie, an industry giant that was spun off from Abbott Labs in 2013. SEE ALSO: 15 All-Time Best-Selling Prescription Drugs Blockbuster Drug #1: Lipitor Company: Pfizer ( PFE ) Treats: High cholesterol Lifetime sales: $150.1 billion Originally developed by Warner-Lambert, Lipitor was approved in the U.S. in 1997. |
25786.0 | 2018-01-03 00:00:00 UTC | Stocks With Rising Relative Price Strength: Grifols | ABBV | https://www.nasdaq.com/articles/stocks-rising-relative-price-strength-grifols-2018-01-03 | nan | nan | On Wednesday, Grifols ( GRFS ) hit an important technical milestone, with its Relative Strength ( RS ) Rating moving into the 80-plus percentile with an improvement to 82, up from 78 the day before.
[ibd-display-video id=2102289 width=50 float=left autostart=true] This unique rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
Over 100 years of market history shows that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 as they launch their biggest runs.
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Grifols is trying to complete a cup without handle with a 24.30 buy point . See if the stock can break out in volume at least 40% above average.
Grifols showed 4% EPS growth last quarter, while sales growth came in at 11%.
The company holds the No. 3 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ) is the No. 1-ranked stock within the group.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) is the No. On Wednesday, Grifols ( GRFS ) hit an important technical milestone, with its Relative Strength ( RS ) Rating moving into the 80-plus percentile with an improvement to 82, up from 78 the day before. Try This Simple Routine Grifols is trying to complete a cup without handle with a 24.30 buy point . | AbbVie ( ABBV ) is the No. Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? How Relative Strength Line Can Help You Judge A Stock The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) is the No. [ibd-display-video id=2102289 width=50 float=left autostart=true] This unique rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes. Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ) is the No. [ibd-display-video id=2102289 width=50 float=left autostart=true] This unique rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes. Biotech And Pharmaceutical Industry And Stock News Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? |
25787.0 | 2018-01-02 00:00:00 UTC | 3 Best Big Pharma Stocks to Buy for 2018 | ABBV | https://www.nasdaq.com/articles/3-best-big-pharma-stocks-buy-2018-2018-01-02 | nan | nan | If you're expecting massive revenue growth for 2018 among big pharma stocks, think again. Despite hot new drugs for several major drugmakers, many of them also will likely be held back by declining sales for older drugs. Wall Street only expects low single-digit percentage revenue growth next year for most big pharma stocks. That doesn't mean, of course, that these companies won't see solid earnings growth, especially with new corporate tax rates in effect.
Still, though, several big pharma stocks should enjoy solid revenue and earnings growth in 2018. Here's why Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) appear to be the best big pharma stocks to buy for 2018.
Johnson & Johnson
Johnson & Johnson is on track to generate revenue topping $75 billion this year. The consensus among Wall Street analysts is that the healthcare giant will make close to $81 billion in 2018. Achieving that level would give J&J year-over-year sales growth of somewhere between 5% and 7.5%, depending on the company's 2017 fourth-quarter performance. Even the low end of that range would easily exceed J&J's expected 2017 total sales growth of 4.3%. And remember, the big pharma stock finished the year up 21% -- better than the S&P 500 index's tremendous performance.
The keys to Johnson & Johnson's success in 2017 will likely remain the primary drivers for the stock in the new year. At the top of the list are acquisitions. J&J's $30 billion buyout of Actelion completed in June should continue to deliver benefits for the company throughout 2018. Momentum for fast-growing drugs including Darzalex and Imbruvica will also almost certainly be enormously important for the stock's momentum.
Perhaps the biggest question for Johnson & Johnson will be how well it can continue to defend Remicade. Sales for the autoimmune disease drug fell 9% in the first three quarters of 2017 compared to the prior-year period. Pfizer could take even more market share away in 2018 with its biosimilar to Remicade. Despite this threat, though, I still view J&J as a top big pharma stock to buy, with solid overall growth prospects and a nice dividend yielding close to 2.4%.
AbbVie
AbbVie posted its best year ever in 2017, with the stock soaring more than 54%. Analysts expect more good news from the company this year: AbbVie is projected to generate revenue in 2018 of nearly $31 billion, a year-over-year increase of almost 11%.
Humira appears on course to keep rolling this year . I think the world's top-selling drug will stay No. 1 in 2018 with sales near $20 billion. And Imbruvica will add even more to AbbVie's coffers over the next 12 months than it does for the company's commercialization partner, J&J. Success for these two drugs alone should portend good things for AbbVie this year. However, there's even more potential good news on the horizon.
AbbVie could have three additional future blockbusters in its lineup in 2018. The company won approval earlier this year for hepatitis C drug Mavyret. AbbVie hopes for Food and Drug Administration approval of its endometriosis drug elagolix in the second quarter of 2018. If late-stage clinical study results are positive, the drugmaker could also launch Rova-T as a third-line treatment for small cell lung cancer in late 2018.
Celgene
While AbbVie and Johnson & Johnson turned in impressive performances in 2017, Celgene stock dropped nearly 10% this year. I expect much better results for Celgene this year . Wall Street does, too, with the consensus targets calling for revenue to increase by more than 14% and earnings to jump more than 19%.
Celgene's top drug, Revlimid, should generate sales topping $9 billion in 2018. Although the company experienced a setback recently with a combination of Revlimid and Rituxan failing to prove superior to a combo of Rituxan and chemotherapy in treating follicular lymphoma, I don't expect Revlimid's sales momentum to be derailed. In addition, Celgene's other blood-cancer blockbuster, Pomalyst, continues to enjoy strong sales growth.
Probably the biggest story for Celgene in 2018, though, will be ozanimod. The company anticipates FDA approval for the drug in treating relapsed multiple sclerosis in the second half of the year. This indication could bring Celgene around $2 billion in peak annual sales. Celgene also expects to announce results from a late-stage study of ozanimod in treating ulcerative colitis this year as well.
Best of the best?
I really like all three of these big pharma stocks. J&J is nearly always a smart pick. Despite its disappointing performance in 2017, Celgene's growth story remains compelling. But, in my view, the best of these top big pharma stocks is AbbVie.
The main reason I think so highly of AbbVie is that it checks off all the boxes. If you're looking for growth, AbbVie has it, with double-digit percentage revenue and earnings growth likely over the next few years. If you like income, AbbVie has that as well, with a dividend yielding close to 3% and a strong track record of dividend increases.
But what about value? AbbVie also looks pretty good in that category. The stock trades at less than 15 times expected earnings. Factoring in the company's growth prospects makes that valuation appear even more attractive. I have sang AbbVie's praises for quite a while. With the new year now beginning, I'm still singing.
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Keith Speights owns shares of AbbVie, Celgene, and Pfizer. The Motley Fool owns shares of and recommends Celgene and Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Analysts expect more good news from the company this year: AbbVie is projected to generate revenue in 2018 of nearly $31 billion, a year-over-year increase of almost 11%. Here's why Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) appear to be the best big pharma stocks to buy for 2018. AbbVie AbbVie posted its best year ever in 2017, with the stock soaring more than 54%. | Here's why Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) appear to be the best big pharma stocks to buy for 2018. AbbVie AbbVie posted its best year ever in 2017, with the stock soaring more than 54%. Analysts expect more good news from the company this year: AbbVie is projected to generate revenue in 2018 of nearly $31 billion, a year-over-year increase of almost 11%. | Here's why Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) appear to be the best big pharma stocks to buy for 2018. Celgene While AbbVie and Johnson & Johnson turned in impressive performances in 2017, Celgene stock dropped nearly 10% this year. AbbVie AbbVie posted its best year ever in 2017, with the stock soaring more than 54%. | Analysts expect more good news from the company this year: AbbVie is projected to generate revenue in 2018 of nearly $31 billion, a year-over-year increase of almost 11%. Here's why Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Celgene (NASDAQ: CELG) appear to be the best big pharma stocks to buy for 2018. AbbVie AbbVie posted its best year ever in 2017, with the stock soaring more than 54%. |
25788.0 | 2018-01-02 00:00:00 UTC | Notable Tuesday Option Activity: FDX, WM, ABBV | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity-fdx-wm-abbv-2018-01-02 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in FedEx Corp (Symbol: FDX), where a total volume of 13,428 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 72.3% of FDX's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $260 strike call option expiring February 16, 2018 , with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $260 strike highlighted in orange:
Waste Management, Inc. (Symbol: WM) options are showing a volume of 11,807 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 66.4% of WM's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $87.50 strike call option expiring February 16, 2018 , with 8,932 contracts trading so far today, representing approximately 893,200 underlying shares of WM. Below is a chart showing WM's trailing twelve month trading history, with the $87.50 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,991 contracts, representing approximately 2.7 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 4.3 million shares. Particularly high volume was seen for the $102 strike call option expiring January 19, 2018 , with 4,723 contracts trading so far today, representing approximately 472,300 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $102 strike highlighted in orange:
For the various different available expirations for FDX options , WM 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.
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 $102 strike call option expiring January 19, 2018 , with 4,723 contracts trading so far today, representing approximately 472,300 underlying shares of ABBV. Below is a chart showing WM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,991 contracts, representing approximately 2.7 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 4.3 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $102 strike highlighted in orange: For the various different available expirations for FDX options , WM options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing WM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,991 contracts, representing approximately 2.7 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 4.3 million shares. Particularly high volume was seen for the $102 strike call option expiring January 19, 2018 , with 4,723 contracts trading so far today, representing approximately 472,300 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $102 strike highlighted in orange: For the various different available expirations for FDX options , WM options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing WM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,991 contracts, representing approximately 2.7 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 4.3 million shares. Particularly high volume was seen for the $102 strike call option expiring January 19, 2018 , with 4,723 contracts trading so far today, representing approximately 472,300 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $102 strike highlighted in orange: For the various different available expirations for FDX options , WM options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing WM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,991 contracts, representing approximately 2.7 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 4.3 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $102 strike highlighted in orange: For the various different available expirations for FDX options , WM options , or ABBV options , visit StockOptionsChannel.com. Particularly high volume was seen for the $102 strike call option expiring January 19, 2018 , with 4,723 contracts trading so far today, representing approximately 472,300 underlying shares of ABBV. |
25789.0 | 2017-12-29 00:00:00 UTC | AbbVie Inc Dividend at Risk Amid Patent Protection Problems | ABBV | https://www.nasdaq.com/articles/abbvie-inc-dividend-risk-amid-patent-protection-problems-2017-12-29 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) is firing on all cylinders right now. ABBV stock is one of the Dividend Aristocrats, a group of 51 companies in the S&P 500 Index, with 25+ consecutive years of dividend increases.
AbbVie is one of 203 dividend stocks in the healthcare sector. You can see all 203 dividend-paying healthcare stocks here .
So far in 2017, AbbVie is one of the best-performing healthcare stocks. AbbVie stock has returned an impressive 50% year-to-date.
The company is growing earnings at a double-digit clip, thanks to the huge success of its flagship product Humira.
This article will discuss AbbVie's business model, growth potential, and expected future returns.
Business Overview for ABBV
AbbVie is a global pharmaceutical giant. It has a $149 billion market capitalization, and sells its products in more than 170 countries across the world.
AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (NYSE: ABT ).
AbbVie operates one main business segment-pharmaceuticals. It focuses on a few key treatment areas , including immunology, oncology, and women's health.
The company has seen excellent growth since it was spun off from Abbott.
Source: 2017 AbbVie Strategic Update , page 5
From 2013-2017, revenue and adjusted earnings-per-share rose for AbbVie stock at a compound annual rate of 11% and 16%, respectively, thanks in large part to the success of Humira.
Last year was another strong one for the company. Humira revenue increased 16% in 2016 , to $16 billion. Thanks to Humira, AbbVie's revenue and adjusted earnings-per-share increased 13% and 12%, respectively, for the year.
Growth Prospects
AbbVie has continued to post strong operating results in 2017, and has potential for growth moving forward.
In the third quarter , total revenue increased 8.8%, to $7 billion. Growth was due largely to Humira, which increased sales by 15% for the quarter. Adjusted earnings-per-share rose 17%, an excellent earnings growth rate.
For 2017, AbbVie expects earnings-per-share in the range of $5.53 to $5.55. At the midpoint of guidance, management expects 15% earnings growth this year.
Humira is a multi-purpose drug that is used to treat a variety of conditions, including rheumatoid arthritis, plaque psoriasis, Crohn's disease, ulcerative colitis, and more.
Humira is the company's most important growth driver, but this stands to change. AbbVie began losing patent protection on Humira in the U.S. in 2016, and it is scheduled to go off patent in Europe in 2018.
Source: 2017 AbbVie Strategic Update , page 11
This is a significant risk for AbbVie, since Humira itself represents two-thirds of the company's revenue. AbbVie management believes Humira will continue growing at a high rate through 2020. After that, the company expects new products to take the lead.
AbbVie expects Humira will still generate approximately $18 billion of revenue by 2020. Beyond 2020, the company expects to generate $25-$30 billion from its suite of new drug launches to more than offset any Humira declines.
The company expects to launch 20 new products or indications by 2020. It also is preparing to cut costs, which should result in expanding operating margins by 1% to 2% per year.
Combined, these growth catalysts are expected to result in double-digit adjusted earnings growth through the end of the decade.
Competitive Advantages & Recession Performance
The most important competitive advantage for AbbVie, and any pharmaceutical company, is its patent portfolio. Pharmaceutical giants need to spend heavily to innovate new drugs and therapies, when one of their blockbusters loses patent protection.
To build its pipeline, AbbVie has accelerated research and development spending, to prepare for the loss of Humira. R&D expense in the past few years is below:
2014 research-and-development expense of $3.3 billion
2015 research-and-development expense of $4.3 billion
2016 research-and-development expense of $4.4 billion
Fortunately, this spending is starting to show positive results, as AbbVie has a robust pipeline.
Source: 2017 AbbVie Strategic Update , page 15
It is unclear how AbbVie itself performed during the Great Recession, as it was still part of Abbott Laboratories. However, it stands to reason the company would hold up fairly well during the next recession.
Prescription drugs and medical supplies are necessities, with stable demand. Consumers often cannot choose to go without healthcare, even when the economy is in a downturn. As a result, investors can reasonably assume AbbVie's profits would experience a modest decline during a recession.
Valuation & Expected Returns
At the midpoint of AbbVie's earnings guidance for 2017, the stock is currently trading for a price-to-earnings ratio of 17.
AbbVie stock is valued considerably below the S&P 500 Index average price-to-earnings ratio of approximately 25. However, the stock is valued at a significant premium to its historical average in the past five years (10-year data is not available, as AbbVie was not a publicly-traded company until 2013).
Source: Value Line
In the past five years, AbbVie has traded for a price-to-earnings ratio of 14.9. This means the stock is valued at a premium of approximately 14% to its five-year average valuation.
It could be argued AbbVie stock deserves a higher valuation than it currently holds, given its high-quality business and strong growth prospects. Still, with a high reliance on Humira and a valuation that is 14% above its average level, AbbVie appears to be fairly valued.
This means going forward, AbbVie's returns will be the result of earnings growth and dividends. The good news is, there is still the opportunity to generate satisfactory returns, because the company is still growing earnings and dividends.
A breakdown of potential future returns is as follows:
3%-5% revenue growth
1% margin expansion
2% share repurchases
3% dividend yield
In this forecast, AbbVie's total shareholder returns would reach 9% to 11% each year, not including any impact from a rising or falling price-to-earnings multiple.
Even with a relatively modest forecast of low-to-mid single digit revenue growth, there is a reasonable chance AbbVie's total annualized returns could reach double-digits.
Final Thoughts On AbbVie Stock
AbbVie is a very high-quality business, with a strong pharmaceutical pipeline and growth potential. It is also a shareholder-friendly company, which returns excess cash flow to investors through stock buybacks and dividends.
The only flaw for AbbVie is its valuation. The stock is up 50% year-to-date, which has elevated its price-to-earnings multiple, and also lowered its dividend yield. As a result, investors might want to wait for a lower price before buying the stock, but AbbVie remains a strong holding for dividend growth.
Please send any feedback, corrections, or questions to ben@suredividend.com.
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The post AbbVie Inc Dividend at Risk Amid Patent Protection Problems 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (NYSE: ABT ). Even with a relatively modest forecast of low-to-mid single digit revenue growth, there is a reasonable chance AbbVie's total annualized returns could reach double-digits. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) is firing on all cylinders right now. | Source: 2017 AbbVie Strategic Update , page 5 From 2013-2017, revenue and adjusted earnings-per-share rose for AbbVie stock at a compound annual rate of 11% and 16%, respectively, thanks in large part to the success of Humira. R&D expense in the past few years is below: 2014 research-and-development expense of $3.3 billion 2015 research-and-development expense of $4.3 billion 2016 research-and-development expense of $4.4 billion Fortunately, this spending is starting to show positive results, as AbbVie has a robust pipeline. A breakdown of potential future returns is as follows: 3%-5% revenue growth 1% margin expansion 2% share repurchases 3% dividend yield In this forecast, AbbVie's total shareholder returns would reach 9% to 11% each year, not including any impact from a rising or falling price-to-earnings multiple. | Source: 2017 AbbVie Strategic Update , page 5 From 2013-2017, revenue and adjusted earnings-per-share rose for AbbVie stock at a compound annual rate of 11% and 16%, respectively, thanks in large part to the success of Humira. Source: 2017 AbbVie Strategic Update , page 11 This is a significant risk for AbbVie, since Humira itself represents two-thirds of the company's revenue. Final Thoughts On AbbVie Stock AbbVie is a very high-quality business, with a strong pharmaceutical pipeline and growth potential. | AbbVie expects Humira will still generate approximately $18 billion of revenue by 2020. Valuation & Expected Returns At the midpoint of AbbVie's earnings guidance for 2017, the stock is currently trading for a price-to-earnings ratio of 17. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) is firing on all cylinders right now. |
25790.0 | 2017-12-29 00:00:00 UTC | 4 Large-Cap Pharma Stocks That Outperformed the S&P This Year | ABBV | https://www.nasdaq.com/articles/4-large-cap-pharma-stocks-that-outperformed-the-sp-this-year-2017-12-29 | nan | nan | The pharma/biotech industry was plagued by drug pricing issues last year. However, it bounced back and made a considerable headway this year, courtesy of a slew of FDA approvals. Particularly, large-cap players in the industry raked in stellar returns, up 16.5%, not to forget that the same space posted a decline of 5.2% in the year earlier.
Upbeat quarterly results, rise in demand on new product sales, successful innovation and product line expansion, strong clinical study results as well as a continued strong performance of legacy products propelled the large-cap drug sector to new highs this year. Moreover, these encouraging factors are expected to drive the sector's growth in 2018.
Meanwhile, jubilant Republicans passed the tax overhaul bill for the first time in 30 years. The bill slashes corporate tax rates from 35% to 21%. Such tax reduction is likely to further boost profit margins of these companies in the large-cap pharma sector with more cash left in hand. This, in turn can also be used for striking strategic deals. It is to be remembered that mergers/acquisition activities lagged in the previous year.
Notably, the Large Cap Pharma sub-industry carries a Zacks Industry Rank of #104, placing it among the top 39% of the 265 plus Zacks industries. Our backtesting shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
Banking on such positive trends, investing in sound large-cap pharma stocks seems judicious. To top it, such stocks are fundamentally lucrative and ensure a steady stream of cash inflows. We have hence selected four such companies that have outperformed the broader S&P 500 index this year and are also poised to continue their winning streak heading into the New Year.
Johnson and Johnson, Inc.JNJ
The New Jersey-based biotech giant Johnson and Johnson has outperformed the S&P 500 this year. Shares of the company have rallied 22% while the broader market has increased 20.2%. The stock's earnings are further expected to grow 7.8% in 2018.
The company's track record of product launches has been impressive this year. It is making a fast progress toward achieving its goal of more than 10 approvals for new blockbuster products by 2021. Moreover, the company is targeting more than 50 line extensions of both its existing as well as new drugs. In October, J&J received an FDA approval for two line extensions of Simponi Aria for psoriatic arthritis and ankylosing spondylitis.
Additionally, contribution from recent acquisitions, mainly Actelion, generated positive sentiments among investors.
Continuous developments have led to a consistent rise in shares. The company carries a Zacks Rank #3 (Hold).
AbbVie Inc.ABBV
This Illinois-based biopharmaceutical company also outperformed the S&P 500 so far this year. Shares of the company have surged 56.1% during the period. This rally price movement was supported by a series of positive news in the past few months.
AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen. The stock's earnings are further estimated to increase 18.2% in the next year.
AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, secured approval in the United States, EU and Canada in the third quarter of 2017. Additionally, in August, AbbVie clinched a nod from the regulatory agency for Imbruvica to address its sixth indication among others.
Meanwhile, the company announced positive data from the phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory CLL in September. Later in October too, AbbVie announced that three pivotal head-to-head phase III studies, evaluating risankizumab versus Johnson & Johnson's Stelara and Humira, for treatment of moderate-to-severe chronic plaque psoriasis, met all co-primary and secondary endpoints.
Several pivotal data readouts and regulatory milestones are expected in 2018. Besides, all the above-mentioned factors bode well for the stock. The company is a Zacks #3 Ranked player.
AstraZeneca plcAZN
The UK-based biopharmaceutical giant outperformed the S&P 500 this year. The company's shares increased 24.8% during the period. It has announced quite a few progressions on the regulatory and pipeline front this year, driving a steady appreciation in share price.
AstraZeneca also has a promising late-stage pipeline including immuno-oncology candidates. Imfinzi, approved for bladder cancer and currently being evaluated for multiple cancers, is a key drug in the pipeline. The company has about 11 new molecular entities in a phase III trial or under a regulatory review apart from several lifecycle management programs.
Last month, Fasenra/benralizumab has been approved in the United States for treatment of asthma. It is under review in the EU for chronic obstructive pulmonary disease (COPD). This month, FDA has accepted its application for the label expansion of its marketed drug, Tagrisso (osimertinib), for the first-line treatment of adult patients with metastatic NSCLC. Additionally, the regulatory filing for Tagrisso's label expansion is accepted in the EU in November for a similar indication.
In December, AstraZeneca also announced positive top-line data from a phase IV study, evaluating its marketed drug, Tudorza Pressair, for an expanded indication (COPD with cardiovascular risk factors).
The company carries a Zacks Rank of 3.
Novo-Nordisk A/SNVO
Novo-Nordisk has been in news for the past few months based on the encouraging progress of its diabetes pipeline. Constant improvements and corresponding approvals have led to a regular surge in shares. The company is a #3 Ranked player. Shares of the company have soared 49.9% so far this year, outpacing the S&P 500 index. The stock's earnings are further projected to rise 5.3% in 2018.
In October, the Endocrinologic and Metabolic Drugs Advisory Committee of the FDA voted in the 16-0 ratio in favor of the approval of semaglutide to improve glycaemic control in adults with type II diabetes. Meanwhile, late last year, the company also filed for semaglutide in the EU for the given indication. Moreover, in September, the FDA approved Fiasp (fast-acting insulin aspart) for treating adults with diabetes.
In August, the FDA approved a label expansion for the company's diabetes drug, Victoza. The drug is now approved to reduce the risk of major adverse cardiovascular events in adults with type II diabetes. In the same month, the label expansion for the lessened risk of severe hypoglycaemia with Tresiba was endorsed by Committee for Medicinal Products for Human Use in the EU. Tresiba's label update should boost the company's sales.
Conclusion
A series of data readouts plus upsides on both regulatory and pipeline fronts for the above stocks this year are likely to help continue the bullish run next year and surpass the broader market as well.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen. AbbVie Inc.ABBV This Illinois-based biopharmaceutical company also outperformed the S&P 500 so far this year. AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, secured approval in the United States, EU and Canada in the third quarter of 2017. | Later in October too, AbbVie announced that three pivotal head-to-head phase III studies, evaluating risankizumab versus Johnson & Johnson's Stelara and Humira, for treatment of moderate-to-severe chronic plaque psoriasis, met all co-primary and secondary endpoints. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Astrazeneca PLC (AZN): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV This Illinois-based biopharmaceutical company also outperformed the S&P 500 so far this year. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Astrazeneca PLC (AZN): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV This Illinois-based biopharmaceutical company also outperformed the S&P 500 so far this year. AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen. | AbbVie Inc.ABBV This Illinois-based biopharmaceutical company also outperformed the S&P 500 so far this year. AbbVie presented promising data from several pivotal studies, gained key regulatory approvals and settled its Humira patent disputes with Amgen. AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, secured approval in the United States, EU and Canada in the third quarter of 2017. |
25791.0 | 2017-12-27 00:00:00 UTC | Notable ETF Inflow Detected - VONE, DIS, ABBV, MCD | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-vone-dis-abbv-mcd-2017-12-27 | 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 Russell 1000 ETF (Symbol: VONE) where we have detected an approximate $138.1 million dollar inflow -- that's a 17.7% increase week over week in outstanding units (from 6,350,000 to 7,475,000). Among the largest underlying components of VONE, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and McDonald's Corp (Symbol: MCD) is up by about 0.4%. For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average:
Looking at the chart above, VONE's low point in its 52 week range is $102.37 per share, with $123.60 as the 52 week high point - that compares with a last trade of $122.82. 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.
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 VONE, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and McDonald's Corp (Symbol: MCD) is up by about 0.4%. For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average: Looking at the chart above, VONE's low point in its 52 week range is $102.37 per share, with $123.60 as the 52 week high point - that compares with a last trade of $122.82. 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 VONE, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and McDonald's Corp (Symbol: MCD) is up by about 0.4%. For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average: Looking at the chart above, VONE's low point in its 52 week range is $102.37 per share, with $123.60 as the 52 week high point - that compares with a last trade of $122.82. 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 VONE, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and McDonald's Corp (Symbol: MCD) is up 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 Vanguard Russell 1000 ETF (Symbol: VONE) where we have detected an approximate $138.1 million dollar inflow -- that's a 17.7% increase week over week in outstanding units (from 6,350,000 to 7,475,000). For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average: Looking at the chart above, VONE's low point in its 52 week range is $102.37 per share, with $123.60 as the 52 week high point - that compares with a last trade of $122.82. | Among the largest underlying components of VONE, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and McDonald's Corp (Symbol: MCD) is up 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 Vanguard Russell 1000 ETF (Symbol: VONE) where we have detected an approximate $138.1 million dollar inflow -- that's a 17.7% increase week over week in outstanding units (from 6,350,000 to 7,475,000). For a complete list of holdings, visit the VONE Holdings page » The chart below shows the one year price performance of VONE, versus its 200 day moving average: Looking at the chart above, VONE's low point in its 52 week range is $102.37 per share, with $123.60 as the 52 week high point - that compares with a last trade of $122.82. |
25792.0 | 2017-12-27 00:00:00 UTC | The 3 Best Dividend Aristocrats of 2017 | ABBV | https://www.nasdaq.com/articles/3-best-dividend-aristocrats-2017-2017-12-27 | nan | nan | The Dividend Aristocrats are components of the S&P 500 stock index that have each increased their dividend payments for at least 25 consecutive years. Like the overall stock market, the Dividend Aristocrats had a solid year in 2017 as a group, but there have been a few standout performers.
Here are the three highest-performing stocks out of the 51 components in the S&P 500 Dividend Aristocrats for 2017, why each one has done so well, and what could be in store for 2018.
Data source: yCharts (total return) and www.dividend.com (years of dividend growth). Note: AbbVie's dividend streak includes the years prior to its spinoff from Abbott Labs .
1. AbbVie
Unless something dramatic happens in the last few trading days of the year, AbbVie is the best-performing Dividend Aristocrat of 2017.
As my Foolish colleague Cory Renauer pointed out, AbbVie absolutely crushed it this year. The company's Humira patents expired, but supplemental patents will keep competition away for longer than anticipated. Humira, AbbVie's key revenue generator, saw sales grow by 16% year over year, and further double-digit growth is expected by 2020.
AbbVie had a few other notable wins this year, including strong performance from an experimental psoriasis drug and promising clinical trial results for a leukemia treatment. And even after the gains, AbbVie trades for a lower P/E multiple than the S&P 500 average, so there could be even more room to the upside if 2018 is another strong year.
2. S&P Global
A look at the company's results shows why S&P Global has done so well this year. Earnings are up by 19% year over year on stronger margins and double-digit organic revenue growth. In fact, since 2013, S&P Global's operating margin has expanded from 34% to 47% and EPS has grown from $3.35 to an annualized rate of twice that amount.
Going forward, the company's S&P Dow Jones Indices business (which includes the S&P 500 Dividend Aristocrats index) has particularly strong growth potential if the trend toward passive investing continues. In a nutshell, S&P Global generates fee income from funds that are based on its indexes. For example, if you invest in a S&P 500 ETF such as the SPDR S&P 500 Index (NYSEMKT: SPY) , a portion of the fund's expense ratio goes to S&P Global. There are currently more than $1.1 trillion of assets in S&P-based ETFs, and this could swell considerably in the coming years.
3. Sherwin-Williams
With a total return of more than 55% for the year, paint manufacturer Sherwin Williams takes the bronze medal for 2017. Despite taking a hit from the hurricanes earlier this year, the company has been able to capitalize on the strong housing market and grow its sales impressively.
In its most recent results, Sherwin-Williams reported 37% revenue growth and earnings that exceeded analysts' expectations. Same-store sales grew by 5.2%, and the company's acquisition of Valspar seems to be working out even better than expected. In fact, about one-fourth of the company's stock price gain came as a result of its third-quarter earnings .
Going forward, Sherwin-Williams stands to do well as long as the housing market continues to stay strong. And since the housing market is showing little weakness as 2017 comes to a close, 2018 could turn out to be yet another robust year.
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Matthew Frankel has no position in any of the stocks mentioned. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie had a few other notable wins this year, including strong performance from an experimental psoriasis drug and promising clinical trial results for a leukemia treatment. Note: AbbVie's dividend streak includes the years prior to its spinoff from Abbott Labs . AbbVie Unless something dramatic happens in the last few trading days of the year, AbbVie is the best-performing Dividend Aristocrat of 2017. | Humira, AbbVie's key revenue generator, saw sales grow by 16% year over year, and further double-digit growth is expected by 2020. AbbVie had a few other notable wins this year, including strong performance from an experimental psoriasis drug and promising clinical trial results for a leukemia treatment. Note: AbbVie's dividend streak includes the years prior to its spinoff from Abbott Labs . | Humira, AbbVie's key revenue generator, saw sales grow by 16% year over year, and further double-digit growth is expected by 2020. Note: AbbVie's dividend streak includes the years prior to its spinoff from Abbott Labs . AbbVie Unless something dramatic happens in the last few trading days of the year, AbbVie is the best-performing Dividend Aristocrat of 2017. | AbbVie Unless something dramatic happens in the last few trading days of the year, AbbVie is the best-performing Dividend Aristocrat of 2017. Humira, AbbVie's key revenue generator, saw sales grow by 16% year over year, and further double-digit growth is expected by 2020. Note: AbbVie's dividend streak includes the years prior to its spinoff from Abbott Labs . |
25793.0 | 2017-12-27 00:00:00 UTC | Horizon Pharma Shows Improved Relative Price Performance; Still Shy Of Benchmark | ABBV | https://www.nasdaq.com/articles/horizon-pharma-shows-improved-relative-price-performance-still-shy-benchmark-2017-12-27 | nan | nan | Horizon Pharma ( HZNP ) saw a welcome improvement to its Relative Strength ( RS ) Rating on Wednesday, with an upgrade from 69 to 76.
[ibd-display-video id=2385970 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
Decades of market research reveals that the top-performing stocks tend to have an RS Rating of at least 80 as they launch their largest climbs. See if Horizon Pharma can continue to show renewed price strength and clear that threshold.
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While earnings growth fell in the company's most recently reported quarter from -27% to -63%, revenue grew 30%, up from 12% in the previous report.
The company holds the No. 5 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ) is the top-ranked stock within the group.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) is the top-ranked stock within the group. Horizon Pharma ( HZNP ) saw a welcome improvement to its Relative Strength ( RS ) Rating on Wednesday, with an upgrade from 69 to 76. [ibd-display-video id=2385970 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures price action with a 1 (worst) to 99 (best) score. | AbbVie ( ABBV ) is the top-ranked stock within the group. Horizon Pharma ( HZNP ) saw a welcome improvement to its Relative Strength ( RS ) Rating on Wednesday, with an upgrade from 69 to 76. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ) is the top-ranked stock within the group. While earnings growth fell in the company's most recently reported quarter from -27% to -63%, revenue grew 30%, up from 12% in the previous report. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ) is the top-ranked stock within the group. Horizon Pharma ( HZNP ) saw a welcome improvement to its Relative Strength ( RS ) Rating on Wednesday, with an upgrade from 69 to 76. See if Horizon Pharma can continue to show renewed price strength and clear that threshold. |
25794.0 | 2017-12-26 00:00:00 UTC | Health Care Sector Update for 12/26/2017: PTLA, ALXN, ABBV, ZSAN, RDY, NVS | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-12262017-ptla-alxn-abbv-zsan-rdy-nvs-2017-12-26 | nan | nan | Top Health care stocks:
JNJ: +0.6%
PFE: flat
ABT: flat
MRK: -0.1%
AMGN: flat
Health care shares were mixed in pre-market trading Tuesday.
Expected movers:
- Portola Pharmaceuticals ( PTLA ) said late Friday the US Food and Drug Administration will extend its review of the Biologics License Application (BLA) for AndexXa by 90 days.
- Alexion Pharmaceuticals ( ALXN ) said the Ministry of Health, Labor and Welfare in Japan has approved Soliris (eculizumab) as a treatment for patients with generalized myasthenia gravis
- AbbVie ( ABBV ) Friday prevailed when a US District Court judge overturned a $150 million jury verdict against the drug-maker due to claims that the company fraudulently misrepresented the risks of its testosterone replacement drug AndroGel, reported news service Reuters.
Other news:
- Zosano Pharma ( ZSAN ) fell in pre-market after it said late Friday it has filed a registration statement to offer $57.5 million common shares.
News from overseas:
- Dr. Reddy's Laboratories Ltd ( RDY ) said it has launched Melphalan Hydrochloride for Injection, a therapeutic equivalent generic version of chemotherapy drug Alkeran approved in the United States.
- Novartis (NVS) said late Friday the US Food and Drug Administration approved the inclusion of treatment-free remission data in the Tasigna US product label, following a priority review for a supplemental new drug application.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | - Alexion Pharmaceuticals ( ALXN ) said the Ministry of Health, Labor and Welfare in Japan has approved Soliris (eculizumab) as a treatment for patients with generalized myasthenia gravis - AbbVie ( ABBV ) Friday prevailed when a US District Court judge overturned a $150 million jury verdict against the drug-maker due to claims that the company fraudulently misrepresented the risks of its testosterone replacement drug AndroGel, reported news service Reuters. Expected movers: - Portola Pharmaceuticals ( PTLA ) said late Friday the US Food and Drug Administration will extend its review of the Biologics License Application (BLA) for AndexXa by 90 days. News from overseas: - Dr. Reddy's Laboratories Ltd ( RDY ) said it has launched Melphalan Hydrochloride for Injection, a therapeutic equivalent generic version of chemotherapy drug Alkeran approved in the United States. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. - Alexion Pharmaceuticals ( ALXN ) said the Ministry of Health, Labor and Welfare in Japan has approved Soliris (eculizumab) as a treatment for patients with generalized myasthenia gravis - AbbVie ( ABBV ) Friday prevailed when a US District Court judge overturned a $150 million jury verdict against the drug-maker due to claims that the company fraudulently misrepresented the risks of its testosterone replacement drug AndroGel, reported news service Reuters. - Novartis (NVS) said late Friday the US Food and Drug Administration approved the inclusion of treatment-free remission data in the Tasigna US product label, following a priority review for a supplemental new drug application. | - Alexion Pharmaceuticals ( ALXN ) said the Ministry of Health, Labor and Welfare in Japan has approved Soliris (eculizumab) as a treatment for patients with generalized myasthenia gravis - AbbVie ( ABBV ) Friday prevailed when a US District Court judge overturned a $150 million jury verdict against the drug-maker due to claims that the company fraudulently misrepresented the risks of its testosterone replacement drug AndroGel, reported news service Reuters. AMGN: flat Health care shares were mixed in pre-market trading Tuesday. - Novartis (NVS) said late Friday the US Food and Drug Administration approved the inclusion of treatment-free remission data in the Tasigna US product label, following a priority review for a supplemental new drug application. | - Alexion Pharmaceuticals ( ALXN ) said the Ministry of Health, Labor and Welfare in Japan has approved Soliris (eculizumab) as a treatment for patients with generalized myasthenia gravis - AbbVie ( ABBV ) Friday prevailed when a US District Court judge overturned a $150 million jury verdict against the drug-maker due to claims that the company fraudulently misrepresented the risks of its testosterone replacement drug AndroGel, reported news service Reuters. AMGN: flat Health care shares were mixed in pre-market trading Tuesday. Expected movers: - Portola Pharmaceuticals ( PTLA ) said late Friday the US Food and Drug Administration will extend its review of the Biologics License Application (BLA) for AndexXa by 90 days. |
25795.0 | 2017-12-26 00:00:00 UTC | Health Care Sector Update for 12/26/2017: LGND,IGC,INSY,ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-12262017-lgndigcinsyabbv-2017-12-26 | nan | nan | Top Health Care Stocks
JNJ -0.14%
PFE -0.04%
ABT +0.16%
MRK +0.01%
AMG -0.02%
Health care stocks were trading slightly higher today, including a 0.1% gain for the NYSE Health Care Index, while shares of health care companies in the S&P 500 were up almost 0.1% as a group. The Nasdaq Biotechnology Index was posting a 0.5% advance.
Among health care stocks moving on news today:
+ Ligand Pharmaceuticals ( LGND ) was narrowly higher Tuesday, giving back much of a 1.3% advance earlier today that followed the drugmaker saying it expects tax legislation signed into law last week will likely reduce its deferred tax asset by about $40 mln to a new balance of $95 mln. The new measure will also trim its effective tax rate to a new range of 22% to 24% compared with its prior guidance expecting a 36% to 39% tax rate, the company said today in a regulator filing.
In other sector news:
+ India Globalization Capital ( IGC ) nearly doubled in price today after the alternative-medicines company said it will adapt blockchain technology for product identification assurance, with a goal of establishing a universal cannabis platform applicable to solving multiple industry challenges facing dispensaries and consumers.
+ Insys Therapeutics ( INSY ) rose after the FDA grants fast track designation to its cannabidiol oral solution to treat Prader-Willi syndrome, which is a rare genetic disorder causing insatiable appetite in children and often leading to obesity and Type 2 diabetes.
+ AbbVie ( ABBV ) has turned lower this afternoon, reversing an early advance following a U.S. District Court judge late last week overturning a $150 million jury verdict against the drugmaker following charges it had fraudulently misrepresented the risks of its AndroGel testosterone replacement drug.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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 turned lower this afternoon, reversing an early advance following a U.S. District Court judge late last week overturning a $150 million jury verdict against the drugmaker following charges it had fraudulently misrepresented the risks of its AndroGel testosterone replacement drug. Among health care stocks moving on news today: + Ligand Pharmaceuticals ( LGND ) was narrowly higher Tuesday, giving back much of a 1.3% advance earlier today that followed the drugmaker saying it expects tax legislation signed into law last week will likely reduce its deferred tax asset by about $40 mln to a new balance of $95 mln. In other sector news: + India Globalization Capital ( IGC ) nearly doubled in price today after the alternative-medicines company said it will adapt blockchain technology for product identification assurance, with a goal of establishing a universal cannabis platform applicable to solving multiple industry challenges facing dispensaries and consumers. | 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 turned lower this afternoon, reversing an early advance following a U.S. District Court judge late last week overturning a $150 million jury verdict against the drugmaker following charges it had fraudulently misrepresented the risks of its AndroGel testosterone replacement drug. Health care stocks were trading slightly higher today, including a 0.1% gain for the NYSE Health Care Index, while shares of health care companies in the S&P 500 were up almost 0.1% as a group. | + AbbVie ( ABBV ) has turned lower this afternoon, reversing an early advance following a U.S. District Court judge late last week overturning a $150 million jury verdict against the drugmaker following charges it had fraudulently misrepresented the risks of its AndroGel testosterone replacement drug. Health care stocks were trading slightly higher today, including a 0.1% gain for the NYSE Health Care Index, while shares of health care companies in the S&P 500 were up almost 0.1% as a group. Among health care stocks moving on news today: + Ligand Pharmaceuticals ( LGND ) was narrowly higher Tuesday, giving back much of a 1.3% advance earlier today that followed the drugmaker saying it expects tax legislation signed into law last week will likely reduce its deferred tax asset by about $40 mln to a new balance of $95 mln. | + AbbVie ( ABBV ) has turned lower this afternoon, reversing an early advance following a U.S. District Court judge late last week overturning a $150 million jury verdict against the drugmaker following charges it had fraudulently misrepresented the risks of its AndroGel testosterone replacement drug. The Nasdaq Biotechnology Index was posting a 0.5% advance. Among health care stocks moving on news today: + Ligand Pharmaceuticals ( LGND ) was narrowly higher Tuesday, giving back much of a 1.3% advance earlier today that followed the drugmaker saying it expects tax legislation signed into law last week will likely reduce its deferred tax asset by about $40 mln to a new balance of $95 mln. |
25796.0 | 2017-12-23 00:00:00 UTC | Here's How AbbVie Inc. Crushed It in 2017 | ABBV | https://www.nasdaq.com/articles/heres-how-abbvie-inc-crushed-it-2017-2017-12-23 | nan | nan | It's been a tremendous year for AbbVie Inc. (NYSE: ABBV) shareholders. Shares of the Abbott spinoff have gained 56.5% this year as investors cheered a handful of important developments. As the year draws to a close, let's look back at a few ways AbbVie crushed it.
What biosimilar competition?
AbbVie investors can thank the company's legal team for the lion's share of this stock's gain in 2017. Key patents protecting Humira's exclusivity in the U.S. have expired, but it looks like supplemental patents will keep biosimilar competition at bay much longer than previously anticipated. That's a pretty big deal because AbbVie depends on the rheumatoid arthritis drug for about two-thirds of total revenue.
AbbVie Inc. CEO Richard Gonzalez gave investors plenty to smile about in 2017. Image source: AbbVie Inc.
Humira might be aging, but sales are as vibrant as ever, rising 16% on year in the third quarter to a stunning $18.8 billion annualized run rate. AbbVie CEO Richard Gonzalez gave investors a lot to smile about in September when Amgen (NASDAQ: AMGN) agreed to license Humira intellectual property from AbbVie, beginning next year in the EU and not until 2023 in the vital U.S. market.
Amgen's biosimilar version of Humira, Amjevita, earned FDA approval over a year ago and had been expected to begin pinching U.S. Humira sales in 2018. Now that Amgen has agreed to stand down, Gonzalez expects Humira sales to approach $21 billion in 2020. That's a lot better than the contraction we were expecting at the beginning of the year, and it's probably why Gonzalez has the most genuine smile in biopharma.
Rival bested
AbbVie may have added a few chapters to Humira's growth story, but its sales can't grow forever. This year, AbbVie hit another home run with an experimental psoriasis drug that could go a long way to offset the impending losses.
Stelara is a popular psoriasis drug that Johnson & Johnson (NYSE: JNJ) launched around eight years ago and finished the third quarter on pace to achieve $4.5 billion in sales this year. In a pair of head-to-head trials, 21% and 30% of psoriasis patients receiving Stelara achieved completely clear skin after one year of treatment.
Stelara's performance was pretty good, but it couldn't hold a candle to risankizumab. After a year of treatment, AbbVie's candidate completely cleared skin for 56% and 60% of psoriasis patients randomized to receive it. New drug launches can be unpredictable, but it isn't unreasonable to expect risankizumab to outperform Stelara in the commercial setting, as well.
Leukemia better run
Imbruvica has been crushing it for AbbVie since it became the first chemotherapy-free option for newly diagnosed leukemia patients. Third-quarter sales of the drug, which AbbVie markets in partnership with Johnson & Johnson, bounded 37% higher to a $2.8 billion run rate.
While Imbruvica tears up the charts as a first-line treatment for the most common form of leukemia, a more recently launched drug is poised to dominate the space for previously treated patients. AbbVie saved one of the most thrilling clinical trial readouts of 2017 for a scientific conference this December. A combination of Venclexta, which AbbVie markets in partnership with Roche (NASDAQOTH: RHHBY) , and Rituxan showed a huge survival benefit over Rituxan plus a standard treatment.
Two years after beginning treatment, 84.9% of patients given the Venclexta combo hadn't shown signs of disease progression, versus just 36.3% among those given standard treatment. With data this good, Gonzalez's assertion that annual Venclexta sales will reach $7 billion isn't as crazy as it sounded over a year ago.
Still a buy?
Even when a company's operations are firing on all cylinders, shares purchased at excessively high prices tend to deliver subpar returns. Although I liked AbbVie much better at the beginning of the year when it was trading at around 11 times 2017 earnings expectations, there's still a chance the stock could outperform over the long run.
Right now the shares trade at about 17.6 times this year's earnings estimates, which is a bit less than the average stock in the S&P 500 (which trades at about 19.8 times forward estimates). AbbVie's accomplishments this year paved a path forward that's far better than average, though. Wall Street consensus growth estimates for AbbVie's bottom line suggest an outstanding 15.2% annual growth rate over the next five years. Put it together, and I'd say there's a good chance AbbVie will continue to outperform over the long run.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image source: AbbVie Inc. Humira might be aging, but sales are as vibrant as ever, rising 16% on year in the third quarter to a stunning $18.8 billion annualized run rate. It's been a tremendous year for AbbVie Inc. (NYSE: ABBV) shareholders. As the year draws to a close, let's look back at a few ways AbbVie crushed it. | AbbVie Inc. CEO Richard Gonzalez gave investors plenty to smile about in 2017. AbbVie CEO Richard Gonzalez gave investors a lot to smile about in September when Amgen (NASDAQ: AMGN) agreed to license Humira intellectual property from AbbVie, beginning next year in the EU and not until 2023 in the vital U.S. market. It's been a tremendous year for AbbVie Inc. (NYSE: ABBV) shareholders. | AbbVie CEO Richard Gonzalez gave investors a lot to smile about in September when Amgen (NASDAQ: AMGN) agreed to license Humira intellectual property from AbbVie, beginning next year in the EU and not until 2023 in the vital U.S. market. Although I liked AbbVie much better at the beginning of the year when it was trading at around 11 times 2017 earnings expectations, there's still a chance the stock could outperform over the long run. It's been a tremendous year for AbbVie Inc. (NYSE: ABBV) shareholders. | It's been a tremendous year for AbbVie Inc. (NYSE: ABBV) shareholders. As the year draws to a close, let's look back at a few ways AbbVie crushed it. AbbVie investors can thank the company's legal team for the lion's share of this stock's gain in 2017. |
25797.0 | 2017-12-22 00:00:00 UTC | Dividends & Income Digest: The Year In Review | ABBV | https://www.nasdaq.com/articles/dividends-income-digest-year-review-2017-12-22 | nan | nan | By Rebecca Corvino :
For our previous Dividends & Income Digest, I asked several authors about the year ahead and their 2018 watch lists. This time around, I'd like to take a step back and look at the year we're leaving behind, with a 2017 annual review.
Here's what several of our authors had to say about the past year.
Adam Aloisi
The Dividend Guy
Julian Lin
Stefan Redlich
PendragonY
Achilles Research
Now, it's your turn to weigh in, in the comments below. How did 2017 treat you, and what are you looking forward to in 2018?
If you enjoy the D&I Digest and would like to be alerted to future editions, don't forget to "follow" me! And please let me know if there's a topic you'd like to see covered in a future D&I Digest, either by commenting below or sending me a private message. I'd love to hear from you.
Finally, here's some recent Dividends & Income content you might want to check out (if you haven't already):
Dividend Growth 50: It's A Happy 3rd Anniversary, Even As Mr. Market Gets Some 'Revenge' by Mike Nadel
This Epic Dividend Growth Stock Is Firing On All Cylinders by Dividend Sensei
6 Questions For REITs In 2018 by Hoya Capital Real Estate
Retirement Security: Confessions Of A Serial Stock Predator by George Schneider
10 REITs That Should Benefit Under The Tax Plan by Brad Thomas
Zuckerberg Should Consider A Dividend by Nicholas Ward
Retirement Strategy: Yes, You Can Retire With Less Than You Think by Regarded Solutions
Chris DeMuth Jr. Positions For 2018: Opportunities Ahead by SA Editors
The Yield Curve And Your Investments by Ploutos
See also ScanSource: Last Year's Short Case Still Holds on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Rebecca Corvino : For our previous Dividends & Income Digest, I asked several authors about the year ahead and their 2018 watch lists. Adam Aloisi The Dividend Guy Julian Lin Stefan Redlich PendragonY Achilles Research Now, it's your turn to weigh in, in the comments below. Finally, here's some recent Dividends & Income content you might want to check out (if you haven't already): Dividend Growth 50: It's A Happy 3rd Anniversary, Even As Mr. Market Gets Some 'Revenge' by Mike Nadel This Epic Dividend Growth Stock Is Firing On All Cylinders by Dividend Sensei 6 Questions For REITs In 2018 by Hoya Capital Real Estate Retirement Security: Confessions Of A Serial Stock Predator by George Schneider 10 REITs That Should Benefit Under The Tax Plan by Brad Thomas Zuckerberg Should Consider A Dividend by Nicholas Ward Retirement Strategy: Yes, You Can Retire With Less Than You Think by Regarded Solutions Chris DeMuth Jr. Positions For 2018: Opportunities Ahead by SA Editors The Yield Curve And Your Investments by Ploutos See also ScanSource: Last Year's Short Case Still Holds on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Rebecca Corvino : For our previous Dividends & Income Digest, I asked several authors about the year ahead and their 2018 watch lists. Finally, here's some recent Dividends & Income content you might want to check out (if you haven't already): Dividend Growth 50: It's A Happy 3rd Anniversary, Even As Mr. Market Gets Some 'Revenge' by Mike Nadel This Epic Dividend Growth Stock Is Firing On All Cylinders by Dividend Sensei 6 Questions For REITs In 2018 by Hoya Capital Real Estate Retirement Security: Confessions Of A Serial Stock Predator by George Schneider 10 REITs That Should Benefit Under The Tax Plan by Brad Thomas Zuckerberg Should Consider A Dividend by Nicholas Ward Retirement Strategy: Yes, You Can Retire With Less Than You Think by Regarded Solutions Chris DeMuth Jr. Positions For 2018: Opportunities Ahead by SA Editors The Yield Curve And Your Investments by Ploutos See also ScanSource: Last Year's Short Case Still Holds on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Rebecca Corvino : For our previous Dividends & Income Digest, I asked several authors about the year ahead and their 2018 watch lists. I'd love to hear from you. Finally, here's some recent Dividends & Income content you might want to check out (if you haven't already): Dividend Growth 50: It's A Happy 3rd Anniversary, Even As Mr. Market Gets Some 'Revenge' by Mike Nadel This Epic Dividend Growth Stock Is Firing On All Cylinders by Dividend Sensei 6 Questions For REITs In 2018 by Hoya Capital Real Estate Retirement Security: Confessions Of A Serial Stock Predator by George Schneider 10 REITs That Should Benefit Under The Tax Plan by Brad Thomas Zuckerberg Should Consider A Dividend by Nicholas Ward Retirement Strategy: Yes, You Can Retire With Less Than You Think by Regarded Solutions Chris DeMuth Jr. Positions For 2018: Opportunities Ahead by SA Editors The Yield Curve And Your Investments by Ploutos See also ScanSource: Last Year's Short Case Still Holds on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Rebecca Corvino : For our previous Dividends & Income Digest, I asked several authors about the year ahead and their 2018 watch lists. This time around, I'd like to take a step back and look at the year we're leaving behind, with a 2017 annual review. Finally, here's some recent Dividends & Income content you might want to check out (if you haven't already): Dividend Growth 50: It's A Happy 3rd Anniversary, Even As Mr. Market Gets Some 'Revenge' by Mike Nadel This Epic Dividend Growth Stock Is Firing On All Cylinders by Dividend Sensei 6 Questions For REITs In 2018 by Hoya Capital Real Estate Retirement Security: Confessions Of A Serial Stock Predator by George Schneider 10 REITs That Should Benefit Under The Tax Plan by Brad Thomas Zuckerberg Should Consider A Dividend by Nicholas Ward Retirement Strategy: Yes, You Can Retire With Less Than You Think by Regarded Solutions Chris DeMuth Jr. Positions For 2018: Opportunities Ahead by SA Editors The Yield Curve And Your Investments by Ploutos See also ScanSource: Last Year's Short Case Still Holds on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
25798.0 | 2017-12-22 00:00:00 UTC | Better Stock: AbbVie (ABBV) vs. Eli Lilly (LLY) | ABBV | https://www.nasdaq.com/articles/better-stock-abbvie-abbv-vs-eli-lilly-lly-2017-12-22 | nan | nan | If AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) stocks were in a horse race in 2017, Lilly would have been ahead for most of the first half of the race. Over the summer, AbbVie would have pulled ahead by a nose. But by September, Lilly would have fallen well behind, with AbbVie kicking dust in its face. As the year draws to a close, AbbVie stock is up more than 55%, while Lilly stock is up close to 17%.
But Dec. 31 isn't the finish line for investors. The race is only warming up. Which of these two big pharma stocks is the better choice over the long run? Here's how AbbVie and Eli Lilly compare.
The case for AbbVie
AbbVie ranked as the best big pharma stock over the past three years using several key metrics, including total shareholder return. The most significant reason has been the continued success for Humira. It's the top-selling drug in the world and generates roughly two-thirds of AbbVie's total revenue. While some expected Humira's sales to begin to weaken, that hasn't happened yet. AbbVie expects sales for Humira to increase from $16 billion in 2016 to around $21 billion by 2020.
Even with sales for Humira growing, though, the drug will become less important for AbbVie over time. Cancer drug Imbruvica is the company's fastest-growing product, with 2017 sales on track to top $2.5 billion. This amount excludes revenue made by Johnson & Johnson , AbbVie's commercialization partner for Imbruvica.
AbbVie should have another blockbuster with Mavyret. The hepatitis C drug won U.S. and European approval earlier this year. Venclexta, which gained FDA approval in 2016 as a second-line treatment for patients with chronic lymphocytic leukemia who have a chromosomal abnormality called 17p deletion, should be another big winner for AbbVie if it's approved for additional indications.
That leads to AbbVie's pipeline. The drugmaker has multiple candidates with the potential to generate significant revenue. Humira could be joined by autoimmune-disease drugs upadacitinib and risankizumab. AbbVie has several promising experimental cancer drugs, notably including Rova-T and veliparib. The company awaits FDA approval for elagolix by the second quarter of 2018 in managing endometriosis. Elagolix is also being evaluated in a late-stage study for treating uterine fibroids.
The combination of Humira, Imbruvica, Mavyret, and other potential drugs on the way gives AbbVie a compelling growth story. However, the company should also be attractive to income investors, with its dividend currently yielding 2.9%.
The case for Eli Lilly
Eli Lilly has its own growth drivers. The company has been a longtime leader in the diabetes market. Although Lilly's top-selling insulin injection Humalog is only experiencing slow growth now, sales are soaring for diabetes drug Trulicity. Lilly is also getting help for its endocrinology lineup from osteoporosis drug Forteo.
Another bright spot for Lilly is Taltz. The drug won FDA approval for treating plaque psoriasis in March 2016. Lilly received a green light from the FDA for Taltz as a treatment for psoriatic arthritis earlier this month. Analysts expect the drug to eventually generate annual sales of $1 billion or more.
While sales are falling for Lilly's older cancer drugs Alimta and Erbitux, Cyramza is enjoying solid growth. The drug has received FDA approval for treating four types of cancer. Lilly is evaluating Cyramza in late-stage studies for treating three other cancer indications.
The company faces challenges in other areas. Sales have slipped for Cialis and Effient. Slipping is too mild a description for what's happening to sales for Cymbalta, Strattera, and Zyprexa. All three of these neuroscience drugs face generic competition. Still, though, Lilly's newer products have grown sales enough to offset the declines from these older products.
What about new drugs? Lilly won FDA approval for Verzenio in September for treating breast cancer. The company also awaits regulatory approval for experimental migraine drug galcanezumab. In addition, Lilly's pipeline includes 18 late-stage programs. Another migraine drug, lasmiditan, and pain drug tanezumab stand out as promising new candidates.
Income investors will probably like Lilly's growing dividend. Lilly's board of directors recently approved an 8% dividend increase. The yield currently stands at 2.59%.
Better stock
There are three main categories investors typically use to pick stocks: growth, income, and valuation. AbbVie has the better growth prospects, in my view, with Humira and Imbruvica continuing to rock along and plenty of promising new drugs on the horizon. AbbVie also wins in the income category with its higher dividend yield.
That leaves only valuation. And AbbVie has an edge there also. Lilly stock trades at more than 18 times expected earnings, while AbbVie's forward earnings multiple is less than 15.
To me, the choice is clear: AbbVie is the better stock between these two. Actually, looking at all factors, I think AbbVie ranks as the best big pharma stock overall . I expect AbbVie to continue to have plenty of horsepower down the stretch.
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Keith Speights owns shares of AbbVie. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has the better growth prospects, in my view, with Humira and Imbruvica continuing to rock along and plenty of promising new drugs on the horizon. If AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) stocks were in a horse race in 2017, Lilly would have been ahead for most of the first half of the race. Over the summer, AbbVie would have pulled ahead by a nose. | If AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) stocks were in a horse race in 2017, Lilly would have been ahead for most of the first half of the race. Over the summer, AbbVie would have pulled ahead by a nose. But by September, Lilly would have fallen well behind, with AbbVie kicking dust in its face. | If AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) stocks were in a horse race in 2017, Lilly would have been ahead for most of the first half of the race. As the year draws to a close, AbbVie stock is up more than 55%, while Lilly stock is up close to 17%. The case for AbbVie AbbVie ranked as the best big pharma stock over the past three years using several key metrics, including total shareholder return. | If AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) stocks were in a horse race in 2017, Lilly would have been ahead for most of the first half of the race. Over the summer, AbbVie would have pulled ahead by a nose. But by September, Lilly would have fallen well behind, with AbbVie kicking dust in its face. |
25799.0 | 2017-12-21 00:00:00 UTC | AbbVie's RA Candidate Meets Endpoints in 3rd Phase III Study | ABBV | https://www.nasdaq.com/articles/abbvies-ra-candidate-meets-endpoints-in-3rd-phase-iii-study-2017-12-21 | nan | nan | AbbVie Inc.ABBV announced that its investigational oral JAK-1 selective inhibitor, upadacitinib, met the primary endpoints in a phase III study from its SELECT program, which evaluated the candidate for the treatment of patients with rheumatoid arthritis ("RA").
AbbVie's shares have outperformed the industry so far this year. The stock has surged 55.5% compared with the industry's 16.1% rally.
The ACR20 response was achieved in 68% of the patients receiving 15 mg dose while the response rate was 71% for the 30 mg dose versus 41% for methotrexate. The LDA was achieved in 41%, 28% and 8% of patients receiving 30 mg, 15 mg or methotrexate, respectively.
Upadacitinib is being evaluated in a large program, which includes six studies on RA patients. AbbVie is also developing the candidate in psoriatic arthritis, Crohn's disease, ulcerative colitis, ankylosing spondylitis and atopic dermatitis.
The candidate has also met endpoints in two phase III studies from the SELECT program. The SELECT-MONOTHERAPY study supported the potential of the candidate in treating RA patients without a background methotrexate therapy.
Successful development of upadacitinib will boost AbbVie's RA portfolio, which already includes the blockbuster drug, Humira. Sales of Humira ($13.5 billion) accounted for 66% of net revenues in the first nine months of 2017.
The approval of Incyte Corporation INCY / Eli Lilly and Company's LLY Olumiant in Europe in February 2017 has not had any significant impact on Humira's sales, as it is approved in patients who are unresponsive to TNF inhibitors like Humira. Moreover, Olumiant's new drug application received a complete response letter from the FDA in April this year. Meanwhile, upadacitinib may be in direct line of competition with Olumiant as both are JAK-inhibitors.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank & Stock to Consider
AbbVie carries a Zacks Rank #3 (Hold).
Celldex Therapeutics, Inc. CLDX is a better-ranked stock in the pharma sector, carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Celldex's loss estimates narrowed from 93 cents to 90 cents for 2017 and from 90 cents to 89 cents over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 15.36%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is also developing the candidate in psoriatic arthritis, Crohn's disease, ulcerative colitis, ankylosing spondylitis and atopic dermatitis. Successful development of upadacitinib will boost AbbVie's RA portfolio, which already includes the blockbuster drug, Humira. AbbVie Inc.ABBV announced that its investigational oral JAK-1 selective inhibitor, upadacitinib, met the primary endpoints in a phase III study from its SELECT program, which evaluated the candidate for the treatment of patients with rheumatoid arthritis ("RA"). | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report Celldex Therapeutics, Inc. (CLDX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that its investigational oral JAK-1 selective inhibitor, upadacitinib, met the primary endpoints in a phase III study from its SELECT program, which evaluated the candidate for the treatment of patients with rheumatoid arthritis ("RA"). | AbbVie Inc.ABBV announced that its investigational oral JAK-1 selective inhibitor, upadacitinib, met the primary endpoints in a phase III study from its SELECT program, which evaluated the candidate for the treatment of patients with rheumatoid arthritis ("RA"). AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report Celldex Therapeutics, Inc. (CLDX): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie's shares have outperformed the industry so far this year. Successful development of upadacitinib will boost AbbVie's RA portfolio, which already includes the blockbuster drug, Humira. AbbVie Inc.ABBV announced that its investigational oral JAK-1 selective inhibitor, upadacitinib, met the primary endpoints in a phase III study from its SELECT program, which evaluated the candidate for the treatment of patients with rheumatoid arthritis ("RA"). |
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