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22700.0 | 2023-03-23 00:00:00 UTC | 2 High-Yield Dividend Stocks You Won't Regret Buying Right Now | ABBV | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-you-wont-regret-buying-right-now | nan | nan | High-yield dividend stocks can be great for managing the ongoing reset in global equity markets. That said, these highly coveted income plays can also be fraught with risk, so it's important for investors to understand the threats and opportunities of the business behind the yield.
Which high-yield dividend stocks are worth buying right now? These two blue-chip companies sport impressive yields, rock-solid free cash flows, and a bright long-term outlook. Read on to find out more about these above-average passive income opportunities.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is an Illinois-based drugmaker with significant commercial footprints in the areas of immunology, hematology, and medical aesthetics. Since it was spun off from Abbott Laboratories in 2013, the drugmaker's shares have regularly beaten the annual returns of every major U.S. stock index.
AbbVie's success as a top investing vehicle can be attributed to three key factors:
The company's flagship immunology drug Humira, which has racked up over $135 billion in U.S. sales since its launch two decades ago, has long been one of the best-selling medications in the world.
AbbVie's groundbreaking blood cancer drug, Imbruvica, enabled the company to successfully expand into the high-growth, high-profit oncology market.
AbbVie's deep commitment to paying a top-notch dividend yield, which presently stands at 3.85% on annualized basis, has attracted a favorable mix of institutional and income-seeking retail investors (i.e., investors that rarely sell shares due to the regular income provided by a stock).
AbbVie, however, is at a critical inflection point in its life cycle. Humira sales are set to decline in a major way over the next two years due to the introduction of biosimilars (generic biologic drugs) into the U.S. market. What's more, Imbruvica is starting to face increased competition in the marketplace. Taken together, Humira and Imbruvica made up a whopping 44.4% of the company's total sales in the fourth quarter of 2022.
Topping it off, pricey acquisitions, such as its $63 billion buyout of Allergan, have added significant debt to the drugmaker's balance sheet (over $64 billion at last count) in recent years. As a result, AbbVie doesn't have the financial firepower to buy its way out of a jam in the event high-value pipeline assets fail to meet expectations.
What does this all mean? AbbVie is expected to go through an earnings/revenue trough in 2023/2024 before returning to strong levels of bottom- and top-line growth in 2025. The good news is that most analysts covering the stock think the company's free cash flows ought to be strong enough to cover the company's stellar yield over this down period.
What's more, AbbVie's next wave of immunology (Skyrizi and Rinvoq) and hematology (epcoritamab) products should benefit from the company's entrenched competitive positioning in these high-value markets. Bottom line, AbbVie's above-average dividend yield screens as a "safe bet" as the company works through this ongoing portfolio churn.
Ford
Ford is an iconic automaker with a 120-year operating history. The company's F-Series trucks have been America's top-selling vehicle for 41 straight years, and its ongoing pivot to electric vehicles (EVs) has gotten off to a blistering start with the introduction of the F-150 Lightning truck. In fact, initial demand for the F-150 Lightning was so robust that the automaker stopped taking reservations at one point. Most importantly, Ford should be well positioned to capitalize on the global transition to EVs thanks to its $50 billion investment in this high-growth platform.
What about the dividend? Ford stock pays out a healthy 5.31% annualized yield at current levels, a figure that is over three times higher than the average yield of dividend stocks listed on the benchmark S&P 500. Moreover, the automaker's stellar yield is supported by its exceptional adjusted free cash flows, which have been averaging $3.2 billion over the last three quarters. Ford's top-notch dividend yield, strong free cash flows, and enormous investment in EVs make this stock a top buy for income investors.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's success as a top investing vehicle can be attributed to three key factors: The company's flagship immunology drug Humira, which has racked up over $135 billion in U.S. sales since its launch two decades ago, has long been one of the best-selling medications in the world. What's more, AbbVie's next wave of immunology (Skyrizi and Rinvoq) and hematology (epcoritamab) products should benefit from the company's entrenched competitive positioning in these high-value markets. AbbVie AbbVie (NYSE: ABBV) is an Illinois-based drugmaker with significant commercial footprints in the areas of immunology, hematology, and medical aesthetics. | AbbVie AbbVie (NYSE: ABBV) is an Illinois-based drugmaker with significant commercial footprints in the areas of immunology, hematology, and medical aesthetics. AbbVie's success as a top investing vehicle can be attributed to three key factors: The company's flagship immunology drug Humira, which has racked up over $135 billion in U.S. sales since its launch two decades ago, has long been one of the best-selling medications in the world. AbbVie's groundbreaking blood cancer drug, Imbruvica, enabled the company to successfully expand into the high-growth, high-profit oncology market. | AbbVie's deep commitment to paying a top-notch dividend yield, which presently stands at 3.85% on annualized basis, has attracted a favorable mix of institutional and income-seeking retail investors (i.e., investors that rarely sell shares due to the regular income provided by a stock). AbbVie AbbVie (NYSE: ABBV) is an Illinois-based drugmaker with significant commercial footprints in the areas of immunology, hematology, and medical aesthetics. AbbVie's success as a top investing vehicle can be attributed to three key factors: The company's flagship immunology drug Humira, which has racked up over $135 billion in U.S. sales since its launch two decades ago, has long been one of the best-selling medications in the world. | AbbVie AbbVie (NYSE: ABBV) is an Illinois-based drugmaker with significant commercial footprints in the areas of immunology, hematology, and medical aesthetics. AbbVie's success as a top investing vehicle can be attributed to three key factors: The company's flagship immunology drug Humira, which has racked up over $135 billion in U.S. sales since its launch two decades ago, has long been one of the best-selling medications in the world. AbbVie's groundbreaking blood cancer drug, Imbruvica, enabled the company to successfully expand into the high-growth, high-profit oncology market. | 3c644d43-9ba6-4528-b689-8853ae812787 |
22701.0 | 2023-03-23 00:00:00 UTC | AbbVie: Phase 3 Induction Study With Risankizumab Meets Endpoints | ABBV | https://www.nasdaq.com/articles/abbvie%3A-phase-3-induction-study-with-risankizumab-meets-endpoints | nan | nan | (RTTNews) - AbbVie (ABBV) reported positive top-line results from INSPIRE, a Phase 3 induction study, showing risankizumab met the primary endpoint of clinical remission at week 12, as well as all secondary endpoints in adult patients with moderately to severely active ulcerative colitis. In the study, 20.3% of patients receiving risankizumab achieved clinical remission compared to 6.2% of patients receiving placebo. The safety profile of risankizumab 1200 mg IV was consistent with the safety profile observed in previous studies across other indications.
Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) reported positive top-line results from INSPIRE, a Phase 3 induction study, showing risankizumab met the primary endpoint of clinical remission at week 12, as well as all secondary endpoints in adult patients with moderately to severely active ulcerative colitis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. In the study, 20.3% of patients receiving risankizumab achieved clinical remission compared to 6.2% of patients receiving placebo. | (RTTNews) - AbbVie (ABBV) reported positive top-line results from INSPIRE, a Phase 3 induction study, showing risankizumab met the primary endpoint of clinical remission at week 12, as well as all secondary endpoints in adult patients with moderately to severely active ulcerative colitis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. In the study, 20.3% of patients receiving risankizumab achieved clinical remission compared to 6.2% of patients receiving placebo. | (RTTNews) - AbbVie (ABBV) reported positive top-line results from INSPIRE, a Phase 3 induction study, showing risankizumab met the primary endpoint of clinical remission at week 12, as well as all secondary endpoints in adult patients with moderately to severely active ulcerative colitis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. For More Such Health News, visit rttnews.com. | (RTTNews) - AbbVie (ABBV) reported positive top-line results from INSPIRE, a Phase 3 induction study, showing risankizumab met the primary endpoint of clinical remission at week 12, as well as all secondary endpoints in adult patients with moderately to severely active ulcerative colitis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. In the study, 20.3% of patients receiving risankizumab achieved clinical remission compared to 6.2% of patients receiving placebo. | ef0c6fe4-c12d-4a0f-892d-3016e17444cc |
22702.0 | 2023-03-23 00:00:00 UTC | Use These 3 Strategies to Make $1,000 in Passive Income Per Year | ABBV | https://www.nasdaq.com/articles/use-these-3-strategies-to-make-%241000-in-passive-income-per-year | nan | nan | Passive income is a holy grail for many investors, but it's a lot easier to want it than it is to make enough of it from your holdings. Buying shares of any old dividend stock simply won't do; you need a strategy that's right for your goals and your means.
So, let's explore three strategies that can help you invest for passive income, starting with one technique that you'll need a bit of patience to employ correctly.
Image source: Getty Images.
1. Dollar-cost averaging
Dollar-cost averaging is a slow and safe way to build up a position in a dividend stock. Rather than making a lump-sum investment, the strategy calls for making a series of smaller purchases over time.
That means it's a more approachable strategy if you don't have much capital on hand or if the company you're targeting has a low dividend yield. And since your purchases are made across a period of weeks or months or even longer, the impact of day-to-day fluctuations on your cost basis won't be as large, nor will your risk of getting your shares diluted, since only part of your final position will be vulnerable at any given time.
You can dollar-cost average into a high-yield dividend stock if you want, but it actually makes more sense to do it for lower-yielding stocks, especially during a bear market when price levels are broadly dropping.
For example, it would cost you about $20,000 -- a very large amount for a lump-sum purchase -- to buy enough shares of pharmaceuticals company Viatris (NASDAQ: VTRS) to generate $1,000 per year in dividends, since its forward yield is only 5%. But if you broke up that total investment into 10 manageable purchases of $2,000, or even 20 purchases of $1,000, you would still get the same amount of passive income at the end of the process.
The trick is that you need to be both patient and consistent to make it work, and the main drawback is that you don't get the full $1,000 per year until the buying process is finished. But if the stock tanks or the dividend gets cut before you're done accumulating enough shares, you can also decide to deploy the rest of your capital elsewhere, which limits your risk while you're building your position.
2. Lump-sum investing
The most direct way to make $1,000 in annual passive income is to find a dividend stock with a high yield, and then buy as many shares as necessary to hit the target inflow. For a stock like AFC Gamma (NASDAQ: AFCG), a real estate investment trust (REIT) with an absurdly high forward yield of 18.6%, you could make a lump-sum investment of only $5,376. That's quite an attainable sum, even if it might take a few months to save up.
But there are a few reasons this strategy needs to be used with caution. First, if you concentrate your entire passive-income portfolio into one stock, you'll be very vulnerable if anything goes wrong with the business. So ideally, you should make several lump-sum purchases of stocks with similar yields to ensure that your income stream is a bit more resilient.
The other caveat is that many of the companies suitable for lump-sum investing are REITs, which typically rely on debt financing to buy properties and then rent them out. They sometimes also issue new shares to raise capital, and if you buy in right before a stock offering, your stake will get diluted, and your realized dividend yield will be smaller than what was advertised. Therefore, be sure to vet the stock's financials and growth model before investing, as lump-sum investment will leave you quite vulnerable. Also keep in mind that companies with very high dividend yields often are apt to cut their payout if the economy or their business slows.
You'll also be more vulnerable to fluctuations in the price of the stock, as all of your shares will have the same cost basis.
3. Look for high rates of dividend growth rather than high yields
For very patient investors and those without much capital, perhaps the best way to make $1,000 in passive income annually is to invest in stocks with a high rate of dividend growth. Doing either a large purchase or several smaller purchases will work just fine, as long as you're willing to wait long enough for the dividend growth to develop into your target level of income.
Take pharmaceuticals company AbbVie (NYSE: ABBV) as an example. With its forward yield of about 3.8%, it would take an investment of roughly $26,385 to make a grand per year, which is way too much to do in one shot, and also a bit large to easily dollar-cost average into a position in a short period.
But over the past 10 years, AbbVie's annual dividend per share increased by an average of 15.4% per year. And if it continues to grow at that rate, you could get to $1,000 in passive income annually by investing only $10,000, reinvesting your dividends, and waiting 6.8 years for the growth to accumulate.
Of course, that assumes AbbVie's dividend yield remains roughly the same in the period, which it might not, and also that its dividend won't get cut, which is always a possibility. Still, you end up getting the same amount of passive income as the other methods with less than half of the principal, which isn't half bad at all.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool recommends Viatris. 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. | Take pharmaceuticals company AbbVie (NYSE: ABBV) as an example. But over the past 10 years, AbbVie's annual dividend per share increased by an average of 15.4% per year. Of course, that assumes AbbVie's dividend yield remains roughly the same in the period, which it might not, and also that its dividend won't get cut, which is always a possibility. | Take pharmaceuticals company AbbVie (NYSE: ABBV) as an example. But over the past 10 years, AbbVie's annual dividend per share increased by an average of 15.4% per year. Of course, that assumes AbbVie's dividend yield remains roughly the same in the period, which it might not, and also that its dividend won't get cut, which is always a possibility. | Take pharmaceuticals company AbbVie (NYSE: ABBV) as an example. But over the past 10 years, AbbVie's annual dividend per share increased by an average of 15.4% per year. Of course, that assumes AbbVie's dividend yield remains roughly the same in the period, which it might not, and also that its dividend won't get cut, which is always a possibility. | Take pharmaceuticals company AbbVie (NYSE: ABBV) as an example. But over the past 10 years, AbbVie's annual dividend per share increased by an average of 15.4% per year. Of course, that assumes AbbVie's dividend yield remains roughly the same in the period, which it might not, and also that its dividend won't get cut, which is always a possibility. | 61eb289a-2664-40e7-8cee-080a8b7c36d1 |
22703.0 | 2023-03-23 00:00:00 UTC | 2 Reasons to Buy AbbVie, and 1 Reason to Sell | ABBV | https://www.nasdaq.com/articles/2-reasons-to-buy-abbvie-and-1-reason-to-sell | nan | nan | AbbVie (NYSE: ABBV) wowed investors last year when it outperformed the S&P 500 index. Shares of the pharmaceutical company climbed 19%, while the benchmark fell by as much.
Since the start of the year, though, AbbVie shares have lost momentum. Why? The company's blockbuster immunology drug, Humira, is facing competition -- and that means sales are set to fall.
At the same time, AbbVie's full portfolio of other blockbusters and a pipeline of promising candidates give us reason to be positive about the company. So what should investors do? Let's look at two reasons to buy AbbVie right now -- and one reason to sell.
Reason to buy: Two new growth drivers
AbbVie has been preparing for Humira's loss of exclusivity by developing two other immunology drugs that may take over where Humira's leaving off. The company aims to win approval for Rinvoq and Skyrizi in all of Humira's indications and more.
So far, Rinvoq has won the regulatory nod for five indications, and Skyrizi for three. Additional decisions should be on the way. The U.S. Food and Drug Administration (FDA) is reviewing Rinvoq for Crohn's disease, and Skyrizi is involved in a phase 3 trial for ulcerative colitis.
These drugs already are bringing in blockbuster revenue, and the company predicts that, together, they'll generate $17.5 billion in 2025. And AbbVie forecasts they'll reach more than $21 billion in revenue in 2027. That means that, together, they may beat Humira's peak revenue of more than $20 billion.
AbbVie's immunology business should continue to boom -- with or without Humira.
Reason to buy: The financial picture
AbbVie completed its purchase of Allergan back in 2020. The $63 billion deal brought significant growth drivers -- such as an aesthetics portfolio led by top wrinkle treatment, Botox.
The great news is that AbbVie is benefiting from the growth of Allergan products and has aggressively cut the debt associated with the deal. The company says it's on track to extinguish incremental debt linked to the purchase by the end of this year.
At the same time, AbbVie has continued increasing its dividend, making it a solid choice for investors seeking passive income. The quarterly dividend has climbed by 270% since the company's beginnings. AbbVie pays an annual dividend of $5.92 a share, which translates to a dividend yield of 3.79%. That's higher than the industry average of 2.15%, according to the NYU Stern Business School.
AbbVie's financial picture is definitely a bright one for investors.
Reason to sell: A difficult near term
Yes, the rest of the immunology portfolio and AbbVie's other products should compensate for the loss of Humira. AbbVie predicts a return to strong sales growth by 2025. But the near term -- this year and next year -- may be difficult for the company.
AbbVie expects a 37% drop in U.S. Humira sales this year. The drug already has been facing competition internationally, where last year, sales slipped 22%.
Investors will have to be patient and wait through this period of declining revenue for newer drugs to compensate and eventually even outperform Humira. Meanwhile, the stock price could stagnate. And that means you may gain more by placing your money elsewhere.
Should you buy or sell?
I think the reasons to buy are stronger than the reason to sell. Yes, AbbVie stock may not soar in the near term, but the company is setting the stage for major earnings growth over time. Meanwhile, those who invest today can pick up the stock at a reasonable price and benefit from passive income. So even though AbbVie stock probably won't jump overnight, long-term investors still may cheer over their purchase right away -- and over time.
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Adria Cimino 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. | At the same time, AbbVie has continued increasing its dividend, making it a solid choice for investors seeking passive income. AbbVie (NYSE: ABBV) wowed investors last year when it outperformed the S&P 500 index. Since the start of the year, though, AbbVie shares have lost momentum. | Reason to buy: The financial picture AbbVie completed its purchase of Allergan back in 2020. AbbVie (NYSE: ABBV) wowed investors last year when it outperformed the S&P 500 index. Since the start of the year, though, AbbVie shares have lost momentum. | Let's look at two reasons to buy AbbVie right now -- and one reason to sell. Reason to buy: Two new growth drivers AbbVie has been preparing for Humira's loss of exclusivity by developing two other immunology drugs that may take over where Humira's leaving off. Yes, AbbVie stock may not soar in the near term, but the company is setting the stage for major earnings growth over time. | AbbVie (NYSE: ABBV) wowed investors last year when it outperformed the S&P 500 index. Since the start of the year, though, AbbVie shares have lost momentum. At the same time, AbbVie's full portfolio of other blockbusters and a pipeline of promising candidates give us reason to be positive about the company. | 339513d5-709e-4c0f-9ba9-a0e3137b10ab |
22704.0 | 2023-03-22 00:00:00 UTC | US FDA declines to approve AbbVie's Parkinson's disease therapy | ABBV | https://www.nasdaq.com/articles/us-fda-declines-to-approve-abbvies-parkinsons-disease-therapy | nan | nan | Adds background
March 22 (Reuters) - AbbVie Inc ABBV.N said on Wednesday the U.S. Food and Drug Administration had declined to approve its Parkinson's disease therapy for adults.
The U.S. health regulator has sought additional information about the delivery pump, which is part of the marketing application, the drugmaker said, and does not want additional efficacy and safety trials.
Abbvie said it plans to resubmit the marketing application as soon as possible.
Parkinson's disease is a neurological disease that causes unintended or uncontrollable movements, such as shaking, stiffness, and difficulty with balance and coordination.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shinjini Ganguli and Sriraj Kalluvila)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background March 22 (Reuters) - AbbVie Inc ABBV.N said on Wednesday the U.S. Food and Drug Administration had declined to approve its Parkinson's disease therapy for adults. Abbvie said it plans to resubmit the marketing application as soon as possible. The U.S. health regulator has sought additional information about the delivery pump, which is part of the marketing application, the drugmaker said, and does not want additional efficacy and safety trials. | Adds background March 22 (Reuters) - AbbVie Inc ABBV.N said on Wednesday the U.S. Food and Drug Administration had declined to approve its Parkinson's disease therapy for adults. Abbvie said it plans to resubmit the marketing application as soon as possible. The U.S. health regulator has sought additional information about the delivery pump, which is part of the marketing application, the drugmaker said, and does not want additional efficacy and safety trials. | Adds background March 22 (Reuters) - AbbVie Inc ABBV.N said on Wednesday the U.S. Food and Drug Administration had declined to approve its Parkinson's disease therapy for adults. Abbvie said it plans to resubmit the marketing application as soon as possible. The U.S. health regulator has sought additional information about the delivery pump, which is part of the marketing application, the drugmaker said, and does not want additional efficacy and safety trials. | Adds background March 22 (Reuters) - AbbVie Inc ABBV.N said on Wednesday the U.S. Food and Drug Administration had declined to approve its Parkinson's disease therapy for adults. Abbvie said it plans to resubmit the marketing application as soon as possible. The U.S. health regulator has sought additional information about the delivery pump, which is part of the marketing application, the drugmaker said, and does not want additional efficacy and safety trials. | de3b7868-02e0-4505-9297-fb8f9b5c3893 |
22705.0 | 2023-03-22 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-4 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | 6d1376ac-127f-4529-8910-3c5c5fa80143 |
22706.0 | 2023-03-22 00:00:00 UTC | AbbVie: FDA Requests Additional Information Related To NDA Review Of ABBV-951 | ABBV | https://www.nasdaq.com/articles/abbvie%3A-fda-requests-additional-information-related-to-nda-review-of-abbv-951 | nan | nan | (RTTNews) - AbbVie (ABBV) announced it received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease. The FDA requested additional information about the device as part of the NDA review. The company plans to resubmit the NDA as soon as possible.
ABBV-951 or foscarbidopa/foslevodopa is a solution of carbidopa and levodopa prodrugs for continuous subcutaneous delivery that is being investigated for the treatment of motor fluctuations in patients with advanced Parkinson's disease.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced it received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease. ABBV-951 or foscarbidopa/foslevodopa is a solution of carbidopa and levodopa prodrugs for continuous subcutaneous delivery that is being investigated for the treatment of motor fluctuations in patients with advanced Parkinson's disease. The FDA requested additional information about the device as part of the NDA review. | (RTTNews) - AbbVie (ABBV) announced it received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease. ABBV-951 or foscarbidopa/foslevodopa is a solution of carbidopa and levodopa prodrugs for continuous subcutaneous delivery that is being investigated for the treatment of motor fluctuations in patients with advanced Parkinson's disease. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced it received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease. ABBV-951 or foscarbidopa/foslevodopa is a solution of carbidopa and levodopa prodrugs for continuous subcutaneous delivery that is being investigated for the treatment of motor fluctuations in patients with advanced Parkinson's disease. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced it received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease. ABBV-951 or foscarbidopa/foslevodopa is a solution of carbidopa and levodopa prodrugs for continuous subcutaneous delivery that is being investigated for the treatment of motor fluctuations in patients with advanced Parkinson's disease. The FDA requested additional information about the device as part of the NDA review. | ecc0322c-2caf-4873-be26-6d9a69a0d042 |
22707.0 | 2023-03-22 00:00:00 UTC | AbbVie Inc. (ABBV) Is a Trending Stock: Facts to Know Before Betting on It | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-5 | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned +3.1%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 0.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $2.49 per share, indicating a change of -21.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.97 points to a change of -20.3% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $11 indicates a change of +0.3% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $12.04 billion for the current quarter points to a year-over-year change of -11.1%. The $52.34 billion and $52.94 billion estimates for the current and next fiscal years indicate changes of -9.9% and +1.2%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. EPS of $3.60 for the same period compares with $3.31 a year ago.
Compared to the Zacks Consensus Estimate of $15.35 billion, the reported revenues represent a surprise of -1.52%. The EPS surprise was +1.69%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 0.5%. | Last Reported Results and Surprise History AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 0.5%. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 0.5%. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 0.5%. | ebb83784-8b9e-453e-abb5-5ee7f695de8f |
22708.0 | 2023-03-22 00:00:00 UTC | Here's What is Driving Amgen (AMGN) Stock's Outperformance | ABBV | https://www.nasdaq.com/articles/heres-what-is-driving-amgen-amgn-stocks-outperformance | nan | nan | Amgen AMGN is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health and nephrology and neuroscience markets.
Thousand Oaks, CA-based Amgen also has a promising pipeline of cancer drugs. It has one of the strongest cash positions in the biotech sector, which could be used to acquire more pipeline assets that could fuel long-term growth. Biosimilar drugs are also a key part of Amgen’s growth strategy.
Though the stock has lost 0.6% this year so far, it has outperformed the decline of 14.3% for the industry.
Image Source: Zacks Investment Research
Amgen’s key drugs like Prolia, Repatha and Otezla are aiding sales, driven by volume growth. These drugs are gaining consistent approvals for label expansions.
Moreover, Amgen is evaluating Prolia/Xgeva, Vectibix, Enbrel, Aranesp, Kyprolis, Nplate and Blincyto for additional indications. A recent key new drug approval was Tezspire/tezepelumab to treat severe asthma in the United States in December 2021. Amgen has a partnership with AstraZeneca AZN for Tezspire. AstraZeneca announced that Tezspire was approved in Japan and Europe in September 2022. AMGN and AstraZeneca share costs and profits equally after payment by the latter of a mid-single-digit inventor royalty to the former. While AstraZeneca leads development, Amgen leads manufacturing.
Another new drug, Lumakras (sotorasib) was approved for advanced non-small cell lung cancer (NSCLC) in the United States in May 2021 and the EU in January 2022. It is now launched in more than 45 countries. Though sales of this key new drug have been slower than anticipated, Amgen’s label expansion studies on Lumakras in earlier lines of therapy, which have the potential to significantly expand the currently addressable patient population, are progressing rapidly.
Amgen also boasts a strong biosimilars portfolio, which is an important long-term growth driver. It markets Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita was launched in January 2023. With a five-month lead over the next biosimilar entrant, Amgen expects a rapid uptake of the biosimilar in 2023.
Biosimilars of J&J’s Stelara (ABP 654), Alexion’s Soliris (ABP 959) and Regeneron’s Eylea (ABP 938) are in late-stage development.
Though sales of Amgen’s present biosimilars, Kanjinti and Mvasi, are falling due to lower prices and volume declines due to increased competition, biosimilar revenues are expected to return to growth with the launch of Amjevita (Humira biosimilar) in 2023 and the next wave of launches of biosimilar versions of Stelara, Eylea and Soliris.
The company has six more biosimilar launches planned for global markets by the end of 2030, which should drive long-term growth.
Amgen has been quite active on the M&A front lately. In 2022, it bought ChemoCentryx, which added a newly launched innovative rare disease drug, Tavneos, to its portfolio.
In December, Amgen announced a definitive agreement to acquire Horizon Therapeutics HZNP for $116.5 per share in cash or $27.8 billion. The acquisition will add several first-in-class early-in-lifecycle biologic drugs like Tepezza, Krystexxa and Uplizna to Amgen’s broad and diversified portfolio. The Horizon Therapeutics acquisition is expected to close in the first half of 2023.
Amgen has its share of problems. Increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. The Humira U.S. sales erosion in 2023 and increasing biosimilar competition for some other legacy products create potential revenue headwinds. The softness in sales of Enbrel, one of Amgen’s largest products, is also a key cause for concern. Pricing pressure and stiff competition are hurting sales of Enbrel, one of the main drivers of the firm’s revenues.
Amgen’s net selling price has declined for the past few years, with the trend expected to continue in 2023 due to increased competition. Amgen expects a mid-single-digit price decline in 2023. In addition, foreign exchange headwinds with the strengthening of the U.S. dollar, increasing interest rates, persistently high inflation, supply chain pressure and the war in Europe are creating an uncertain macro environment.
Nonetheless, continued strong growth of key drugs like Repatha, Prolia and Evenity and contribution from newer drugs Tezspire and Tavneos, higher sales from ex-U.S. markets, increased contribution from its high-quality biosimilars and costs savings should keep the stock afloat in 2023.
Zacks Rank
Amgen currently has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It markets Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita was launched in January 2023. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP) : 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 Amgen Inc. (AMGN) : Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. It markets Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita was launched in January 2023. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. It markets Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita was launched in January 2023. | It markets Kanjinti (a biosimilar of Roche’s Herceptin) and Mvasi (a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita was launched in January 2023. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | 6d2e5aa3-1d85-44be-972a-928e5394d4f2 |
22709.0 | 2023-03-21 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-72 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Nordson Corp. (Symbol: NDSN) $208.16 $256.00 22.98%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $192.47 $228.25 18.59%
National Retail Properties Inc (Symbol: NNN) $42.66 $50.44 18.25%
AbbVie Inc (Symbol: ABBV) $156.12 $165.73 6.16%
Polaris Inc (Symbol: PII) $107.51 $113.90 5.94%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Nordson Corp. (Symbol: NDSN) 1.25% 22.98% 24.23%
RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.79% 18.59% 19.38%
National Retail Properties Inc (Symbol: NNN) 5.16% 18.25% 23.41%
AbbVie Inc (Symbol: ABBV) 3.79% 6.16% 9.95%
Polaris Inc (Symbol: PII) 2.42% 5.94% 8.36%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Nordson Corp. (Symbol: NDSN) $1.92 $2.46 28.13%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.45 $1.49 2.76%
National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32%
AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53%
Polaris Inc (Symbol: PII) $2.53 $2.57 1.58%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
Also see:
Top Stocks Held By Warren Buffett
Institutional Holders of PHYL
Funds Holding BLOX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on ABBV — FREE Get the latest Zacks research report on PII — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: Top Stocks Held By Warren Buffett Institutional Holders of PHYL Funds Holding BLOX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Nordson Corp. (Symbol: NDSN) $208.16 $256.00 22.98% RenaissanceRe Holdings Ltd. (Symbol: RNR) $192.47 $228.25 18.59% National Retail Properties Inc (Symbol: NNN) $42.66 $50.44 18.25% AbbVie Inc (Symbol: ABBV) $156.12 $165.73 6.16% Polaris Inc (Symbol: PII) $107.51 $113.90 5.94% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Nordson Corp. (Symbol: NDSN) 1.25% 22.98% 24.23% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.79% 18.59% 19.38% National Retail Properties Inc (Symbol: NNN) 5.16% 18.25% 23.41% AbbVie Inc (Symbol: ABBV) 3.79% 6.16% 9.95% Polaris Inc (Symbol: PII) 2.42% 5.94% 8.36% Another consideration with dividend growth stocks is just how much the dividend is growing. | Nordson Corp. (Symbol: NDSN) $208.16 $256.00 22.98% RenaissanceRe Holdings Ltd. (Symbol: RNR) $192.47 $228.25 18.59% National Retail Properties Inc (Symbol: NNN) $42.66 $50.44 18.25% AbbVie Inc (Symbol: ABBV) $156.12 $165.73 6.16% Polaris Inc (Symbol: PII) $107.51 $113.90 5.94% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Nordson Corp. (Symbol: NDSN) 1.25% 22.98% 24.23% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.79% 18.59% 19.38% National Retail Properties Inc (Symbol: NNN) 5.16% 18.25% 23.41% AbbVie Inc (Symbol: ABBV) 3.79% 6.16% 9.95% Polaris Inc (Symbol: PII) 2.42% 5.94% 8.36% Another consideration with dividend growth stocks is just how much the dividend is growing. Nordson Corp. (Symbol: NDSN) $1.92 $2.46 28.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.45 $1.49 2.76% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% Polaris Inc (Symbol: PII) $2.53 $2.57 1.58% These five stocks are part of our full Dividend Aristocrats List. | Nordson Corp. (Symbol: NDSN) $208.16 $256.00 22.98% RenaissanceRe Holdings Ltd. (Symbol: RNR) $192.47 $228.25 18.59% National Retail Properties Inc (Symbol: NNN) $42.66 $50.44 18.25% AbbVie Inc (Symbol: ABBV) $156.12 $165.73 6.16% Polaris Inc (Symbol: PII) $107.51 $113.90 5.94% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Nordson Corp. (Symbol: NDSN) 1.25% 22.98% 24.23% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.79% 18.59% 19.38% National Retail Properties Inc (Symbol: NNN) 5.16% 18.25% 23.41% AbbVie Inc (Symbol: ABBV) 3.79% 6.16% 9.95% Polaris Inc (Symbol: PII) 2.42% 5.94% 8.36% Another consideration with dividend growth stocks is just how much the dividend is growing. Nordson Corp. (Symbol: NDSN) $1.92 $2.46 28.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.45 $1.49 2.76% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% Polaris Inc (Symbol: PII) $2.53 $2.57 1.58% These five stocks are part of our full Dividend Aristocrats List. | Nordson Corp. (Symbol: NDSN) $208.16 $256.00 22.98% RenaissanceRe Holdings Ltd. (Symbol: RNR) $192.47 $228.25 18.59% National Retail Properties Inc (Symbol: NNN) $42.66 $50.44 18.25% AbbVie Inc (Symbol: ABBV) $156.12 $165.73 6.16% Polaris Inc (Symbol: PII) $107.51 $113.90 5.94% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Nordson Corp. (Symbol: NDSN) 1.25% 22.98% 24.23% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.79% 18.59% 19.38% National Retail Properties Inc (Symbol: NNN) 5.16% 18.25% 23.41% AbbVie Inc (Symbol: ABBV) 3.79% 6.16% 9.95% Polaris Inc (Symbol: PII) 2.42% 5.94% 8.36% Another consideration with dividend growth stocks is just how much the dividend is growing. Nordson Corp. (Symbol: NDSN) $1.92 $2.46 28.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.45 $1.49 2.76% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% Polaris Inc (Symbol: PII) $2.53 $2.57 1.58% These five stocks are part of our full Dividend Aristocrats List. | 7000229c-71c1-4baa-87f8-6791ad3d250b |
22710.0 | 2023-03-20 00:00:00 UTC | Should You Buy The Botox Maker Over Johnson & Johnson Stock? | ABBV | https://www.nasdaq.com/articles/should-you-buy-the-botox-maker-over-johnson-johnson-stock | nan | nan | We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its industry peer, Johnson & Johnson stock (NYSE: JNJ), given its better growth prospects. Although AbbVie is trading at 4.8x trailing revenues compared to 4.2x for J&J, this gap in valuation looks justified, given the former’s superior revenue growth and profitability, as discussed in the sections below.
If we look at stock returns, AbbVie, with -4% returns in the last twelve months, has fared better than the -13% return for J&J stock and -12% returns for the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss why we believe ABBV is a better pick over JNJ. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. AbbVie: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. AbbVie’s Revenue Growth Is Better
AbbVie’s revenue growth of 3.3% over the last twelve months is slightly higher than 1.2% for J&J.
Even if we look at a longer time frame, AbbVie fares better, with its sales rising at an average annual growth rate of 21% to $58 billion in 2022, compared to $33 billion in 2019, while J&J’s saw its revenue rise at an average annual rate of just 5% to $95 billion in 2022, compared to $82 billion in 2019.
While J&J’s medical devices business faced headwinds in 2020 due to the pandemic’s impact, it rebounded in 2021. The pharmaceuticals segment saw a 14% rise in 2021 sales, and the medical devices segment sales were up 18%. However, the growth slowed to 1% for both segments in 2022. This can partly be attributed to lower contribution from the Covid-19 vaccine and falling sales for Remicade, which now faces biosimilar competition.
J&J’s pharmaceuticals business will likely benefit from market share gains for its cancer drug – Darzalex – and immunology drugs, Stelara and Tremfya. The company is currently in the process of spinning off its consumer healthcare business as a separately traded company – Kenvue – which has already filed for an IPO.
AbbVie’s revenue growth has been buoyed by its Allergan acquisition in 2020.
The company is best known for its blockbuster drug – Humira – used to treat rheumatoid arthritis and Crohn’s disease, among others. Humira garnered a large $21.2 billion in 2022 sales, reflecting a 3% y-o-y growth. Now, Humira’s biosimilar has already hit the European markets, weighing on the company’s international sales (down 22% y-o-y in 2022). The biosimilars are expected to enter the U.S. this year, likely resulting in a significant drop in Humira sales over the coming years.
That said, AbbVie is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis, are gaining market share. For perspective, these three products garnered $13.0 billion in 2022, reflecting about 40% y-o-y growth.
Still, Humira’s decline in sales will outweigh the rise in sales of other drugs in the near term. While AbbVie’s sales are expected to fall in 2023, in one of its recent SEC filings, the company stated that it will absorb the loss of exclusivity for Humira in the U.S. and return to strong sales growth in 2025.
Our Johnson & Johnson Revenue and AbbVie Revenue dashboards provide more insight into the companies’ sales.
2. AbbVie Is More Profitable, But J&J Has A Better Financial Position
AbbVie’s operating margin of 31.2% over the last twelve-month period is better than 24.9% for J&J.
This compares with 39.0% and 24.5% figures in 2019, before the pandemic, respectively.
AbbVie’s free cash flow margin of 43% is also better than 22% for J&J.
Our Johnson & Johnson Operating Income Comparison and AbbVie Operating Income Comparison dashboards have more details.
Looking at financial risk, J&J fares better. Not only is its 10% debt as a percentage of equity is lower than 23% for AbbVie, its 13% cash as a percentage of assets is higher than 7% for the latter, implying that J&J has a better debt position and more cash cushion.
3. The Net of It All
We see that AbbVie has demonstrated better revenue growth and is more profitable. On the other hand, J&J has a better financial position and is trading at a comparatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe AbbVie is currently a better pick.
Our forecast indicates an expected return of 26% for AbbVie over the next three years vs. an 11% expected return for J&J, implying that investors will likely be better off picking ABBV over JNJ, based on Trefis Machine Learning analysis – Johnson & Johnson vs. AbbVie – which also provides more details on how we arrive at these numbers.
While ABBV may outperform JNJ in the next three years, it is helpful to see how Johnson & Johnson’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Amedisys vs. Amerco.
With higher inflation and the Fed raising interest rates, JNJ has seen a 13% fall in the last twelve months. Can it drop more? See how low Johnson & Johnson stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Mar 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JNJ Return -1% -14% 32%
ABBV Return 0% -5% 146%
S&P 500 Return -1% 2% 75%
Trefis Multi-Strategy Portfolio -4% 3% 224%
[1] Month-to-date and year-to-date as of 3/20/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating 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. | That said, AbbVie is prepared to combat this biosimilar impact with its Allergan acquisition in 2020, giving it access to Botox, a multi-billion dollar product. We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its industry peer, Johnson & Johnson stock (NYSE: JNJ), given its better growth prospects. Although AbbVie is trading at 4.8x trailing revenues compared to 4.2x for J&J, this gap in valuation looks justified, given the former’s superior revenue growth and profitability, as discussed in the sections below. | We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its industry peer, Johnson & Johnson stock (NYSE: JNJ), given its better growth prospects. Our Johnson & Johnson Operating Income Comparison and AbbVie Operating Income Comparison dashboards have more details. Total [2] JNJ Return -1% -14% 32% ABBV Return 0% -5% 146% S&P 500 Return -1% 2% 75% Trefis Multi-Strategy Portfolio -4% 3% 224% [1] Month-to-date and year-to-date as of 3/20/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. AbbVie: Which Stock Is A Better Bet? Even if we look at a longer time frame, AbbVie fares better, with its sales rising at an average annual growth rate of 21% to $58 billion in 2022, compared to $33 billion in 2019, while J&J’s saw its revenue rise at an average annual rate of just 5% to $95 billion in 2022, compared to $82 billion in 2019. Our forecast indicates an expected return of 26% for AbbVie over the next three years vs. an 11% expected return for J&J, implying that investors will likely be better off picking ABBV over JNJ, based on Trefis Machine Learning analysis – Johnson & Johnson vs. AbbVie – which also provides more details on how we arrive at these numbers. | We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Johnson & Johnson vs. AbbVie: Which Stock Is A Better Bet? While AbbVie’s sales are expected to fall in 2023, in one of its recent SEC filings, the company stated that it will absorb the loss of exclusivity for Humira in the U.S. and return to strong sales growth in 2025. We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its industry peer, Johnson & Johnson stock (NYSE: JNJ), given its better growth prospects. | fced303c-a46b-42ab-ab2b-fa9e056cd991 |
22711.0 | 2023-03-20 00:00:00 UTC | AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outpaces-stock-market-gains%3A-what-you-should-know-2 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $156.12, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Heading into today, shares of the drugmaker had gained 1.92% over the past month, outpacing the Medical sector's loss of 4.48% and the S&P 500's loss of 3.9% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 21.2%. Our most recent consensus estimate is calling for quarterly revenue of $12.04 billion, down 11.09% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.97 per share and revenue of $52.34 billion. These results would represent year-over-year changes of -20.33% and -9.85%, respectively.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 14.05. For comparison, its industry has an average Forward P/E of 13.79, which means AbbVie is trading at a premium to the group.
Meanwhile, ABBV's PEG ratio is currently 3.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $156.12, marking a +1.23% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 21.2%. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, AbbVie (ABBV) closed at $156.12, marking a +1.23% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. | In the latest trading session, AbbVie (ABBV) closed at $156.12, marking a +1.23% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 21.2%. | On that day, AbbVie is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 21.2%. In the latest trading session, AbbVie (ABBV) closed at $156.12, marking a +1.23% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. | 4f3b3cec-c488-43f6-8db3-1c31822d01db |
22712.0 | 2023-03-20 00:00:00 UTC | Should You Invest in the Invesco Dynamic Pharmaceuticals ETF (PJP)? | ABBV | https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dynamic-pharmaceuticals-etf-pjp-6 | nan | nan | The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Pharma segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $302.38 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index before fees and expenses.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.01%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV).
The top 10 holdings account for about 60.62% of total assets under management.
Performance and Risk
The ETF has lost about -6.11% so far this year and is down about -6.15% in the last one year (as of 03/20/2023). In that past 52-week period, it has traded between $69.08 and $83.54.
The ETF has a beta of 0.66 and standard deviation of 19.59% for the trailing three-year period, making it a high risk choice in the space. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. PJP, then, is not a suitable option for investors seeking exposure to the Health Care ETFs segment of the market. Instead, there are better ETFs in the space to consider.
IShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index and the VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index. IShares U.S. Pharmaceuticals ETF has $369.95 million in assets, VanEck Pharmaceutical ETF has $380.26 million. IHE has an expense ratio of 0.39% and PPH charges 0.36%.
Bottom Line
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Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
Pfizer Inc. (PFE) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
VanEck Pharmaceutical ETF (PPH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Pharma segment of the equity market. | Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Pharma segment of the equity market. | Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Alternatives Invesco Dynamic Pharmaceuticals ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Pfizer Inc (PFE) accounts for about 6.84% of total assets, followed by Merck & Co Inc (MRK) and Abbvie Inc (ABBV). Click to get this free report Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports To read this article on Zacks.com click here. The Invesco Dynamic Pharmaceuticals ETF (PJP) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Pharma segment of the equity market. | 5f6058d4-d46a-4101-9cfa-83284f6dbb4c |
22713.0 | 2023-03-20 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-3 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | 271bd497-66ce-4dc6-81d5-b32040f7bdbe |
22714.0 | 2023-03-20 00:00:00 UTC | Should First Trust Morningstar Dividend Leaders ETF (FDL) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-first-trust-morningstar-dividend-leaders-etf-fdl-be-on-your-investing-radar-5 | nan | nan | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006.
The fund is sponsored by First Trust Advisors. It has amassed assets over $4.90 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.45%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.86%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 20.40% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 10.47% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV).
The top 10 holdings account for about 54.52% of total assets under management.
Performance and Risk
FDL seeks to match the performance of the Morningstar Dividend Leaders Index before fees and expenses. The Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.
The ETF has lost about -7.25% so far this year and is down about -4.82% in the last one year (as of 03/20/2023). In the past 52-week period, it has traded between $32.13 and $39.18.
The ETF has a beta of 0.87 and standard deviation of 21.55% for the trailing three-year period, making it a medium risk choice in the space. With about 100 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Morningstar Dividend Leaders ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FDL is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $48.49 billion in assets, Vanguard Value ETF has $97.23 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 10.47% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 10.47% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006. | Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 10.47% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). Alternatives First Trust Morningstar Dividend Leaders ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Exxon Mobil Corporation (XOM) accounts for about 10.47% of total assets, followed by Verizon Communications Inc. (VZ) and Abbvie Inc. (ABBV). Click to get this free report First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006. | 738bcea8-9a05-44b4-b23f-5aa8609605b0 |
22715.0 | 2023-03-17 00:00:00 UTC | After Hours Most Active for Mar 17, 2023 : LUMN, F, HBI, ABBV, IBM, PEB, INTC, GOOG, AAPL, HBAN, AMZN, VSAT | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-for-mar-17-2023-%3A-lumn-f-hbi-abbv-ibm-peb-intc-goog-aapl-hban-amzn | nan | nan | The NASDAQ 100 After Hours Indicator is down -5.75 to 12,514.13. The total After hours volume is currently 510,996,400 shares traded.
The following are the most active stocks for the after hours session:
Lumen Technologies, Inc. (LUMN) is -0.02 at $2.46, with 101,594,315 shares traded. LUMN's current last sale is 41% of the target price of $6.
Ford Motor Company (F) is +0.01 at $11.31, with 49,715,065 shares traded. F's current last sale is 80.79% of the target price of $14.
Hanesbrands Inc. (HBI) is unchanged at $5.09, with 36,324,224 shares traded. HBI's current last sale is 72.71% of the target price of $7.
AbbVie Inc. (ABBV) is +0.28 at $154.50, with 15,926,629 shares traded. ABBV's current last sale is 94.79% of the target price of $163.
International Business Machines Corporation (IBM) is +0.0123 at $123.70, with 14,078,168 shares traded. IBM's current last sale is 85.31% of the target price of $145.
Pebblebrook Hotel Trust (PEB) is unchanged at $13.20, with 13,375,764 shares traded. PEB's current last sale is 73.33% of the target price of $18.
Intel Corporation (INTC) is unchanged at $29.81, with 9,934,476 shares traded. INTC's current last sale is 106.46% of the target price of $28.
Alphabet Inc. (GOOG) is unchanged at $102.46, with 9,475,431 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Apple Inc. (AAPL) is unchanged at $155.00, with 9,368,713 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Huntington Bancshares Incorporated (HBAN) is +0.01 at $10.35, with 9,160,388 shares traded. HBAN's current last sale is 69% of the target price of $15.
Amazon.com, Inc. (AMZN) is -0.04 at $98.91, with 8,931,970 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
ViaSat, Inc. (VSAT) is unchanged at $34.65, with 8,403,153 shares traded. As reported in the last short interest update the days to cover for VSAT is 19.907336; this calculation is based on the average trading volume of the 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 Inc. (ABBV) is +0.28 at $154.50, with 15,926,629 shares traded. ABBV's current last sale is 94.79% of the target price of $163. International Business Machines Corporation (IBM) is +0.0123 at $123.70, with 14,078,168 shares traded. | AbbVie Inc. (ABBV) is +0.28 at $154.50, with 15,926,629 shares traded. ABBV's current last sale is 94.79% of the target price of $163. The total After hours volume is currently 510,996,400 shares traded. | AbbVie Inc. (ABBV) is +0.28 at $154.50, with 15,926,629 shares traded. ABBV's current last sale is 94.79% of the target price of $163. The total After hours volume is currently 510,996,400 shares traded. | AbbVie Inc. (ABBV) is +0.28 at $154.50, with 15,926,629 shares traded. ABBV's current last sale is 94.79% of the target price of $163. LUMN's current last sale is 41% of the target price of $6. | 52dde7b9-48c0-4557-a3c1-dadf750bf857 |
22716.0 | 2023-03-17 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-2 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | 411de0d7-40f7-4d51-907a-24225934908d |
22717.0 | 2023-03-16 00:00:00 UTC | 2 Growth Stocks to Buy Before the Bull Market Arrives | ABBV | https://www.nasdaq.com/articles/2-growth-stocks-to-buy-before-the-bull-market-arrives | nan | nan | Timing the market is a risky strategy. If you wait too long, you can miss the rally when it inevitably comes. Investors react quickly to news, and so if you've found a good stock at a decent valuation, you shouldn't wait to buy it. Provided you're willing to buy and hold for years, now may be a good time to buy stocks while valuations are low.
A couple of stocks that look particularly good right now include AbbVie (NYSE: ABBV) and Nvidia (NASDAQ: NVDA). These businesses have promising growth potential, and adding either one of them to your portfolio today could be a great move.
1. AbbVie
Drugmaker AbbVie makes for both a solid growth stock and an income investment. At 4%, its dividend yield is more than twice the S&P 500 average of 1.7%. What makes it even more attractive is that it's also a Dividend King, with a track record for growing its dividend on a yearly basis. In just five years, its dividend payment has increased by 54%. The company's strong free cash flow and solid financials also suggest that more rate increases could be coming.
Fundamental Chart data by YCharts
Over the past year, the healthcare stock has fluctuated and is up just a modest 2%. At a forward price-to-earnings (P/E) ratio of 14, which is based on analyst expectations, it's trading well below the S&P 500 average of 18.
Investors have probably been discounting AbbVie as a result of the loss in patent protection for its top-selling drug, Humira, which has already begun. But the company's outlook and growth opportunities remain strong; AbbVie has more than 50 programs in its pipeline that are in mid- and late-stage trials that could help the company develop the next blockbuster drug. It has also been heavily investing in research and development, to the tune of $6.5 billion last year.
Plus, AbbVie already has a couple of promising immunology treatments with Skyrizi and Rinvoq, which earned a combined $7.7 billion in revenue last year. Management believes these two medications can reach a higher combined peak than Humira.
When the bull market finally arrives, AbbVie is a stock I would expect should be overdue for a big rally as investors are overlooking a solid business. With such a high yield, thanks in part to the modest price, the stock could be a great deal for investors today.
2. Nvidia
One stock that has already begun to rally this year is Nvidia -- it's up 57% but still down around 20% from its high. The semiconductor stock has benefited from the growing popularity of artificial intelligence (AI) and chatbot ChatGPT. Its business could be fundamental in a shift to companies deploying more AI in their operations. A report from Bloomberg states that Microsoft used "tens of thousands of Nvidia's A100 graphics chips" to create a computer that would help OpenAI develop ChatGPT.
While it's true that the PC market remains soft and that light demand in that area of its business may negatively affect Nvidia's growth in the near future, that shouldn't be a long-term concern; computers have finite lives and are due for routine upgrades.
What's impressive is that even amid rising costs and headwinds in the tech sector, the company still reported a profit margin of 16% over the trailing 12 months, generating $4.4 billion in profit on sales of just under $27 billion; they were flat compared with the previous year. If that's an underwhelming stretch for Nvidia, I can't wait to see how well the business does when the bull market comes back, the economic outlook is stronger, and businesses are back to spending big money on tech and AI specifically.
The stock's forward P/E multiple of 53 is steep, but Nvidia could still be a great buy, as the need for chips is only going to continue rising. And if Nvidia can maintain its strong profit margin, a lot of that incremental revenue growth will go to the bottom line and strengthen its earnings, making it look like a better buy in the process.
10 stocks we like better than AbbVie
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A couple of stocks that look particularly good right now include AbbVie (NYSE: ABBV) and Nvidia (NASDAQ: NVDA). AbbVie Drugmaker AbbVie makes for both a solid growth stock and an income investment. Investors have probably been discounting AbbVie as a result of the loss in patent protection for its top-selling drug, Humira, which has already begun. | But the company's outlook and growth opportunities remain strong; AbbVie has more than 50 programs in its pipeline that are in mid- and late-stage trials that could help the company develop the next blockbuster drug. A couple of stocks that look particularly good right now include AbbVie (NYSE: ABBV) and Nvidia (NASDAQ: NVDA). AbbVie Drugmaker AbbVie makes for both a solid growth stock and an income investment. | When the bull market finally arrives, AbbVie is a stock I would expect should be overdue for a big rally as investors are overlooking a solid business. A couple of stocks that look particularly good right now include AbbVie (NYSE: ABBV) and Nvidia (NASDAQ: NVDA). AbbVie Drugmaker AbbVie makes for both a solid growth stock and an income investment. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! A couple of stocks that look particularly good right now include AbbVie (NYSE: ABBV) and Nvidia (NASDAQ: NVDA). AbbVie Drugmaker AbbVie makes for both a solid growth stock and an income investment. | 4e60f835-ec4c-4854-832f-ad953dc1ab2d |
22718.0 | 2023-03-15 00:00:00 UTC | U.S. issues initial Medicare drug price negotiation guidance | ABBV | https://www.nasdaq.com/articles/u.s.-issues-initial-medicare-drug-price-negotiation-guidance | nan | nan | By Ahmed Aboulenein and Michael Erman
WASHINGTON, March 15 (Reuters) - The U.S. government will select the Medicare program's 10 costliest prescription medicines based on gross spending for negotiating price cuts that will go into effect in 2026, the U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday
CMS will only accept one formal written counteroffer during the negotiation process, but will allow up to three additional in-person or virtual negotiation meetings, the agency said in initial guidance issued on Wednesday for its Medicare drug price negotiation program.
The drug price negotiation program was established under the Inflation Reduction Act, which President Joe Biden signed into law last year. It will for the first time allow Medicare, the government health insurance program for millions of Americans age 65 and older, to negotiate prices on prescription drugs, beginning with the ones on which it spends the most.
"Through the Medicare Drug Price Negotiation Program, we will make sure seniors get a fair price on Medicare’s costliest prescription drugs, promote competition in the market, and ensure Medicare is strong for beneficiaries today and into the future," Secretary of Health and Human Services (HHS) Xavier Becerra said in a statement
CMS will announce the first 10 drugs on Sept. 1. The negotiation period will start in February and last until August. In September of 2024, CMS expects to publish the negotiated "maximum fair price" that would become effective in 2026.
Big-selling drugs made by Bristol Myers Squibb BMY.N, Pfizer PFE.N, and AbbVie ABBV.N are likely to be among the medicines subject to the first round of price negotiations, according to analyses by academics and Wall Street analysts shared with Reuters.
Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation
(Reporting by Ahmed Aboulenein in Washington and Michael Erman in New York; Editing by Leslie Adler and Bill Berkrot)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Big-selling drugs made by Bristol Myers Squibb BMY.N, Pfizer PFE.N, and AbbVie ABBV.N are likely to be among the medicines subject to the first round of price negotiations, according to analyses by academics and Wall Street analysts shared with Reuters. Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation (Reporting by Ahmed Aboulenein in Washington and Michael Erman in New York; Editing by Leslie Adler and Bill Berkrot) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The drug price negotiation program was established under the Inflation Reduction Act, which President Joe Biden signed into law last year. | Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation (Reporting by Ahmed Aboulenein in Washington and Michael Erman in New York; Editing by Leslie Adler and Bill Berkrot) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Big-selling drugs made by Bristol Myers Squibb BMY.N, Pfizer PFE.N, and AbbVie ABBV.N are likely to be among the medicines subject to the first round of price negotiations, according to analyses by academics and Wall Street analysts shared with Reuters. By Ahmed Aboulenein and Michael Erman WASHINGTON, March 15 (Reuters) - The U.S. government will select the Medicare program's 10 costliest prescription medicines based on gross spending for negotiating price cuts that will go into effect in 2026, the U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday CMS will only accept one formal written counteroffer during the negotiation process, but will allow up to three additional in-person or virtual negotiation meetings, the agency said in initial guidance issued on Wednesday for its Medicare drug price negotiation program. | Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation (Reporting by Ahmed Aboulenein in Washington and Michael Erman in New York; Editing by Leslie Adler and Bill Berkrot) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Big-selling drugs made by Bristol Myers Squibb BMY.N, Pfizer PFE.N, and AbbVie ABBV.N are likely to be among the medicines subject to the first round of price negotiations, according to analyses by academics and Wall Street analysts shared with Reuters. By Ahmed Aboulenein and Michael Erman WASHINGTON, March 15 (Reuters) - The U.S. government will select the Medicare program's 10 costliest prescription medicines based on gross spending for negotiating price cuts that will go into effect in 2026, the U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday CMS will only accept one formal written counteroffer during the negotiation process, but will allow up to three additional in-person or virtual negotiation meetings, the agency said in initial guidance issued on Wednesday for its Medicare drug price negotiation program. | Big-selling drugs made by Bristol Myers Squibb BMY.N, Pfizer PFE.N, and AbbVie ABBV.N are likely to be among the medicines subject to the first round of price negotiations, according to analyses by academics and Wall Street analysts shared with Reuters. Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation (Reporting by Ahmed Aboulenein in Washington and Michael Erman in New York; Editing by Leslie Adler and Bill Berkrot) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. By Ahmed Aboulenein and Michael Erman WASHINGTON, March 15 (Reuters) - The U.S. government will select the Medicare program's 10 costliest prescription medicines based on gross spending for negotiating price cuts that will go into effect in 2026, the U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday CMS will only accept one formal written counteroffer during the negotiation process, but will allow up to three additional in-person or virtual negotiation meetings, the agency said in initial guidance issued on Wednesday for its Medicare drug price negotiation program. | 689ce041-eadf-463a-9651-7245e24c39e8 |
22719.0 | 2023-03-15 00:00:00 UTC | US to impose inflation fines on first set of drugs, lowering costs | ABBV | https://www.nasdaq.com/articles/us-to-impose-inflation-fines-on-first-set-of-drugs-lowering-costs-0 | nan | nan | By Ahmed Aboulenein
WASHINGTON, March 15 (Reuters) - The U.S. government said on Wednesday it would subject 27 drugs to inflation penalties, a move that will reduce out-of-pocket costs for Medicare recipients by $2 to as much as $390 per average dose.
"Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call.
The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug, Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy, Yescarta, and Seagen Inc's SGEN.O targeted cancer therapy, Padcev, the White House said in a fact sheet.
Companies that raise prices higher than the inflation rate will be required to pay Medicare the difference in the form of a rebate. Those that fail to pay the rebate will face a penalty equaling 125% of the rebate amount.
The government will start invoicing the companies for the rebates in 2025 but Medicare will start reducing out-pocket-costs for members in April.
The direct impact to drugmakers seems small for now, Wells Fargo analyst Mohit Bansal said in a research note.
However, the announcement is "a sign of the government signaling to industry that it is serious about curbing drug price increases. We suspect companies could get more careful about raising their prices due to this," he said.
Medicare began examining the price increases in October 2022 for Medicare Part B drugs, often used in the hospital, that are complicated biologic drugs or drugs with only one manufacturer.
The government will update the list of drugs each quarter.
Price increases for half of all drugs covered by Medicare outpaced inflation from 2019 to 2020, which averaged 1% that year. A third of those had price jumps of over 7.5%.
The Department of Health and Human Services (HHS) will also release on Wednesday initial guidance on how its Medicare prescription drug negotiation process will work, Rice said.
(Reporting by Ahmed Aboulenein in Washington, additional reporting by Manas Mishra in Bengaluru; Editing by Josie Kao)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug, Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy, Yescarta, and Seagen Inc's SGEN.O targeted cancer therapy, Padcev, the White House said in a fact sheet. By Ahmed Aboulenein WASHINGTON, March 15 (Reuters) - The U.S. government said on Wednesday it would subject 27 drugs to inflation penalties, a move that will reduce out-of-pocket costs for Medicare recipients by $2 to as much as $390 per average dose. "Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug, Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy, Yescarta, and Seagen Inc's SGEN.O targeted cancer therapy, Padcev, the White House said in a fact sheet. By Ahmed Aboulenein WASHINGTON, March 15 (Reuters) - The U.S. government said on Wednesday it would subject 27 drugs to inflation penalties, a move that will reduce out-of-pocket costs for Medicare recipients by $2 to as much as $390 per average dose. "Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug, Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy, Yescarta, and Seagen Inc's SGEN.O targeted cancer therapy, Padcev, the White House said in a fact sheet. By Ahmed Aboulenein WASHINGTON, March 15 (Reuters) - The U.S. government said on Wednesday it would subject 27 drugs to inflation penalties, a move that will reduce out-of-pocket costs for Medicare recipients by $2 to as much as $390 per average dose. "Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug, Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy, Yescarta, and Seagen Inc's SGEN.O targeted cancer therapy, Padcev, the White House said in a fact sheet. Companies that raise prices higher than the inflation rate will be required to pay Medicare the difference in the form of a rebate. The government will start invoicing the companies for the rebates in 2025 but Medicare will start reducing out-pocket-costs for members in April. | 4b9e22f5-6533-4dfa-a401-299f175ca360 |
22720.0 | 2023-03-15 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-1 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | 4ee464f5-ba02-4e3e-a361-d74c4ed879f5 |
22721.0 | 2023-03-15 00:00:00 UTC | US to impose inflation fines on first set of drugs, lowering costs | ABBV | https://www.nasdaq.com/articles/us-to-impose-inflation-fines-on-first-set-of-drugs-lowering-costs | nan | nan | By Ahmed Aboulenein
WASHINGTON, March 15 (Reuters) - The U.S. government will subject 27 drugs to inflation penalties, it announced on Wednesday, meaning people on Medicare will pay less out-of-pocket by $2 to as high as $390 per average dose starting April 1.
President Joe Biden's signature Inflation Reduction Act includes a provision penalizing drugmakers for charging prices that rise faster than inflation for people with disabilities or age 65 and older on the government's Medicare health program.
"Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call.
The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy Yescarta and Seagen Inc's SGEN.O targeted cancer therapy Padcev, the White House said in a fact sheet.
Companies that raise prices higher than the inflation rate will be required to pay Medicare the difference in the form of a rebate. Those that fail to pay the rebate will face a penalty equaling 125% of the rebate amount.
The government will start invoicing the companies for the rebates in 2025 but Medicare will start reducing out-pocket-costs for members in April.
Medicare began examining the price increases in October 2022 for Medicare Part B drugs, often used in the hospital, that are complicated biologic drugs or drugs with only one manufacturer.
The government will update the list of drugs each quarter.
Price increases for half of all drugs covered by Medicare outpaced inflation from 2019 to 2020, which averaged 1% that year. A third of those had price jumps of over 7.5%.
The Department of Health and Human Services (HHS) will also release on Wednesday initial guidance on how its Medicare prescription drug negotiation process will work, Rice said.
(Reporting by Ahmed Aboulenein; Editing by Josie Kao)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy Yescarta and Seagen Inc's SGEN.O targeted cancer therapy Padcev, the White House said in a fact sheet. By Ahmed Aboulenein WASHINGTON, March 15 (Reuters) - The U.S. government will subject 27 drugs to inflation penalties, it announced on Wednesday, meaning people on Medicare will pay less out-of-pocket by $2 to as high as $390 per average dose starting April 1. "Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy Yescarta and Seagen Inc's SGEN.O targeted cancer therapy Padcev, the White House said in a fact sheet. By Ahmed Aboulenein WASHINGTON, March 15 (Reuters) - The U.S. government will subject 27 drugs to inflation penalties, it announced on Wednesday, meaning people on Medicare will pay less out-of-pocket by $2 to as high as $390 per average dose starting April 1. President Joe Biden's signature Inflation Reduction Act includes a provision penalizing drugmakers for charging prices that rise faster than inflation for people with disabilities or age 65 and older on the government's Medicare health program. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy Yescarta and Seagen Inc's SGEN.O targeted cancer therapy Padcev, the White House said in a fact sheet. By Ahmed Aboulenein WASHINGTON, March 15 (Reuters) - The U.S. government will subject 27 drugs to inflation penalties, it announced on Wednesday, meaning people on Medicare will pay less out-of-pocket by $2 to as high as $390 per average dose starting April 1. "Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call. | The list includes AbbVie Inc's ABBV.N blockbuster arthritis drug Humira, Gilead Sciences Inc's GILD.O Car-T cancer therapy Yescarta and Seagen Inc's SGEN.O targeted cancer therapy Padcev, the White House said in a fact sheet. President Joe Biden's signature Inflation Reduction Act includes a provision penalizing drugmakers for charging prices that rise faster than inflation for people with disabilities or age 65 and older on the government's Medicare health program. Companies that raise prices higher than the inflation rate will be required to pay Medicare the difference in the form of a rebate. | 964c9aba-64f9-4c6e-98f0-2ccaef66d724 |
22722.0 | 2023-03-14 00:00:00 UTC | UPRO, ABBV, LLY, BAC: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/upro-abbv-lly-bac%3A-large-outflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $75.7 million dollar outflow -- that's a 3.7% decrease week over week (from 64,200,000 to 61,850,000). Among the largest underlying components of UPRO, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Eli Lilly (Symbol: LLY) is up about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1.6%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average:
Looking at the chart above, UPRO's low point in its 52 week range is $25.94 per share, with $68.16 as the 52 week high point — that compares with a last trade of $33.97. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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WLKP market cap history
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Top Ten Hedge Funds Holding PSFE
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 UPRO, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Eli Lilly (Symbol: LLY) is up about 0.2%, and Bank of America Corp (Symbol: BAC) is up 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 ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $75.7 million dollar outflow -- that's a 3.7% decrease week over week (from 64,200,000 to 61,850,000). 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 UPRO, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Eli Lilly (Symbol: LLY) is up about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1.6%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $25.94 per share, with $68.16 as the 52 week high point — that compares with a last trade of $33.97. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of UPRO, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Eli Lilly (Symbol: LLY) is up about 0.2%, and Bank of America Corp (Symbol: BAC) is up 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 ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $75.7 million dollar outflow -- that's a 3.7% decrease week over week (from 64,200,000 to 61,850,000). For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $25.94 per share, with $68.16 as the 52 week high point — that compares with a last trade of $33.97. | Among the largest underlying components of UPRO, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Eli Lilly (Symbol: LLY) is up about 0.2%, and Bank of America Corp (Symbol: BAC) is up 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 ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $75.7 million dollar outflow -- that's a 3.7% decrease week over week (from 64,200,000 to 61,850,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | 5b9c8f3d-91e9-424b-9c49-db2c8e8f9908 |
22723.0 | 2023-03-14 00:00:00 UTC | The Zacks Analyst Blog Highlights AbbVie, NextEra Energy, ConocoPhillips, Canadian Pacific Railway and Intercontinental Exchange | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbvie-nextera-energy-conocophillips-canadian-pacific | nan | nan | For Immediate Release
Chicago, IL – March 14, 2023 – 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, NextEra Energy, Inc. NEE, ConocoPhillips COP, Canadian Pacific Railway Ltd. CP and Intercontinental Exchange, Inc. ICE.
Here are highlights from Monday’s Analyst Blog:
Top Research Reports for AbbVie, NextEra and ConocoPhillips
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). The company is facing concerns about long-term sales growth as Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales.
Slowing consumer demand due to economic pressures is hurting the aesthetics franchise's sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
However, AbbVie has several new drugs in its portfolio, which have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Shares of NextEra Energy have declined -7.9% over the past year against the Zacks Utility - Electric Power industry's decline of -9.2%. The company's nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
Nevertheless, NextEra Energy continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.
The merger of Gulf Power and FPL strengthens NextEra's position in Florida. FPL's customer base is expanding as Florida's economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds.
(You can read the full research report on NextEra Energy here >>>)
Shares of ConocoPhillips have gained +7.9% over the past year against the Zacks Oil and Gas - Integrated - United States industry's gain of +10.4%. The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.
ConocoPhillips projects its 2023 production at 1.76-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP's balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.
However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company has been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.
(You can read the full research report on ConocoPhillips here >>>)
Other noteworthy reports we are featuring today include Canadian Pacific Railway Ltd. and Intercontinental Exchange, 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. | Stocks recently featured in the blog include: AbbVie Inc. ABBV, NextEra Energy, Inc. NEE, ConocoPhillips COP, Canadian Pacific Railway Ltd. CP and Intercontinental Exchange, Inc. ICE. Here are highlights from Monday’s Analyst Blog: Top Research Reports for AbbVie, NextEra and ConocoPhillips The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). | Stocks recently featured in the blog include: AbbVie Inc. ABBV, NextEra Energy, Inc. NEE, ConocoPhillips COP, Canadian Pacific Railway Ltd. CP and Intercontinental Exchange, Inc. ICE. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Monday’s Analyst Blog: Top Research Reports for AbbVie, NextEra and ConocoPhillips The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : 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, NextEra Energy, Inc. NEE, ConocoPhillips COP, Canadian Pacific Railway Ltd. CP and Intercontinental Exchange, Inc. ICE. Here are highlights from Monday’s Analyst Blog: Top Research Reports for AbbVie, NextEra and ConocoPhillips The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). | 48572dd4-83aa-4a50-9f67-9a28b3879575 |
22724.0 | 2023-03-14 00:00:00 UTC | 5 Forever Dividend Stocks | ABBV | https://www.nasdaq.com/articles/5-forever-dividend-stocks | nan | nan | All five of these dividend stocks are of the highest quality and they have a long track record of growing their dividend payouts. Two of the stocks are Dividend Kings and two have a AAA credit rating, one of those being Microsoft (NASDAQ: MSFT).
Check out this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of March 10, 2023. The video was published on March 13, 2023.
10 stocks we like better than Microsoft
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Mark Roussin, CPA has positions in AbbVie, Coca-Cola, Johnson & Johnson, and Microsoft. The Motley Fool has positions in and recommends Home Depot and Microsoft. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | See the 10 stocks *Stock Advisor returns as of March 8, 2023 Mark Roussin, CPA has positions in AbbVie, Coca-Cola, Johnson & Johnson, and Microsoft. Two of the stocks are Dividend Kings and two have a AAA credit rating, one of those being Microsoft (NASDAQ: MSFT). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | See the 10 stocks *Stock Advisor returns as of March 8, 2023 Mark Roussin, CPA has positions in AbbVie, Coca-Cola, Johnson & Johnson, and Microsoft. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. | See the 10 stocks *Stock Advisor returns as of March 8, 2023 Mark Roussin, CPA has positions in AbbVie, Coca-Cola, Johnson & Johnson, and Microsoft. 10 stocks we like better than Microsoft When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. | See the 10 stocks *Stock Advisor returns as of March 8, 2023 Mark Roussin, CPA has positions in AbbVie, Coca-Cola, Johnson & Johnson, and Microsoft. The Motley Fool has positions in and recommends Home Depot and Microsoft. Their opinions remain their own and are unaffected by The Motley Fool. | 79eaa875-4447-4e6a-9d4b-3f61264213a2 |
22725.0 | 2023-03-14 00:00:00 UTC | Diversify Your Income with These 2 High-Yielding Dividend ETFs | ABBV | https://www.nasdaq.com/articles/diversify-your-income-with-these-2-high-yielding-dividend-etfs | nan | nan | Diversification is a term widely used when it comes to investing in the stock market. It means spreading your investment across different sectors and industries to minimize volatility's impact. While one segment may take a hit, another one may improve or take less of a hit. In a nutshell, don't put all of your eggs into one basket.
For high-yield dividend investors, it means balancing risk with reward and spreading the investment through different risk levels.
Hi-yield investing can be more volatile since the risk is proportionate to the reward. Higher yields call for more volatility in exchange. Investing in dividend exchange-traded-fund (ETFs) spreads the risk among different holdings within the ETF. Although the theme may be similar, the investments are in different stocks.
A high-yielding dividend ETF takes it one step further by upping the risk, so it may take another high-yielding dividend ETF with a different theme to balance it. With that in mind, here are two high-yield dividend ETFs to consider.
Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD)
QYLD has a 13.04% annual dividend yield and pays monthly dividends. The name says it all. This ETF invests in the NASDAQ 100 stocks and sells covered call options on each stock. The beauty of this strategy (if done correctly) is that Nasdaq 100 technology stocks have more volatility and therefore command higher options premiums. While the sound of investing in the NASDAQ 100 in any shape or form sounds risky considering its nasty bear market plunge in 2022, this ETF mitigates a big chunk of the risk with the covered call strategy.
Outperforming in a Bear Market
Along with the dividend income, it also has the potential for principal appreciation since the NASDAQ comprises mainly technology stocks. Technology stocks tend to suffer the most from rising interest rates. That's where the dividend income helps to hedge some of the pain with the falling NASDAQ 100.
This was illustrated in 2022 when QLYD outperformed the Nasdaq 100 (NASDAQ: QQQ) ETF by 20%. Granted, you still would have been in the red, but much less when factoring in the dividend payouts. For 2022, the QQQ fell (32.58%), and only QYLD fell (19%). However, QLYD paid out $2.19 in total dividends in 2022. When you add back in the total dividends paid out in 2022, that raises the closing price from $15.59 to $17.78, bringing the total QLYD performance down to just (1.55%).
Upside Potential and Monthly Income
This high-yield ETF provides income, appreciation, and an overall volatility hedge for the NASDAQ market. As interest rates eventually fall, the NASDAQ tends to bounce more robustly as money as investors take a risk-on stance favoring growth. This provides upside for the ETF as major NASDAQ 100 components like Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) set to rebound.
As for 2023, the QQQ is up 9% YTD versus the QLYD up 2.52%, but don't forget the QQQ is still clawing back losses from being down (-19%) in 2022, whereas QLYD with dividends included is net positive 1% since the start the 2022 bear market. Pullback support levels are $15.93, $15.49 MSL trigger, $14.86, and $14.26.
JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI)
It sounds like an oxymoron, but it's a more conservative high-yield dividend ETF with an underweight position in technology stocks. JEPI has a 12.2% annual yield and pays out dividends monthly. This ETF also incorporates s a covered call strategy but with investments in much lower volatility dividend-paying stocks and relatively conservative real estate investment trusts (REITs). The majority of its investments are in low beta names like insurance giant Progressive Corp. (NYSE: PGR), pharmaceutical giant AbbVie Inc. (NYSE: ABBV), and candle giant The Hershey Co. (NYSE: HSY). It also has holdings in convertible bonds and energy stocks. It can buffer some of the volatility in a high beta technology portfolio. Pullback support levels are at $50.34 weekly MSL trigger, $49.08, $48.13, and $47.57 swing low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The majority of its investments are in low beta names like insurance giant Progressive Corp. (NYSE: PGR), pharmaceutical giant AbbVie Inc. (NYSE: ABBV), and candle giant The Hershey Co. (NYSE: HSY). The beauty of this strategy (if done correctly) is that Nasdaq 100 technology stocks have more volatility and therefore command higher options premiums. Outperforming in a Bear Market Along with the dividend income, it also has the potential for principal appreciation since the NASDAQ comprises mainly technology stocks. | The majority of its investments are in low beta names like insurance giant Progressive Corp. (NYSE: PGR), pharmaceutical giant AbbVie Inc. (NYSE: ABBV), and candle giant The Hershey Co. (NYSE: HSY). For high-yield dividend investors, it means balancing risk with reward and spreading the investment through different risk levels. Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) QYLD has a 13.04% annual dividend yield and pays monthly dividends. | The majority of its investments are in low beta names like insurance giant Progressive Corp. (NYSE: PGR), pharmaceutical giant AbbVie Inc. (NYSE: ABBV), and candle giant The Hershey Co. (NYSE: HSY). A high-yielding dividend ETF takes it one step further by upping the risk, so it may take another high-yielding dividend ETF with a different theme to balance it. Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) QYLD has a 13.04% annual dividend yield and pays monthly dividends. | The majority of its investments are in low beta names like insurance giant Progressive Corp. (NYSE: PGR), pharmaceutical giant AbbVie Inc. (NYSE: ABBV), and candle giant The Hershey Co. (NYSE: HSY). Investing in dividend exchange-traded-fund (ETFs) spreads the risk among different holdings within the ETF. This ETF invests in the NASDAQ 100 stocks and sells covered call options on each stock. | 56feeae5-4d6b-465e-9de6-33dd7bc23cfd |
22726.0 | 2023-03-13 00:00:00 UTC | AbbVie (ABBV) Gains As Market Dips: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-as-market-dips%3A-what-you-should-know-7 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $151.95, moving +1.5% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Heading into today, shares of the drugmaker had lost 1.54% over the past month, outpacing the Medical sector's loss of 5.41% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.50 per share. This would mark a year-over-year decline of 20.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.04 billion, down 11.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.09 per share and revenue of $52.34 billion. These totals would mark changes of -19.46% and -9.85%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AbbVie. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.42% lower. AbbVie currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 13.5 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.65.
Also, we should mention that ABBV has a PEG ratio of 3.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $151.95, moving +1.5% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.50 per share. | AbbVie (ABBV) closed the most recent trading day at $151.95, moving +1.5% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. In that report, analysts expect AbbVie to post earnings of $2.50 per share. | Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed the most recent trading day at $151.95, moving +1.5% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | AbbVie currently has a Zacks Rank of #3 (Hold). AbbVie (ABBV) closed the most recent trading day at $151.95, moving +1.5% from the previous trading session. Investors will be hoping for strength from AbbVie as it approaches its next earnings release. | d040262a-95e2-4a75-9ee7-6d4f4a43d4d6 |
22727.0 | 2023-03-13 00:00:00 UTC | Top Research Reports for AbbVie, NextEra Energy & ConocoPhillips | ABBV | https://www.nasdaq.com/articles/top-research-reports-for-abbvie-nextera-energy-conocophillips | nan | nan | Monday, March 13, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). The company is facing concerns about long-term sales growth as Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
Slowing consumer demand due to economic pressures is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
However, AbbVie has several new drugs in its portfolio, which have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Shares of NextEra Energy have declined -7.9% over the past year against the Zacks Utility - Electric Power industry’s decline of -9.2%. The company’s nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
Nevertheless, NextEra Energy continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.
The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds.
(You can read the full research report on NextEra Energy here >>>)
Shares of ConocoPhillips have gained +7.9% over the past year against the Zacks Oil and Gas - Integrated - United States industry’s gain of +10.4%. The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.
ConocoPhillips projects its 2023 production at 1.76-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.
However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.
(You can read the full research report on ConocoPhillips here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
Featured Reports
Abbott's (ABT) Core Diagnostics Grows amid Forex Woes
The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Yet, adverse currency movement continues to pose concerns.
Canadian Pacific's (CP) Dividends Support, Fuel Costs Hurt
The Zacks analyst welcomes Canadian Pacific's efforts to add shareholder value. However, high operating expenses, mainly due to escalated fuel costs, are worrisome.
Intercontinental (ICE) Banks on Buyouts Amid High Costs
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. However, rising expenses weigh on margins.
High Brand-Value, Strategic Buyouts Aid Public Storage (PSA)
Per the Zacks Analyst, Public Storage to benefit from its high brand value, favorable self-storage industry fundamentals and strategic buyouts. However, rise in vacating volumes might hurt occupancy.
McKesson's (MCK) Deals Buoys Optimism Amid Sluggish Market
Per the Zacks analyst, McKesson has been pursuing deals and acquisitions to drive growth. It is a dominant player in the Distribution market which is facing weaker generic pharmaceutical pricing trend
Momentum in Cash App & Square Ecosystems Benefits Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company's growing momentum across Square Ecosystem remains a positive.
KDG Buyout Aids Genuine Parts' (GPC) Sales, High Capex a Woe
Per the Zacks analyst, Kaman Distribution Group buyout will aid Genuine Parts' sales while high operating costs, capex and unfavorable forex translation could trim down margins.
New Upgrades
Everest Re (RE) to Grow on Better Pricing, Solid Retention
Per the Zacks analyst, Everest Reis poised to grow on disciplined cycle management, new business opportunities, continued double-digit rate increases and strong renewal retention on existing business.
Business Model & Pro-Investor Steps Boost Interpublic (IPG)
The Zacks Analyst is optimistic about Interpublic's digital capabilities, diversified business model and geographic reach. Moreover, its shareholder-friendly steps are tailwinds.
Theravance (TBPH) Progress Towards Its Pipelines Is Encouraging
While Theravance's collaboration revenues of Yupelri is driving its topline, Zacks Analysts is encouraged by its progress in development of pipeline candidate, ampreloxetine.
New Downgrades
Altice (ATUS) Plagued by Waning Demand, High Programing Costs
Per the Zacks analyst, Altice is likely to be plagued by escalating programing costs per customer due to an increase in contractual rates and waning demand owing to cheaper available alternatives.
United Natural (UNFI) Hurt by High Costs, Supply-Chain Woes
Per the Zacks analyst, United Natural is battling cost inflation and supply-chain woes. Management cut fiscal 2023 earnings view as it expects similar profitability trends through the rest of the year
Capri Holdings' (CPRI) Grapples With Inflation & Other Woes
Per the Zacks analyst, Capri Holdings' performance has been hurt by inflationary headwinds, shift in consumer demand patterns, and weakness in wholesale channel. The company cuts fiscal 2023 view.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : 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 AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : 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 AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). | Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : 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 AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). | 0cc17502-d975-4822-bf7c-0b0b08706fd7 |
22728.0 | 2023-03-13 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-0 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | cec54a28-edfb-4f8e-ae9c-92f2fdf68a0b |
22729.0 | 2023-03-13 00:00:00 UTC | Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation | ABBV | https://www.nasdaq.com/articles/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u.s.-price-negotiation | nan | nan | By Michael Erman, Patrick Wingrove and Ahmed Aboulenein
NEW YORK/WASHINGTON, March 13 (Reuters) - The blood thinner Eliquis from Bristol Myers Squibb, Pfizer's breast cancer drug Ibrance and AbbVie's leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to U.S. price negotiations for 2026, according to five Wall Street and academic analyses shared with Reuters.
Last year Congress passed the Inflation Reduction Act (IRA), giving the U.S. government power to start the first price negotiations over prescription drugs for its Medicare health program covering more than 60 million Americans, most over age 65.
The government will launch the negotiation process in September by naming the first drugs it plans to target. They are expected to be the 10 pharmacy-based prescription drugs it spends the most on for the year ended May 2023.
For months, lobbyists for the biggest pharmaceutical companies have been meeting with Medicare officials trying to game out which drugs the government will choose, what discounts they will seek, and ways to redress the final price.
Five lobbyists told Reuters they have been given little information beyond what has been publicly disclosed.
The U.S. Centers for Medicare and Medicaid Services (CMS), which will run the negotiation process, said in a statement it expects to answer some of the industry’s questions in a guidance document it will circulate this spring. A spokesperson said the agency intends to use feedback from monthly calls with drugmakers to inform implementation.
For individual companies, the financial impact is expected to vary. The nonpartisan Congressional Budget Office estimates that negotiations will save the government around $4.8 billion in 2026 and nearly $25 billion a year by 2031, as more drugs are added to the negotiation process.
Those savings will help fund the bill's out of pocket spending caps and reduced cost sharing for older Americans.
"We couldn't have the other parts of the IRA without this Medicare negotiation," said Sean Dickson, director of the West Health Policy Center, a non-partisan healthcare think tank.
Reuters compiled five lists prepared by Wall Street analysts and academics with a total of 27 drugs across them.
Eliquis, which Bristol Myers BMY.N shares with Pfizer PFE.N, Ibrance, and Imbruvica, sold by AbbVie ABBV.O and Johnson & Johnson JNJ.N, appear on every list.
Novo Nordisk's NOVOb.CO diabetes drug Ozempic, prostate cancer treatment Xtandi from Astellas Pharma 4503.T and Pfizer, and J&J's JNJ.N blood thinner Xarelto are on three of the lists.
The lists differ because each analyst has their own projections for drug sales, and it is not certain if the government will consider gross sales or net sales after market discounts.
MAKING THE CASE
Bristol Myers Chief Commercialization Officer Chris Boerner said in an interview last month that Eliquis may well be in the government's crosshairs. "We would anticipate that you could potentially see price setting by the government with Eliquis,” he said.
Astellas said it was analyzing information from CMS to understand its potential impact. Pfizer, Novo Nordisk and J&J declined to comment on the likelihood their drugs would be included in the first round of negotiations. AbbVie did not respond to request for comment.
Medicare is the biggest single purchaser of drugs in the country, reimbursing private companies and hospitals for medications used by individuals covered by the program.
Under the new law’s process, the government will publish its list of the first 10 drugs for negotiation from the pharmacy-based prescription drug program called Part D on Sept. 1.
Drugmakers will have to submit data making the case for each treatment's value by Oct. 2, including whether the drug represents a therapeutic advance and if it serves unmet medical needs.
Drugmakers have long presented similar value-based arguments in negotiations with private buyers and European governments.
Three industry lobbyists told Reuters they are pressing Medicare officials to commit to a process under which it will reveal how the government arrived at a final price, and have asked for a framework for resolving disputes.
Without such a process, drugmakers could resort to lawsuits as a last-ditch attempt to stop government price setting - even though the IRA exempts the process from lawsuits, two of those lobbyists said.
One of those lobbyists suggested adoption of an appeal process similar to ones used by European countries, where price-setting regimes have long existed, would give companies recourse outside of lawsuits.
A Medicare spokesperson declined to say if the agency was considering such a move.
Steven Pearson, president of the Institute for Clinical and Economic Review (ICER), an influential research group that does drug pricing value assessments, said how the government comes to a price based on data companies submit should be clearly communicated.
"It's going to be frustrating to a lot of people," he said, "if, at the end of the day, we don't really understand how this information is being interpreted and applied to a final decision."
EXPLAINER-How the U.S. drug pricing law affects Medicare and its members
U.S. to select 10 costliest drugs for Medicare pricing negotiation
Drugs that could be included in first round of U.S. Medicare negotiations Drugs that could be included in first round of U.S. Medicare negotiationshttps://tmsnrt.rs/3l0wZYK
(Reporting by Michael Erman and Patrick Wingrove in New York and Ahmed Aboulenein in Washington; Editing by Caroline Humer and Bill Berkrot)
((michael.erman@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Michael Erman, Patrick Wingrove and Ahmed Aboulenein NEW YORK/WASHINGTON, March 13 (Reuters) - The blood thinner Eliquis from Bristol Myers Squibb, Pfizer's breast cancer drug Ibrance and AbbVie's leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to U.S. price negotiations for 2026, according to five Wall Street and academic analyses shared with Reuters. Eliquis, which Bristol Myers BMY.N shares with Pfizer PFE.N, Ibrance, and Imbruvica, sold by AbbVie ABBV.O and Johnson & Johnson JNJ.N, appear on every list. AbbVie did not respond to request for comment. | By Michael Erman, Patrick Wingrove and Ahmed Aboulenein NEW YORK/WASHINGTON, March 13 (Reuters) - The blood thinner Eliquis from Bristol Myers Squibb, Pfizer's breast cancer drug Ibrance and AbbVie's leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to U.S. price negotiations for 2026, according to five Wall Street and academic analyses shared with Reuters. Eliquis, which Bristol Myers BMY.N shares with Pfizer PFE.N, Ibrance, and Imbruvica, sold by AbbVie ABBV.O and Johnson & Johnson JNJ.N, appear on every list. AbbVie did not respond to request for comment. | By Michael Erman, Patrick Wingrove and Ahmed Aboulenein NEW YORK/WASHINGTON, March 13 (Reuters) - The blood thinner Eliquis from Bristol Myers Squibb, Pfizer's breast cancer drug Ibrance and AbbVie's leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to U.S. price negotiations for 2026, according to five Wall Street and academic analyses shared with Reuters. Eliquis, which Bristol Myers BMY.N shares with Pfizer PFE.N, Ibrance, and Imbruvica, sold by AbbVie ABBV.O and Johnson & Johnson JNJ.N, appear on every list. AbbVie did not respond to request for comment. | By Michael Erman, Patrick Wingrove and Ahmed Aboulenein NEW YORK/WASHINGTON, March 13 (Reuters) - The blood thinner Eliquis from Bristol Myers Squibb, Pfizer's breast cancer drug Ibrance and AbbVie's leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to U.S. price negotiations for 2026, according to five Wall Street and academic analyses shared with Reuters. Eliquis, which Bristol Myers BMY.N shares with Pfizer PFE.N, Ibrance, and Imbruvica, sold by AbbVie ABBV.O and Johnson & Johnson JNJ.N, appear on every list. AbbVie did not respond to request for comment. | 5187d192-0c58-4375-a027-8c61c0680713 |
22730.0 | 2023-03-13 00:00:00 UTC | Galderma posts 2022 revenue growth ahead of planned IPO | ABBV | https://www.nasdaq.com/articles/galderma-posts-2022-revenue-growth-ahead-of-planned-ipo | nan | nan | By Emma-Victoria Farr
FRANKFURT, March 13 (Reuters) - Swiss dermatology company Galderma posted $3.8 billion in net sales during 2022, up 13.9% on 2021 on a constant currency basis, driven by growth in its injectable aesthetics and dermatological skincare units.
The results come ahead of a possible initial public offering (IPO), Chief Executive Flemming Ornskov told Reuters.
The company started preparing for an IPO more than a year ago, but had to postpone its plans due to torrid equity markets in 2022.
"Galderma is run like a public company and we are prepared for the next step," Ornskov said, declining to give details on valuation or the timing of a sale.
If it goes ahead, the IPO could be one of the biggest in Europe in 2023, valuing the company at around 20 billion Swiss francs ($21.7 billion), sources said last year.
Companies are tentatively testing signs of recovering stock markets with pent-up demand for IPOs after a lack of activity following the war in Ukraine. Germany's United Internet revived Europe's IPO market in February with the flotation of its web hosting business IONOS in Frankfurt.
After the Easter break in April is seen as the next IPO window but there is no certainty it will be then, a source familiar with the company's plans said.
DELIVER RESULTS
Galderma's owners including EQT EQTAB.ST will decide whether to go ahead with an IPO, Ornskov said. "My job is to continue to deliver results."
EQT declined to comment.
With a focus on profitability and cash generation, Galderma is paying down its debt, Ornskov said. The company has around $3.5 billion debt maturing in 2026, according to Fitch Ratings.
Galderma is expected to raise a significant amount of fresh capital in an IPO to help bring down leverage, sources familiar with the matter said.
In 2022, Galderma generated core earnings (EBITDA) up 14.5% to $791 million on a constant currency basis. In 2023, Galderma expects to deliver net sales growth of between 6% and 9%, while introducing two major new products in its pipeline, Ornskov said.
The firm, which sits in the EQT VIII fund, has different peers according to business segments. In injectables this includes Allergan, a subsidiary of AbbVie ABBV.N, for dermatological skincare L'Oreal OREP.PA and for atopic dermatitis (eczema) Sanofi SASY.PA among others, Ornskov said.
"We have engaged banks to look at options including an IPO but have not made a decision on timing," Ornskov said in 2021 in an interview with Reuters. There have been no changes made since, Ornskov said.
Galderma was carved out of Nestlé NESN.S in 2019 and bought for 10.2 billion Swiss francs ($10.1 billion) by a consortium led by EQT, including Singapore's GIC and the Abu Dhabi Investment Authority.
($1 = 0.9212 Swiss francs)
(Reporting by Emma-Victoria Farr; Additional reporting by Pablo Mayo Cerqueiro; Editing by Elisa Martinuzzi and David Holmes)
((emma-victoria.farr@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In injectables this includes Allergan, a subsidiary of AbbVie ABBV.N, for dermatological skincare L'Oreal OREP.PA and for atopic dermatitis (eczema) Sanofi SASY.PA among others, Ornskov said. "Galderma is run like a public company and we are prepared for the next step," Ornskov said, declining to give details on valuation or the timing of a sale. Companies are tentatively testing signs of recovering stock markets with pent-up demand for IPOs after a lack of activity following the war in Ukraine. | In injectables this includes Allergan, a subsidiary of AbbVie ABBV.N, for dermatological skincare L'Oreal OREP.PA and for atopic dermatitis (eczema) Sanofi SASY.PA among others, Ornskov said. By Emma-Victoria Farr FRANKFURT, March 13 (Reuters) - Swiss dermatology company Galderma posted $3.8 billion in net sales during 2022, up 13.9% on 2021 on a constant currency basis, driven by growth in its injectable aesthetics and dermatological skincare units. In 2023, Galderma expects to deliver net sales growth of between 6% and 9%, while introducing two major new products in its pipeline, Ornskov said. | In injectables this includes Allergan, a subsidiary of AbbVie ABBV.N, for dermatological skincare L'Oreal OREP.PA and for atopic dermatitis (eczema) Sanofi SASY.PA among others, Ornskov said. By Emma-Victoria Farr FRANKFURT, March 13 (Reuters) - Swiss dermatology company Galderma posted $3.8 billion in net sales during 2022, up 13.9% on 2021 on a constant currency basis, driven by growth in its injectable aesthetics and dermatological skincare units. If it goes ahead, the IPO could be one of the biggest in Europe in 2023, valuing the company at around 20 billion Swiss francs ($21.7 billion), sources said last year. | In injectables this includes Allergan, a subsidiary of AbbVie ABBV.N, for dermatological skincare L'Oreal OREP.PA and for atopic dermatitis (eczema) Sanofi SASY.PA among others, Ornskov said. By Emma-Victoria Farr FRANKFURT, March 13 (Reuters) - Swiss dermatology company Galderma posted $3.8 billion in net sales during 2022, up 13.9% on 2021 on a constant currency basis, driven by growth in its injectable aesthetics and dermatological skincare units. If it goes ahead, the IPO could be one of the biggest in Europe in 2023, valuing the company at around 20 billion Swiss francs ($21.7 billion), sources said last year. | f6a8d13a-78bb-4401-ae96-009e1a58731c |
22731.0 | 2023-03-11 00:00:00 UTC | Guru Fundamental Report for ABBV | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | fde89b58-074b-4706-8734-6015622a2e2a |
22732.0 | 2023-03-11 00:00:00 UTC | 3 No-Brainer Dividend Stocks to Buy in March | ABBV | https://www.nasdaq.com/articles/3-no-brainer-dividend-stocks-to-buy-in-march | nan | nan | Some decisions are painstakingly difficult. Others are downright easy. Choosing from the thousands of dividend stocks on the market can fall into the former category. But it doesn't have to.
Three Fool.com contributors selected dividend stocks they believe are no-brainer picks to buy in March. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE).
A better picture than meets the eye
Keith Speights (AbbVie): I don't think anyone would seriously challenge AbbVie's credentials as a solid dividend stock. After all, the company is a Dividend King with 51 consecutive years of dividend increases. Its dividend has grown by a whopping 270% since the spinoff from Abbott Labs in 2013. AbbVie's dividend yield stands at nearly 4%.
However, some could challenge the idea that AbbVie is a great pick right now. The company projects that its adjusted earnings could sink close to 20% this year as its top-selling drug Humira faces biosimilar competition in the U.S.
I believe, though, that there's a better picture for AbbVie than meets the eye. Sure, 2023 will be a tough year for the company. But it should also be the trough year, with total sales beginning to climb again in 2024. The big drugmaker expects to return to robust growth in 2025.
AbbVie already has two successors to Humira -- Rinvoq and Skyrizi. It projects that the two autoimmune-disease drugs will together eclipse Humira's peak sales within the next four years. The company's 2020 acquisition of Allergan gave it a strong lineup of products, including Botox and Vraylar. AbbVie also has a promising pipeline.
The big pharma stock beat the market last year. It's not out of the question that AbbVie could do it again, especially if Humira's sales hold up better than expected. More importantly, AbbVie's long-term prospects are solid, just as its dividend is.
J&J's dividend growth streak likely isn't ending anytime soon
David Jagielski (Johnson & Johnson): What's a good buy-and-forget dividend stock to buy this month? I recommend Johnson & Johnson. There are plenty of things to like about this stock as an income investment that make it a no-brainer buy for me.
First off, the company has increased its dividend payments for 60 consecutive years. If J&J follows its pattern of raising dividends, then April is when the company will announce its next rate hike; news of its 6.6% dividend increase last year came as the company reported its first-quarter earnings.
Secondly, the company's financials are ridiculously strong. Johnson & Johnson has reported at least $14 billion in profit in each of the past four years. Its free cash flow during that stretch didn't dip below $17 billion. The healthcare giant's modest 66% dividend payout ratio also suggests there's still room for the business to make more generous rate hikes in the future.
The third reason I like the stock as a dividend investment is that Johnson & Johnson is spinning off its consumer business this year. While that means less diversification for the company, it also means more of a focus on its key growth segments in medical devices and pharmaceuticals. Last year, J&J's pharmaceutical and medtech businesses each grew at rates of more than 6% (when factoring out foreign exchange), while the consumer health business rose by less than 4%.
All in all, with solid financials and potentially stronger growth opportunities ahead for the business, Johnson & Johnson makes for a strong dividend stock to buy and hold. At 3%, its yield is well above the S&P 500 average of 1.7%. And with another potential rate hike coming next month, now is as good a time as any to buy and hold the healthcare stock.
The market is underestimating this stock, but you shouldn't
Prosper Junior Bakiny (Pfizer): Corporations sometimes fail to get the respect they have earned. In my view, that's what's happening with Pfizer. Over the past three years, shares have lagged behind the broader market even as the company has registered record revenue and earnings thanks to its success in the COVID-19 vaccine market. That's what seems to be the problem, though. Pfizer's coronavirus-related sales will drop substantially starting this year.
For many investors, that's a good reason to stay away. But the downward pressure on Pfizer's stock creates a great opportunity for value and dividend investors willing to be patient. The drugmaker is rejuvenating its lineup, with an expected 19 brand-new products or major label expansions expected in the next 18 months. That will allow Pfizer to replace its coronavirus lineup, which, by the way, won't stop contributing to its results entirely.
Pfizer projects between $70 billion and $84 billion in non-COVID revenue by 2030. How does that compare to last year? In 2023, Pfizer's revenue came in at $100.3 billion, representing an increase of 30% year over year. Excluding contributions from its coronavirus products, the company's top line came in at about $43.6 billion. Pfizer's top line should return to growth (after dropping this year) once its coronavirus sales stabilize.
And in the meantime, the pharma giant will continue rewarding shareholders with dividends. Pfizer offers a yield of over 4% and a modest payout ratio of 34.5%. The drugmaker has raised its dividends by a respectable 20.6% in the past five years. Finally, with a forward price-to-earnings ratio of 11.5, compared to the pharma industry's 14.2, Pfizer looks like a great deal at current levels. I think all of this is enough to make Pfizer a no-brainer dividend stock to buy in March.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Pfizer. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories and Pfizer. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A better picture than meets the eye Keith Speights (AbbVie): I don't think anyone would seriously challenge AbbVie's credentials as a solid dividend stock. AbbVie's dividend yield stands at nearly 4%. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A better picture than meets the eye Keith Speights (AbbVie): I don't think anyone would seriously challenge AbbVie's credentials as a solid dividend stock. AbbVie's dividend yield stands at nearly 4%. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A better picture than meets the eye Keith Speights (AbbVie): I don't think anyone would seriously challenge AbbVie's credentials as a solid dividend stock. AbbVie's dividend yield stands at nearly 4%. | AbbVie's dividend yield stands at nearly 4%. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). A better picture than meets the eye Keith Speights (AbbVie): I don't think anyone would seriously challenge AbbVie's credentials as a solid dividend stock. | 2fad36be-675a-493a-b189-35fff1acb34a |
22733.0 | 2023-03-10 00:00:00 UTC | Investors Heavily Search AbbVie Inc. (ABBV): Here is What You Need to Know | ABBV | https://www.nasdaq.com/articles/investors-heavily-search-abbvie-inc.-abbv%3A-here-is-what-you-need-to-know-4 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned -0.9% over the past month versus the Zacks S&P 500 composite's -3.8% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $2.50 per share, indicating a change of -20.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -16.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $11.09 points to a change of -19.5% from the prior year. Over the last 30 days, this estimate has changed -4.4%.
For the next fiscal year, the consensus earnings estimate of $10.94 indicates a change of -1.4% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -2.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $12.04 billion for the current quarter points to a year-over-year change of -11.1%. The $52.34 billion and $52.94 billion estimates for the current and next fiscal years indicate changes of -9.9% and +1.2%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. EPS of $3.60 for the same period compares with $3.31 a year ago.
Compared to the Zacks Consensus Estimate of $15.35 billion, the reported revenues represent a surprise of -1.52%. The EPS surprise was +1.69%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.5% over this period. | Last Reported Results and Surprise History AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.5% over this period. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.5% over this period. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 3.5% over this period. | a056bf22-d672-4bb8-95cc-e3631dde8fb8 |
22734.0 | 2023-03-10 00:00:00 UTC | U.S. FDA approves Pfizer's nasal spray for migraine | ABBV | https://www.nasdaq.com/articles/u.s.-fda-approves-pfizers-nasal-spray-for-migraine-0 | nan | nan | Adds background
March 10 (Reuters) - The U.S. Food and Drug Administration (FDA) on Friday approved Pfizer Inc's PFE.N nasal spray for migraine, giving patients access to a potentially fast-acting option to treat their headaches.
The drug Zavzpret, also known as zavegepant, was approved for the treatment of acute migraine with or without aura in adults, the company said.
Pfizer added Zavzpret and a host of other migraine treatments, including Nurtec ODT, to it drugs portfolio through its $11.6 billion buyout of Biohaven Pharmaceutical last year.
Zavzpret belongs to a class of drugs called calcitonin gene-related peptide (CGRP) inhibitors and will compete with other therapies from AbbVie Inc ABBV.O, Eli Lilly and Co LLY.N, Amgen Inc AMGN.O and Teva Pharmaceutical TEVA.TA.
Pfizer is hoping to gain a competitive edge with zavegepant's quicker speed of action than other migraine treatments. Biohaven has pitched it as the "Epipen of migraine".
The approval is based on data from a late-stage study that showed the drug helped in relieving migraine pain in less than 15 minutes.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Devika Syamnath and Anil D'Silva)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zavzpret belongs to a class of drugs called calcitonin gene-related peptide (CGRP) inhibitors and will compete with other therapies from AbbVie Inc ABBV.O, Eli Lilly and Co LLY.N, Amgen Inc AMGN.O and Teva Pharmaceutical TEVA.TA. Adds background March 10 (Reuters) - The U.S. Food and Drug Administration (FDA) on Friday approved Pfizer Inc's PFE.N nasal spray for migraine, giving patients access to a potentially fast-acting option to treat their headaches. Pfizer added Zavzpret and a host of other migraine treatments, including Nurtec ODT, to it drugs portfolio through its $11.6 billion buyout of Biohaven Pharmaceutical last year. | Zavzpret belongs to a class of drugs called calcitonin gene-related peptide (CGRP) inhibitors and will compete with other therapies from AbbVie Inc ABBV.O, Eli Lilly and Co LLY.N, Amgen Inc AMGN.O and Teva Pharmaceutical TEVA.TA. Adds background March 10 (Reuters) - The U.S. Food and Drug Administration (FDA) on Friday approved Pfizer Inc's PFE.N nasal spray for migraine, giving patients access to a potentially fast-acting option to treat their headaches. The drug Zavzpret, also known as zavegepant, was approved for the treatment of acute migraine with or without aura in adults, the company said. | Zavzpret belongs to a class of drugs called calcitonin gene-related peptide (CGRP) inhibitors and will compete with other therapies from AbbVie Inc ABBV.O, Eli Lilly and Co LLY.N, Amgen Inc AMGN.O and Teva Pharmaceutical TEVA.TA. Adds background March 10 (Reuters) - The U.S. Food and Drug Administration (FDA) on Friday approved Pfizer Inc's PFE.N nasal spray for migraine, giving patients access to a potentially fast-acting option to treat their headaches. The drug Zavzpret, also known as zavegepant, was approved for the treatment of acute migraine with or without aura in adults, the company said. | Zavzpret belongs to a class of drugs called calcitonin gene-related peptide (CGRP) inhibitors and will compete with other therapies from AbbVie Inc ABBV.O, Eli Lilly and Co LLY.N, Amgen Inc AMGN.O and Teva Pharmaceutical TEVA.TA. Adds background March 10 (Reuters) - The U.S. Food and Drug Administration (FDA) on Friday approved Pfizer Inc's PFE.N nasal spray for migraine, giving patients access to a potentially fast-acting option to treat their headaches. The drug Zavzpret, also known as zavegepant, was approved for the treatment of acute migraine with or without aura in adults, the company said. | e9eb149d-549b-4c7f-9cac-dde98c0b0b87 |
22735.0 | 2023-03-10 00:00:00 UTC | Zacks Investment Ideas feature highlights: Coca-Cola Company, AbbVie and Exxon Mobil | ABBV | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-coca-cola-company-abbvie-and-exxon-mobil | nan | nan | For Immediate Release
Chicago, IL – March 10, 2023 – Today, Zacks Investment Ideas feature highlights Coca-Cola Company KO, AbbVie ABBV and Exxon Mobil XOM.
Reap Monthly Income with This 3-Stock Combo
While the majority of stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly.
How? Let me explain –
The first stock pays its dividend in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December.
So, with just a little positioning, investors can reap steady monthly paydays.
Together, three stocks – Coca-Cola Company, AbbVie and Exxon Mobil – would allow payouts to roll in each month.
For income-focused investors, let’s take a closer look at each one.
Coca-Cola
Coca-Cola is an American multinational corporation best known for its flagship Coca-Cola beverage. The stock presently sports a Zacks Rank #2 (Buy), with earnings estimates drifting higher.
Impressively, KO is a Dividend King, showing an unparalleled commitment to shareholders through 50+ years of increased payouts. The company’s annual yield sits at 2.9%, a tick ahead of the Zacks Consumer Staples sector average.
KO pays dividends in January, April, July, and October.
AbbVie
AbbVie enjoys leadership positions in key therapeutic areas, including immunology, hematologic oncology, neuroscience, aesthetics, eye care, and women’s health.
Like KO, AbbVie is a Dividend King, reflecting the company’s shareholder-friendly nature in a big way. Currently, ABBV’s annual dividend yields a sizable 3.9%, more than double the Zacks Medical sector average.
In addition, AbbVie’s cash-generating abilities have been amplified thanks to successful new drugs; ABBV generated $7.2 billion of free cash flow in its latest quarter, growing nearly 50% year-over-year.
ABBV pays dividends in February, May, August, and November.
Exxon Mobil
Exxon Mobil is a U.S.-based oil and gas entity, one of the world's largest publicly traded energy companies.
Exxon’s annual dividend yield currently stands at a solid 3.3%, with a sustainable payout ratio of 26% of its earnings. The surge in energy prices undoubtedly benefitted the company, with its payout growing 3.4% just over the last year.
Further, the company’s 31.2% TTM return on equity is certainly worth highlighting, with the surge in energy prices again providing a nice boost.
XOM pays dividends in March, June, September, and December.
Bottom Line
Dividends amplify any portfolio, cushioning the impact of drawdowns in other positions and providing the ability to reap passive income.
Interestingly enough, if investors select their dividend-paying stocks in a structured manner, they can create a portfolio that provides monthly paydays.
When combined, all three stocks above – Coca-Cola Company, AbbVie and Exxon Mobil – construct a portfolio that allows monthly income.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – March 10, 2023 – Today, Zacks Investment Ideas feature highlights Coca-Cola Company KO, AbbVie ABBV and Exxon Mobil XOM. In addition, AbbVie’s cash-generating abilities have been amplified thanks to successful new drugs; ABBV generated $7.2 billion of free cash flow in its latest quarter, growing nearly 50% year-over-year. Together, three stocks – Coca-Cola Company, AbbVie and Exxon Mobil – would allow payouts to roll in each month. | For Immediate Release Chicago, IL – March 10, 2023 – Today, Zacks Investment Ideas feature highlights Coca-Cola Company KO, AbbVie ABBV and Exxon Mobil XOM. When combined, all three stocks above – Coca-Cola Company, AbbVie and Exxon Mobil – construct a portfolio that allows monthly income. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | For Immediate Release Chicago, IL – March 10, 2023 – Today, Zacks Investment Ideas feature highlights Coca-Cola Company KO, AbbVie ABBV and Exxon Mobil XOM. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Together, three stocks – Coca-Cola Company, AbbVie and Exxon Mobil – would allow payouts to roll in each month. | When combined, all three stocks above – Coca-Cola Company, AbbVie and Exxon Mobil – construct a portfolio that allows monthly income. For Immediate Release Chicago, IL – March 10, 2023 – Today, Zacks Investment Ideas feature highlights Coca-Cola Company KO, AbbVie ABBV and Exxon Mobil XOM. Together, three stocks – Coca-Cola Company, AbbVie and Exxon Mobil – would allow payouts to roll in each month. | afd2cfca-f84f-41fe-bb48-c2c01b9303ac |
22736.0 | 2023-03-09 00:00:00 UTC | Is WisdomTree U.S. High Dividend ETF (DHS) a Strong ETF Right Now? | ABBV | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-high-dividend-etf-dhs-a-strong-etf-right-now-5 | nan | nan | The WisdomTree U.S. High Dividend ETF (DHS) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree. DHS has been able to amass assets over $1.45 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, DHS seeks to match the performance of the WisdomTree U.S. High Dividend Index.
The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 3.67%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Financials sector - about 20.40% of the portfolio. Energy and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE).
The top 10 holdings account for about 38.48% of total assets under management.
Performance and Risk
The ETF has lost about -1.46% so far this year and it's up approximately 2.90% in the last one year (as of 03/09/2023). In the past 52-week period, it has traded between $75.81 and $91.19.
The fund has a beta of 0.81 and standard deviation of 22.76% for the trailing three-year period, which makes DHS a medium risk choice in this particular space. With about 396 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $51.48 billion in assets, Vanguard Value ETF has $102.01 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. High Dividend ETF (DHS) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. High Dividend ETF (DHS) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | 35b7355d-89d8-40c7-b993-bfa4cc702114 |
22737.0 | 2023-03-09 00:00:00 UTC | Surprising Analyst 12-Month Target For HUSV | ABBV | https://www.nasdaq.com/articles/surprising-analyst-12-month-target-for-husv | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Horizon Managed Volatility Domestic ETF (Symbol: HUSV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $34.99 per unit.
With HUSV trading at a recent price near $31.84 per unit, that means that analysts see 9.89% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of HUSV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), AutoZone, Inc. (Symbol: AZO), and Quest Diagnostics, Inc. (Symbol: DGX). Although ABBV has traded at a recent price of $149.60/share, the average analyst target is 10.78% higher at $165.73/share. Similarly, AZO has 10.76% upside from the recent share price of $2459.57 if the average analyst target price of $2724.19/share is reached, and analysts on average are expecting DGX to reach a target price of $150.58/share, which is 10.13% above the recent price of $136.73. Below is a twelve month price history chart comparing the stock performance of ABBV, AZO, and DGX:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Horizon Managed Volatility Domestic ETF HUSV $31.84 $34.99 9.89%
AbbVie Inc ABBV $149.60 $165.73 10.78%
AutoZone, Inc. AZO $2459.57 $2724.19 10.76%
Quest Diagnostics, Inc. DGX $136.73 $150.58 10.13%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
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MAS DMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | First Trust Horizon Managed Volatility Domestic ETF HUSV $31.84 $34.99 9.89% AbbVie Inc ABBV $149.60 $165.73 10.78% AutoZone, Inc. AZO $2459.57 $2724.19 10.76% Quest Diagnostics, Inc. DGX $136.73 $150.58 10.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of HUSV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), AutoZone, Inc. (Symbol: AZO), and Quest Diagnostics, Inc. (Symbol: DGX). Although ABBV has traded at a recent price of $149.60/share, the average analyst target is 10.78% higher at $165.73/share. | Three of HUSV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), AutoZone, Inc. (Symbol: AZO), and Quest Diagnostics, Inc. (Symbol: DGX). First Trust Horizon Managed Volatility Domestic ETF HUSV $31.84 $34.99 9.89% AbbVie Inc ABBV $149.60 $165.73 10.78% AutoZone, Inc. AZO $2459.57 $2724.19 10.76% Quest Diagnostics, Inc. DGX $136.73 $150.58 10.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although ABBV has traded at a recent price of $149.60/share, the average analyst target is 10.78% higher at $165.73/share. | Three of HUSV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), AutoZone, Inc. (Symbol: AZO), and Quest Diagnostics, Inc. (Symbol: DGX). Although ABBV has traded at a recent price of $149.60/share, the average analyst target is 10.78% higher at $165.73/share. Below is a twelve month price history chart comparing the stock performance of ABBV, AZO, and DGX: Below is a summary table of the current analyst target prices discussed above: | First Trust Horizon Managed Volatility Domestic ETF HUSV $31.84 $34.99 9.89% AbbVie Inc ABBV $149.60 $165.73 10.78% AutoZone, Inc. AZO $2459.57 $2724.19 10.76% Quest Diagnostics, Inc. DGX $136.73 $150.58 10.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of HUSV's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), AutoZone, Inc. (Symbol: AZO), and Quest Diagnostics, Inc. (Symbol: DGX). Although ABBV has traded at a recent price of $149.60/share, the average analyst target is 10.78% higher at $165.73/share. | 3f92720b-e313-4084-a344-012f1bfb1d5c |
22738.0 | 2023-03-09 00:00:00 UTC | Guru Fundamental Report for ABBV - Partha Mohanram | ABBV | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbv-partha-mohanram | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | ebcbfffe-6d26-49ca-8814-1e841eeeea2e |
22739.0 | 2023-03-09 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock? | ABBV | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock-1 | nan | nan | AbbVie (NYSE: ABBV) has shown itself to be a great long-term investment. The drugmaker's shares have climbed about 300% over the past decade. And earnings have soared, thanks to the company's blockbuster immunology drug Humira.
But things are changing at AbbVie. Humira already has been facing competition internationally, and that has weighed on sales. As of this year, it also faces competition in the U.S. This will clearly hurt earnings. In fact, management predicts a 37% drop in U.S. Humira sales this year. So now the question is: Is it too late to buy AbbVie stock? Let's find out.
Peak sales of $20 billion
Humira is a massive blockbuster due to its use across a range of illnesses, including rheumatoid arthritis and Crohn's disease. In 2021, Humira achieved peak annual revenue of more than $20 billion. That's more than 36% of the company's total revenue.
So there's reason for investors to be concerned about the emergence of competition and the forecast for declining Humira revenue. But there's also reason to see this as a temporary problem, and one with a solution just ahead -- AbbVie's newer immunology drugs Rinvoq and Skyrizi.
The company has been prepping these two products for a while to take over where Humira leaves off. And the plan is working. The company aims to win authorizations for these drugs in all of Humira's indications and more. So far, regulators have approved Rinvoq in five indications -- and they're reviewing it for a sixth, Crohn's disease, right now. As for Skyrizi, it has won three approvals and is in a phase 3 trial for ulcerative colitis.
But these drugs aren't only winning approvals. They are also winning over doctors and patients. In the most recent quarter, Skyrizi's net revenue soared 76% and Rinvoq's net revenue climbed 49%.
Both drugs brought in blockbuster revenue last year. And they're on the way to meeting AbbVie's big goal: The company says that together, they will generate more than $21 billion in annual revenue by 2027. That means they'll actually top Humira.
And as soon as 2025, the two drugs combined should bring in more than $17.5 billion in revenue. So this year might not be a big one for growth at AbbVie, but we might not have to wait very long for growth to take off again -- thanks to Rinvoq and Skyrizi.
Other blockbusters
It's also important to remember the other blockbusters in AbbVie's portfolio and its pipeline. The company has strengths in several treatment areas, but here I'll mention neuroscience and aesthetics in particular.
Last year, AbbVie's neuroscience portfolio posted double-digit growth to deliver more than $6.5 billion in revenue. The company sells products to treat migraine and major depressive disorder, for example.
AbbVie also sells the market-leading aesthetics products Botox wrinkle treatment and Juvederm filler. The company recently said it sees significant long-term growth potential for the aesthetics market. And that's logical considering the market is expected to expand by double digits throughout this decade.
Over time, AbbVie has increased earnings and it has a great track record.
ABBV net income (annual) data by YCharts.
We can expect a pause in growth this year or next year as AbbVie transitions through the loss of Humira exclusivity. But considering the company's strong portfolio of drugs and full pipeline, its growth story is far from over -- it's just in a state of transition. Meanwhile, it trades for about 13 times forward earnings estimates, which seems reasonable for a company with solid long-term prospects.
All of this means it isn't too late to buy AbbVie stock. In fact, right now, during this transition period, is a good time to get in on the story for a bargain -- and benefit from the company's new phase of growth over the long haul.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But there's also reason to see this as a temporary problem, and one with a solution just ahead -- AbbVie's newer immunology drugs Rinvoq and Skyrizi. AbbVie (NYSE: ABBV) has shown itself to be a great long-term investment. But things are changing at AbbVie. | AbbVie (NYSE: ABBV) has shown itself to be a great long-term investment. But things are changing at AbbVie. So now the question is: Is it too late to buy AbbVie stock? | And they're on the way to meeting AbbVie's big goal: The company says that together, they will generate more than $21 billion in annual revenue by 2027. Last year, AbbVie's neuroscience portfolio posted double-digit growth to deliver more than $6.5 billion in revenue. We can expect a pause in growth this year or next year as AbbVie transitions through the loss of Humira exclusivity. | AbbVie (NYSE: ABBV) has shown itself to be a great long-term investment. But things are changing at AbbVie. So now the question is: Is it too late to buy AbbVie stock? | c7879e4c-3f6f-48ab-8646-358dc60319d6 |
22740.0 | 2023-03-09 00:00:00 UTC | 3 High-Yield Dividend Stocks to Buy Before the Next Bull Rally | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-buy-before-the-next-bull-rally | nan | nan | The current bear market has been brutal for investors of all kinds. Even shares of well-established businesses that are components of the S&P 500 index haven't escaped the beatings. The benchmark index is down around 17% from the peak it reached more than a year ago.
The market's dismal performance since the end of 2021 has been discouraging. At times like this, it's important to remember that every bear market in history has been wiped away by subsequent market recoveries.
The next bull market may already be underway or it might not get started for another year. One way or another, investors who put shares of these high-yield dividend stocks in their portfolio now have a good chance of realizing market-beating gains over the long run.
Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns 444 hospitals and other acute care facilities spread throughout the U.S. and nine other countries. The stock price has fallen around 58% from its peak last year and now offers a huge 11.5% dividend yield.
Instead of running its hospitals, Medical Properties Trust just collects rent from dozens of operators that sign long-term leases. Around 94% of the total base rent and interest payments operators have committed to won't be realized until 2032 or later.
This REIT's cash flows are hyper-reliable because it employs net leases that transfer all the variable costs of building ownership, such as taxes and maintenance, to tenants. Unfortunately, issues with one of its largest tenants led to some big write-downs in the fourth quarter of 2022.
People won't stop needing this REIT's underperforming hospitals just because their present operators can't make ends meet. Medical Properties Trust has transitioned properties from failing operators to new ones that can pay their bills with relative ease. While there's a chance it will need to lower its payout in 2023, investors who buy at recent prices have a good chance to realize market-beating gains from this stock over the long run.
Ally Financial
Ally Financial (NYSE: ALLY) is a modern, all-digital bank with roots that go back over a century. It began as the financial arm of General Motors, and automobile loans are still a large part of its business.
Ally Financial stock offers a big 4.1% dividend yield right now. Investors who like to see their dividends grow will be glad to know the company has raised its payout a stunning 131% over the past five years.
Ally's retail customers added $3.8 billion worth of deposits in the fourth quarter, bringing its total to $138 billion. The company paid an average rate of 2.45% on retail deposits in the fourth quarter. That was a 1.84% rise year over year -- but don't worry, rates the company will receive from new auto loans rose 2.6% over the same time frame to 9.57%.
A wider net interest margin between rates paid to depositors and rates received from borrowers could allow Ally to make some big dividend payout bumps in the years ahead.
AbbVie
AbbVie (NYSE: ABBV) is another dividend grower that was spun off from a much larger business. At recent prices, the stock offers a 3.9% yield.
AbbVie began as the pharmaceutical segment of Abbott Laboratories but the conglomerate spun AbbVie off into a separate entity in 2013. The goal was to isolate Abbott from the rise and eventual fall of Humira, a top-selling anti-inflammatory drug that treats arthritis, psoriasis, and a handful of related conditions.
U.S. Humira sales reached a whopping $18.6 billion in 2022, but this figure will fall dramatically in 2023. Lower-cost biosimilar versions of the injection finally launched this January, and they will hammer sales of AbbVie's branded version 30% to 40% lower in 2023, depending on who you ask.
In recent years, AbbVie has launched new blockbuster drugs that can more than offset impending Humira losses. Skyrizi for psoriasis and Rinvoq for arthritis both launched in 2019 and already generated $7.7 billion in combined revenue last year.
In 2025, management expects sales of Rinvoq and Skyrizi to exceed $17.5 billion. With new blockbusters to offset Humira losses, buying some shares of AbbVie now and holding them over the long run looks like a smart move.
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Ally is an advertising partner of The Ascent, a Motley Fool company. Cory Renauer has positions in Ally Financial. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) is another dividend grower that was spun off from a much larger business. AbbVie began as the pharmaceutical segment of Abbott Laboratories but the conglomerate spun AbbVie off into a separate entity in 2013. Lower-cost biosimilar versions of the injection finally launched this January, and they will hammer sales of AbbVie's branded version 30% to 40% lower in 2023, depending on who you ask. | AbbVie AbbVie (NYSE: ABBV) is another dividend grower that was spun off from a much larger business. AbbVie began as the pharmaceutical segment of Abbott Laboratories but the conglomerate spun AbbVie off into a separate entity in 2013. Lower-cost biosimilar versions of the injection finally launched this January, and they will hammer sales of AbbVie's branded version 30% to 40% lower in 2023, depending on who you ask. | AbbVie AbbVie (NYSE: ABBV) is another dividend grower that was spun off from a much larger business. AbbVie began as the pharmaceutical segment of Abbott Laboratories but the conglomerate spun AbbVie off into a separate entity in 2013. Lower-cost biosimilar versions of the injection finally launched this January, and they will hammer sales of AbbVie's branded version 30% to 40% lower in 2023, depending on who you ask. | In recent years, AbbVie has launched new blockbuster drugs that can more than offset impending Humira losses. AbbVie AbbVie (NYSE: ABBV) is another dividend grower that was spun off from a much larger business. AbbVie began as the pharmaceutical segment of Abbott Laboratories but the conglomerate spun AbbVie off into a separate entity in 2013. | 48ff94cb-8a52-46fe-927c-0712d4509ec2 |
22741.0 | 2023-03-09 00:00:00 UTC | 3 Surefire Stocks That Are Screaming Buys in March | ABBV | https://www.nasdaq.com/articles/3-surefire-stocks-that-are-screaming-buys-in-march | nan | nan | For long-term investors, growth stocks are a superior option in a volatile market. Long-term investors can afford to be far less concerned with short-term fluctuations in stock prices. Growth stocks generally take time to show their full potential, so they tend to be good options for patient investors with a high appetite for risk.
If you are a long-term investor looking for fresh options in this volatile bear market, I have three stocks in mind. Regardless of how their stocks perform at the moment, biopharma company AbbVie (NYSE: ABBV) and cannabis companies Green Thumb Industries (OTC: GTBIF) and Tilray Brands (NASDAQ: TLRY) appear to be in prime position for investing.
Let's take a closer look at why these three stocks are absolute buys this month.
Image source: Getty Images.
1. AbbVie has a strong portfolio of quality drugs
Investors became wary of AbbVie stock after the company's star pharmaceutical, Humira, lost patent exclusivity in the U.S. at the start of 2023. The medication is used to treat adults with moderate to severe rheumatoid arthritis. In 2022, it generated $21 billion in sales, accounting for 36% of the company's total revenue.
A smart company understands that it cannot rely on a single drug for success, and AbbVie offers an array of other successful drugs. Its other promising products are Skyrizi (used to treat moderate to severe plaque psoriasis in adults) and Rinvoq (used to treat moderate to severely active rheumatoid arthritis in adults). Management is confident that these two will eventually outperform Humira. Together, both brought in $7.6 billion in sales for 2022.
In addition, the company is investing heavily in research and development (R&D), which totaled $6.5 billion (12% of revenue) in 2022.
AbbVie is a growth stock, but it is also an income stock. It has the designation as a Dividend King for raising dividends for 51 years in a row (it was spun off from Abbott Laboratories in 2013, and assumed Abbott's multi-decade track record of dividend growth). Its consistency in dividend payments also makes it a reliable passive income stock.
Since the 2013 spinoff, AbbVie has increased its dividends by more than 250%. It is a good long-term investment due to its strong portfolio of effective pharmaceuticals and consistent dividend payments.
2. Green Thumb Industries is preparing to be a top cannabis contender in the U.S.
If federal cannabis legalization does not progress, investors may be tempted to exit the cannabis industry entirely. However, legalization is not required for cannabis companies to become profitable in the long run. Yes, federal legalization will help these companies deal with a few issues, but even the state markets they currently operate in should suffice to keep them profitable.
Multistate operator (MSO) Green Thumb Industries has proven this. Green Thumb's revenue quadrupled from $216 million in 2019 to $1 billion in 2022.
Note that this exceptional growth is solely from a limited legal market. Its aggressive expansion from 39 stores in eight states in 2019 to 77 stores in 15 states now has contributed to this performance.
While many marijuana businesses struggle with profitability, Green Thumb is one of the few that is consistently profitable. It has reported positive GAAP net income for nine consecutive quarters. In the most recent fourth quarter, the company also reported an adjusted net income of $12 million. Revenue increased 6% year on year to $259 million.
According to industry experts, cannabis could be fully legalized in Pennsylvania, Florida, Maryland, Ohio, and Minnesota this year. In each of these states, Green Thumb operates a significant number of stores under the Rise brand, providing the company with additional opportunities. These are also limited-license markets, with only a few cannabis businesses receiving licenses. Green Thumb can use this strategy to build a loyal customer base.
3. Tilray Brands could take advantage of its global exposure
Tilray's peers in the Canadian marijuana industry have struggled to achieve positive EBITDA in past years. Meanwhile, Tilray reported its 15th consecutive quarter of positive adjusted EBITDA in its recent quarter, which came in at $11.7 million.
Tilray's mega-merger with peer Aphria in 2021 has benefited the company. Tilray also had $25.4 million in free cash flow at the end of the quarter, which should help fund future growth strategies. It also maintains a strong balance sheet, with $433.5 million in cash and marketable securities at the end of the quarter. With its partners SweetWater Brewing, Breckenridge Distillery, and Manitoba Harvest, the company is well-positioned to expand in the U.S. market (if and when federal legalization occurs).
However, the U.S. market appears to be a long shot at this point. Furthermore, once legalized, the market would be more favorable to domestic players. Tilray has more leeway in capitalizing on its presence in Canada and Europe.
Risky but worthwhile investments!
Because of Aphria, Tilray already has a strong presence in the European market. The European cannabis market is expected to grow at a compound annual rate of 61% to $14 billion by 2028.
If Green Thumb so desires, it has the potential to expand beyond the United States. It is in good financial shape to do so, with $178 million in cash at the end of the year. And the global cannabis market is rapidly expanding, with an estimated value of $84 billion by 2027. However, not every cannabis company will be successful. Only stable and profitable businesses will be able to benefit from this burgeoning market.
In the meantime, AbbVie is vulnerable to the ups and downs of the healthcare industry. However, the healthcare industry is defensive, which means that people will continue to fall ill regardless of the state of the economy. As a result, the demand for healthcare products will always be there.
All three are high-growth but risky investments, making them appropriate for investors with a higher risk tolerance. A small investment in these alongside a diversified portfolio of stable stocks would be a wise move for long-term stability.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Green Thumb Industries. 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. | Regardless of how their stocks perform at the moment, biopharma company AbbVie (NYSE: ABBV) and cannabis companies Green Thumb Industries (OTC: GTBIF) and Tilray Brands (NASDAQ: TLRY) appear to be in prime position for investing. AbbVie has a strong portfolio of quality drugs Investors became wary of AbbVie stock after the company's star pharmaceutical, Humira, lost patent exclusivity in the U.S. at the start of 2023. A smart company understands that it cannot rely on a single drug for success, and AbbVie offers an array of other successful drugs. | Regardless of how their stocks perform at the moment, biopharma company AbbVie (NYSE: ABBV) and cannabis companies Green Thumb Industries (OTC: GTBIF) and Tilray Brands (NASDAQ: TLRY) appear to be in prime position for investing. AbbVie has a strong portfolio of quality drugs Investors became wary of AbbVie stock after the company's star pharmaceutical, Humira, lost patent exclusivity in the U.S. at the start of 2023. A smart company understands that it cannot rely on a single drug for success, and AbbVie offers an array of other successful drugs. | Regardless of how their stocks perform at the moment, biopharma company AbbVie (NYSE: ABBV) and cannabis companies Green Thumb Industries (OTC: GTBIF) and Tilray Brands (NASDAQ: TLRY) appear to be in prime position for investing. AbbVie has a strong portfolio of quality drugs Investors became wary of AbbVie stock after the company's star pharmaceutical, Humira, lost patent exclusivity in the U.S. at the start of 2023. A smart company understands that it cannot rely on a single drug for success, and AbbVie offers an array of other successful drugs. | AbbVie has a strong portfolio of quality drugs Investors became wary of AbbVie stock after the company's star pharmaceutical, Humira, lost patent exclusivity in the U.S. at the start of 2023. AbbVie is a growth stock, but it is also an income stock. Regardless of how their stocks perform at the moment, biopharma company AbbVie (NYSE: ABBV) and cannabis companies Green Thumb Industries (OTC: GTBIF) and Tilray Brands (NASDAQ: TLRY) appear to be in prime position for investing. | ff35a750-b656-4182-9d58-f7d6255c60cb |
22742.0 | 2023-03-08 00:00:00 UTC | Noteworthy Wednesday Option Activity: ANET, ABBV, ASAN | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-anet-abbv-asan | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Arista Networks Inc (Symbol: ANET), where a total volume of 10,002 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43% of ANET's average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $145 strike call option expiring March 17, 2023, with 1,125 contracts trading so far today, representing approximately 112,500 underlying shares of ANET. Below is a chart showing ANET's trailing twelve month trading history, with the $145 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 25,641 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 42.5% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $160 strike call option expiring March 17, 2023, with 9,148 contracts trading so far today, representing approximately 914,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Asana Inc (Symbol: ASAN) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 42.4% of ASAN's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $14 strike put option expiring March 10, 2023, with 1,159 contracts trading so far today, representing approximately 115,900 underlying shares of ASAN. Below is a chart showing ASAN's trailing twelve month trading history, with the $14 strike highlighted in orange:
For the various different available expirations for ANET options, ABBV options, or ASAN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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. | Particularly high volume was seen for the $160 strike call option expiring March 17, 2023, with 9,148 contracts trading so far today, representing approximately 914,800 underlying shares of ABBV. Below is a chart showing ANET's trailing twelve month trading history, with the $145 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 25,641 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 42.5% of ABBV's average daily trading volume over the past month, of 6.0 million shares. | Below is a chart showing ANET's trailing twelve month trading history, with the $145 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 25,641 contracts thus far today. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: And Asana Inc (Symbol: ASAN) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 42.4% of ASAN's average daily trading volume over the past month, of 3.0 million shares. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 42.5% of ABBV's average daily trading volume over the past month, of 6.0 million shares. | That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 42.5% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: And Asana Inc (Symbol: ASAN) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 42.4% of ASAN's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing ANET's trailing twelve month trading history, with the $145 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 25,641 contracts thus far today. | Particularly high volume was seen for the $160 strike call option expiring March 17, 2023, with 9,148 contracts trading so far today, representing approximately 914,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: And Asana Inc (Symbol: ASAN) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 42.4% of ASAN's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing ASAN's trailing twelve month trading history, with the $14 strike highlighted in orange: For the various different available expirations for ANET options, ABBV options, or ASAN options, visit StockOptionsChannel.com. | 80681c04-9153-4a7d-8d74-d1577e9e7ee7 |
22743.0 | 2023-03-07 00:00:00 UTC | The Stock That Tripled in a Day...And May Not Be Done | ABBV | https://www.nasdaq.com/articles/the-stock-that-tripled-in-a-day...and-may-not-be-done | nan | nan | Texas-based biotechnology company Reata Pharmaceuticals, Inc. (NASDAQ:RETA) lulled shareholders to sleep in 2022. The news flow was light, the trading pattern sideways and volume virtually nonexistent.
Things changed in dramatic fashion last week.
On February 28th, the U.S. Food and Drug Administration (FDA) approved Reata’s lead candidate Skyclarys for the treatment of patients with an inherited neuromuscular disease called Friedreich’s ataxia.
The next day, Reata’s share price skyrocketed 199% to around $93, its highest level since December 2021. Trading volume was 15x the stock’s average over the previous 90 days. The move showed just how explosive biotech stocks can be for patient, risk tolerant investors willing to wait for the big headline.
Back ‘on the map’ as a biotech growth story, Reata Pharmaceuticals now has a long-coveted commercialized drug in its portfolio. Should investors covet the stock for their portfolios?
Why Is the Skyclarys Approval a Big Deal?
Also known as omaveloxolone, Skyclarys becomes the only approved drug on the market for patients aged 16 and older with Friedreich’s ataxia. The ultra-rare, progressive disease is diagnosed in approximately 5,000 Americans each year. Skyclarys, which is also under review in Europe, represents a major milestone for the patients, families and caregivers affected by the disease.
Along with the drug’s approval, the FDA awarded a ‘priority review voucher’ to Reata Pharmaceuticals as the sponsor of a product for a rare pediatric disease. The voucher gives the company rights to faster FDA review of a future drug for any disease. With an estimated four-month review advantage over competitors, it incentivizes Reata to develop treatments for other life-saving diseases that could reach the market and generate revenue quicker than usual.
What Are the Financial Implications for Reata Pharmaceuticals?
Reata has stated that it expects Skyclarys to become available in the second quarter of 2023. This means the once-daily oral medication will soon be prescribed by neurologists and generate revenue. With patients set to contribute a nominal co-pay for the treatment, commercial insurance and Medicare are expected to be primarily responsible for the cost.
During a conference call, management told investors that Skyclarys would have a wholesale price of $370,000 annually. This equates to $1.85 billion in annual revenue — which may be at the lower end of the range. The National Health Institute (NIH) has estimated that the prevalence of Freidreich’s ataxia is upwards of 6,000 patients, pushing the market size to $2.22 billion. Plus, Reata has said that it plans to explore expanding the label to pediatric patients under 16 years of age.
Regardless of how much revenue comes in over the next 12 months, it will be far more than Reata has generated since joining the Nasdaq in 2016. In 2022, the company earned around $2 million in collaboration revenue tied to its relationships with AbbVie and Japan’s Kyowa Kirin. Profitability is likely still years away but should trend in the right direction due to Skyclarys.
Is it Too Late to Invest in Reata Pharmaceuticals Stock?
With Skyclarys, Reata Pharmaceuticals gains not only revenue generation potential. The approval legitimizes the company as a developer of novel therapies for rare diseases and enhances the value of its platform. This stands to drive greater interest from institutional investors and could help accelerate the progression of other pipeline candidates.
Reata plans to start a phase 2 study of its second candidate, cemdomespib (or RTA 901), in the third quarter of this year. The drug is being developed as a potential treatment for various neurological conditions, including diabetic peripheral neuropathic pain (DPNP). Its other pipeline candidate, bardoxolone, is progressing well in studies for diabetes and chronic kidney disease.
Even after tripling, Reata Pharmaceuticals appears to have more in the tank. For starters, it is still trading more than 60% below its record peak from three years ago. Second, the stock has found favor on Wall Street. Five analysts have called Reata a ‘buy’ since the FDA approval while two have taken neutral stances. Among the five bulls, the average price target is $113, which implies another 25% upside.
The reason for caution, however, is the fact that CEO James Huff completed a $6.4 million sale of Reata stock on March 2, 2023 after acquiring 75,000 shares the day prior. The sale represented about two-thirds of his direct stake.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In 2022, the company earned around $2 million in collaboration revenue tied to its relationships with AbbVie and Japan’s Kyowa Kirin. On February 28th, the U.S. Food and Drug Administration (FDA) approved Reata’s lead candidate Skyclarys for the treatment of patients with an inherited neuromuscular disease called Friedreich’s ataxia. With an estimated four-month review advantage over competitors, it incentivizes Reata to develop treatments for other life-saving diseases that could reach the market and generate revenue quicker than usual. | In 2022, the company earned around $2 million in collaboration revenue tied to its relationships with AbbVie and Japan’s Kyowa Kirin. Texas-based biotechnology company Reata Pharmaceuticals, Inc. (NASDAQ:RETA) lulled shareholders to sleep in 2022. On February 28th, the U.S. Food and Drug Administration (FDA) approved Reata’s lead candidate Skyclarys for the treatment of patients with an inherited neuromuscular disease called Friedreich’s ataxia. | In 2022, the company earned around $2 million in collaboration revenue tied to its relationships with AbbVie and Japan’s Kyowa Kirin. On February 28th, the U.S. Food and Drug Administration (FDA) approved Reata’s lead candidate Skyclarys for the treatment of patients with an inherited neuromuscular disease called Friedreich’s ataxia. Along with the drug’s approval, the FDA awarded a ‘priority review voucher’ to Reata Pharmaceuticals as the sponsor of a product for a rare pediatric disease. | In 2022, the company earned around $2 million in collaboration revenue tied to its relationships with AbbVie and Japan’s Kyowa Kirin. Trading volume was 15x the stock’s average over the previous 90 days. Should investors covet the stock for their portfolios? | 9d372fdb-4ac4-4538-88f1-4cada3c403b6 |
22744.0 | 2023-03-07 00:00:00 UTC | Should WisdomTree U.S. High Dividend ETF (DHS) Be on Your Investing Radar? | ABBV | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-high-dividend-etf-dhs-be-on-your-investing-radar-6 | nan | nan | The WisdomTree U.S. High Dividend ETF (DHS) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.48 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.60%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 20.60% of the portfolio. Energy and Utilities round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE).
The top 10 holdings account for about 38.48% of total assets under management.
Performance and Risk
DHS seeks to match the performance of the WisdomTree U.S. High Dividend Index before fees and expenses. The WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.
The ETF has gained about 0.42% so far this year and was up about 2.89% in the last one year (as of 03/07/2023). In the past 52-week period, it has traded between $75.81 and $91.19.
The ETF has a beta of 0.81 and standard deviation of 22.76% for the trailing three-year period, making it a medium risk choice in the space. With about 396 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DHS is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.51 billion in assets, Vanguard Value ETF has $103.90 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. High Dividend ETF (DHS) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Performance and Risk DHS seeks to match the performance of the WisdomTree U.S. High Dividend Index before fees and expenses. | Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). Alternatives WisdomTree U.S. High Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 5.10% of total assets, followed by Abbvie Inc (ABBV) and Pfizer Inc (PFE). Click to get this free report WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. High Dividend ETF (DHS) was launched on 06/16/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | d2ee229c-9cff-4d85-85fa-10dbce600592 |
22745.0 | 2023-03-06 00:00:00 UTC | 7 Dividend Kings to Buy for an Uncertain Market Environment | ABBV | https://www.nasdaq.com/articles/7-dividend-kings-to-buy-for-an-uncertain-market-environment | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Though the term dividend aristocrats generate plenty of interest for the underlying elite status, another even more rarefied category exists called dividend kings to buy. Rather than 25 years of consecutive payout growth, the kings command at least 50 years. As we head into uncertain times, investors should pay close attention to this rare group of enterprises.
Fundamentally, of course, companies that can afford to provide passive income to their stakeholders tend to be deeply established businesses. Should unexpected turbulence hit the market, they’re likelier to ride out the turmoil compared to growth-centric organizations. Therefore, dividend kings to buy deserve serious consideration for your portfolio. In addition, these elites of elite firms will want to keep the trend going at any cost. Naturally, you don’t want to be the person responsible for a 50-plus-year track record being broken. Thus, you’re in reasonably good hands with these dividend kings to buy.
ABBV AbbVie $155.28
CL Colgate-Palmolive $73.29
PG Procter & Gamble $140.35
NWN Northwest Natural $47.41
KO Coca-Cola $60.36
SYY SYSCO $76.35
JNJ Johnson & Johnson $155.56
AbbVie (ABBV)
Source: Sisacorn / Shutterstock.com
A top-flight pharmaceutical firm, AbbVie (NYSE:ABBV) ranks among the most intriguing dividend kings to buy. According to Dividend.com, the company features 51 years of consecutive payout growth. Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. Therefore, Dividend.com tracks the history to Abbott, not to the 2012 spinoff date.
Now, either way, I don’t think you can go wrong. For Abbott, the company might be undervalued relative to forward earnings. In AbbVie’s case, it too may be undervalued. For instance, the market prices ABBV at a forward multiple of 13.66. As a discount to earnings, AbbVie ranks better than 60.16% of the competition.
Fundamentally, AbbVie’s buyout of Allergan – the manufacturer of Botox – could pay off handsomely. As people return to the office, a greater incentive exists to look presentable. That should help Botox and in turn ABBV stock. Finally, Wall Street analysts peg ABBV as a consensus moderate buy. Further, their average price target stands at $163.64, implying 6% upside potential.
Colgate-Palmolive (CL)
Source: monticello / Shutterstock.com
One of the top manufacturers of household goods, Colgate-Palmolive (NYSE:CL) commands attention for the underlying toothpaste. According to Divdend.com, the enterprise features 60 years of consecutive dividend growth. Further, it carries a forward yield of 2.57%. In contrast, the underlying consumer staples sector’s average yield sits at 1.89%. Finally, its payout ratio is 55.23, reflecting a reasonably sustainable passive income.
According to Gurufocus.com’s proprietary calculations for fair market value (FMV), CL rates as modestly undervalued. Objectively, Colgate-Palmolive’s greatest strengths lie in its profitability metrics. Perhaps most notably, its operating margin stands at 19.77%, outpacing 90.77% of the field. As well, its net margin pings at 9.93%, above nearly 80% of the industry.
Further, while it could use a little bit of improvement in the balance sheet, Colgate-Palmolive’s Altman Z-Score is 6.43. This indicates a very low risk of bankruptcy over the next two years. Lastly, covering analysts peg CL as a consensus moderate buy. Moreover, their average price target is $79.70, implying 8% upside potential. Thus, it’s one of the steady dividend kings to buy.
Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
With so many rumblings in the market and in the broader global economy, consumer goods giant Procter & Gamble (NYSE:PG) simply makes sense. However, the enterprise’s status as one of the dividend kings to buy makes PG all the more attractive. Presently, Procter & Gamble commands 67 years of consecutive payout growth. As well, its forward yield stands at 2.61%. Again, this ranks conspicuously higher than the consumer staples sector’s average yield of 1.89%.
According to Gurufocus.com’s FMV calculations, PG rates as fairly valued. Objectively, it might be a tough overvalued. However, this is really an organization built for the long haul. For instance, the consumer goods stalwart features an Altman Z-Score of 5.06, implying low bankruptcy risk. Operationally, PG enjoys a three-year EBITDA growth rate of 31.2%, outpacing 82% of the field. However, it’s again the profitability that drives the case for PG as one of the dividend kings to buy. Its net margin stands at 17.79%, above nearly 92% of the industry.
Turning to Wall Street, analysts peg PG as a consensus moderate buy. Moreover, their average price target is $157.48, implying almost 13% upside potential.
Northwest Natural (NWN)
Source: jittawit21/Shutterstock.com
Headquartered in Portland, Oregon, Northwest Natural (NYSE:NWN) provides natural gas service to approximately 2.5 million people in Oregon and southwest Washington. As a public utility, Northwest enjoys a natural monopoly. Because of the scale involved and the high barrier to entry, it’s doubtful that anyone can usurp Northwest.
Cynically, then, NWN makes for an enticing opportunity among dividend kings to buy. Currently, the utility commands 66 years of consecutive dividend increases. Further, its forward yield stands at 4.06%. In contrast, the utility sector’s average yield is 3.75%. Now, one factor to keep in mind is that Northwest’s payout ratio of just under 70% is a bit high. Still, no one’s going to want to give up the dividend king status. Also, for full transparency, Northwest doesn’t offer wow-factor financials. However, Gurufocus.com’s FMV calculations rate NWN as modestly undervalued.
Finally, covering analysts peg NWN as a consensus moderate buy. Further, their average price target stands at $54.33, implying almost 14% upside potential.
Coca-Cola (KO)
Source: Dmitry Lobanov/Shutterstock.com
Probably the world’s most famous soft-drink manufacturer, Coca-Cola (NYSE:KO) needs no introduction. Not only does it represent a blue-chip giant, it effectively symbolizes American capitalism. From this angle, it’s not terribly surprising that KO ranks among the dividend kings to buy.
Right now, the iconic enterprise features 62 years of consecutive payout growth. As well, the company’s fairly generous with its passive income, carrying a forward yield of 3.08%. Again, in contrast, the consumer staples sector’s average yield is 1.89%. While I wouldn’t fret about the sustainability of the yield, prospective investors should note the payout ratio of 65.82%.
At the present juncture, Gurufocus.com rates KO as fairly valued. However, patient investors may be able to advantage of Coca-Cola’s operational strengths. For example, its three-year revenue growth rate pings at 4.6% while its net margin hit 22.19%. Both stats rate into the top tier of the underlying industry. Looking to the Street, covering analysts peg KO as a consensus strong buy. Additionally, their average price target stands at $68.33, implying over 14% upside potential.
SYSCO (SYY)
Source: iQoncept/shutterstock.com
Headquartered in Houston, Texas, SYSCO (NYSE:SYY) specializes in marketing and distributing food products, small wares, kitchen equipment, and tabletop items to restaurants, healthcare and educational facilities, and hospitality businesses. Given its vast relevancies, it makes for an attractive idea among dividend kings to buy. Specifically, Sysco commands 54 years of consecutive dividend increases.
In addition, it offers a forward yield of 2.59%. I’m not going to repeat it but it’s higher than the underlying consumer staples sector. Also, it should be stated that the payout ratio sits at 42.68%. While it’s not the lowest figure in the world, no one should worry excessively about yield sustainability. Gurufocus.com rates SYY as modestly undervalued. Objectively, Sysco’s greatest strengths lie in its profitability-related metrics. For instance, its return on asset (ROA) pings at 6.45%, outpacing 77% of the competition.
Turning to Wall Street, analysts peg SYY as a consensus moderate buy. Moreover, their average price target stands at $88.15, implying nearly 17% upside potential.
Johnson & Johnson (JNJ)
Source: Shutterstock
A consumer goods and healthcare giant, Johnson & Johnson (NYSE:JNJ) represents one of the world’s most recognizable brands. As well, with so many events seemingly spiraling out of control globally, JNJ just seems like a smart bet overall. Tack on the fact that it’s one of the dividend kings to buy and you have a very compelling bullish case.
At the moment, Johnson & Johnson features 61 years of consecutive payout growth. In addition, the company carries a forward yield of 2.91%. In contrast, the healthcare sector’s average yield sits at 1.58%. Also noteworthy is the payout ratio, which pings at 41.5%. At this rate, investors can sleep a little easier when it comes to yield sustainability. Financially, the company’s greatest strengths lie in its profitability metrics. Notably, its net margin hit 18.9%, blowing past 87% of the industry. Plus, the company’s Altman Z-Score is 4.01, reflecting low bankruptcy risk.
Lastly, covering analysts peg JNJ as a consensus moderate buy. Additionally, their average price target stands at $183.10, implying 20% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Dividend Kings to Buy for an Uncertain Market Environment appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV AbbVie $155.28 CL Colgate-Palmolive $73.29 PG Procter & Gamble $140.35 NWN Northwest Natural $47.41 KO Coca-Cola $60.36 JNJ Johnson & Johnson $155.56 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com A top-flight pharmaceutical firm, AbbVie (NYSE:ABBV) ranks among the most intriguing dividend kings to buy. Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. | ABBV AbbVie $155.28 CL Colgate-Palmolive $73.29 PG Procter & Gamble $140.35 NWN Northwest Natural $47.41 KO Coca-Cola $60.36 JNJ Johnson & Johnson $155.56 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com A top-flight pharmaceutical firm, AbbVie (NYSE:ABBV) ranks among the most intriguing dividend kings to buy. Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. | JNJ Johnson & Johnson $155.56 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com A top-flight pharmaceutical firm, AbbVie (NYSE:ABBV) ranks among the most intriguing dividend kings to buy. ABBV AbbVie $155.28 CL Colgate-Palmolive $73.29 PG Procter & Gamble $140.35 NWN Northwest Natural $47.41 KO Coca-Cola $60.36 Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. | ABBV AbbVie $155.28 CL Colgate-Palmolive $73.29 PG Procter & Gamble $140.35 NWN Northwest Natural $47.41 KO Coca-Cola $60.36 JNJ Johnson & Johnson $155.56 AbbVie (ABBV) Source: Sisacorn / Shutterstock.com A top-flight pharmaceutical firm, AbbVie (NYSE:ABBV) ranks among the most intriguing dividend kings to buy. Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. | f97f2dec-5255-4fe1-ac90-3629f6632611 |
22746.0 | 2023-03-06 00:00:00 UTC | VTV, ABBV, PFE, BAC: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/vtv-abbv-pfe-bac%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $884.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 726,197,049 to 732,433,139). Among the largest underlying components of VTV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Pfizer Inc (Symbol: PFE) is down about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average:
Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $142.28. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VTV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Pfizer Inc (Symbol: PFE) is down about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. 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. | Among the largest underlying components of VTV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Pfizer Inc (Symbol: PFE) is down about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $142.28. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of VTV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Pfizer Inc (Symbol: PFE) is down about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $884.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 726,197,049 to 732,433,139). For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $142.28. | Among the largest underlying components of VTV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.5%, Pfizer Inc (Symbol: PFE) is down about 0.2%, and Bank of America Corp (Symbol: BAC) is up by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $884.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 726,197,049 to 732,433,139). For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $142.28. | 56fedb16-60d4-42c2-99ca-3c11524564d8 |
22747.0 | 2023-03-04 00:00:00 UTC | Validea Guru Fundamental Report for ABBV - 3/4/2023 | ABBV | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abbv-3-4-2023 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | 17db0abb-0b42-493e-a225-cac803df518a |
22748.0 | 2023-03-04 00:00:00 UTC | 2 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/2-top-dividend-kings-to-buy-for-the-long-haul-4 | nan | nan | Dividend Kings are among the best stocks that income-seeking investors can turn to in these uncertain days. These companies have been raising their payouts for at least 50 consecutive years, which says something about the strength of their underlying businesses. And beyond the potential for the regular passive income they offer, many Dividend Kings have excellent long-term prospects, too.
Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV).
1. Abbott Laboratories
Abbott Laboratories is known as a leader in the medical devices field although it has a presence in several other areas, including nutrition and a generic pharmaceutical unit that targets primarily developing countries. The healthcare company has been highly successful thanks to its ability to develop newer and better products while delivering growing revenue and profits.
These factors have also allowed Abbott Laboratories to sustain an impressive dividend record, with 51 consecutive years of payout raises.
Abbott'a past is impressive, but the company's future matters more. The best part of Abbott's business remains its innovative culture. There is always a high demand for breakthrough healthcare products, something Abbott has been able to consistently deliver over the years. Here's one example of the company's innovative capabilities.
During the early days of the pandemic, it quickly developed and marketed several coronavirus diagnostic tests and became a leader in this market. That helped Abbott keep its revenue afloat even as its medical device revenue dropped. Consider another example, namely the company's FreeStyle Libre franchise.
FreeStyle Libre is a continuous glucose monitoring (CGM) system that helps patients with diabetes track their blood glucose levels in real time throughout the day. In October, it was named the best medical technology of the past 50 years by the prominent Galien Foundation, which honors innovations in the life sciences.
The FreeStyle Libre system generated $4.3 billion in sales in 2022, an improvement of about 16% year over year. Abbott Labs expects revenue of $10 billion for this product line by 2028. We can expect Abbott to continue launching new products in this and other areas such as its structural heart and heart failure units.
The company arguably benefits from a strong moat, having acquired a solid brand name over the years while navigating the highly regulated healthcare industry. Like other consumers, physicians and patients are more likely to go back to those brands with which they are familiar. That can lead to sustained revenue, earnings, and stock price appreciation over the long run for Abbott Laboratories.
2. AbbVie
AbbVie is a drugmaker with 51 years of consecutive dividend increases. That's not a coincidence. AbbVie was once a division of Abbott Laboratories. The two companies split in 2013, and AbbVie has delivered above-average returns since then. Although its most important product over this period, rheumatoid arthritis drug Humira, is now facing biosimilar competition, AbbVie can rely on other blockbusters to pick up the slack.
Skyrizi and Rinvoq are two immunology medicines tasked with replacing Humira. The two continue to earn new indications, many of which overlap with Humira's. Management expects combined peak revenue from Skyrizi and Rinvoq to surpass that of their predecessor eventually, which would be an impressive feat. After all, Humira is one of the most successful drugs in the history of the industry.
Beyond its immunology products, AbbVie has a deep lineup that includes cancer drugs Venclexta and Imbruvica, its Botox franchise, depression treatment Vraylar, and many more. Then there is AbbVie's equally impressive pipeline, which boasts more than 50 programs in mid- and late-stage development. Even at a 50% success rate, that's two dozen brand-new products or label expansions AbbVie can score in the next few years, at least a handful of which will meaningfully impact revenue growth for years.
In the meantime, those programs in the early stages of development will make their way through clinical and regulatory hurdles and also inch closer to approval. While losing patent exclusivity can be challenging for pharmaceutical companies, AbbVie's combination of a rich lineup, pipelines, and cycles of new approvals is precisely the remedy against patent cliffs. It's also a great recipe for long-term success on the market.
That's why investors can still trust this Dividend King to provide solid returns over the long haul.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although its most important product over this period, rheumatoid arthritis drug Humira, is now facing biosimilar competition, AbbVie can rely on other blockbusters to pick up the slack. Beyond its immunology products, AbbVie has a deep lineup that includes cancer drugs Venclexta and Imbruvica, its Botox franchise, depression treatment Vraylar, and many more. Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). | Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie is a drugmaker with 51 years of consecutive dividend increases. AbbVie was once a division of Abbott Laboratories. | Even at a 50% success rate, that's two dozen brand-new products or label expansions AbbVie can score in the next few years, at least a handful of which will meaningfully impact revenue growth for years. Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie is a drugmaker with 51 years of consecutive dividend increases. | Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). AbbVie AbbVie is a drugmaker with 51 years of consecutive dividend increases. AbbVie was once a division of Abbott Laboratories. | ef76a5a7-0df5-4543-a960-78842e81fa0b |
22749.0 | 2023-03-04 00:00:00 UTC | 2 High-Yield Dividend Stocks to Buy in March | ABBV | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-to-buy-in-march | nan | nan | Hunting for the next big thing is an exciting investment strategy that usually doesn't work out. Luckily, there's a more reliable way to build wealth through the stock market.
If you're more interested in accumulating wealth than impressing folks with prescient stock market picks, consider these dividend-paying stocks. They probably won't deliver dramatic overnight gains, but there's a good chance they'll outperform over time.
Companies that commit to distributing a portion of their profits behave a little differently, and the end result is higher rates of return for investors. From 1973 through 2021, stocks in the benchmark S&P 500 index that initiated or grew their dividend payouts returned 10.7% annually on average. Over the same time frame, non-dividend payers delivered a measly 4.8% average annual return, according to research from Hartford Funds and Ned Davis.
AbbVie
AbbVie (NYSE: ABBV) only has a decade of consecutive annual-dividend raises under its belt because before that, it was the biopharmaceutical segment of Abbott Laboratories. Abbott had already been raising its payout for decades before the separation, and AbbVie picked up the pace. The drugmaker's quarterly payout has grown 270% over the past decade.
At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. The yield is relatively high because the market is nervous about incoming competition for its best-selling drug, Humira.
Humira launched in the U.S. in 2002, and a thicket of patents kept lower-cost biosimilar versions off the market until just recently. U.S. sales of the drug reached $18.6 billion in 2022, and this figure could fall by around 30% this year.
Humira sales will tank in the face of biosimilar competition, but this isn't a one-trick pony. AbbVie has a handful of more recently launched blockbuster drugs to offset Humira's losses and allow its dividend to continue growing.
Skyrizi and Rinvoq are treatments for psoriasis and arthritis, respectively, that first earned approval in 2019. Combined sales from this pair reached $7.7 billion last year, and management expects this figure to exceed $17.5 billion in 2025.
Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns around 444 hospitals and acute care facilities spread throughout the U.S. and nine other countries.
Dividend investors flock toward REITs like this one because they can avoid paying income taxes as long as they distribute at least 90% of profits to shareholders as a dividend. Instead of running its own hospitals, Medical Properties Trust just collects the rent. It generally employs long-term net leases that transfer all the variable costs of building ownership, like maintenance and property taxes, to the tenants that operate its facilities.
Inflation-conscious investors appreciate Medical Properties Trust because it builds inflation-based rent adjustments and annual escalators into its long-term leases. With highly predictable cash flows, the company has been able to steadily raise its dividend payout by 45% over the past decade. Right now, the stock offers an eye-popping 11% yield.
Shares of Medical Properties Trust have fallen hard this year because one of its larger tenants, Prospect Medical, is having trouble paying its bills. A couple of large write-downs caused the company to report a net loss in the fourth quarter of 2022.
The important thing for investors to remember is that people still need hospitals whether Prospect can make ends meet or not. Medical Properties Trust shouldn't have much trouble transitioning Prospect's troubled properties to a new operator.
Management thinks funds from operations (FFO), a proxy for REIT earnings, will reach $1.50 per share this year if lost revenue from Prospect can't be recovered in 2023. That's more than enough to meet an annual dividend obligation currently set at $1.16 per share. With its dividend program in better condition than it might appear at a distance, adding some shares of this high-yield dividend stock to a diversified portfolio looks like a smart move to make 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. | AbbVie AbbVie (NYSE: ABBV) only has a decade of consecutive annual-dividend raises under its belt because before that, it was the biopharmaceutical segment of Abbott Laboratories. Abbott had already been raising its payout for decades before the separation, and AbbVie picked up the pace. At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. | AbbVie AbbVie (NYSE: ABBV) only has a decade of consecutive annual-dividend raises under its belt because before that, it was the biopharmaceutical segment of Abbott Laboratories. Abbott had already been raising its payout for decades before the separation, and AbbVie picked up the pace. At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. | At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. AbbVie AbbVie (NYSE: ABBV) only has a decade of consecutive annual-dividend raises under its belt because before that, it was the biopharmaceutical segment of Abbott Laboratories. Abbott had already been raising its payout for decades before the separation, and AbbVie picked up the pace. | AbbVie AbbVie (NYSE: ABBV) only has a decade of consecutive annual-dividend raises under its belt because before that, it was the biopharmaceutical segment of Abbott Laboratories. Abbott had already been raising its payout for decades before the separation, and AbbVie picked up the pace. At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. | 5b52755c-63b2-4279-b7ae-483407529b8c |
22750.0 | 2023-03-02 00:00:00 UTC | Intel Slashed Its Dividend, But These 3 Yields Are Likely to Continue Rising | ABBV | https://www.nasdaq.com/articles/intel-slashed-its-dividend-but-these-3-yields-are-likely-to-continue-rising | nan | nan | In February, Intel (NASDAQ: INTC) rocked the markets with news that it was slashing its dividend by a mammoth 66%. That's a huge blow to investors who counted on that dividend. The danger ultimately comes down to cash flow as Intel was burning through cash from its day-to-day operations, and that is a huge red flag for income investors.
Three dividend stocks that look to be in much better shape and have stronger cash flows than Intel are AbbVie (NYSE: ABBV), Costco Wholesale (NASDAQ: COST), and Microsoft (NASDAQ: MSFT). Not only are their yields relatively safe, but they are likely to rise as well.
1. AbbVie
Drugmaker AbbVie is a Dividend King known for raising its payouts on a regular basis. Plus, it's a cash cow as it has generated more than $24 billion in free cash flow last year, which is more than double the $10 billion it paid in dividends.
The biggest worry surrounding the company today is replacing sales for top-selling drug Humira, which may bring in 37% less in revenue this year as biosimilars become available. But the company has been preparing for this and is confident that over the long run its other immunology drugs, Skyrizi and Rinvoq, will more than make up the shortfall.
This year, AbbVie is projecting that its adjusted earnings per share will be between $10.70 and $11.10, which is well above the $5.92 that it pays in dividends per share on an annual basis. Last year, the company raised its dividend payment by 5%. A similar rate hike could happen this year as AbbVie's business remains strong with the cash continuing to pour in.
At 3.9%, this is the highest-yielding stock on this list, paying more than double the S&P 500 average of 1.7%. AbbVie is a solid long-term buy for both dividend and growth investors.
2. Costco
Big-box retailer Costco may look underwhelming as a dividend stock given that its yield is a paltry 0.7%. But for dividend investors who want to buy a stock and not worry about it, this can be an underrated investment.
The company has paid a special dividend out to investors in particularly strong years. The most recent was a $10 per share dividend in 2020. Those types of payments won't happen every year, but they can make up for the low quarterly dividend payments. In essence, you're benefiting from the years when Costco does well.
It's a sound strategy because it means high dividend payments aren't becoming impediments to the company's growth, and if the business has a good year, you could be handsomely rewarded for holding on to the stock.
Costco's incredibly low payout ratio of 26% also makes it probable that the company will increase its dividend payments in the future as it has already been doing so thus far. Last year, the retailer raised its dividend by 14%. If Costco were to continue increasing its payouts at that rate, it would take approximately six years for its dividend to double in value.
The company has generated $2.9 billion in free cash flow over the past four quarters, which is nearly twice as much as what it pays in dividends ($1.5 billion). Overall, Costco is a solid buy, as its business has generated growth amid inflation and a pandemic, demonstrating impressive resiliency.
3. Microsoft
Another stock with a low yield but lots of potential for increase in the future is Microsoft. The tech giant, known for its Windows operating system and Office suite of products, pays just 28% of profits out as dividends. It hasn't paid out special dividends like Costco has, but it has also been making generous increases to its dividend. Last year, Microsoft boosted its payout by 10% to $0.68. The yield now sits at around 1.1%.
Microsoft is a money-making machine, bringing in nearly $60 billion in free cash flow over its past four quarters. By comparison, it has paid less than $19 billion in dividends during that time frame. From both an earnings and cash flow standpoint, there's plenty of room for Microsoft to keep raising its dividend payments in the future.
The company also generates impressive profit margins of over 30%. That, combined with the company's endless pursuit of growth -- which includes its pending acquisition of video game maker Activision Blizzard and investment in ChatGPT maker OpenAI -- is why Microsoft is an exceptional dividend stock to buy and hold forever.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Costco Wholesale, Intel, and Microsoft. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short January 2025 $45 puts on Intel. 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. | Three dividend stocks that look to be in much better shape and have stronger cash flows than Intel are AbbVie (NYSE: ABBV), Costco Wholesale (NASDAQ: COST), and Microsoft (NASDAQ: MSFT). AbbVie Drugmaker AbbVie is a Dividend King known for raising its payouts on a regular basis. This year, AbbVie is projecting that its adjusted earnings per share will be between $10.70 and $11.10, which is well above the $5.92 that it pays in dividends per share on an annual basis. | Three dividend stocks that look to be in much better shape and have stronger cash flows than Intel are AbbVie (NYSE: ABBV), Costco Wholesale (NASDAQ: COST), and Microsoft (NASDAQ: MSFT). AbbVie Drugmaker AbbVie is a Dividend King known for raising its payouts on a regular basis. This year, AbbVie is projecting that its adjusted earnings per share will be between $10.70 and $11.10, which is well above the $5.92 that it pays in dividends per share on an annual basis. | Three dividend stocks that look to be in much better shape and have stronger cash flows than Intel are AbbVie (NYSE: ABBV), Costco Wholesale (NASDAQ: COST), and Microsoft (NASDAQ: MSFT). AbbVie Drugmaker AbbVie is a Dividend King known for raising its payouts on a regular basis. This year, AbbVie is projecting that its adjusted earnings per share will be between $10.70 and $11.10, which is well above the $5.92 that it pays in dividends per share on an annual basis. | Three dividend stocks that look to be in much better shape and have stronger cash flows than Intel are AbbVie (NYSE: ABBV), Costco Wholesale (NASDAQ: COST), and Microsoft (NASDAQ: MSFT). AbbVie Drugmaker AbbVie is a Dividend King known for raising its payouts on a regular basis. This year, AbbVie is projecting that its adjusted earnings per share will be between $10.70 and $11.10, which is well above the $5.92 that it pays in dividends per share on an annual basis. | 42011f6a-92b0-4048-b1b4-520264b2dc5d |
22751.0 | 2023-03-02 00:00:00 UTC | RHHBY vs. ABBV: Which Stock Is the Better Value Option? | ABBV | https://www.nasdaq.com/articles/rhhby-vs.-abbv%3A-which-stock-is-the-better-value-option | nan | nan | Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Roche Holding AG (RHHBY) and AbbVie (ABBV). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Roche Holding AG has a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #4 (Sell). This means that RHHBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RHHBY currently has a forward P/E ratio of 13.87, while ABBV has a forward P/E of 14. We also note that RHHBY has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABBV currently has a PEG ratio of 3.50.
Another notable valuation metric for RHHBY is its P/B ratio of 8.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABBV has a P/B of 15.88.
These metrics, and several others, help RHHBY earn a Value grade of B, while ABBV has been given a Value grade of C.
RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option 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. | Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Roche Holding AG (RHHBY) and AbbVie (ABBV). Currently, Roche Holding AG has a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #4 (Sell). RHHBY currently has a forward P/E ratio of 13.87, while ABBV has a forward P/E of 14. | Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Roche Holding AG (RHHBY) and AbbVie (ABBV). Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Currently, Roche Holding AG has a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #4 (Sell). | These metrics, and several others, help RHHBY earn a Value grade of B, while ABBV has been given a Value grade of C. RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option right now. Click to get this free report Roche Holding AG (RHHBY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Roche Holding AG (RHHBY) and AbbVie (ABBV). | Currently, Roche Holding AG has a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #4 (Sell). ABBV currently has a PEG ratio of 3.50. These metrics, and several others, help RHHBY earn a Value grade of B, while ABBV has been given a Value grade of C. RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option right now. | 01d7f883-a742-4db7-80bf-ded59591dcf6 |
22752.0 | 2023-03-02 00:00:00 UTC | Wall Street Sees 23% Upside In Revance, Maker Of Botox Competitor | ABBV | https://www.nasdaq.com/articles/wall-street-sees-23-upside-in-revance-maker-of-botox-competitor | nan | nan | Investors in Revance Therapeutics Inc. (NASDAQ: RVNC) shouldn’t have much to frown about after the stock gapped up 54.34% on January 9, and built upon those gains in February.
Is this a stock to keep an eye on due to its strong future potential?
Shares fell on March 1 following the company’s fourth-quarter earnings report. The company lost $1.82 a share, below analysts forecasts of a $1.04 a share loss. However, the revenue of $49.92 million topped analysts’ consensus views by 6.62%.
That marked a year-over-year sales increase of 92% on the top line.
On January 9, the day the stock gapped more than 54% higher, as you can see on its chart, the company said it expected preliminary unaudited Daxxify revenue from PrevU, its early experience program, to be between $10.5 million and $11.5 million in the fourth quarter 2022. That was the first quarter Daxxify was commercially available following its FDA approval.
Revenue At Midpoint Of Range
Daxxify Revenue came in at $11 million, the midpoint of the projected range, which may have disappointed some investors looking for something closer to the top of the range or even above that.
That revenue came from 400 doctors in the PrevU program who were given early access to begin the use of the treatment. A full launch of Daxxify for cosmetic use is planned for late March.
Revance also generates revenue through dermatological fillers marketed through its RHA Collection program.
The January 9 leap followed FDA approval for a supplemental use of its Daxxify treatment and the company’s update on expected 2022 results.
In September, Revance got regulators’ nod for Daxxify, a competitor for Botox.
Daxxify has similarities to AbbVie Inc.’s (NYSE: ABBV) Botox in that both use a botulinum toxin as part of a neuromodulator, which affects how nerves work. Daxxify freezes facial wrinkles and lines, including frown lines, to give a smoother appearance.
Fewer Injections Needed
However, Revance says the advantage over Botox is that injections last longer, with patients needing a return visit to the doctor every six months instead of every three months.
The wait for approval has been long, with Revance originally submitting FDA approvals more than three years ago. There have been other Botox competitors in the past, but Wall Street analysts like the prospects for Daxxify, as MarketBeat data indicate.
Analysts have a “moderate buy” rating on the stock, with a consensus price target of $40.09, representing a potential upside of 23.32%.
Revance has also known that there could be other applications for Daxxify, in addition to cosmetic use. One of those applications got the OK in January when the FDA approved Daxxify’s use to treat cervical dystonia, a painful condition in which a patient’s neck muscles contract involuntarily, causing the head to twist or turn to one side. The condition can also cause uncontrollable head movements.
“Painful symptom re-emergence is very common for patients with cervical dystonia, and up until now, physicians have not been able to address this issue with existing treatment options fully,” said Peter McAllister, M.D., who was involved in running the clinical trials.
Opportunity In New Market
According to Revance’s January 6 release of the new approval for Daxxify use, FDA acceptance “advances Revance’s opportunity in the nearly $1.0 billion U.S. muscle movement disorder market, including cervical dystonia and spasticity.”
In its fourth-quarter report, Revance said the commercial launch of Daxxify for cervical dystonia is planned for August 19.
Revance shares are up 59.83% in the past three months and 87.97% this year.
Revance went public in 2014 and has yet to turn a profit. That lack of profitability is extremely common in the biotech industry, where research and development can take years. There’s also the process of clinical trials and waiting for FDA approval.
Eventual Acquisition Target?
In Revance’s case, the wait appears to have paid off, although Wall Street doesn’t expect profitability this year or next.
It’s worth noting: Another common aspect of biotech is to see a small company like Revance develop a product and even bring it to market and eventually be acquired by a larger pharmaceutical company with greater sales and marketing scope.
Despite the lower trade following the company’s fourth-quarter report, Revance has plenty of potential and could make a good watchlist candidate for investors willing to stomach some of the inherent volatility in the biotech sector.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Daxxify has similarities to AbbVie Inc.’s (NYSE: ABBV) Botox in that both use a botulinum toxin as part of a neuromodulator, which affects how nerves work. One of those applications got the OK in January when the FDA approved Daxxify’s use to treat cervical dystonia, a painful condition in which a patient’s neck muscles contract involuntarily, causing the head to twist or turn to one side. “Painful symptom re-emergence is very common for patients with cervical dystonia, and up until now, physicians have not been able to address this issue with existing treatment options fully,” said Peter McAllister, M.D., who was involved in running the clinical trials. | Daxxify has similarities to AbbVie Inc.’s (NYSE: ABBV) Botox in that both use a botulinum toxin as part of a neuromodulator, which affects how nerves work. However, the revenue of $49.92 million topped analysts’ consensus views by 6.62%. On January 9, the day the stock gapped more than 54% higher, as you can see on its chart, the company said it expected preliminary unaudited Daxxify revenue from PrevU, its early experience program, to be between $10.5 million and $11.5 million in the fourth quarter 2022. | Daxxify has similarities to AbbVie Inc.’s (NYSE: ABBV) Botox in that both use a botulinum toxin as part of a neuromodulator, which affects how nerves work. On January 9, the day the stock gapped more than 54% higher, as you can see on its chart, the company said it expected preliminary unaudited Daxxify revenue from PrevU, its early experience program, to be between $10.5 million and $11.5 million in the fourth quarter 2022. Opportunity In New Market According to Revance’s January 6 release of the new approval for Daxxify use, FDA acceptance “advances Revance’s opportunity in the nearly $1.0 billion U.S. muscle movement disorder market, including cervical dystonia and spasticity.” In its fourth-quarter report, Revance said the commercial launch of Daxxify for cervical dystonia is planned for August 19. | Daxxify has similarities to AbbVie Inc.’s (NYSE: ABBV) Botox in that both use a botulinum toxin as part of a neuromodulator, which affects how nerves work. However, the revenue of $49.92 million topped analysts’ consensus views by 6.62%. One of those applications got the OK in January when the FDA approved Daxxify’s use to treat cervical dystonia, a painful condition in which a patient’s neck muscles contract involuntarily, causing the head to twist or turn to one side. | 1fdc6815-9d90-4e3e-a53b-9b2f95377373 |
22753.0 | 2023-03-02 00:00:00 UTC | These 2 Dividend Stocks Could Be a Great Addition to Your Income Portfolio | ABBV | https://www.nasdaq.com/articles/these-2-dividend-stocks-could-be-a-great-addition-to-your-income-portfolio | nan | nan | If you're interested in generating stable dividend income today as well as in the future, you'll need to look for a very particular kind of investment. Most companies don't have the benefit of rock-solid cash flows every quarter, nor do most have the confidence in their long-term growth to continue to give shareholders a raise year after year.
But some dividend stocks do have what it takes to pay a decent yield now while also ratcheting up their payouts like clockwork. Here are two such stocks that might be good purchases for your passive income collection.
Image source: Getty Images.
1. AbbVie
With a total return of 519% over the last 10 years, AbbVie (NYSE: ABBV) is a dividend stock that also has a habit of handily beating the market. To accomplish that feat, it develops and sells some of the world's highest-grossing medicines, like the arthritis drug Humira, which brought in $21.2 billion in 2022, bringing the company's top line to an impressive sum of more than $58 billion.
But now that Humira is getting its market share eroded by generic copies since the expiry of its exclusivity protections in 2023, other medicines will be driving AbbVie's growth -- and that's something key for dividend investors to appreciate about the stock.
Most other major pharmaceutical companies have forward dividend yields that are lower than AbbVie's, and Humira's decline is likely the reason why. Its payout presently has a forward yield of 3.9%. In other words, the fact that sales of its leading drug are eroding is causing the market to require a higher return to compensate for the risk that its base of revenue doesn't recover. The opportunity for investors is that its sales are already on the path to recovery before the fallout from the loss of Humira is finished.
Thanks to diligent investment in research and development (R&D), AbbVie already has a pair of medicines, Skyrizi and Rinvoq, that can theoretically compete in all of the same markets as Humira. That's nothing to sneeze at, considering Humira is approved to treat rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis, hidradenitis suppurativa, and a basket of other conditions.
Nonetheless, these newer drugs are well on their way to topping Humira's haul by 2027, with the company's immunology portfolio raking in 14.4% more money on a reported basis in 2022 despite generics ravaging Humira's international market share.
AbbVie's ability to commercialize new medicines is continuing to pay off as much as ever, and there's little sign that its R&D tempo will be decreasing anytime soon. Therefore, investors who buy shares now will get upside exposure to its share price appreciation as well as its strong and consistent dividend growth, likely without taking on too much risk in the process.
2. Realty Income
Realty Income (NYSE: O) is quite different from AbbVie as it's a real estate investment trust (REIT). Its business is to buy commercial real estate and rent it out in sale-leaseback transactions, handing the proceeds back to shareholders along the way.
For 2022, its net income was $869.4 million, all derived from rent across its 12,237 properties in the U.S. and European Union, and its normalized funds from operations (FFO) rose by 19.8% compared to a year prior, reaching $4.06 per share.
Even with widespread fear about the state of the economy and also the real estate market, this company is powering onward with a far faster growth rate than such a long-term-oriented business has any right to do -- and that isn't a new trend.
Since its debut in 1994, Realty Income has hiked its dividend at a compound annual growth rate (CAGR) of 4.4% while helping its shareholders to realize a compound annual total return of 14.6%, smashing the market's return. Part of the reason for this success is that 92% of its base of rental income is derived from tenants that sell goods or compete in industries that are somewhat resilient against economic headwinds, and management likely plans to keep it that way.
Nonetheless, in the last 10 years, its total return hasn't quite kept up with the market's, rising by only 137% compared to the SPDR S&P 500 ETF Trust's growth of 218%. But real estate is an inherently long-term asset class, so don't count it out over the coming 20 years.
Finally, its forward yield is around 4.6%, and it has one critical advantage that many dividend stocks don't: monthly payouts. So if you're going to be relying on it for your expenses, you won't need to wait as long as you might with another option. And that's yet another reason why it's a stellar investment for passive income.
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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. | But now that Humira is getting its market share eroded by generic copies since the expiry of its exclusivity protections in 2023, other medicines will be driving AbbVie's growth -- and that's something key for dividend investors to appreciate about the stock. AbbVie With a total return of 519% over the last 10 years, AbbVie (NYSE: ABBV) is a dividend stock that also has a habit of handily beating the market. Most other major pharmaceutical companies have forward dividend yields that are lower than AbbVie's, and Humira's decline is likely the reason why. | Realty Income Realty Income (NYSE: O) is quite different from AbbVie as it's a real estate investment trust (REIT). AbbVie With a total return of 519% over the last 10 years, AbbVie (NYSE: ABBV) is a dividend stock that also has a habit of handily beating the market. But now that Humira is getting its market share eroded by generic copies since the expiry of its exclusivity protections in 2023, other medicines will be driving AbbVie's growth -- and that's something key for dividend investors to appreciate about the stock. | AbbVie With a total return of 519% over the last 10 years, AbbVie (NYSE: ABBV) is a dividend stock that also has a habit of handily beating the market. But now that Humira is getting its market share eroded by generic copies since the expiry of its exclusivity protections in 2023, other medicines will be driving AbbVie's growth -- and that's something key for dividend investors to appreciate about the stock. Most other major pharmaceutical companies have forward dividend yields that are lower than AbbVie's, and Humira's decline is likely the reason why. | Realty Income Realty Income (NYSE: O) is quite different from AbbVie as it's a real estate investment trust (REIT). 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. AbbVie With a total return of 519% over the last 10 years, AbbVie (NYSE: ABBV) is a dividend stock that also has a habit of handily beating the market. | 0517e41c-bf9b-4e0b-a1f9-783a3c2699a1 |
22754.0 | 2023-03-01 00:00:00 UTC | 3 Top Defensive Stocks to Own for a Focus on Quality | ABBV | https://www.nasdaq.com/articles/3-top-defensive-stocks-to-own-for-a-focus-on-quality | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In today’s volatile and uncertain market, investors increasingly seek stable, reliable, and resilient companies to add to their portfolios. Defensive stocks, which are typically associated with companies that operate in industries that provide essential goods and services, can provide a hedge against market downturns while still delivering consistent returns.
While many may seek growth, having a portion of one’s portfolio providing stability can be important. Indeed, in these times, playing it safe may be the best course of action.
Accordingly, let’s dive into three top-notch defensive stocks to buy for those looking to focus on quality. Each of these companies have strong financials, durable competitive advantages and long-term growth potential.
Ticker Company Price
MCD McDonald’s $262.68
ABBV AbbVie $153.83
AWK American Water Works $139.55
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
As far as defensive stocks are concerned, McDonald’s (NYSE:MCD) is a well-loved classic. The company has historically provided a lengthy track record of steady returns, making it a favorite among investors. Its widespread global presence also reduces its vulnerability to fluctuations in the U.S. economy.
For numerous investors, McDonald’s has been an essential player in the global fast-food sector and is viewed as a viable long-term investment. With noteworthy growth figures, the company has proven its capacity to thrive as a top-tier brand, expanding internationally and driving sales growth at existing locations.
While there are numerous explanations for why McDonald’s stock performs well in a bullish market, there are three primary factors to consider why this stock is worth owning during periods of turmoil.
First, it is less punishing for investors who make incorrect economic predictions, given the trade-down effect consumers are likely to see in the dining sphere in times of economic hardship. Second, its business and stock benefit from favorable market conditions. Finally, the company boasts robust financials, adding to its attractiveness as a stock option.
MCD’s stock is relatively pricier when compared to its industry peers, with a price-to-earnings ratio of 32 times and a meager dividend yield of 2.3%. With that said, McDonald’s is an ideal option for those who anticipate an upswing but also recognize the possibility of being wrong about its timing. The company’s sound financial footing and stable demand in robust and weak economies make it a perfect safe-haven choice.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Among the impressive defensive stocks to consider in the biotech space is AbbVie (NYSE:ABBV). This healthcare giant has both a BBB+ rating from S&P Global Ratings as well as a substantial dividend yield of 3.8%. The company has raised its dividend for eleven consecutive years.
Although the patent on AbbVie’s crucial Humira drug has expired, investors remain optimistic about the company’s performance this year following its success in 2022. Moreover, ABBV has increased its quarterly dividend to $1.48 per share from $1.41, resulting in a current yield of slightly below 4%.
To surpass significant market indices, AbbVie’s most crucial objective is to exceed expectations. The corporation’s revenue and earnings are projected to decrease substantially this year, which is already factored into the stock’s price. However, if AbbVie can outperform expectations, even when they are pessimistic, there is a strong possibility that its shares will increase.
AbbVie might experience better performances from other medications in its portfolio. Rinvoq and Skyrizi, Humira’s two successors, have the potential to offer an additional boost. AbbVie predicts the two drugs will generate a combined revenue of $7.5 billion this year.
American Water Works (AWK)
Source: Shutterstock
American Water Works (NYSW:AWK), the primary provider of water and wastewater services in the United States, announced its results on Wednesday after the market closed. The company’s Q4 results exceeded expectations, but the company’s stock still declined modestly as investors assess this stock relative to other better-yielding options in the utilities sector.
American Water maintained strong acquisition momentum in the regulated water and wastewater utilities market. In 2022, the company acquired 26 utilities across seven states, resulting in approximately 70,000 new customer connections.
Investors searching for a secure utility stock that pays dividends and offers strong potential for overall capital appreciation may need help to discover a more suitable option than American Water Works. Despite not being among the top-performing water utility stocks in 2022, the company has consistently outperformed its industry peers over an extended period.
Although it is essential to monitor interest rates, the company’s size gives it advantages in terms of scalability and the ability to make acquisitions. As of March 2022, it pays a quarterly dividend of $2.41, which translates to a yield of 1.5%.
American Water Works generated $3.8 billion in revenue in the fiscal year ended Dec. 31. In the most recent quarter, year-over-year sales decreased by 2.1%. Analysts anticipate that adjusted earnings for the current fiscal year will reach $4.80 per share. The company’s current dividend yield is 1.9%.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Top Defensive Stocks to Own for a Focus on Quality 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. | Ticker Company Price MCD McDonald’s $262.68 ABBV AbbVie $153.83 AWK American Water Works $139.55 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com As far as defensive stocks are concerned, McDonald’s (NYSE:MCD) is a well-loved classic. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among the impressive defensive stocks to consider in the biotech space is AbbVie (NYSE:ABBV). Although the patent on AbbVie’s crucial Humira drug has expired, investors remain optimistic about the company’s performance this year following its success in 2022. | Ticker Company Price MCD McDonald’s $262.68 ABBV AbbVie $153.83 AWK American Water Works $139.55 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com As far as defensive stocks are concerned, McDonald’s (NYSE:MCD) is a well-loved classic. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among the impressive defensive stocks to consider in the biotech space is AbbVie (NYSE:ABBV). Although the patent on AbbVie’s crucial Humira drug has expired, investors remain optimistic about the company’s performance this year following its success in 2022. | Ticker Company Price MCD McDonald’s $262.68 ABBV AbbVie $153.83 AWK American Water Works $139.55 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com As far as defensive stocks are concerned, McDonald’s (NYSE:MCD) is a well-loved classic. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among the impressive defensive stocks to consider in the biotech space is AbbVie (NYSE:ABBV). Although the patent on AbbVie’s crucial Humira drug has expired, investors remain optimistic about the company’s performance this year following its success in 2022. | Moreover, ABBV has increased its quarterly dividend to $1.48 per share from $1.41, resulting in a current yield of slightly below 4%. Ticker Company Price MCD McDonald’s $262.68 ABBV AbbVie $153.83 AWK American Water Works $139.55 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com As far as defensive stocks are concerned, McDonald’s (NYSE:MCD) is a well-loved classic. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com Among the impressive defensive stocks to consider in the biotech space is AbbVie (NYSE:ABBV). | 29b11612-3e66-4afa-b189-767d15932aee |
22755.0 | 2023-03-01 00:00:00 UTC | Validea Guru Fundamental Report for ABBV - 3/1/2023 | ABBV | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abbv-3-1-2023 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | c4f3910a-5d52-4ac3-b2e8-0d6e3807a3c3 |
22756.0 | 2023-03-01 00:00:00 UTC | 3 Value Stocks You'll Regret Not Buying on the Dip | ABBV | https://www.nasdaq.com/articles/3-value-stocks-youll-regret-not-buying-on-the-dip | nan | nan | Value stocks are poised for a strong decade. The simple reason is that the Federal Reserve is highly unlikely to spur another growth stock boom by lowering interest rates to the effective floor in the years ahead.
Which value stocks are best positioned to capitalize on this favorable long-term dynamic? These three undervalued healthcare stocks offer a compelling mix of passive income, top-line growth, and deep value.
Image source: Getty Images.
1. AbbVie
Developing a blockbuster medication (a drug with greater than $1 billion in annual sales) requires a tremendous amount of talent, hard work, cash, and flat-out luck across every single layer of the pharma value chain (preclinical studies, human trials, regulatory affairs, and marketing). On top of all that, pharma companies have a limited window of opportunity to maximize profits on the drug before its patent portfolio expires.
AbbVie (NYSE: ABBV) is going through this dynamic process right now. The company's top-selling immunology medicine, Humira, lost patent protection in the European market in 2018 and in the U.S. at the start of 2023. AbbVie is thus tasked with replacing a large chunk of revenue from a drug averaging nearly $20 billion in annual sales.
To accomplish this goal, AbbVie spent $21 billion to acquire the groundbreaking blood cancer drug Imbruvica and another $63 billion for Allergan's global aesthetics business and its neuroscience assets. In addition, AbbVie developed its next-generation immunology assets -- commercially known as Skyrizi and Rinvoq -- to shore up this flagship franchise once Humira biosimilars (generic biologics) become a competitive reality.
Despite all the company's preparation for this eventuality, however, the market hasn't been kind to AbbVie's stock during the opening months of 2023. The company's shares have dipped by nearly 5% since the start of the year. Meanwhile, the Nasdaq Composite has gained almost 10% over this same period.
Bargain hunters shouldn't hesitate to take advantage of this recent weakness. AbbVie is a Dividend King, meaning that it has doled out consecutive dividend increases for at least 50 straight years. Moreover, the company offers a healthy 3.84% annualized yield at current levels. That's far superior to the 1.674% average yield of dividend-paying S&P 500 listed stocks. Lastly, AbbVie is forecast to return to strong levels of top-line growth by 2025.
2. Amgen
Biotech pioneer Amgen (NASDAQ: AMGN) has also lost ground to start the year. Thanks in large part to an underwhelming 2022 Q4 earnings report, the biotech's stock has slipped by 11.6% so far in 2023.
Amgen is a product churn story at this point in its life cycle. Aging former stars like the white blood cell booster Neulasta are in the process of handing over the proverbial reins to newer growth engines such as the cardiovascular drug Repatha and the osteoporosis treatment Evenity.
The hiccup in this story -- at least so far -- is that some of these newer growth products have run into fierce competition right out of the gate. Amgen, in turn, is only expected to post low-single-digit top-line growth over the next few years.
Bolt-on acquisitions like the recent Horizon Therapeutics transaction could accelerate the drugmaker's return to solid levels of top-line growth. But acquisitions also tend to take several quarters to contribute positively to a company's financial results.
Nonetheless, Amgen's stock is undoubtedly in bargain territory right now. The biotech's shares are being valued at approximately 13 times forward earnings, which is well below the average within its immediate peer group (16.4). Moreover, Amgen's stock pays out a well-above-average dividend yield of 3.63% on an annual basis.
3. Pfizer
Pfizer (NYSE: PFE) has shed over 20% of its value in 2023. The drugmaker's shares have been trending lower over an anticipated drop in COVID-19 product sales (Comirnaty vaccine and Paxlovid treatment) in 2023. Compounding matters, Pfizer is also barreling toward a set of major patent expirations between 2025 and 2028.
Wall Street, in effect, doesn't appear confident in management's plan to buy its way out of this jam through heavy investments in its internal pipeline and external business development opportunities. Pfizer, nonetheless, thinks it has tacked on a whopping $10.5 billion in 2030 revenue through the recent acquisitions of Arena, Biohaven, Global Blood Therapeutics, and ReViral.
Pfizer's stock is significantly undervalued right now, with its shares trading at roughly 12 times forward earnings. Its declining share price has also ratcheted up the company's annualized dividend yield to an eye-catching 4% at current levels.
In other words, this bearishness is probably way overdone at this point. Pfizer, after all, has the financial firepower, experience and economy of scale to overcome even these daunting headwinds.
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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 Developing a blockbuster medication (a drug with greater than $1 billion in annual sales) requires a tremendous amount of talent, hard work, cash, and flat-out luck across every single layer of the pharma value chain (preclinical studies, human trials, regulatory affairs, and marketing). In addition, AbbVie developed its next-generation immunology assets -- commercially known as Skyrizi and Rinvoq -- to shore up this flagship franchise once Humira biosimilars (generic biologics) become a competitive reality. AbbVie (NYSE: ABBV) is going through this dynamic process right now. | AbbVie Developing a blockbuster medication (a drug with greater than $1 billion in annual sales) requires a tremendous amount of talent, hard work, cash, and flat-out luck across every single layer of the pharma value chain (preclinical studies, human trials, regulatory affairs, and marketing). AbbVie (NYSE: ABBV) is going through this dynamic process right now. AbbVie is thus tasked with replacing a large chunk of revenue from a drug averaging nearly $20 billion in annual sales. | Despite all the company's preparation for this eventuality, however, the market hasn't been kind to AbbVie's stock during the opening months of 2023. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. AbbVie Developing a blockbuster medication (a drug with greater than $1 billion in annual sales) requires a tremendous amount of talent, hard work, cash, and flat-out luck across every single layer of the pharma value chain (preclinical studies, human trials, regulatory affairs, and marketing). | AbbVie Developing a blockbuster medication (a drug with greater than $1 billion in annual sales) requires a tremendous amount of talent, hard work, cash, and flat-out luck across every single layer of the pharma value chain (preclinical studies, human trials, regulatory affairs, and marketing). AbbVie (NYSE: ABBV) is going through this dynamic process right now. AbbVie is thus tasked with replacing a large chunk of revenue from a drug averaging nearly $20 billion in annual sales. | dc62e244-864a-48d9-b2ea-46b6cc43e66c |
22757.0 | 2023-02-27 00:00:00 UTC | Notable Monday Option Activity: WSO, ABBV, BMRN | ABBV | https://www.nasdaq.com/articles/notable-monday-option-activity%3A-wso-abbv-bmrn | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Watsco Inc. (Symbol: WSO), where a total of 1,567 contracts have traded so far, representing approximately 156,700 underlying shares. That amounts to about 43.1% of WSO's average daily trading volume over the past month of 363,860 shares. Particularly high volume was seen for the $270 strike put option expiring August 18, 2023, with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of WSO. Below is a chart showing WSO's trailing twelve month trading history, with the $270 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,124 contracts, representing approximately 2.5 million underlying shares or approximately 41.9% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $155 strike call option expiring March 03, 2023, with 2,803 contracts trading so far today, representing approximately 280,300 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange:
And BioMarin Pharmaceutical Inc (Symbol: BMRN) options are showing a volume of 5,129 contracts thus far today. That number of contracts represents approximately 512,900 underlying shares, working out to a sizeable 41.9% of BMRN's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $95 strike put option expiring April 21, 2023, with 2,712 contracts trading so far today, representing approximately 271,200 underlying shares of BMRN. Below is a chart showing BMRN's trailing twelve month trading history, with the $95 strike highlighted in orange:
For the various different available expirations for WSO options, ABBV options, or BMRN options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $155 strike call option expiring March 03, 2023, with 2,803 contracts trading so far today, representing approximately 280,300 underlying shares of ABBV. Below is a chart showing WSO's trailing twelve month trading history, with the $270 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,124 contracts, representing approximately 2.5 million underlying shares or approximately 41.9% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And BioMarin Pharmaceutical Inc (Symbol: BMRN) options are showing a volume of 5,129 contracts thus far today. | Below is a chart showing WSO's trailing twelve month trading history, with the $270 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,124 contracts, representing approximately 2.5 million underlying shares or approximately 41.9% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And BioMarin Pharmaceutical Inc (Symbol: BMRN) options are showing a volume of 5,129 contracts thus far today. Below is a chart showing BMRN's trailing twelve month trading history, with the $95 strike highlighted in orange: For the various different available expirations for WSO options, ABBV options, or BMRN options, visit StockOptionsChannel.com. | Below is a chart showing WSO's trailing twelve month trading history, with the $270 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,124 contracts, representing approximately 2.5 million underlying shares or approximately 41.9% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing BMRN's trailing twelve month trading history, with the $95 strike highlighted in orange: For the various different available expirations for WSO options, ABBV options, or BMRN options, visit StockOptionsChannel.com. Particularly high volume was seen for the $155 strike call option expiring March 03, 2023, with 2,803 contracts trading so far today, representing approximately 280,300 underlying shares of ABBV. | Below is a chart showing WSO's trailing twelve month trading history, with the $270 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,124 contracts, representing approximately 2.5 million underlying shares or approximately 41.9% of ABBV's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing BMRN's trailing twelve month trading history, with the $95 strike highlighted in orange: For the various different available expirations for WSO options, ABBV options, or BMRN options, visit StockOptionsChannel.com. Particularly high volume was seen for the $155 strike call option expiring March 03, 2023, with 2,803 contracts trading so far today, representing approximately 280,300 underlying shares of ABBV. | 1d2a5473-e600-4d1b-8061-c30d1ef4b76a |
22758.0 | 2023-02-27 00:00:00 UTC | AbbVie Inc. (ABBV) is Attracting Investor Attention: Here is What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-attracting-investor-attention%3A-here-is-what-you-should-know-5 | nan | nan | AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned +4.4%, compared to the Zacks S&P 500 composite's -1% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $2.58 per share for the current quarter, representing a year-over-year change of -18.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -14%.
The consensus earnings estimate of $11.14 for the current fiscal year indicates a year-over-year change of -19.1%. This estimate has changed -5.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.02 indicates a change of -1.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -2.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $12.21 billion for the current quarter points to a year-over-year change of -9.8%. The $52.48 billion and $53.25 billion estimates for the current and next fiscal years indicate changes of -9.6% and +1.5%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. EPS of $3.60 for the same period compares with $3.31 a year ago.
Compared to the Zacks Consensus Estimate of $15.35 billion, the reported revenues represent a surprise of -1.52%. The EPS surprise was +1.69%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2.6%. | Last Reported Results and Surprise History AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2.6%. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2.6%. | The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for AbbVie. AbbVie (ABBV) is one of the stocks most watched by Zacks.com visitors lately. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has lost 2.6%. | 4532f470-4ca7-40d2-8eb5-d933eb0105d4 |
22759.0 | 2023-02-27 00:00:00 UTC | 3 High-Yield Dividend Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-buy-and-hold-forever | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
High-yield dividend stocks offer relatively high dividend yields compared to the average dividend stock. Generally, I view a high-yield dividend to be above the 4-5% range. Investors can calculate a dividend yield by taking the dividend distribution of a company as a percentage of a given stock’s share price.
Importantly, high-yield dividend stocks offer an attractive source of passive income. The companies that provide high yields tend to have solid long-term earnings and cash flow generation, allowing a more significant portion of their profits to be returned to shareholders.
However, higher yields also correlate with higher risks. Companies that offer very high dividends often do so to attract investor capital in the face of broader business issues. The result is that such dividends can be cut, and may therefore be somewhat less stable.
With that said, let’s dive into three high-yield dividend stocks I’d put in the “buy now and hold forever” bucket.
ABBV AbbVie $152.71
BIP Brookfield Renewable Partners $34.16
CCI Crown Castle $131.16
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
First on this list of high-yield dividend stocks is AbbVie (NYSE:ABBV). AbbVie is a pharmaceutical giant that focuses on the development and commercialization of therapeutics. AbbVie has a strong portfolio of drugs, which includes its blockbuster drug Humira. As Humira approaches patent expiry, investors have become increasingly hesitant to direct their capital toward AbbVie shares. However, plenty of evidence supports the investment thesis in this stock over the long term, including its dividend yielding 3.9%.
AbbVie stock has been on the decline of late, after posting mixed results earlier in February. The firm’s $3.60 earnings per share were slightly better than expected, while $14.89 billion in sales were somewhat below expectations. Additionally, Humira’s global sales grew by 4.6% in the fourth quarter, but the company expects overall sales to decline by 37% in 2023 as it continues to lose patent protections. The good news is that a 37% decline hovers around the low end of previous expectations that sales would decline 35-55% this year.
AbbVie’s overall 2022 revenues increased 3.3% to $58.05 billion, with Skyrizi’s growth bolstering the firm’s immunology business which Humira leads.
Brookfield Renewable Partners (BIP)
Source: Proxima Studio / Shutterstock.com
Brookfield Renewable Partners (NYSE:BIP) invests in infrastructure assets such as utilities, transportation, energy, and data infrastructure. The company’s strategy centers on acquiring high-quality assets with stable cash flows that provide long-term value for shareholders. BIP is well-positioned to benefit from the growing demand for infrastructure investments, and is one of few pure-play global infrastructure options for investors.
Brookfield Renewable Partners’ dividend boasts a 4.5% forward yield. That is relatively high, but investors should also note that the company reduced its dividend in 2020 at the onset of the pandemic. However, this was a modest reduction, and I would categorize the company’s dividend as stable.
BIP shares have increased over the past decade, with an average annual return of 19.48%. That means capital invested in the stock would have grown by nearly 6-times, excluding dividends.
The company has done exceptionally well recently with a 3-year revenue growth rate of 28.3%, outpacing 95% of industry peers.
Crown Castle (CCI)
Source: SERDTHONGCHAI / Shutterstock.com
Crown Castle (NYSE:CCI) is a real estate investment trust that owns and operates cell towers, fiber networks, and other wireless infrastructure. Its stock also yields an impressive 4.8%. Crown Castle benefits from the increasing demand for wireless connectivity, boasting a strong portfolio of high-quality assets that generate stable cash flows.
Crown Castle operates over 40,000 cell towers, 115,000 small cell nodes, and 85,000 miles of fiber. The company became a REIT in 2014 and has aligned its business with U.S. wireless carriers to take advantage of the 5G transition.
CCI is a real estate investment trust or REIT. While the term real estate might suggest volatility as the housing market remains unstable, the company is not. Cell tower REITs, including CCI essentially rent infrastructure to wireless providers like Verizon (NYSE:VZ) and T-Mobile (NASDAQ:TMUS). The sector’s relatively centralized and consolidated nature has historically resulted in strong earnings growth over time. Thus, this is a company that isn’t necessarily subject to the same factors as the housing market.
The company’s revenues grew by 10% in 2022, with Crown Castle increasing its dividend by 9%. CCI stock represents a remarkably dependable dividend payer within a REIT industry that could face serious obstacles soon due to a downturn in the housing market.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 3 High-Yield Dividend Stocks to Buy and Hold Forever appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV AbbVie $152.71 BIP Brookfield Renewable Partners $34.16 CCI Crown Castle $131.16 AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com First on this list of high-yield dividend stocks is AbbVie (NYSE:ABBV). AbbVie is a pharmaceutical giant that focuses on the development and commercialization of therapeutics. AbbVie has a strong portfolio of drugs, which includes its blockbuster drug Humira. | ABBV AbbVie $152.71 BIP Brookfield Renewable Partners $34.16 CCI Crown Castle $131.16 AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com First on this list of high-yield dividend stocks is AbbVie (NYSE:ABBV). AbbVie is a pharmaceutical giant that focuses on the development and commercialization of therapeutics. AbbVie has a strong portfolio of drugs, which includes its blockbuster drug Humira. | ABBV AbbVie $152.71 BIP Brookfield Renewable Partners $34.16 CCI Crown Castle $131.16 AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com First on this list of high-yield dividend stocks is AbbVie (NYSE:ABBV). AbbVie is a pharmaceutical giant that focuses on the development and commercialization of therapeutics. AbbVie has a strong portfolio of drugs, which includes its blockbuster drug Humira. | ABBV AbbVie $152.71 BIP Brookfield Renewable Partners $34.16 CCI Crown Castle $131.16 AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com First on this list of high-yield dividend stocks is AbbVie (NYSE:ABBV). AbbVie is a pharmaceutical giant that focuses on the development and commercialization of therapeutics. AbbVie has a strong portfolio of drugs, which includes its blockbuster drug Humira. | a495af01-8fe8-439d-857e-f7c8c788041b |
22760.0 | 2023-02-27 00:00:00 UTC | Merck Stock Looks Better Priced Compared To Its Sector Peer | ABBV | https://www.nasdaq.com/articles/merck-stock-looks-better-priced-compared-to-its-sector-peer | nan | nan | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 4.7x trailing revenues vs. 10.5x for Eli Lilly. Although investors have assigned a higher P/S multiple for LLY stock owing to its pipeline potential, we believe this gap will narrow in favor of Merck. Merck’s revenue growth has been comparable with Eli Lilly over the recent years, and it is more profitable, as discussed below.
If we look at stock returns, both have seen strong growth, with Merck rising 43% and Eli Lilly’s 29% in the last twelve months, significantly outperforming the broader indices, with the S&P 500 index down 9%. There is more to the comparison, and in the sections below, we discuss why we believe MRK stock will offer better returns than LLY stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and profitability, in an interactive dashboard analysis of Merck vs. Eli Lilly: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Merck’s Revenue Growth Is Better
Both companies posted sales growth over the last twelve months. Still, Merck’s revenue growth of 20.7% is much higher than 0.8% for Eli Lilly.
If we look at a longer time frame, Eli Lilly has fared slightly better, with its sales rising at an average annual growth rate of 8.7% to $29 billion in 2022, compared to $22.3 billion in 2019, while Merck’s sales grew at an average growth rate of 7.9% to $59 billion in 2022, vs. $39.1 billion in 2019.
Merck, over the recent years, has benefited from the label expansion of Keytruda and strong demand for vaccines, primarily Gardasil.
Keytruda alone garnered $21 billion in sales in 2022, growing at a solid 22% y-o-y. Gardasil accounted for $7 billion in sales last year.
Merck saw a $6 billion contribution from sales of Lagevrio – its Covid-19 antiviral pill – but its sales are expected to decline in 2023 and beyond. Some other drugs, including Januvia/Janumet, are also likely to see a slowdown in sales, with increased competition. However, Keytruda is expected to see continued market share gains in the near term, aiding the company’s top-line growth.
Eli Lilly’s revenue growth has been driven by continued market share gains for drugs such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. The company has secured U.S. FDA approval for its diabetes drug – Tirzepatide – which is expected to garner over $5 billion in peak sales.
Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion. This is one of the key reasons for investor optimism in LLY stock, along with its recently approved type 2 diabetes drug – Mounjaro – with peak sales pegged at around $15 billion.
Our Merck Revenue Comparison and Eli Lilly Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Eli Lilly’s revenue is expected to grow faster than Merck’s over the next three years, based on Trefis Machine Learning analysis.
2. Merck Is More Profitable
Merck’s operating margin of 30.6% over the last twelve-month period is better than 25.3% for Eli Lilly.
This compares with 18.7% and 21.8% figures seen in 2019, before the pandemic, respectively.
Merck’s free cash flow margin of 34% is also higher than 25% for Eli Lilly.
Our Merck Operating Income Comparison and Eli Lilly Operating Income Comparison dashboards have more details.
Looking at financial risk, both are comparable. Although Merck’s 13% debt as a percentage of equity is higher than 6% for Eli Lilly, its 7% cash as a percentage of assets is higher than 4% for the latter, implying that Eli Lilly has a better debt position, but Merck has more cash cushion.
3. The Net of It All
We see that Eli Lilly has demonstrated better revenue growth over recent years and has a better debt position. On the other hand, Merck has seen better revenue growth over the recent quarters, is more profitable, has more cash cushion, and is available at a comparatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Merck is currently the better choice of the two.
It is known that Eli Lilly has strong potential from some of its new drugs and the ones in the pipeline. However, it has already rallied quite a bit over recent years. LLY stock now trades at 10x its trailing revenues vs. its last five-year average of 8x. MRK stock is trading at 4.7x, trailing revenues vs. its last five-year average of 5.2x. Our Merck (MRK) Valuation Ratios Comparison and Eli Lilly (LLY) Valuation Ratios Comparison have more details.
While MRK stock may outperform LLY, it is helpful to see how Merck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities that offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
Despite higher inflation and the Fed raising interest rates, Merck stock has risen 43% in the last twelve months. But can it drop from here? See how low Merck stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MRK Return 2% -1% 87%
LLY Return -7% -12% 337%
S&P 500 Return -3% 3% 77%
Trefis Multi-Strategy Portfolio -4% 7% 237%
[1] Month-to-date and year-to-date as of 2/27/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors, such as historical revenue growth, returns, and profitability, in an interactive dashboard analysis of Merck vs. Eli Lilly: Which Stock Is A Better Bet? Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion. This is one of the key reasons for investor optimism in LLY stock, along with its recently approved type 2 diabetes drug – Mounjaro – with peak sales pegged at around $15 billion. | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 4.7x trailing revenues vs. 10.5x for Eli Lilly. Our Merck Operating Income Comparison and Eli Lilly Operating Income Comparison dashboards have more details. Our Merck (MRK) Valuation Ratios Comparison and Eli Lilly (LLY) Valuation Ratios Comparison have more details. | We believe that Merck stock (NYSE: MRK) is currently a better pick than its peer Eli Lilly stock (NYSE: LLY), given its comparatively lower valuation of 4.7x trailing revenues vs. 10.5x for Eli Lilly. If we look at a longer time frame, Eli Lilly has fared slightly better, with its sales rising at an average annual growth rate of 8.7% to $29 billion in 2022, compared to $22.3 billion in 2019, while Merck’s sales grew at an average growth rate of 7.9% to $59 billion in 2022, vs. $39.1 billion in 2019. Although Merck’s 13% debt as a percentage of equity is higher than 6% for Eli Lilly, its 7% cash as a percentage of assets is higher than 4% for the latter, implying that Eli Lilly has a better debt position, but Merck has more cash cushion. | Merck’s revenue growth has been comparable with Eli Lilly over the recent years, and it is more profitable, as discussed below. There is more to the comparison, and in the sections below, we discuss why we believe MRK stock will offer better returns than LLY stock in the next three years. Still, Merck’s revenue growth of 20.7% is much higher than 0.8% for Eli Lilly. | 5564b926-599c-477a-834a-471ba8c231b1 |
22761.0 | 2023-02-27 00:00:00 UTC | AbbVie Gets Positive CHMP Opinion For Upadacitinib For Treatment Of Adults With Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvie-gets-positive-chmp-opinion-for-upadacitinib-for-treatment-of-adults-with-crohns | nan | nan | (RTTNews) - AbbVie (ABBV) said Monday that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) recommended the approval of upadacitinib (Rinvoq) for the treatment of adult patients with moderately to severely active Crohn's disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent.
Crohn's disease is a chronic, systemic disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea and abdominal pain.
If approved by the European Commission, this will be the seventh indication for upadacitinib in the European Union, and the first JAK inhibitor for Crohn's disease, adding to AbbVie's gastroenterology portfolio.
Rinvoq is approved in the EU for the treatment of adults with radiographic axial spondylarthritis, non-radiographic axial spondylarthritis, psoriatic arthritis, rheumatoid arthritis, moderately to severely active ulcerative colitis and adults and adolescents with atopic dermatitis.
Use of upadacitinib in Crohn's disease is approved in Great Britain as of January 2023. Its safety and efficacy remain under evaluation in the European Union, the company said.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said Monday that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) recommended the approval of upadacitinib (Rinvoq) for the treatment of adult patients with moderately to severely active Crohn's disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent. If approved by the European Commission, this will be the seventh indication for upadacitinib in the European Union, and the first JAK inhibitor for Crohn's disease, adding to AbbVie's gastroenterology portfolio. Rinvoq is approved in the EU for the treatment of adults with radiographic axial spondylarthritis, non-radiographic axial spondylarthritis, psoriatic arthritis, rheumatoid arthritis, moderately to severely active ulcerative colitis and adults and adolescents with atopic dermatitis. | (RTTNews) - AbbVie (ABBV) said Monday that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) recommended the approval of upadacitinib (Rinvoq) for the treatment of adult patients with moderately to severely active Crohn's disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent. If approved by the European Commission, this will be the seventh indication for upadacitinib in the European Union, and the first JAK inhibitor for Crohn's disease, adding to AbbVie's gastroenterology portfolio. Rinvoq is approved in the EU for the treatment of adults with radiographic axial spondylarthritis, non-radiographic axial spondylarthritis, psoriatic arthritis, rheumatoid arthritis, moderately to severely active ulcerative colitis and adults and adolescents with atopic dermatitis. | (RTTNews) - AbbVie (ABBV) said Monday that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) recommended the approval of upadacitinib (Rinvoq) for the treatment of adult patients with moderately to severely active Crohn's disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent. If approved by the European Commission, this will be the seventh indication for upadacitinib in the European Union, and the first JAK inhibitor for Crohn's disease, adding to AbbVie's gastroenterology portfolio. Rinvoq is approved in the EU for the treatment of adults with radiographic axial spondylarthritis, non-radiographic axial spondylarthritis, psoriatic arthritis, rheumatoid arthritis, moderately to severely active ulcerative colitis and adults and adolescents with atopic dermatitis. | (RTTNews) - AbbVie (ABBV) said Monday that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) recommended the approval of upadacitinib (Rinvoq) for the treatment of adult patients with moderately to severely active Crohn's disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent. If approved by the European Commission, this will be the seventh indication for upadacitinib in the European Union, and the first JAK inhibitor for Crohn's disease, adding to AbbVie's gastroenterology portfolio. Crohn's disease is a chronic, systemic disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea and abdominal pain. | ad0427cb-7ec2-4c0b-b129-5930506369ad |
22762.0 | 2023-02-25 00:00:00 UTC | 3 Biotech Stocks To Watch Ahead Of March 2023 | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-to-watch-ahead-of-march-2023 | nan | nan | Biotech stocks represent shares of companies that specialize in the development and commercialization of drugs, therapies, and other medical products based on biological and chemical research. Biotech companies often focus on treating diseases that currently have no cure. Such as cancer, rare genetic disorders, and neurological conditions.
The biotech sector can offer significant growth potential for investors due to the potential for new drugs and therapies to gain regulatory approval and become commercial successes. However, biotech stocks can also be highly volatile. This comes as many companies have high research and development costs and are subject to regulatory risks. The success of biotech companies is often tied to the success of their drug candidates. Which can experience setbacks and failures during the lengthy and expensive process of clinical trials.
When evaluating biotech stocks, investors should consider factors such as the company’s financial health, the strength of its research and development pipeline, the competitive landscape, and the regulatory environment. It is also important to stay informed about developments in the industry. This includes advancements in medical research, regulatory changes, and emerging technologies. By conducting thorough research and due diligence, investors can identify biotech stocks that have the potential to perform well and add value to their portfolios. With that, here are three biotech stocks to watch in the stock market ahead of March 2023.
Biotech Stocks To Buy [Or Avoid] Now
Merck & Company Inc. (NYSE: MRK)
AbbVie Inc. (NYSE: ABBV)
Biogen Inc. (NASDAQ: BIIB)
Merck & Company (MRK Stock)
Starting off, Merck & Company Inc. (MRK) is a global pharmaceutical company that develops and sells a wide range of drugs and vaccines across multiple therapeutic areas, including cancer, infectious diseases, and cardiovascular diseases.
At the beginning of the month, the company reported its 4th quarter and full-year 2022 financial and operating results. Diving in, Merck & Company notched in earnings of $1.62 per share with revenue of $13.8 billion. For context, Wall Street’s consensus estimate was earnings of $1.56 per share, and revenue estimates of $13.8 billion. Additionally, the company grew revenue by 2.3% versus the same period, the previous year.
In the last six months of trading, shares of MRK stock have gained by 23.11%. Meanwhile, as of Friday’s closing bell MRK stock closed the after-hour trading session at $110.32 per share.
Source: TD Ameritrade TOS
[Read More] 3 E-Commerce Stocks To Watch In February 2023
AbbVie (ABBV Stock)
Next, AbbVie Inc. (ABBV) is a biopharmaceutical company that develops and sells drugs across a range of therapeutic areas, including immunology, oncology, and neuroscience. The company has a strong focus on developing and commercializing new treatments for chronic diseases.
This month, AbbVie announced that its board of directors has declared a quarterly cash dividend of $1.48 per share for its stockholders. The dividend is payable on May 15, 2023, to stockholders of record on April 14, 2023. AbbVie has a strong history of increasing its dividend, having done so by over 270% since its inception in 2013.
Over the last six months of trading, shares of ABBV stock are up by 12.00%. Additionally, as of Friday’s close, ABBV stock is trading at $152.71 a share.
Source: TD Ameritrade TOS
[Read More] 3 Copper Mining Stocks To Watch In February 2023
Biogen (BIIB Stock)
Lastly, Biogen Inc. (BIIB) is a biotechnology company that develops and commercializes therapies for neurological disorders such as multiple sclerosis, Alzheimer’s disease, and spinal muscular atrophy. The company has a strong focus on research and development and has several drugs in its pipeline that are in late-stage clinical trials.
Earlier in the month, Biogen Inc. and Sage Therapeutics Inc. announced that the U.S. Food and Drug Administration (FDA) has accepted the filing of a New Drug Application (NDA) for their investigational drug, zuranolone, which is being evaluated as a 14-day, rapid-acting, once-daily, oral treatment for major depressive disorder (MDD) and postpartum depression (PPD) in adults.
In the last six months of trading, BIIB stock has advanced by 35.97%. While, on Friday, shares of BIIB stock closed the day at $270.02 a share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotech Stocks To Buy [Or Avoid] Now Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) Biogen Inc. (NASDAQ: BIIB) Merck & Company (MRK Stock) Starting off, Merck & Company Inc. (MRK) is a global pharmaceutical company that develops and sells a wide range of drugs and vaccines across multiple therapeutic areas, including cancer, infectious diseases, and cardiovascular diseases. Source: TD Ameritrade TOS [Read More] 3 E-Commerce Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a biopharmaceutical company that develops and sells drugs across a range of therapeutic areas, including immunology, oncology, and neuroscience. This month, AbbVie announced that its board of directors has declared a quarterly cash dividend of $1.48 per share for its stockholders. | Biotech Stocks To Buy [Or Avoid] Now Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) Biogen Inc. (NASDAQ: BIIB) Merck & Company (MRK Stock) Starting off, Merck & Company Inc. (MRK) is a global pharmaceutical company that develops and sells a wide range of drugs and vaccines across multiple therapeutic areas, including cancer, infectious diseases, and cardiovascular diseases. Source: TD Ameritrade TOS [Read More] 3 E-Commerce Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a biopharmaceutical company that develops and sells drugs across a range of therapeutic areas, including immunology, oncology, and neuroscience. This month, AbbVie announced that its board of directors has declared a quarterly cash dividend of $1.48 per share for its stockholders. | Biotech Stocks To Buy [Or Avoid] Now Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) Biogen Inc. (NASDAQ: BIIB) Merck & Company (MRK Stock) Starting off, Merck & Company Inc. (MRK) is a global pharmaceutical company that develops and sells a wide range of drugs and vaccines across multiple therapeutic areas, including cancer, infectious diseases, and cardiovascular diseases. Source: TD Ameritrade TOS [Read More] 3 E-Commerce Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a biopharmaceutical company that develops and sells drugs across a range of therapeutic areas, including immunology, oncology, and neuroscience. This month, AbbVie announced that its board of directors has declared a quarterly cash dividend of $1.48 per share for its stockholders. | Biotech Stocks To Buy [Or Avoid] Now Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) Biogen Inc. (NASDAQ: BIIB) Merck & Company (MRK Stock) Starting off, Merck & Company Inc. (MRK) is a global pharmaceutical company that develops and sells a wide range of drugs and vaccines across multiple therapeutic areas, including cancer, infectious diseases, and cardiovascular diseases. Source: TD Ameritrade TOS [Read More] 3 E-Commerce Stocks To Watch In February 2023 AbbVie (ABBV Stock) Next, AbbVie Inc. (ABBV) is a biopharmaceutical company that develops and sells drugs across a range of therapeutic areas, including immunology, oncology, and neuroscience. This month, AbbVie announced that its board of directors has declared a quarterly cash dividend of $1.48 per share for its stockholders. | 34658a0c-8cb2-46c9-a527-ed092909242a |
22763.0 | 2023-02-25 00:00:00 UTC | Validea Guru Fundamental Report for ABBV - 2/25/2023 | ABBV | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abbv-2-25-2023 | nan | nan | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | e55b5855-651d-408e-bb4b-704c07227587 |
22764.0 | 2023-02-24 00:00:00 UTC | IWB, ABBV, PEP, PFE: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iwb-abbv-pep-pfe%3A-large-outflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $210.4 million dollar outflow -- that's a 0.7% decrease week over week (from 127,200,000 to 126,250,000). Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.3%, PepsiCo Inc (Symbol: PEP) is down about 0.9%, and Pfizer Inc (Symbol: PFE) is lower by about 1.9%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average:
Looking at the chart above, IWB's low point in its 52 week range is $192.01 per share, with $256.17 as the 52 week high point — that compares with a last trade of $217.84. 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 ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.3%, PepsiCo Inc (Symbol: PEP) is down about 0.9%, and Pfizer Inc (Symbol: PFE) is lower by about 1.9%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. 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. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.3%, PepsiCo Inc (Symbol: PEP) is down about 0.9%, and Pfizer Inc (Symbol: PFE) is lower by about 1.9%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $192.01 per share, with $256.17 as the 52 week high point — that compares with a last trade of $217.84. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.3%, PepsiCo Inc (Symbol: PEP) is down about 0.9%, and Pfizer Inc (Symbol: PFE) is lower by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $210.4 million dollar outflow -- that's a 0.7% decrease week over week (from 127,200,000 to 126,250,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $192.01 per share, with $256.17 as the 52 week high point — that compares with a last trade of $217.84. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.3%, PepsiCo Inc (Symbol: PEP) is down about 0.9%, and Pfizer Inc (Symbol: PFE) is lower by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $210.4 million dollar outflow -- that's a 0.7% decrease week over week (from 127,200,000 to 126,250,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | 8e08dc19-0614-469a-9ae5-29e54681fd4b |
22765.0 | 2023-02-22 00:00:00 UTC | Validea Guru Fundamental Report for ABBV - 2/22/2023 | ABBV | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abbv-2-22-2023 | nan | nan | Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: PASS
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | eba762d0-82e6-4038-a20c-f1addc47dd08 |
22766.0 | 2023-02-22 00:00:00 UTC | Want to Get to $1 Million by Retirement? Here's How Much You Should Invest Today. | ABBV | https://www.nasdaq.com/articles/want-to-get-to-%241-million-by-retirement-heres-how-much-you-should-invest-today. | nan | nan | When you're in your 20s, you might think you don't have enough money to start putting away for retirement, whereas when you're in your 40s or 50s, you might worry that it's too late to start. In a perfect world, you would start putting money aside as early as you can.
But it doesn't always have to be that way, and even if you invest later, it might not be too late. People normally make more money as they get older, and so it could be easier to put aside a big lump sum into an investment at that stage of your life.
Below, I'll show you how much you will need to invest at various ages to get to $1 million by the age of 65, without putting your money at risk.
Low-risk investments are key
Billionaire investor Warren Buffett says the first rule of investing is to not lose money; his second rule is to not forget the first one. It can be tempting to buy riskier stocks as a way of making up for not investing earlier, but the danger is that losses can set you even further back in your retirement plans.
When it comes to low-risk investments, two great examples are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). These two drugmakers are among the top healthcare companies in the world.
Johnson & Johnson is spinning off its consumer health business so it can focus more on growth, specifically in pharmaceuticals and medical devices, which should allow it to pad its already strong results. Last year, the company netted a profit of $17.9 billion, down from net income of $20.9 billion the year before. It pays a dividend that yields 2.8% and has been increasing its payouts for 60 consecutive years, making it a Dividend King.
AbbVie is another highly profitable business to invest in. The company behind the drug Humira, which treats rheumatoid arthritis and other conditions, reported a profit of $11.8 billion last year. That was a slight improvement from the $11.5 billion it reported a year earlier.
Some investors are concerned about Humira's loss of patent protection this year. But AbbVie has a strong pipeline and is confident that it can more than replace the lost revenue in the long run with the promising immunology drugs Skyrizi and Rinvoq. AbbVie pays an even higher dividend yield of 3.9%, and like Johnson & Johnson is a Dividend King.
Both stocks are good examples of relatively safe businesses that could outperform the S&P 500, which averages long-term returns of around 10%.
How much would you need to invest to get to $1 million?
Investing in stocks like AbbVie and Johnson & Johnson can put you in a good position to earn an average total return of 11% per year.
If, however, you want a more diversified option, you could consider investing in exchange-traded funds that hold a range of healthcare stocks. That way, you aren't dependent on the success of a single stock. That also makes it easier if you need to invest a large lump sum.
Here is a breakdown of how large a one-time investment you would need to make at different ages to get to $1 million, assuming you retire at 65 and earn an 11% annual return.
Chart by author.
As you can see, by waiting to 50, you'll need considerably more money to invest than if you started 10 years earlier at 40. But there's no rule that you have to invest it all at one time; you can invest whatever you can over the years, and that can help accelerate your portfolio's growth.
Buy and hold is the best strategy for retirement
Whether you're investing in individual stocks or an ETF, having discipline and being able to remain invested for the long haul is an important trait to develop.
Meme stocks and high-risk investments can quickly undo any gains you have achieved over the years. Even if your annual gains are modest, there might be a year when your investments outperform and make up for below-average years.
By buying and holding, you stay the course, and provided that you've invested in low-risk, quality investments, odds are that you'll be much better off by the time you get to retirement than if you were frequently trading and chasing the next hot growth 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. | But AbbVie has a strong pipeline and is confident that it can more than replace the lost revenue in the long run with the promising immunology drugs Skyrizi and Rinvoq. When it comes to low-risk investments, two great examples are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie is another highly profitable business to invest in. | When it comes to low-risk investments, two great examples are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). Investing in stocks like AbbVie and Johnson & Johnson can put you in a good position to earn an average total return of 11% per year. AbbVie is another highly profitable business to invest in. | Investing in stocks like AbbVie and Johnson & Johnson can put you in a good position to earn an average total return of 11% per year. When it comes to low-risk investments, two great examples are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie is another highly profitable business to invest in. | Investing in stocks like AbbVie and Johnson & Johnson can put you in a good position to earn an average total return of 11% per year. When it comes to low-risk investments, two great examples are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie is another highly profitable business to invest in. | 75b07dcd-aaaa-49f7-ba86-b34503507784 |
22767.0 | 2023-02-22 00:00:00 UTC | Analyst Confidence in Eli Lilly Boosted by Product Pipeline | ABBV | https://www.nasdaq.com/articles/analyst-confidence-in-eli-lilly-boosted-by-product-pipeline | nan | nan | Eli Lilly and Company (NYSE: LLY) is one of the most recognized names in the pharmaceutical industry. Indeed, they are the 12th-largest pharmaceutical company in the world by revenue ($5.5 billion in 2021), and its balance sheet reads as such. But even though LLY has long been a good healthcare stock to hold, analysts anticipate Eli Lilly’s product pipeline could accelerate growth, making it an even better investment than it has been.
Stable Earnings Strengthens Opportunities
With $314.15 billion in market capitalization, the US-based multinational pharmaceutical company is doing quite well, especially after persistent earnings growth over the past few years. On average, earnings significantly beat the estimate 3 out of the last 4 quarters. February earnings report $2.09 EPS beat the estimate by $0.26. That said, earnings have been up and down over the past several years.
LLY’s success in 2022 was mostly due to its type-2 diabetes drug, Mounjaro (tirzepatide). Revenue for this drug came in just north of $480 million by the end of 2022, despite having only been on the market since its approval in May. We can expect more of the same from the drug.
In addition, Eli Lilly is now looking to launch the drug again, with a second indication for obesity, perhaps late in the year. Furthermore, Lilly expects the manufacturing capacity for this drug to double in 2023.
Product Pipeline Could Accelerate Broad Growth
On the other hand, Eli Lilly failed to get accelerated approval for its early-onset Alzheimer’s disease drug, Donanemab. Fortunately, this drug is still on track to receive traditional FDA approval after completing its current phase 3 study. If this pursuit remains on schedule, we can expect to see (US and Japan) approval in Q2 of 2023; and when we do, analysts project Donanemab could reach $32.7 billion in revenue by 2038.
Lebrikizumab is another drug in the Eli Lilly pipeline. The atopic dermatitis drug will likely be a competitor for Dupixent (dupilumab), manufactured by a partnership between Sanofi (NASDAQ: SNY) and Regeneron Pharmaceuticals, inc. (NASDAQ: REGN). Sales forecast for lebrikizumab could reach $990 million by 2026, and while this still trails behind Dupixent and Rinvoq from AbbVie, Inc. (ABBV), Lilly hopes phase 3 trials demonstrate better patient tolerance.
Clinical testing found that Mirikizumab showed better results in patients with moderate-to-severe ulcerative colitis who did not respond to conventional therapies. Eli Lilly is waiting on about half a dozen trials before moving forward with this Monoclonal Antibody. If all goes according to plan, the drug could generate $14.6 billion in revenue by the end of 2023.
Finally, we have Jaypirca (pirtobrutinib). This is a BTK inhibitor for treating relapsed/ refractor mantle cell lymphoma. The drug is forecast to generate $1.1 billion in revenue by 2028. Surely this is a smaller payout over a longer period than other drugs in Eli Lilly’s pipeline, but the amount significantly impacts the impressive growth expectations.
Eli Lilly expects the development and sale of these drugs to help bolster revenue between $30.3 and $30.8 billion in 2023 alone. The excitement of new drugs hitting the market and volume increases for existing products will help drive these sales. Hopefully, this momentum will help to offset the loss of COVID-19 antibody revenue and the slowing sales of the cancer drug Alimta, which will lose its patent exclusivity.
Analysts Confident in LLY’s Momentum
When all is said and done, analysts project LLY earnings could grow by 38.88% this year, which might be modest. For one, LLY’s $378.80 price target represents a 15.3% upside on the current share value of $330.70. This aligns with the incremental growth they have seen over the past few years. It has been a slow but steady climb for LLY, even though they typically register at the low end of the estimate range. Finally, the current share value is up 36.66% and now sitting in the top third of–the 52-week range.
With a 0.64 beta, the stock is quite stable, but its payout is pretty impressive, too. LLY has an annual dividend of $4.52 with a dividend yield of 1.38% and an impressive 65.51% dividend payout ratio. In addition, LLY continues to promise consistent ROI with dividend increases for at least the last nine years at an annualized 3-year dividend growth rate of 15.02%. That said, the 47.58 P/E suggests strong investor faith in this growth stock, though a high P/E could intimate the stock is overvalued for its Moderate Buy rating.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sales forecast for lebrikizumab could reach $990 million by 2026, and while this still trails behind Dupixent and Rinvoq from AbbVie, Inc. (ABBV), Lilly hopes phase 3 trials demonstrate better patient tolerance. But even though LLY has long been a good healthcare stock to hold, analysts anticipate Eli Lilly’s product pipeline could accelerate growth, making it an even better investment than it has been. Surely this is a smaller payout over a longer period than other drugs in Eli Lilly’s pipeline, but the amount significantly impacts the impressive growth expectations. | Sales forecast for lebrikizumab could reach $990 million by 2026, and while this still trails behind Dupixent and Rinvoq from AbbVie, Inc. (ABBV), Lilly hopes phase 3 trials demonstrate better patient tolerance. But even though LLY has long been a good healthcare stock to hold, analysts anticipate Eli Lilly’s product pipeline could accelerate growth, making it an even better investment than it has been. If this pursuit remains on schedule, we can expect to see (US and Japan) approval in Q2 of 2023; and when we do, analysts project Donanemab could reach $32.7 billion in revenue by 2038. | Sales forecast for lebrikizumab could reach $990 million by 2026, and while this still trails behind Dupixent and Rinvoq from AbbVie, Inc. (ABBV), Lilly hopes phase 3 trials demonstrate better patient tolerance. Product Pipeline Could Accelerate Broad Growth On the other hand, Eli Lilly failed to get accelerated approval for its early-onset Alzheimer’s disease drug, Donanemab. Surely this is a smaller payout over a longer period than other drugs in Eli Lilly’s pipeline, but the amount significantly impacts the impressive growth expectations. | Sales forecast for lebrikizumab could reach $990 million by 2026, and while this still trails behind Dupixent and Rinvoq from AbbVie, Inc. (ABBV), Lilly hopes phase 3 trials demonstrate better patient tolerance. Stable Earnings Strengthens Opportunities With $314.15 billion in market capitalization, the US-based multinational pharmaceutical company is doing quite well, especially after persistent earnings growth over the past few years. Lebrikizumab is another drug in the Eli Lilly pipeline. | 6ed4ef5d-0718-428d-a4f2-6ac9a08c9a12 |
22768.0 | 2023-02-22 00:00:00 UTC | This Recession-Proof Company Has a Best-in-Class Dividend | ABBV | https://www.nasdaq.com/articles/this-recession-proof-company-has-a-best-in-class-dividend | nan | nan | Pharmaceutical companies have a recession-proof business model. The simple reason behind this fact is that people do not choose when they get sick. So, for example, the pharmaceutical industry was largely unaffected by the devastating 2008 global recession. In fact, earnings per share among the industry's biggest names actually tracked higher, on balance, during that exceptionally bleak economic period.
The ability of pharmaceutical companies to shrug off economic downturns is one big reason investors often flock to them during bear markets. Not only do large-cap pharma companies offer shareholders a respite from marketwide volatility, but they also generally come with top-shelf dividend programs. Blue chip pharma stocks tend to be stellar passive income vehicles in any market environment.
Image Source: Getty Images.
Pharma stocks do have one serious drawback, however. The expiration of key patents for top-selling medications can act as a major drag on earnings over extended periods of time. Companies do try to soften the impacts of patent expirations via organic pipeline development and business development activities. But the fact remains that aging legacy medications can dampen earnings power, and subsequently threaten the sustainability of a company's dividend program.
Which large-cap U.S. pharma stock is the best dividend play right now? To answer this question, let's check out how these companies stack up across several key metrics.
Comparison of dividend-paying U.S. pharma stocks
In order to make an apples-to-apples comparison, this analysis is being restricted to the eight largest U.S.-based pharma companies. This way, investors can directly compare yields without having to consider foreign tax issues.
So here is a quantitative breakdown of the most recent stock valuations and dividend programs of AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), Gilead Sciences (NASDAQ: GILD), Pfizer (NYSE: PFE), and Merck (NYSE: MRK).
COMPANY FORWARD P/E RATIO P/S RATIO DIVIDEND YIELD PAYOUT RATIO 2024 REVENUE GROWTH (ESTIMATED)
AbbVie 13.2 4.58 3.91% 85% 0.3%
Amgen 13 4.81 3.54% 64% 4.9%
Bristol Myers Squibb 8.81 3.29 3.21% 74% 2.3%
Eli Lilly 37.5 10.8 1.38% 59% 19.1%
Johnson & Johnson 15 4.44 2.82% 66% 2.6%
Gilead Sciences 12.2 3.86 3.54% 80% 1.9%
Pfizer 12.5 2.45 3.8% 29.2% 2.1%
Merck 14.4 4.57 2.67% 49% 6%
Average 15.8 4.85 3.1% 63.3% 4.9%
Data provided by Morningstar. P/E = price to earnings. P/S = price to sales.
This pharma titan edges out its closest peer
All things considered, Pfizer is arguably the best of the bunch as a pure dividend play. It offers the second-highest yield behind AbbVie, its shares are among the cheapest in the group from both a forward-earnings and price-to-sales ratio perspective, and it sports the lowest trailing payout ratio by a wide margin. That said, the pharma titan's near-term growth prospects are rather modest as a result of its declining COVID-19 franchise.
Amgen, though, does come in a close second in this comparison. Amgen's shares sport an above-average yield, an attractive valuation by the forward-earnings metric, respectable revenue growth prospects in 2024, as well as a reasonable payout ratio for a top pharma stock. Income investors may want to also consider this elite pharma stock.
Lastly, Merck isn't all that far behind Pfizer and Amgen. The drugmaker's stock doesn't sport much of a premium at current levels, it has a better-than-average top-line outlook, and its payout ratio is well below the group average. The one knock against Merck is that its yield isn't nearly as high as the leaders in the group.
All told, Pfizer stands out as the overall best dividend stock in big pharma. But Amgen and Merck are also attractive income investments for the reasons mentioned above.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol-Myers Squibb, Gilead Sciences, Merck, and Pfizer. The Motley Fool recommends Amgen 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. | So here is a quantitative breakdown of the most recent stock valuations and dividend programs of AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), Gilead Sciences (NASDAQ: GILD), Pfizer (NYSE: PFE), and Merck (NYSE: MRK). AbbVie 13.2 4.58 3.91% 85% 0.3% Amgen 13 4.81 3.54% 64% 4.9% Bristol Myers Squibb 8.81 3.29 3.21% 74% 2.3% Eli Lilly 37.5 10.8 1.38% 59% 19.1% Johnson & Johnson 15 4.44 2.82% 66% 2.6% Gilead Sciences 12.2 3.86 3.54% 80% 1.9% Pfizer 12.5 2.45 3.8% 29.2% 2.1% Merck 14.4 4.57 2.67% 49% 6% Average 15.8 4.85 3.1% 63.3% 4.9% Data provided by Morningstar. It offers the second-highest yield behind AbbVie, its shares are among the cheapest in the group from both a forward-earnings and price-to-sales ratio perspective, and it sports the lowest trailing payout ratio by a wide margin. | So here is a quantitative breakdown of the most recent stock valuations and dividend programs of AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), Gilead Sciences (NASDAQ: GILD), Pfizer (NYSE: PFE), and Merck (NYSE: MRK). AbbVie 13.2 4.58 3.91% 85% 0.3% Amgen 13 4.81 3.54% 64% 4.9% Bristol Myers Squibb 8.81 3.29 3.21% 74% 2.3% Eli Lilly 37.5 10.8 1.38% 59% 19.1% Johnson & Johnson 15 4.44 2.82% 66% 2.6% Gilead Sciences 12.2 3.86 3.54% 80% 1.9% Pfizer 12.5 2.45 3.8% 29.2% 2.1% Merck 14.4 4.57 2.67% 49% 6% Average 15.8 4.85 3.1% 63.3% 4.9% Data provided by Morningstar. It offers the second-highest yield behind AbbVie, its shares are among the cheapest in the group from both a forward-earnings and price-to-sales ratio perspective, and it sports the lowest trailing payout ratio by a wide margin. | So here is a quantitative breakdown of the most recent stock valuations and dividend programs of AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), Gilead Sciences (NASDAQ: GILD), Pfizer (NYSE: PFE), and Merck (NYSE: MRK). AbbVie 13.2 4.58 3.91% 85% 0.3% Amgen 13 4.81 3.54% 64% 4.9% Bristol Myers Squibb 8.81 3.29 3.21% 74% 2.3% Eli Lilly 37.5 10.8 1.38% 59% 19.1% Johnson & Johnson 15 4.44 2.82% 66% 2.6% Gilead Sciences 12.2 3.86 3.54% 80% 1.9% Pfizer 12.5 2.45 3.8% 29.2% 2.1% Merck 14.4 4.57 2.67% 49% 6% Average 15.8 4.85 3.1% 63.3% 4.9% Data provided by Morningstar. It offers the second-highest yield behind AbbVie, its shares are among the cheapest in the group from both a forward-earnings and price-to-sales ratio perspective, and it sports the lowest trailing payout ratio by a wide margin. | So here is a quantitative breakdown of the most recent stock valuations and dividend programs of AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), Bristol Myers Squibb (NYSE: BMY), Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), Gilead Sciences (NASDAQ: GILD), Pfizer (NYSE: PFE), and Merck (NYSE: MRK). AbbVie 13.2 4.58 3.91% 85% 0.3% Amgen 13 4.81 3.54% 64% 4.9% Bristol Myers Squibb 8.81 3.29 3.21% 74% 2.3% Eli Lilly 37.5 10.8 1.38% 59% 19.1% Johnson & Johnson 15 4.44 2.82% 66% 2.6% Gilead Sciences 12.2 3.86 3.54% 80% 1.9% Pfizer 12.5 2.45 3.8% 29.2% 2.1% Merck 14.4 4.57 2.67% 49% 6% Average 15.8 4.85 3.1% 63.3% 4.9% Data provided by Morningstar. It offers the second-highest yield behind AbbVie, its shares are among the cheapest in the group from both a forward-earnings and price-to-sales ratio perspective, and it sports the lowest trailing payout ratio by a wide margin. | b207b5b1-9d92-4560-b22b-7930a526142c |
22769.0 | 2023-02-22 00:00:00 UTC | Want More Reliable Dividend Income? Buy This Dividend King. | ABBV | https://www.nasdaq.com/articles/want-more-reliable-dividend-income-buy-this-dividend-king. | nan | nan | The pharmaceutical industry is ripe for the picking for income investors. That's because the industry enjoys particularly high profit margins, which can fund generous dividends. But as is the case with anything good, there are still risks.
In pharmaceuticals, the biggest risk is the patent expiration of top-performing drugs. This is why it is crucial to pick pharmaceutical companies with deep product pipelines to keep revenue moving higher.
AbbVie (NYSE: ABBV) appears to fit this profile. Here's why yield-hungry investors should consider buying the Dividend King with a track record of 51 consecutive years of dividend hikes.
Net revenue and earnings keep moving higher
With products marketed in more than 175 countries and treating over 62 million patients each year, AbbVie is one of the most impactful drugmakers on the planet. The company's medicines help treat more than 60 conditions that collectively affect people at any stage of life.
AbbVie recorded $15.1 billion in net revenue during the fourth quarter ended Dec. 31, which was up 1.8% over the year-ago period. Accounting for a 2% unfavorable foreign currency translation headwind resulting from a strong U.S. dollar, the company's net revenue would have been 3.8% higher for the quarter.
This solid net revenue growth was fueled by AbbVie's stacked drug portfolio, which included Humira and Skyrizi, two mega-blockbuster drugs (at least $5 billion in annualized net revenue). The former lost its exclusivity in a U.S. just a few weeks ago. This opens up $18.6 billion of U.S. Humira revenue to competition from biosimilar drugs from the likes of Amgen and Pfizer.
While this will lead to billions in lost annual revenue for the drug franchise this year and beyond, Skyrizi along with AbbVie's other next-gen immunology drug, Rinvoq, are expected to more than offset this patent expiration moving forward. That's because the additional indications for the two drugs has AbbVie confident that combined annual revenue will exceed peak annual Humira revenue of $21 billion by 2027. That would be nearly triple the $7.7 billion in combined revenue that Skyrizi and Rinvoq posted in 2022.
Abbvie's portfolio also contained 10 blockbuster medicines (at least $1 billion in annualized net revenue), such as the antipsychotic called Vraylar and Botox Cosmetic. Net revenue growth ranged from the low-single-digits to the high-double-digits in eight of these 12 drugs. The other four products experienced mid-single-digit to low-double-digit declines in net revenue.
AbbVie's non-GAAP (adjusted) diluted earnings per share (EPS) surged 16.9% higher year over year to $3.60 in the fourth quarter. Careful cost management (operating expenses declined 2%) helped AbbVie's non-GAAP net margin expand by 540 basis points over the year-ago period to 42.5% during the quarter. This explains how the company's adjusted diluted EPS growth outpaced net revenue growth for the quarter.
With nearly 100 compounds in different stages of clinical development within its pipeline, AbbVie is well prepared to offset the dip in Humira revenue with future product launches.
Image source: Getty Images.
A safe, market-crushing dividend
AbbVie's 4% dividend yield is considerably higher than the S&P 500 index's 1.7% yield. Yet, income investors can bank on the dependability of this high yield.
That's because even with reduced profits projected for this year due to Humira's battle against biosimilars, the dividend payout ratio will clock in a tad above 53%. While this is a higher than usual payout ratio for AbbVie, it's still manageable enough to leave the company with the capital needed to complete acquisitions and repay debt.
This is why I expect mid- to high-single-digit annual dividend growth to resume in 2025 and beyond. In the meantime, investors get paid handsomely to settle for token payout increases as AbbVie stabilizes its business.
The blue-chip stock is trading at a discount
The broader markets have edged higher so far in 2023. But shares of AbbVie have shed 6% of their value so far this year. This has pushed the stock's forward price-to-earnings ratio down to just 13.4. For context, that is below the drug manufacturer industry average of 14. Given AbbVie's reputation as a Dividend King, this lowly valuation arguably presents a buying opportunity for income-oriented investors.
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Kody Kester has positions in AbbVie, Amgen, and Pfizer. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Net revenue and earnings keep moving higher With products marketed in more than 175 countries and treating over 62 million patients each year, AbbVie is one of the most impactful drugmakers on the planet. Careful cost management (operating expenses declined 2%) helped AbbVie's non-GAAP net margin expand by 540 basis points over the year-ago period to 42.5% during the quarter. While this is a higher than usual payout ratio for AbbVie, it's still manageable enough to leave the company with the capital needed to complete acquisitions and repay debt. | This solid net revenue growth was fueled by AbbVie's stacked drug portfolio, which included Humira and Skyrizi, two mega-blockbuster drugs (at least $5 billion in annualized net revenue). While this will lead to billions in lost annual revenue for the drug franchise this year and beyond, Skyrizi along with AbbVie's other next-gen immunology drug, Rinvoq, are expected to more than offset this patent expiration moving forward. AbbVie's non-GAAP (adjusted) diluted earnings per share (EPS) surged 16.9% higher year over year to $3.60 in the fourth quarter. | This solid net revenue growth was fueled by AbbVie's stacked drug portfolio, which included Humira and Skyrizi, two mega-blockbuster drugs (at least $5 billion in annualized net revenue). While this will lead to billions in lost annual revenue for the drug franchise this year and beyond, Skyrizi along with AbbVie's other next-gen immunology drug, Rinvoq, are expected to more than offset this patent expiration moving forward. That's because the additional indications for the two drugs has AbbVie confident that combined annual revenue will exceed peak annual Humira revenue of $21 billion by 2027. | This solid net revenue growth was fueled by AbbVie's stacked drug portfolio, which included Humira and Skyrizi, two mega-blockbuster drugs (at least $5 billion in annualized net revenue). While this will lead to billions in lost annual revenue for the drug franchise this year and beyond, Skyrizi along with AbbVie's other next-gen immunology drug, Rinvoq, are expected to more than offset this patent expiration moving forward. AbbVie (NYSE: ABBV) appears to fit this profile. | 68994c75-00b4-414b-b0bf-1085d935dd43 |
22770.0 | 2023-02-21 00:00:00 UTC | Johnson & Johnson: Taking The Bull By The Horns? | ABBV | https://www.nasdaq.com/articles/johnson-johnson%3A-taking-the-bull-by-the-horns | nan | nan | Johnson & Johnson (NYSE: JNJ) recently filed a shelf registration with the SEC, suggesting it is preparing for the future. The filing is for debt securities, not shares, to be sold on an ongoing basis at a future date that could be as soon as the filing was received. The offering aims to raise capital for general corporate purposes, servicing/restructuring debt, repurchasing shares, CAP EX or acquisitions. Given the recent Fitch Solutions report, CAP EX and acquisitions may be on the minds of Johnson & Johnson executives.
A Patent Cliff Is Approaching For Pharma Companies
Fitch outlines how companies from AstraZeneca (NYSE: AZN) to AbbVie (NYSE: ABBV), already facing patent-related pressure, are approaching a patent cliff and Johnson & Johnson is not immune. A patent cliff is when patents on blockbuster drugs like AbbVie’s Humira expire and open the door to competition. This means generic manufacturers will be flooding the market with biosimilar compounds, which is a big hit on the top and bottom lines for the world’s leading pharma companies.
In the case of Johnson & Johnson, its blockbuster Stellara loses patent protection this year and another major contributor, Simponi, loses its protection in 2024. Between them, they account for more than 20% of Pharma segment incomes which is the company’s core business. The company must replace these products and having the capital to invest is crucial.
As far as the pipeline goes, Johnson & Johnson has about 40 compounds in Phase 3 trials but many of those are for approvals for additional indications for existing medicines like Stellara and Simponi. In this light, it is unclear how much potential the pipeline has for the company.
Additionally, JNJ was recently reported to be “quietly” overhauling the pharma segment. According to the report, the overhaul includes the consolidation of sub-segments, thousands of layoffs, and discontinuation of non-productive pipeline candidates.
Are Acquisitions On Tap For 2023?
The assumption is that Johnson & Johnson is searching for a takeover candidate with either a promising pipeline or a drug already on the market. Estimates for 2023 takeover activity are $250 billion for the industry, so J&J is not the only big pharma name to watch. Among the top candidates for takeover are Ascendis Pharma (NASDAQ: ASND) and Athira Pharma (NASDAQ: ATHA). Ascendis Pharma is a young but established pharma with hopes of joining the big players, while Athira Pharma focuses on Alzheimer’s treatments.
Johnson & Johnson’s Dividend Is Safe Enough For Now
While you can never completely rule out a dividend cut or suspension, it is doubtful that Johnson & Johnson will do so anytime soon. The company has a solid balance sheet despite its use of debt, and healthy cash flows, and pays out only a small amount of its earnings. The payout ratio is 43% which is low for regular stock and JNJ stock is a Dividend King with 60 years of consecutive increases. That’s a lot of history to throw away, which is not something JNJ execs will do lightly.
Looking at the chart, the fear of the patent cliff is opening an opportunity. The price action in JNJ is retreating to support near the long-term uptrend line where the market is likely to step in and support prices. The stock price may fall below the trend line and even enter a trading range. If so, Johnson & Johnson is still at least a Hold for its 2.8% yield and buyable when it confirms support at accepted technical targets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A Patent Cliff Is Approaching For Pharma Companies Fitch outlines how companies from AstraZeneca (NYSE: AZN) to AbbVie (NYSE: ABBV), already facing patent-related pressure, are approaching a patent cliff and Johnson & Johnson is not immune. A patent cliff is when patents on blockbuster drugs like AbbVie’s Humira expire and open the door to competition. The offering aims to raise capital for general corporate purposes, servicing/restructuring debt, repurchasing shares, CAP EX or acquisitions. | A Patent Cliff Is Approaching For Pharma Companies Fitch outlines how companies from AstraZeneca (NYSE: AZN) to AbbVie (NYSE: ABBV), already facing patent-related pressure, are approaching a patent cliff and Johnson & Johnson is not immune. A patent cliff is when patents on blockbuster drugs like AbbVie’s Humira expire and open the door to competition. Johnson & Johnson (NYSE: JNJ) recently filed a shelf registration with the SEC, suggesting it is preparing for the future. | A Patent Cliff Is Approaching For Pharma Companies Fitch outlines how companies from AstraZeneca (NYSE: AZN) to AbbVie (NYSE: ABBV), already facing patent-related pressure, are approaching a patent cliff and Johnson & Johnson is not immune. A patent cliff is when patents on blockbuster drugs like AbbVie’s Humira expire and open the door to competition. Johnson & Johnson (NYSE: JNJ) recently filed a shelf registration with the SEC, suggesting it is preparing for the future. | A Patent Cliff Is Approaching For Pharma Companies Fitch outlines how companies from AstraZeneca (NYSE: AZN) to AbbVie (NYSE: ABBV), already facing patent-related pressure, are approaching a patent cliff and Johnson & Johnson is not immune. A patent cliff is when patents on blockbuster drugs like AbbVie’s Humira expire and open the door to competition. Additionally, JNJ was recently reported to be “quietly” overhauling the pharma segment. | b821995f-69f2-487b-bd64-2391f80bfa1a |
22771.0 | 2023-02-20 00:00:00 UTC | 3 Top Dividend Kings to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/3-top-dividend-kings-to-buy-for-the-long-haul-6 | nan | nan | For long-term investors, there are not many things better than finding a profitable company paying you to hold shares. Yes, I'm talking about dividends. The best companies can give you annual raises, which can add to substantial investment returns over time. If a company in the S&P 500 can pay and raise its dividend annually for 50 consecutive years, it earns a designation as a Dividend King.
Healthcare is one of the most essential industries in the global economy, and it's a multitrillion-dollar industry. So why not combine these two ideas? Here are three Dividend Kings in the healthcare industry that you can own and sleep well at night while building wealth simultaneously.
1. Johnson & Johnson
Healthcare conglomerate Johnson & Johnson (NYSE: JNJ) is a dividend legend. The company has posted 60 years of consecutive increases, truly creating generational wealth. The company has a three-legged business that consists of consumer products, medical devices, and pharmaceuticals. The business makes more than $94 billion in annual revenue.
The company has a lot going on; it has some very public lawsuits hanging over its head regarding adverse health effects allegedly caused by some of its talc-based products. There are more than 40,000 pending suits against the company, which could be very expensive if things don't go Johnson & Johnson's way. Management is spinning off its consumer products business as Kenvue in November, in part, as a way to help shield itself from some of the liability from these pending lawsuits. Shareholders could see the dividend divided between Kenvue and the remainder of Johnson & Johnson.
So why should investors buy Johnson & Johnson now instead of running away from the stock? The current lawsuits will have short-term implications but shouldn't affect it all that much long term; The company has a sparkling balance sheet, which carries a rare AAA credit rating from S&P Global. Cash profits surpassed $17 billion over the past year alone. Even in a worst-case scenario with billions in liabilities, Johnson & Johnson is financially prepared to absorb those expenses without disrupting its overall business. Shareholders will have shares of both Johnson & Johnson and Kenvue after the spin-off. But the J&J shareholders will own a company with segments that are more geared toward growth that won't be hampered by the slower-growing consumer segment.
JNJ Revenue (TTM) data by YCharts
Looking past the lawsuits, you can see Johnson & Johnson's consistent growth in the above chart, which could continue. Analyst estimates call for earnings-per-share (EPS) growth averaging 5.5% over the next three to five years, which gives investors potential total returns of 8% to 9% when factoring in the dividend's 2.8% yield. The stock's forward price-to-earnings (P/E) ratio of 15 offers a potentially attractive entry point for long-term investors, given the company's dependability and near-market average return potential at a less expensive valuation. Investors may not have the buying opportunity of today if not for the lawsuit drama hanging over the company.
2. Abbott Laboratories
Fellow conglomerate Abbott Laboratories (NYSE: ABT) has made many changes over the past decade -- the company's main pharmaceutical business was spun off, and some big mergers have rebuilt Abbott around nutrition products, diagnostic and medical devices, and generic pharmaceuticals. The dividend has continued rising through all of this, on a 51-year streak that continues today.
Abbott has grown revenue by an average of nearly 10% annually over the past five years, thanks to its focus on cardiovascular disease and diabetes. The company benefited from the pandemic with a COVID-19 testing device it brought to market, but that multibillion-dollar opportunity has almost run its course. Abbott's growth could slow over the next several years as the company works to backfill that revenue hole. Analysts believe EPS will average 5% annual growth over three to five years.
ABT Revenue (TTM) data by YCharts
Shares trade at a forward P/E of 24, below the stock's average P/E of 32 over the past decade. However, the decline of COVID-19 testing equipment sales will be a headwind that will slow growth for a little while. Investors should temper expectations for the short term, but Abbott's track record of solid performance remains intact for the years beyond.
3. AbbVie
Pharmaceutical company AbbVie (NYSE: ABBV) has grown by leaps and bounds since splitting from Abbott a decade ago. AbbVie is known for its best-selling drug Humira, the Botox brand, and several others that add up to $58 billion in annual sales. AbbVie has continued its dividend-growing tradition, now at a 51-year streak (when including its days as part of Abbott Labs). The stock's 3.9% dividend yield is a great way to earn passive income from investing.
Humira, AbbVie's top-selling drug, recently lost patent exclusivity in the U.S. market. Generic competitors called biosimilars have begun entering the market, which will cause a drop in Humira's sales. While not ideal, AbbVie's strong pipeline and financials should keep the dividend intact.
ABBV Revenue (TTM) data by YCharts
However, growth could slow in the years ahead; analysts are looking for EPS growth averaging 4% annually over the next few years. That's a notable slowdown from the 8% earnings growth AbbVie averaged over the previous decade. The stock's valuation has come down as a result, with shares trading at a forward P/E ratio of 13, far below the median P/E of 21 in the past decade. But even if the valuation remains depressed, the stock's dividend and mid-single-digit growth could generate solid total returns.
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*Stock Advisor returns as of February 8, 2023
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and S&P Global. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) has grown by leaps and bounds since splitting from Abbott a decade ago. AbbVie is known for its best-selling drug Humira, the Botox brand, and several others that add up to $58 billion in annual sales. AbbVie has continued its dividend-growing tradition, now at a 51-year streak (when including its days as part of Abbott Labs). | ABBV Revenue (TTM) data by YCharts However, growth could slow in the years ahead; analysts are looking for EPS growth averaging 4% annually over the next few years. AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) has grown by leaps and bounds since splitting from Abbott a decade ago. AbbVie is known for its best-selling drug Humira, the Botox brand, and several others that add up to $58 billion in annual sales. | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) has grown by leaps and bounds since splitting from Abbott a decade ago. AbbVie is known for its best-selling drug Humira, the Botox brand, and several others that add up to $58 billion in annual sales. AbbVie has continued its dividend-growing tradition, now at a 51-year streak (when including its days as part of Abbott Labs). | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) has grown by leaps and bounds since splitting from Abbott a decade ago. AbbVie is known for its best-selling drug Humira, the Botox brand, and several others that add up to $58 billion in annual sales. AbbVie has continued its dividend-growing tradition, now at a 51-year streak (when including its days as part of Abbott Labs). | c3a5cc1d-88b7-426e-871d-f5ed28fe61fc |
22772.0 | 2023-02-19 00:00:00 UTC | Validea's Top Ten Healthcare Stocks Based On David Dreman - 2/19/2023 | ABBV | https://www.nasdaq.com/articles/valideas-top-ten-healthcare-stocks-based-on-david-dreman-2-19-2023 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
BIONTECH SE - ADR (BNTX) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: BioNTech SE is a Germany-based clinical-stage biotechnology company. The Company focuses on patient-specific immunotherapies for the treatment of cancer and other serious diseases. The Company is providing technologies including mRNA-based therapies, cell therapies, small molecules and antibodies, which can be utilized for specific purposes or can be even combined with each other in a synergistic manner. It also develops a broad product pipeline using different scientific approaches and technology platforms, including individualized mRNA-based product candidates, chimeric antigen receptor T-cells, checkpoint immunomodulators, targeted cancer antibodies and small molecules. In addition, the Company offers diagnostic products and drug discovery services for other therapeutic areas, including infectious diseases, allergies and autoimmune disorders.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of BIONTECH SE - ADR
BNTX Guru Analysis
BNTX Fundamental Analysis
INNOVIVA INC (INVA) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Innoviva, Inc. is a holding company. The Company owns a portfolio of royalties and other healthcare assets. Its royalty portfolio contains respiratory assets partnered with Glaxo Group Limited (GSK), including RELVAR/BREO ELLIPTA (fluticasone furoate/ vilanterol, FF/VI), ANORO ELLIPTA (umeclidinium bromide/ vilanterol, UMEC/VI) and TRELEGY ELLIPTA (the combination FF/UMEC/VI). Under the Long-Acting Beta2 Agonist (LABA) collaboration agreement, the Company is entitled to receive royalties from GSK on sales of RELVAR/BREO ELLIPTA and royalties from the sales of ANORO ELLIPTA. RELVAR/BREO ELLIPTA is a once-daily combination medicine consisting of a LABA, vilanterol (VI) and an inhaled corticosteroid (ICS), fluticasone furoate (FF). Its TRELEGY ELLIPTA is a once-daily combination medicine consisting of an ICS, long-acting muscarinic antagonist (LAMA) and LABA. Its portfolio also includes sulbactam-durlobactam (SUL-DUR). It also provides GIAPREZA (angiotensin II) and XERAVA (eravacycline).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: FAIL
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of INNOVIVA INC
INVA Guru Analysis
INVA Fundamental Analysis
VIATRIS INC (VTRS) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Viatris Inc. is a global healthcare company. The Company's segments include Developed Markets, Greater China, JANZ and Emerging Markets. Developed Markets segment comprises its operations primarily in North America and Europe. Greater China segment includes its operations in China, Taiwan and Hong Kong. JANZ segment reflects its operations in Japan, Australia and New Zealand. Emerging Markets segment encompasses its presence in approximately 125 countries within various markets and economies, as well as its anti-retroviral franchise. Its portfolio comprises over 1,400 approved molecules across a range of key therapeutic areas, including key brands, complex generics, and biosimilars. It operates around 40 manufacturing sites worldwide, which produces oral solid doses, injectables, complex dosage forms and active pharmaceutical ingredients. Its Viatris Eye Care division is focused on discovery, development, and commercialization of pharmaceutical therapies to treat ophthalmic diseases.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: PASS
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: FAIL
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: FAIL
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of VIATRIS INC
VTRS Guru Analysis
VTRS Fundamental Analysis
DYNAVAX TECHNOLOGIES CORP (DVAX) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dynavax Technologies Corporation is a commercial-stage biopharmaceutical company that is focused on developing and commercializing vaccines. The Company's products include HEPLISAV-B and CpG 1018. The HEPLISAV-B is indicated for the prevention of infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older. HEPLISAV-B is a two-dose hepatitis B vaccine for adults. HEPLISAV-B is a sterile solution for injection presented in 0.5 mL single-dose prefilled syringes. The Company also manufactures and sells CpG 1018, the adjuvant used in HEPLISAV-B. The Company is also engaged in developing CpG 1018 as a vaccine adjuvant through research collaborations and partnerships. HEPLISAV-B combines 1018, a toll-like receptor (TLR9) agonist adjuvant, and recombinant hepatitis B surface antigen (rHBsAg). It is primarily focused on adjuvanted vaccines for coronavirus disease (COVID-19), plague, Tdap, seasonal influenza, universal influenza, and shingles.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: FAIL
EARNINGS TREND: FAIL
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of DYNAVAX TECHNOLOGIES CORP
DVAX Guru Analysis
DVAX Fundamental Analysis
VIR BIOTECHNOLOGY INC (VIR) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Vir Biotechnology, Inc. is a commercial-stage immunology company focused on combining immunologic insights with technologies to treat and prevent serious infectious diseases. It has assembled four technology platforms focused on antibodies, T cells, innate immunity, and small interfering ribonucleic acid (siRNA), through internal development, collaborations, and acquisitions. The Company's pipeline consists of sotrovimab and other product candidates targeting COVID-19, hepatitis B virus (HBV), influenza A virus, and human immunodeficiency virus (HIV). Its product candidates include Sotrovimab and VIR-7832, VIR-2218, VIR-3434, VIR-2482, VIR-1111. It is engaged in developing differentiated monoclonal antibodies (mAbs) as well as vaccines and small molecules that focuses is on treating and preventing severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). VIR-2218 and VIR-3434, are for the treatment of HBV. VIR-2482 is an investigational IM administered influenza A-neutralizing mAb.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: FAIL
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of VIR BIOTECHNOLOGY INC
VIR Guru Analysis
VIR Fundamental Analysis
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 64% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. It offers products in various therapeutic categories, including immunology products, which include Humira, Skyrizi and Rinvoq; oncology products, which include Imbruvica and Venclexta; aesthetics products that include Botox Cosmetic, Juvederm Collection and others; neuroscience products, such as Botox Therapeutic, Vraylar, Duopa and Duodopa, and Ubrelvy; eye care products consists of Lumigan, Alphagan and Restasis; women's health products include Lo Loestrin, Orilissa and others; and other products, which includes Mavyret, Creon, Lupron, Linzess and Synthroid. Its products are sold to wholesalers, government agencies, health care facilities and independent retailers. It also discovers and develop antibody medicines that target difficult-to-drug disease-causing proteins, such as G protein-coupled receptors (GPCRs).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on David Dreman is 64% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products and technologies are categorized into four main areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart and Critical Care. It also develops hemodynamic and noninvasive brain and tissue oxygenation monitoring systems that are used to measure a patient's cardiovascular function in the hospital setting. The Edwards SAPIEN family of valves, including Edwards SAPIEN XT, the Edwards SAPIEN 3, and the Edwards SAPIEN 3 Ultra transcatheter aortic heart valves are used to treat heart valve disease.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of EDWARDS LIFESCIENCES CORP
EW Guru Analysis
EW Fundamental Analysis
GENMAB A/S - ADR (GMAB) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 64% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Genmab A/S is a Denmark-based international biotechnology company. It specializes in the creation and development of antibody therapeutics for the treatment of cancer. The Company is the creator of the approved antibodies: DARZALEX (daratumumab) for the treatment of certain multiple myeloma indications, Kesimpta for the treatment of adults with relapsing forms of multiple sclerosis, TEPEZZA (teprotumumab) for the treatment of thyroid eye disease and FASPRO, for the treatment of adult patients with certain multiple myeloma indications. The first approved Genmab created therapy Arzerra, approved for the treatment of certain chronic lymphocytic leukemia indications, is available in Japan and is also available in other territories via compassionate use or oncology access programs. Genmab develops a broad clinical and pre-clinical product pipeline, and owns four antibody technologies, DuoBody bispecific platform, HexaBody platform, DuoHexaBody platform & HexElect platform.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: FAIL
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of GENMAB A/S - ADR
GMAB Guru Analysis
GMAB Fundamental Analysis
MODERNA INC (MRNA) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 64% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Moderna, Inc. is a biotechnology company that is focused on creating a transformative medicines based on messenger ribonucleic acid (mRNA), to improve the lives of patients. The Company's mRNA medicines are designed to direct the body's cells to produce intracellular, membrane, or secreted proteins that have a therapeutic or preventive benefit with the potential to address a range of spectrum of diseases. It is developing vaccines and therapeutics for infectious diseases, immuno-oncology, rare diseases, autoimmune and cardiovascular diseases, independently and with its strategic collaborators. The Company develops technologies that enable the development of mRNA medicines for diverse applications. It has created modalities, including prophylactic vaccines, systemic secreted and cell surface therapeutics, cancer vaccines, intratumoral immuno-oncology, and systemic intracellular therapeutics. The Company develops technologies that enable the development of mRNA medicines.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: FAIL
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of MODERNA INC
MRNA Guru Analysis
MRNA Fundamental Analysis
MSA SAFETY INC (MSA) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on David Dreman is 64% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MSA Safety Incorporated is engaged in the development, manufacture and supply of safety products that protect people and facility infrastructures. The Company's geographical segments include Americas and International. The Company's products include breathing apparatus where self-contained breathing apparatus (SCBA) is the principal product, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, firefighter helmets and protective apparel, and fall protection devices. Its safety products integrate a combination of electronics, mechanical systems and materials to protect users against hazardous or life-threatening situations. The Company's product line is used by workers around the world in a range of markets, including fire service, the oil, gas and petrochemical industry, construction, industrial manufacturing applications, utilities, mining, and the military. Its customers are in two categories: distributors and end-users.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL
Detailed Analysis of MSA SAFETY INC
MSA Guru Analysis
MSA Fundamental Analysis
David Dreman Portfolio
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
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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. | Detailed Analysis of VIR BIOTECHNOLOGY INC VIR Guru Analysis VIR Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of VIR BIOTECHNOLOGY INC VIR Guru Analysis VIR Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. | Detailed Analysis of VIR BIOTECHNOLOGY INC VIR Guru Analysis VIR Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Detailed Analysis of VIR BIOTECHNOLOGY INC VIR Guru Analysis VIR Fundamental Analysis ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies industry. | c77f1b1d-29a9-43eb-b78a-850330d7ef85 |
22773.0 | 2023-02-18 00:00:00 UTC | 3 Dividend Stocks That Should Pay You the Rest of Your Life | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-should-pay-you-the-rest-of-your-life-2 | nan | nan | Building a portfolio for passive income can be a challenging process, especially if you are just starting out. But it doesn't have to be this way. Investors simply need to buy at least a couple of dozen proven dividend payers across a variety of economic sectors to build a durable portfolio.
Whether you're new to income investing or are a seasoned veteran, here are three reliable dividend payers that could shower you with growing streams of cash flow for the next few decades.
Image source: Getty Images.
1. Procter & Gamble: The preeminent consumer staple company
Procter & Gamble's (NYSE: PG) $327 billion market capitalization positions it as the largest consumer staple company in the world. With billion-dollar brands such as Metamucil fiber supplements, Bounty paper towels, and Head & Shoulders shampoos and conditioners, P&G's brand power is unmatched.
As demand for P&G's products organically grows as a result of population growth and inorganically from acquisitions, analysts think that the company has a decent future ahead of itself. That's why the average analyst forecast anticipates that Procter & Gamble's non-GAAP, or generally accepted accounting principles, (core) diluted earnings per share (EPS) will grow at 5.1% annually over the next five years.
Income investors will appreciate P&G's 2.6% dividend yield, which is a full 100 basis points higher than the S&P 500 index's 1.6% yield. And with the dividend payout ratio coming in at less than 61% in its prior fiscal year, the company should build on its status as a Dividend King with 66 consecutive years of dividend growth moving forward.
P&G is trading at a forward price-to-earnings (P/E) ratio of 22, which is meaningfully lower than the household & personal products' industry average of 28. This is why the stock is arguably a buy for conservative investors.
2. AbbVie: An innovative pharmaceutical company
AbbVie's (NYSE: ABBV) $264 billion market cap earns it the distinction of being the fourth-biggest pharmaceutical company on the planet. Unsurprisingly, the company's product portfolio is exceptional. In 2022, 13 of AbbVie's drug franchises were blockbusters (i.e., they recorded at least $1 billion in sales). These include the superstar immunology drug Humira (which is now facing competition from biosimilars), the immunology drugs Skyrizi and Rinvoq, and Botox Therapeutic and Cosmetic.
With such an impressive product portfolio, it shouldn't be a shock to learn that AbbVie is an inventive company. It has more than 90 compounds currently in clinical development. And 80% of these compounds have a novel mechanism of action (i.e., they work differently than any other medicines). This is why AbbVie appears poised to launch many more blockbuster drugs.
Yield-oriented investors will like the company's 3.9% dividend yield. Even with the patent expiration of Humira, the dividend payout ratio will remain manageable around 52% in 2023. That should allow AbbVie's 51-year streak of dividend growth to continue in the years ahead.
And investors can snatch up shares of AbbVie at a forward P/E ratio of 13.7. For context, that is just below the drug manufacturer industry average of 14.1.
3. Realty Income: A leading real estate investment trust
Realty Income (NYSE: O) is among the top five largest real estate investment trusts (REITs) in the world. The company owns more than 11,700 commercial real estate properties throughout the U.S. and Europe.
And despite its massive size, the company looks set to have much more growth potential in the years to come. This is because Realty Income estimates that its total addressable commercial real estate market in the U.S. and Europe is a combined $13 trillion.
That means that are plenty of opportunities still left for the company to continue growing. This should allow Realty Income to continue growing its adjusted funds from operations (AFFO) per share at the 5.1% annual rate that it has achieved since 1996.
That's why I believe that Realty Income should be able to extend its 28-year dividend growth streak. And yield-focused investors can scoop up the REIT's 4.5% dividend yield at a reasonable AFFO-per-share multiple of 16.9.
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Kody Kester has positions in AbbVie, Procter & Gamble, and Realty Income. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie: An innovative pharmaceutical company AbbVie's (NYSE: ABBV) $264 billion market cap earns it the distinction of being the fourth-biggest pharmaceutical company on the planet. In 2022, 13 of AbbVie's drug franchises were blockbusters (i.e., they recorded at least $1 billion in sales). With such an impressive product portfolio, it shouldn't be a shock to learn that AbbVie is an inventive company. | AbbVie: An innovative pharmaceutical company AbbVie's (NYSE: ABBV) $264 billion market cap earns it the distinction of being the fourth-biggest pharmaceutical company on the planet. In 2022, 13 of AbbVie's drug franchises were blockbusters (i.e., they recorded at least $1 billion in sales). With such an impressive product portfolio, it shouldn't be a shock to learn that AbbVie is an inventive company. | See the 10 stocks *Stock Advisor returns as of February 8, 2023 Kody Kester has positions in AbbVie, Procter & Gamble, and Realty Income. AbbVie: An innovative pharmaceutical company AbbVie's (NYSE: ABBV) $264 billion market cap earns it the distinction of being the fourth-biggest pharmaceutical company on the planet. In 2022, 13 of AbbVie's drug franchises were blockbusters (i.e., they recorded at least $1 billion in sales). | That should allow AbbVie's 51-year streak of dividend growth to continue in the years ahead. AbbVie: An innovative pharmaceutical company AbbVie's (NYSE: ABBV) $264 billion market cap earns it the distinction of being the fourth-biggest pharmaceutical company on the planet. In 2022, 13 of AbbVie's drug franchises were blockbusters (i.e., they recorded at least $1 billion in sales). | 129a7d8d-2bc6-4c9a-b524-73ed793bd42d |
22774.0 | 2023-02-17 00:00:00 UTC | Daily Dividend Report: NEE,KO,FDX,K,ABBV | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-neekofdxkabbv | nan | nan | The board of directors of NextEra Energy declared a regular quarterly common stock dividend of $0.4675 per share, an approximate 10% increase versus the prior-year comparable quarterly dividend. This increase is consistent with the plan announced in 2022 of targeting roughly 10% annual growth in dividends per share through at least 2024, off a 2022 base. The dividend is payable on March 15, 2023, to shareholders of record on Feb. 28, 2023.
The Coca-Cola Board of Directors approved raising the quarterly dividend approximately 4.6 percent from 44 cents to 46 cents per common share. The quarterly dividend is equivalent to an annual dividend of $1.84 per share, up from $1.76 per share in 2022. The first quarter dividend is payable April 3 to shareowners of record as of March 17. The company returned $7.6 billion in dividends to shareowners in 2022, bringing the total amount of dividends paid to shareowners since Jan. 1, 2010, to $76.8 billion.
The Board of Directors of FedEx today declared a quarterly cash dividend of $1.15 per share on FedEx common stock. The dividend is payable April 3, 2023 to stockholders of record at the close of business on March 13, 2023.
Kellogg today announced that its Board of Directors declared a dividend of $0.59 per share on the common stock of the Company, payable on March 15, 2023, to shareowners of record at the close of business on March 1, 2023. The ex-dividend date is February 28, 2023. This is the 393rd dividend that Kellogg has paid to owners of common stock since 1925.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. The cash dividend is payable May 15, 2023, to stockholders of record at the close of business on April 14, 2023. Since the company's inception in 2013, AbbVie has increased its dividend by more than 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
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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 board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.48 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | cc6ad1c5-5073-47c4-a1f7-0bac2b99a0f5 |
22775.0 | 2023-02-17 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-69 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
AbbVie Inc (Symbol: ABBV) $149.53 $165.28 10.54%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $210.76 $229.50 8.89%
Nordson Corp. (Symbol: NDSN) $242.48 $263.17 8.53%
National Retail Properties Inc (Symbol: NNN) $46.77 $50.33 7.62%
SJW Group (Symbol: SJW) $76.18 $81.67 7.20%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
AbbVie Inc (Symbol: ABBV) 3.96% 10.54% 14.5%
RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.72% 8.89% 9.61%
Nordson Corp. (Symbol: NDSN) 1.07% 8.53% 9.6%
National Retail Properties Inc (Symbol: NNN) 4.70% 7.62% 12.32%
SJW Group (Symbol: SJW) 2.00% 7.20% 9.2%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78%
Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89%
National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32%
SJW Group (Symbol: SJW) $1.38 $1.46 5.80%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc (Symbol: ABBV) $149.53 $165.28 10.54% RenaissanceRe Holdings Ltd. (Symbol: RNR) $210.76 $229.50 8.89% Nordson Corp. (Symbol: NDSN) $242.48 $263.17 8.53% National Retail Properties Inc (Symbol: NNN) $46.77 $50.33 7.62% SJW Group (Symbol: SJW) $76.18 $81.67 7.20% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.96% 10.54% 14.5% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.72% 8.89% 9.61% Nordson Corp. (Symbol: NDSN) 1.07% 8.53% 9.6% National Retail Properties Inc (Symbol: NNN) 4.70% 7.62% 12.32% SJW Group (Symbol: SJW) 2.00% 7.20% 9.2% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% SJW Group (Symbol: SJW) $1.38 $1.46 5.80% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $149.53 $165.28 10.54% RenaissanceRe Holdings Ltd. (Symbol: RNR) $210.76 $229.50 8.89% Nordson Corp. (Symbol: NDSN) $242.48 $263.17 8.53% National Retail Properties Inc (Symbol: NNN) $46.77 $50.33 7.62% SJW Group (Symbol: SJW) $76.18 $81.67 7.20% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.96% 10.54% 14.5% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.72% 8.89% 9.61% Nordson Corp. (Symbol: NDSN) 1.07% 8.53% 9.6% National Retail Properties Inc (Symbol: NNN) 4.70% 7.62% 12.32% SJW Group (Symbol: SJW) 2.00% 7.20% 9.2% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% SJW Group (Symbol: SJW) $1.38 $1.46 5.80% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $149.53 $165.28 10.54% RenaissanceRe Holdings Ltd. (Symbol: RNR) $210.76 $229.50 8.89% Nordson Corp. (Symbol: NDSN) $242.48 $263.17 8.53% National Retail Properties Inc (Symbol: NNN) $46.77 $50.33 7.62% SJW Group (Symbol: SJW) $76.18 $81.67 7.20% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.96% 10.54% 14.5% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.72% 8.89% 9.61% Nordson Corp. (Symbol: NDSN) 1.07% 8.53% 9.6% National Retail Properties Inc (Symbol: NNN) 4.70% 7.62% 12.32% SJW Group (Symbol: SJW) 2.00% 7.20% 9.2% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% SJW Group (Symbol: SJW) $1.38 $1.46 5.80% These five stocks are part of our full Dividend Aristocrats List. | AbbVie Inc (Symbol: ABBV) $149.53 $165.28 10.54% RenaissanceRe Holdings Ltd. (Symbol: RNR) $210.76 $229.50 8.89% Nordson Corp. (Symbol: NDSN) $242.48 $263.17 8.53% National Retail Properties Inc (Symbol: NNN) $46.77 $50.33 7.62% SJW Group (Symbol: SJW) $76.18 $81.67 7.20% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. AbbVie Inc (Symbol: ABBV) 3.96% 10.54% 14.5% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.72% 8.89% 9.61% Nordson Corp. (Symbol: NDSN) 1.07% 8.53% 9.6% National Retail Properties Inc (Symbol: NNN) 4.70% 7.62% 12.32% SJW Group (Symbol: SJW) 2.00% 7.20% 9.2% Another consideration with dividend growth stocks is just how much the dividend is growing. AbbVie Inc (Symbol: ABBV) $5.31 $5.71 7.53% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.44 $1.48 2.78% Nordson Corp. (Symbol: NDSN) $1.8 $2.32 28.89% National Retail Properties Inc (Symbol: NNN) $2.11 $2.18 3.32% SJW Group (Symbol: SJW) $1.38 $1.46 5.80% These five stocks are part of our full Dividend Aristocrats List. | b90ac509-b82c-436d-93c2-1c855f62e647 |
22776.0 | 2023-02-17 00:00:00 UTC | 3 Exceptional Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-exceptional-dividend-stocks-to-buy-right-now | nan | nan | What makes a good dividend stock? One important element is dividend growth.
A company that has lifted its payout year after year is one you may want to have in your portfolio. That's because it's shown its commitment to rewarding shareholders. And that means it's likely to continue along those lines.
The best place to find these stocks is in the list of Dividend Kings. These companies have increased their dividends for at least 50 years. Along with a solid dividend track record, you'll want to look for companies with an impressive earnings track record -- and potential for growth.
Sounds like a lot to ask? Not necessarily. Here are three exceptional stocks that fit the bill.
1. AbbVie
AbbVie (NYSE: ABBV) has increased its dividend by 270% since its inception. Today, the company pays a dividend of $5.92, representing a 3.92% dividend yield. That's significantly higher than the pharmaceutical industry average yield of 2.15%, according to data from NYU's Stern Business School.
If you held AbbVie over the past five years, your total return -- that's the gain including dividends -- would have been more than double AbbVie's share-price performance during that time period. So dividends clearly are a compelling part of the AbbVie story.
ABBV Total Return Price data by YCharts.
As for earnings, AbbVie has delivered there, too. That's thanks to mega-blockbuster immunology drug Humira and a portfolio of other top-selling treatments.
The bad news is Humira's sales are set to decline because the drug just started facing competition in the U.S. So AbbVie is expecting an earnings trough this year or next year.
The good news is AbbVie's newer immunology drugs, Rinvoq and Skyrizi, are set to surpass Humira's peak of more than $20 billion in annual revenue. AbbVie expects that to happen in 2027. But sales of both drugs already are soaring in the double-digits to blockbuster levels.
If you get in on AbbVie now, you'll benefit from dividends right away -- and a new phase of growth down the road.
2. Target
Target (NYSE: TGT) is set to pay its quarterly dividend next month. It will represent the retailer's 222nd straight dividend since 1967. Target's annual dividend totals $4.32 per share at a yield of 2.45%.
In the third-quarterearnings call the company emphasized the importance of dividend growth. It aims "to support our dividend and build on our 50-year record of annual dividend increases," said Chief Financial Officer Michael Fiddelke.
This comment came as Target faces headwinds from today's economic woes. Higher inflation increases Target's costs and weighs on shoppers' wallets. As a result, Target has seen pressure on margins and a decline in profit.
But here's why there's reason to be optimistic about the company: Customers keep coming back -- and this shows in various metrics. The third quarter was the 22nd straight quarter of comparable-sales growth. And Target saw unit-share gains across all five of its merchandising categories. Meanwhile, Target implemented an efficiency plan that could save as much as $3 billion over the coming three years.
All of this means Target still has what it takes to deliver dividend and earnings growth over time. That's why it's a great idea to get in on this stock before it truly takes off.
3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is another pharma player with a dividend yield that beats the industry average. It pays an annual dividend of $4.52, representing a yield of 2.84%.
J&J has increased its dividend for the past 60 years. Including share repurchases and dividend payments, the company returned more than $14 billion to shareholders last year. So investors can benefit from holding J&J shares -- regardless of the stock performance during a particular year.
Like the other companies I've mentioned, though, you'll want to own J&J for its earnings potential, too. The company has reached an important turning point right now. It will spin off its consumer health business into a separate entity called Kenvue later this year.
This is great news because consumer health is a slower-growing business than J&J's two other units, pharmaceuticals and medtech, and weighs on the company's overall growth. Last year, for example, consumer revenue rose only 3.9% on an adjusted operational basis (this excludes effects of foreign currency exchanges and acquisitions). Pharmaceuticals and medtech each climbed more than 6%. Without consumer health, overall growth should strengthen.
Considering all of this, J&J, which trades at about 15 times forward earnings estimates, looks like a bargain 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 good news is AbbVie's newer immunology drugs, Rinvoq and Skyrizi, are set to surpass Humira's peak of more than $20 billion in annual revenue. AbbVie AbbVie (NYSE: ABBV) has increased its dividend by 270% since its inception. If you held AbbVie over the past five years, your total return -- that's the gain including dividends -- would have been more than double AbbVie's share-price performance during that time period. | If you held AbbVie over the past five years, your total return -- that's the gain including dividends -- would have been more than double AbbVie's share-price performance during that time period. AbbVie AbbVie (NYSE: ABBV) has increased its dividend by 270% since its inception. So dividends clearly are a compelling part of the AbbVie story. | If you held AbbVie over the past five years, your total return -- that's the gain including dividends -- would have been more than double AbbVie's share-price performance during that time period. AbbVie AbbVie (NYSE: ABBV) has increased its dividend by 270% since its inception. So dividends clearly are a compelling part of the AbbVie story. | AbbVie AbbVie (NYSE: ABBV) has increased its dividend by 270% since its inception. If you held AbbVie over the past five years, your total return -- that's the gain including dividends -- would have been more than double AbbVie's share-price performance during that time period. So dividends clearly are a compelling part of the AbbVie story. | 4bf6beca-87ed-4812-9447-2c6be477c276 |
22777.0 | 2023-02-17 00:00:00 UTC | Ironwood (IRWD) Q4 Earnings Miss, Linzess Volume Increases | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-q4-earnings-miss-linzess-volume-increases | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported adjusted earnings of 27 cents per share in fourth-quarter 2022, missing both the Zacks Consensus Estimate and our estimate of 28 cents and 29 cents per share, respectively. The reported earnings were in line with the year-ago quarter figure.
Total revenues of $107.2 million also missed the Zacks Consensus Estimate and our estimate, which stood at $108 million. Revenues were down 8.5% year over year.
Shares of Ironwood have risen 7.0% this year against the industry’s fall of 11.0%.
Image Source: Zacks Investment Research
Quarter in Detail
As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $260.3 million in the United States, down 7% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses.
Ironwood's share of net profits from the sales of Linzess in the United States (included in collaborative revenues) was $104.8 million in the fourth quarter, down 8% year over year.
The performance can be attributed to a massive acceleration in new prescription volume. In the reported quarter, the new prescription share reached 45% and new-to-brand volume increased 9% year-over-year.
The company recorded $2.4 million in royalties and other revenues compared with $3.4 million in the year-ago quarter.
Ironwood also has agreements with two partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively. Both Astellas and AstraZeneca have exclusive rights to develop and market the drug in their respective territories. Astellas and AstraZeneca are liable to pay royalties to Ironwood on net Linzess sales made in their respective territories.
Besides Japan and China, AbbVie holds exclusive global rights to develop and market Linzess. AbbVie markets Linzess in Europe and Canada under the brand name Constella. Ironwood is eligible to receive royalties on net product sales of the drug from AbbVie.
Selling, general and administrative expenses were down 1.0% year over year to $28.4 million during the fourth quarter. Research & development expenses declined 67.2% year over year to $10.4 million.
Full-Year Results
Ironwood reported revenues of $410.6 billion, down 0.8% year over year. Sales were primarily driven by its share of the net profits of $398.8 million from the sales of Linzess in the United States. The drug’s total sales were $1.0 billion for the full year.
The company’s adjusted earnings for 2022 were 96 cents per share, down 17.2% from the year-ago period.
2023 Guidance
Ironwood maintained its previously issued guidance for 2023. The company expects its total revenues to be between $420 million and $435 million. It expects U.S. sales of Linzess to grow in the range of 3% and 5%.
The company expects adjusted EBITDA to be more than $250 million for the year.
Pipeline Updates
Ironwood is also focused on the label expansion of Linzess, which will help drive its sales following successful development and potential approval.
Earlier this week, the company, along with partner AbbVie, announced that the FDA accepted and granted priority review to a supplemental new drug application (sNDA), seeking expanded use of Linzess for children and adolescents with functional constipation (“FC”). A final decision on the sNDA is expected in June 2023. FC currently has no FDA-approved therapies for children.
Other than Linzess, Ironwood is also evaluating two other pipeline candidates — IW-3300 and CNP-104 — for treating visceral pain conditions and primary biliary cholangitis, respectively. Management intends to start dosing study participants in the ongoing phase II proof-of-concept study evaluating IW-3300 in interstitial cystitis/bladder pain syndrome (“IC/BPS”) in early-2023.
Ironwood Pharmaceuticals, Inc. Price
Ironwood Pharmaceuticals, Inc. price | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank & Stocks to Consider
Currently, Ironwood has a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Aeterna Zentaris AEZS, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aeterna Zentaris loss per share estimates for 2023 have narrowed from $3.68 to $3.30 in the past 30 days. AEZS’s stock has plunged 62.6% in the past year.
Earnings of Aeterna Zentaris missed estimates in two of the last four quarters and met the mark on the other two occasions. On average, AEZS witnessed a trailing four-quarter positive earnings surprise of 7.72%, on average. In the last reported quarter, Aeterna Zentaris’ earnings missed estimates by 2.94%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier this week, the company, along with partner AbbVie, announced that the FDA accepted and granted priority review to a supplemental new drug application (sNDA), seeking expanded use of Linzess for children and adolescents with functional constipation (“FC”). Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $260.3 million in the United States, down 7% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $260.3 million in the United States, down 7% year over year. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AEterna Zentaris Inc. (AEZS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $260.3 million in the United States, down 7% year over year. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AEterna Zentaris Inc. (AEZS) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess (linaclotide) — generated net sales of almost $260.3 million in the United States, down 7% year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. Besides Japan and China, AbbVie holds exclusive global rights to develop and market Linzess. | cb7f358a-deb0-4d8d-aa93-24bd10c765d5 |
22778.0 | 2023-02-17 00:00:00 UTC | 2 Exceptional Growth Stocks to Buy Before the Next Bull Market | ABBV | https://www.nasdaq.com/articles/2-exceptional-growth-stocks-to-buy-before-the-next-bull-market | nan | nan | No matter how tough it can be to hold onto your investments when they are losing value during bear markets, they always end, and bull markets are liable to kick off shortly thereafter. In fact, investors who keep buying shares of quality companies when the mood on Wall Street is sour are the ones who tend to get a lot richer when it turns. If you want to be one of them, now's the time to be buying.
In my view, there are a couple of exceptionally strong growth stocks that are particularly worth considering right now. Both companies have upcoming or ongoing catalysts that should lead to their making more money tomorrow than they do today -- and both are likely to continue winning in the long term.
1. AbbVie
The reason AbbVie (NYSE: ABBV) is worth purchasing before the next bull market is that its valuation is a decent bargain relative to other businesses in the pharmaceutical industry. Its price-to-sales (P/S) ratio is 4.6, and its price-to-earnings (P/E) ratio is 22.9. In contrast, the pharma industry's average P/S is 5.1, and its average P/E is 24.6. That means you should get a bit more bang for your buck with AbbVie's shares than with shares of one of its competitors.
Warren Buffett's contention that "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price" is important to keep in mind here. High-quality growth stocks are rarely steeply discounted. And there's little chance that AbbVie's shares will get any cheaper when the next bull market rolls around and valuations expand. That's doubly true when considering what AbbVie is going to be doing over the next two years.
Simply put, AbbVie is trading at a weaker valuation than the average pharma business today because it's expecting to have low top-line growth or even top-line contraction through 2024 due to the expiration of U.S. exclusivity protection for its top-earning drug, Humira. Its annual revenue, which topped $58 billion in 2022, could drop to as low as $53 billion in 2024, per estimates by Wall Street analysts.
But given the company's plans to start more than 110 new clinical studies in 2023, and with more than 240 clinical trials ongoing, its period of revenue stagnation is likely to be brief.
Its executives anticipate that growth will resume with gusto in 2025 and continue at a brisk pace through the end of the decade, powered potentially by up to 11 new regulatory approvals that could happen through the end of 2024. And if investors buy shares soon, they'll profit even more from the boost granted by the next bull market when it arrives.
2. NextEra Energy
NextEra Energy (NYSE: NEE) also offers a stellar, long-term investing thesis. Its fleet of power plants is quite diverse, generating energy from natural gas, solar, coal, and nuclear facilities. And over the last 10 years, its adjusted earnings per share grew at a compound annual rate of roughly 10% -- the fastest rate of profit expansion out of the 10 largest power generation companies by market capitalization.
In that decade, its shares delivered a total return of 442%, smashing the broader market's return of 227%, and there's reason to believe that NextEra's outperformance will continue whether or not there's a new bull market.
Thanks to the worldwide transition to green energy sources and the falling costs of producing power from renewables, management is anticipating around 7% in annual adjusted earnings per share growth from now through at least 2026. And because demand is projected to consistently rise for electricity in the coming decades, expanding its top line shouldn't pose a problem for the company in the long term.
Now is a good time to consider the stock. If a bull market kicks off, it would likely drive the price of NextEra's shares upward, which will reduce its dividend yield. At the moment, its forward yield is 2.2%. That passive income, along with the company's anticipated earnings growth, makes the stock attractive 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. | AbbVie The reason AbbVie (NYSE: ABBV) is worth purchasing before the next bull market is that its valuation is a decent bargain relative to other businesses in the pharmaceutical industry. That means you should get a bit more bang for your buck with AbbVie's shares than with shares of one of its competitors. And there's little chance that AbbVie's shares will get any cheaper when the next bull market rolls around and valuations expand. | AbbVie The reason AbbVie (NYSE: ABBV) is worth purchasing before the next bull market is that its valuation is a decent bargain relative to other businesses in the pharmaceutical industry. That means you should get a bit more bang for your buck with AbbVie's shares than with shares of one of its competitors. And there's little chance that AbbVie's shares will get any cheaper when the next bull market rolls around and valuations expand. | AbbVie The reason AbbVie (NYSE: ABBV) is worth purchasing before the next bull market is that its valuation is a decent bargain relative to other businesses in the pharmaceutical industry. That means you should get a bit more bang for your buck with AbbVie's shares than with shares of one of its competitors. And there's little chance that AbbVie's shares will get any cheaper when the next bull market rolls around and valuations expand. | AbbVie The reason AbbVie (NYSE: ABBV) is worth purchasing before the next bull market is that its valuation is a decent bargain relative to other businesses in the pharmaceutical industry. That means you should get a bit more bang for your buck with AbbVie's shares than with shares of one of its competitors. And there's little chance that AbbVie's shares will get any cheaper when the next bull market rolls around and valuations expand. | 220999a1-9830-4f15-918c-3930abc57b46 |
22779.0 | 2023-02-16 00:00:00 UTC | Noteworthy Thursday Option Activity: LMT, MGM, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-lmt-mgm-abbv | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Lockheed Martin Corp (Symbol: LMT), where a total of 8,810 contracts have traded so far, representing approximately 881,000 underlying shares. That amounts to about 57.2% of LMT's average daily trading volume over the past month of 1.5 million shares. Particularly high volume was seen for the $475 strike call option expiring February 17, 2023, with 554 contracts trading so far today, representing approximately 55,400 underlying shares of LMT. Below is a chart showing LMT's trailing twelve month trading history, with the $475 strike highlighted in orange:
MGM Resorts International (Symbol: MGM) saw options trading volume of 23,315 contracts, representing approximately 2.3 million underlying shares or approximately 54.4% of MGM's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $15 strike put option expiring January 17, 2025, with 9,200 contracts trading so far today, representing approximately 920,000 underlying shares of MGM. Below is a chart showing MGM's trailing twelve month trading history, with the $15 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 31,294 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 51% of ABBV's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $160 strike call option expiring March 17, 2023, with 17,479 contracts trading so far today, representing approximately 1.7 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange:
For the various different available expirations for LMT options, MGM options, or ABBV options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $160 strike call option expiring March 17, 2023, with 17,479 contracts trading so far today, representing approximately 1.7 million underlying shares of ABBV. Below is a chart showing MGM's trailing twelve month trading history, with the $15 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 31,294 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 51% of ABBV's average daily trading volume over the past month, of 6.1 million shares. | Below is a chart showing MGM's trailing twelve month trading history, with the $15 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 31,294 contracts thus far today. Especially high volume was seen for the $160 strike call option expiring March 17, 2023, with 17,479 contracts trading so far today, representing approximately 1.7 million underlying shares of ABBV. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 51% of ABBV's average daily trading volume over the past month, of 6.1 million shares. | Especially high volume was seen for the $160 strike call option expiring March 17, 2023, with 17,479 contracts trading so far today, representing approximately 1.7 million underlying shares of ABBV. Below is a chart showing MGM's trailing twelve month trading history, with the $15 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 31,294 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 51% of ABBV's average daily trading volume over the past month, of 6.1 million shares. | Especially high volume was seen for the $160 strike call option expiring March 17, 2023, with 17,479 contracts trading so far today, representing approximately 1.7 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for LMT options, MGM options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing MGM's trailing twelve month trading history, with the $15 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 31,294 contracts thus far today. | fcd859fd-e198-4c22-847b-8f52dee17562 |
22780.0 | 2023-02-16 00:00:00 UTC | iShares Core S&P U.S. Growth ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-core-sp-u.s.-growth-etf-experiences-big-inflow-0 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $105.9 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 136,450,000 to 137,650,000). Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is off about 1.1%, and Pfizer Inc (Symbol: PFE) is lower by about 1%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average:
Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $108.72 as the 52 week high point — that compares with a last trade of $87.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is off about 1.1%, and Pfizer Inc (Symbol: PFE) is lower by about 1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. 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. | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is off about 1.1%, and Pfizer Inc (Symbol: PFE) is lower by about 1%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $108.72 as the 52 week high point — that compares with a last trade of $87.46. Click here to find out which 9 other ETFs had notable inflows » Also see: Top Stocks Held By Nelson Peltz ETFs Holding LHO FDUS Split History 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 IUSG, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is off about 1.1%, and Pfizer Inc (Symbol: PFE) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $105.9 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 136,450,000 to 137,650,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $76.95 per share, with $108.72 as the 52 week high point — that compares with a last trade of $87.46. | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is down about 0.6%, AbbVie Inc (Symbol: ABBV) is off about 1.1%, and Pfizer Inc (Symbol: PFE) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $105.9 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 136,450,000 to 137,650,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | 380d04b2-8d57-40bb-aaa7-80331b4a341a |
22781.0 | 2023-02-16 00:00:00 UTC | These 2 Growth Stocks Are Easily Defying the Bear Market | ABBV | https://www.nasdaq.com/articles/these-2-growth-stocks-are-easily-defying-the-bear-market | nan | nan | Even if it isn't a good idea to fixate on how your investments perform on a month-to-month basis, it's always a plus when your stocks can shrug off the detrimental impact of a bear market. And with the market falling back sharply during the past 12 months amid rising economic instability, that's no idle concern right now.
But some growth stocks aren't having any problem with doing business as usual, and are positioned to keep laughing in the face of a wider decline. Let's look at two of the most promising candidates.
1. AbbVie
Wall Street analysts are estimating that AbbVie's (NYSE: ABBV) revenue will contract both this year and next year owing to generic competition to its hit medicine, Humira. Losing market share with Humira means that the top line will potentially fall to reach roughly $53 billion, a decline of around $5 billion from its total sales in 2022. Nonetheless, AbbVie's shares are powering along as always, with their total return increasing by more than 12.4% since mid-February of 2022 -- unusually strong performance for a company that's anticipated to make less money in the near future than it does today.
One of the reasons for this discrepancy between expectations and the stock's performance is that AbbVie simply isn't very affected by economic headwinds; it develops medicines, and people aren't going to stop getting critical treatment unless their finances are especially dire. Moreover, as a biopharma business, its shares are exposed to the beneficial impact of plenty of catalysts stemming from regulatory review and approval of its drugs. So, a bearish revenue forecast for the near term isn't always as big of a factor for its share price in comparison to its chances of commercializing new medicines that could yield new revenue for many years.
And AbbVie has plenty of chances to commercialize new medicines or experience other positive catalysts. It presently has a whopping 19 pipeline programs in phase 3 clinical trials, 13 of which will report their data in 2023 and 2024. Per the American Council on Science and Health's data, by the time a project reaches its phase 3 trials, it has a 63.6% chance of going on to be commercialized, so the company is highly likely to commercialize quite a few new therapies, and soon.
In total, management is banking on its revenue starting to grow from the fruit of some of those potential approvals as soon as 2025, with more growth to come throughout the rest of the decade. In other words, AbbVie can laugh off the bear market even when its top line is expected to be shrinking for two years because it already has a road map for growth that'll take it through 2030. And with the sheer volume of its pipeline's near-term output, management's confidence in the company's future is justified.
2. Costco
Costco Wholesale's (NASDAQ: COST) has held up mightly in the last 12 months, remaining about flat amid the market's decline. For a business that caters to cash-strapped consumers in the midst of historic economic turmoil, its performance is strong. The big box retailer's haul of more than $16.8 billion in January was 6.9% more than a year prior, despite the intertwined bugbears of inflation and poor consumer sentiment. And with consumers feeling a bit better about the economy over the last couple of months, it's likely that they won't hesitate to continue spending at Costco.
That's assuming they ever hesitated in the first place. The company's pitch to customers is that it offers low prices for bulk purchases of groceries and consumer goods, contingent on people buying a membership to access its warehouses. In times of economic strife, like now or in bear markets, there is little reason to suspect that people would want to pay more for their staple products than they would otherwise.
Costco's top line isn't very vulnerable, and its quarterly net income actually rose by 46.5% over the last three years, meaning that its bottom line didn't suffer from the pandemic either.
Moving forward, expect more of the same resilience from this stock. And shareholders can look forward to another tailwind: buybacks. On Jan. 19, management announced a new share repurchase program worth up to $4 billion. While the buybacks probably won't make investors rich, they're a bonus that nicely complements the company's dividend, which currently has a forward yield of around 0.7%.
Management also occasionally issues special dividends, and if it does, it’ll be yet another reason why Costco will probably continue to laugh off the bear market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nonetheless, AbbVie's shares are powering along as always, with their total return increasing by more than 12.4% since mid-February of 2022 -- unusually strong performance for a company that's anticipated to make less money in the near future than it does today. AbbVie Wall Street analysts are estimating that AbbVie's (NYSE: ABBV) revenue will contract both this year and next year owing to generic competition to its hit medicine, Humira. One of the reasons for this discrepancy between expectations and the stock's performance is that AbbVie simply isn't very affected by economic headwinds; it develops medicines, and people aren't going to stop getting critical treatment unless their finances are especially dire. | AbbVie Wall Street analysts are estimating that AbbVie's (NYSE: ABBV) revenue will contract both this year and next year owing to generic competition to its hit medicine, Humira. Nonetheless, AbbVie's shares are powering along as always, with their total return increasing by more than 12.4% since mid-February of 2022 -- unusually strong performance for a company that's anticipated to make less money in the near future than it does today. One of the reasons for this discrepancy between expectations and the stock's performance is that AbbVie simply isn't very affected by economic headwinds; it develops medicines, and people aren't going to stop getting critical treatment unless their finances are especially dire. | One of the reasons for this discrepancy between expectations and the stock's performance is that AbbVie simply isn't very affected by economic headwinds; it develops medicines, and people aren't going to stop getting critical treatment unless their finances are especially dire. AbbVie Wall Street analysts are estimating that AbbVie's (NYSE: ABBV) revenue will contract both this year and next year owing to generic competition to its hit medicine, Humira. Nonetheless, AbbVie's shares are powering along as always, with their total return increasing by more than 12.4% since mid-February of 2022 -- unusually strong performance for a company that's anticipated to make less money in the near future than it does today. | Nonetheless, AbbVie's shares are powering along as always, with their total return increasing by more than 12.4% since mid-February of 2022 -- unusually strong performance for a company that's anticipated to make less money in the near future than it does today. And AbbVie has plenty of chances to commercialize new medicines or experience other positive catalysts. In other words, AbbVie can laugh off the bear market even when its top line is expected to be shrinking for two years because it already has a road map for growth that'll take it through 2030. | dad50478-3a7e-4b59-bbaf-abfb1975e746 |
22782.0 | 2023-02-16 00:00:00 UTC | Is This the Start of a Nightmare for AbbVie Stock? | ABBV | https://www.nasdaq.com/articles/is-this-the-start-of-a-nightmare-for-abbvie-stock | nan | nan | With a small army of Wall Street analysts predicting on average that AbbVie's (NYSE: ABBV) revenue will shrink in 2023 as well as in 2024, investors are right to be cautious, and perhaps even a bit skittish. At the same time, the total return of the biopharma's shares is up by 12.4% in the last 12 months, handily beating the market's decline of 4.7%.
Is the market somehow missing the symptoms of a looming collapse, or is it judging that the company will navigate its upcoming troubles with ease? Let's answer those two questions by examining why people might be rightfully bearish about AbbVie's prospects over the next few years.
Why shareholders aren't completely wrong to be sweating
Pretty much everyone agrees that AbbVie's revenue is going to take a hit quite soon. Likewise, the consensus is that there's a very high chance the hits will keep coming over the next year or so. Here's why.
On Jan. 31, Amgen launched its drug Amjevita, a biosimilar copy of AbbVie's hit drug Humira, in the U.S. Like Humira, Amjevita is intended to treat a smattering of immunological conditions that affect millions of people, including rheumatoid arthritis, ankylosing spondylitis, Crohn's disease, and psoriasis. Sales of Humira brought in $21.2 billion in 2022, making the drug a significant contributor to AbbVie's top line, which totaled around $58 billion. And in 2023, Wall Street analysts expect Amjevita to steal a 3% share of the market for such therapies.
There's little reason to expect Humira to regain the lost ground anytime soon, as its exclusivity protections expired at the start of this year. At least seven other biosimilar competitors are anticipated to be in the running before the year ends, each of which is sure to detract from its share. Even AbbVie's management is messaging that revenue growth will be hard to come by through the end of 2024.
So it looks like the near term is going to be difficult for shareholders at best. And if the already gloomy estimates of management and Wall Street end up being rosier than what happens in reality over the next few quarters, it's hard to imagine the stock experiencing anything other than an all-out rout.
This won't be the end of the line
Despite everyone being largely on the same page with regard to AbbVie's upcoming challenges, the picture isn't nearly as bleak as the above might make it seem. In fact, the stock is likely to be a strong investment for the long term, because it'll probably be growing steadily once again during the latter half of the decade.
In 2023 and 2024, it'll commercialize as many as 11 of its pipeline programs, the vast majority of which are expanded indications of its medicines that are already approved for sale for other conditions. It'll also submit six requests for approval to regulators in 2024, which sets it up for potentially six approvals in the following year. And that's why management is anticipating that revenue growth will resume with gusto in 2025, even as Humira's sales continue to crash.
Also, AbbVie knew far in advance that Humira wasn't going to be a cash cow forever, so it invested in research and development efforts to make a pair of replacements. The two replacements, Skyrizi and Rinvoq, are each intended to treat some of the same conditions as Humira such that the company can continue to compete in all the same markets as it currently does. Rinvoq is also being investigated in late-stage clinical trials for its ability to treat diseases that Humira never could, like vitiligo, alopecia, and systemic lupus erythematosus (SLE). And between the indications that are already approved for each medicine, AbbVie is still competing in most of the same segments as it was with Humira.
With approvals for additional indications likely on the way, the company expects to bring in more than $21 billion in annual revenue from the combination of the pair by 2027 when their sales scale up to reach their peak, topping its largest haul from Humira. By then, it'll likely be advancing the next troupe of newer and better candidates for the same swath of conditions. Even if a few of those attempts fail, AbbVie will have plenty of indications to chase, and it's unlikely to repeatedly whiff with so many chances to succeed. And that doesn't sound like much of a nightmare at all, to say the least.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a small army of Wall Street analysts predicting on average that AbbVie's (NYSE: ABBV) revenue will shrink in 2023 as well as in 2024, investors are right to be cautious, and perhaps even a bit skittish. Let's answer those two questions by examining why people might be rightfully bearish about AbbVie's prospects over the next few years. Why shareholders aren't completely wrong to be sweating Pretty much everyone agrees that AbbVie's revenue is going to take a hit quite soon. | On Jan. 31, Amgen launched its drug Amjevita, a biosimilar copy of AbbVie's hit drug Humira, in the U.S. Like Humira, Amjevita is intended to treat a smattering of immunological conditions that affect millions of people, including rheumatoid arthritis, ankylosing spondylitis, Crohn's disease, and psoriasis. With a small army of Wall Street analysts predicting on average that AbbVie's (NYSE: ABBV) revenue will shrink in 2023 as well as in 2024, investors are right to be cautious, and perhaps even a bit skittish. Let's answer those two questions by examining why people might be rightfully bearish about AbbVie's prospects over the next few years. | On Jan. 31, Amgen launched its drug Amjevita, a biosimilar copy of AbbVie's hit drug Humira, in the U.S. Like Humira, Amjevita is intended to treat a smattering of immunological conditions that affect millions of people, including rheumatoid arthritis, ankylosing spondylitis, Crohn's disease, and psoriasis. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. With a small army of Wall Street analysts predicting on average that AbbVie's (NYSE: ABBV) revenue will shrink in 2023 as well as in 2024, investors are right to be cautious, and perhaps even a bit skittish. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! With a small army of Wall Street analysts predicting on average that AbbVie's (NYSE: ABBV) revenue will shrink in 2023 as well as in 2024, investors are right to be cautious, and perhaps even a bit skittish. Let's answer those two questions by examining why people might be rightfully bearish about AbbVie's prospects over the next few years. | ab1c599a-0f2b-4b8c-b6ad-441b7e4ee68a |
22783.0 | 2023-02-16 00:00:00 UTC | Validea Daily Guru Fundamental Report for ABBV - 2/16/2023 | ABBV | https://www.nasdaq.com/articles/validea-daily-guru-fundamental-report-for-abbv-2-16-2023 | nan | nan | Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AbbVie Inc. is a research-based biopharmaceutical company, which is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. It offers products in various therapeutic categories, including immunology products, which include Humira, Skyrizi and Rinvoq; oncology products, which include Imbruvica and Venclexta; aesthetics products that include Botox Cosmetic, Juvederm Collection and others; neuroscience products, such as Botox Therapeutic, Vraylar, Duopa and Duodopa, and Ubrelvy; eye care products consists of Lumigan, Alphagan and Restasis; women's health products include Lo Loestrin, Orilissa and others; and other products, which includes Mavyret, Creon, Lupron, Linzess and Synthroid. Its products are sold to wholesalers, government agencies, health care facilities and independent retailers. It also discovers and develop antibody medicines that target difficult-to-drug disease-causing proteins, such as G protein-coupled receptors (GPCRs).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of ABBVIE INC
ABBV Guru Analysis
ABBV Fundamental Analysis
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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. | Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. | Of the 22 guru strategies we follow, ABBV rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). | Of the 22 guru strategies we follow, ABBV rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). | Below is Validea's daily guru fundamental report for ABBVIE INC (ABBV). Of the 22 guru strategies we follow, ABBV rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of ABBVIE INC ABBV Guru Analysis ABBV Fundamental Analysis Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. | d7d8892e-b3d6-4f07-90c6-1db31d6ffbe9 |
22784.0 | 2023-02-15 00:00:00 UTC | 3 Defensive Growth Stocks to Load Up on in Q1 | ABBV | https://www.nasdaq.com/articles/3-defensive-growth-stocks-to-load-up-on-in-q1 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In this rather uncertain market, the search for defensive growth stocks is picking up. Indeed, this category of high-quality companies with steady cash flows and growing dividend distributions are sought out in times of turmoil. With interest rates on the rise, geopolitical concerns ramping up, and a recession potentially on the horizon, defensive growth stocks certainly seem like great investments right now.
Of course, there are quite a few high-quality dividend stocks with solid growth trajectories to choose from. Accordingly, picking only three may seem like a daunting task.
That said, there are three companies I’ve got my eye on. Here are three defensive growth stocks that I think are worth buying right now.
MCD McDonald’s $266.16
ABBV AbbVie $151.80
NOC Northrop Grumman $461.81
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
We all love a classic, and McDonald’s (NYSE:MCD) is no exception. With a long history of consistent returns, this stock has become one of the most popular among investors. Its global presence also makes it less susceptible to swings in the U.S. economy.
In 2022, despite a weak stock market, McDonald’s shares did well due to strong demand for fast food. The company experienced increased traffic in many areas and was largely able to offset its rising costs by increasing its menu prices.
MCD stock is comparatively expensive compared to its competitors. It trades at 34-times its earnings and has a dividend yield of just 2.3%. .
However, the company’s massive size, solid growth, and dominant market position make it a more compelling investment option than other choices in the industry. Many analysts predict that the company will keep paying dividends, offering investors a stable source of income for decades to come.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie (NYSE:ABBV) is a healthcare stock that’s rated BBB+ by S&P, and it offers a high dividend yield of 3.9%. It has increased its dividend for 11 straight years, and its dividend has risen by an impressive, average rate of nearly 18% in the last five years.
AbbVie was successful in 2022, and investors anticipate that it will also perform well this year, despite the the fact that the patent on its key Humira drug is expiring. Furthermore, ABBV has recently raised its quarterly dividend to $1.48 per share, up from $1.41. As a result, the company’s current yield is slightly less than 4%.
As everyone monitoring AbbVie knows, the company’s earnings and revenue are likely to decline considerably this year, and that reality is already reflected in its stock price. However, if AbbVie can surpass these low expectations, its stock price will increase significantly.
While I cannot predict whether AbbVie will beat the market in 2023, the stock will be lucrative for investors in the long run due to its strong dividend and its impressive pipeline.
Northrop Grumman (NOC)
Source: ALAN RADECKI, Public domain, via Wikimedia Commons
Northrop Grumman (NYSE:NOC) is certainly among the market’s top defensive growth stocks. This company has been a large, successful defense contractor for many decades. Due to its reliability and stability, Northrop Grumman is regarded as one of the market’s most dependable investments.
Wall Street analysts, on average, expect Northrop Grumman’s stock price to increase to $495.55 in a year, versus its current share price of $460,. That’s not a great return, but it’s something. And it appears that the market believes in NOC stock more than analysts do . That can be a good thing.
NOC’s EPS over the first nine months of last year was $31.61. Analysts, on average, expect the company’s 2023 EPS to come in around $26.84. In 2024, their mean estimate calls for EPS of $30.12. Thus, at around $470 per share, the stock is trading at roughly 15-times the average 2024 earnings estimate. That’s not cheap, but it’s not expensive either.
Northrop Grumman has been increasing its dividends for 19 consecutive years,. Its low payout ratio of 13% suggests that it can raise its dividend a great deal in the future. For this reason and many others, I think this stock has a promising future.
On the date of publication, Chris MacDonald has a position in NOC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Defensive Growth Stocks to Load Up on in Q1 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. | While I cannot predict whether AbbVie will beat the market in 2023, the stock will be lucrative for investors in the long run due to its strong dividend and its impressive pipeline. MCD McDonald’s $266.16 ABBV AbbVie $151.80 NOC Northrop Grumman $461.81 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com We all love a classic, and McDonald’s (NYSE:MCD) is no exception. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) is a healthcare stock that’s rated BBB+ by S&P, and it offers a high dividend yield of 3.9%. | MCD McDonald’s $266.16 ABBV AbbVie $151.80 NOC Northrop Grumman $461.81 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com We all love a classic, and McDonald’s (NYSE:MCD) is no exception. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) is a healthcare stock that’s rated BBB+ by S&P, and it offers a high dividend yield of 3.9%. AbbVie was successful in 2022, and investors anticipate that it will also perform well this year, despite the the fact that the patent on its key Humira drug is expiring. | MCD McDonald’s $266.16 ABBV AbbVie $151.80 NOC Northrop Grumman $461.81 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com We all love a classic, and McDonald’s (NYSE:MCD) is no exception. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) is a healthcare stock that’s rated BBB+ by S&P, and it offers a high dividend yield of 3.9%. AbbVie was successful in 2022, and investors anticipate that it will also perform well this year, despite the the fact that the patent on its key Humira drug is expiring. | MCD McDonald’s $266.16 ABBV AbbVie $151.80 NOC Northrop Grumman $461.81 McDonald’s (MCD) Source: 8th.creator / Shutterstock.com We all love a classic, and McDonald’s (NYSE:MCD) is no exception. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) is a healthcare stock that’s rated BBB+ by S&P, and it offers a high dividend yield of 3.9%. AbbVie was successful in 2022, and investors anticipate that it will also perform well this year, despite the the fact that the patent on its key Humira drug is expiring. | d7cfaf02-037b-4424-bb9c-13a33d92b293 |
22785.0 | 2023-02-15 00:00:00 UTC | Bausch + Lomb to name Brent Saunders as CEO - WSJ | ABBV | https://www.nasdaq.com/articles/bausch-lomb-to-name-brent-saunders-as-ceo-wsj-0 | nan | nan | Adds background on Brent Saunders
Feb 15 (Reuters) - Eye-care company Bausch + Lomb Corp BLCO.TO is expected to name Brent Saunders, the former chief executive of Allergan, as its CEO and chairman of board, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The leadership change could be announced as soon as Wednesday, according to the report.
Bausch + Lomb is in the process of being spun out from Bausch Health Companies BHC.TO, which was formerly known as Valeant.
Brent Saunders served as the CEO of Allergan until it was bought out by AbbVie Inc ABBV.N for $63 billion in 2020.
Bausch + Lomb did not immediately respond to a Reuters request for comment.
(Reporting by Maria Ponnezhath, Manas Mishra and Raghav Mahobe in Bengaluru; Editing by Sherry Jacob-Phillips)
((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Brent Saunders served as the CEO of Allergan until it was bought out by AbbVie Inc ABBV.N for $63 billion in 2020. Adds background on Brent Saunders Feb 15 (Reuters) - Eye-care company Bausch + Lomb Corp BLCO.TO is expected to name Brent Saunders, the former chief executive of Allergan, as its CEO and chairman of board, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. (Reporting by Maria Ponnezhath, Manas Mishra and Raghav Mahobe in Bengaluru; Editing by Sherry Jacob-Phillips) ((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Brent Saunders served as the CEO of Allergan until it was bought out by AbbVie Inc ABBV.N for $63 billion in 2020. Adds background on Brent Saunders Feb 15 (Reuters) - Eye-care company Bausch + Lomb Corp BLCO.TO is expected to name Brent Saunders, the former chief executive of Allergan, as its CEO and chairman of board, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Bausch + Lomb is in the process of being spun out from Bausch Health Companies BHC.TO, which was formerly known as Valeant. | Brent Saunders served as the CEO of Allergan until it was bought out by AbbVie Inc ABBV.N for $63 billion in 2020. Adds background on Brent Saunders Feb 15 (Reuters) - Eye-care company Bausch + Lomb Corp BLCO.TO is expected to name Brent Saunders, the former chief executive of Allergan, as its CEO and chairman of board, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Bausch + Lomb is in the process of being spun out from Bausch Health Companies BHC.TO, which was formerly known as Valeant. | Brent Saunders served as the CEO of Allergan until it was bought out by AbbVie Inc ABBV.N for $63 billion in 2020. Adds background on Brent Saunders Feb 15 (Reuters) - Eye-care company Bausch + Lomb Corp BLCO.TO is expected to name Brent Saunders, the former chief executive of Allergan, as its CEO and chairman of board, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The leadership change could be announced as soon as Wednesday, according to the report. | e89501e1-1516-4d58-9c87-e98de7437038 |
22786.0 | 2023-02-14 00:00:00 UTC | 2 High-Yielding Dividend Stocks Trading Near 52-Week Lows | ABBV | https://www.nasdaq.com/articles/2-high-yielding-dividend-stocks-trading-near-52-week-lows | nan | nan | A good incentive for buying a strong dividend stock that's underperforming is that you can secure a higher yield. As long as the business's fundamentals remain sound, you can benefit from the better-than-usual payout as well as from the potential capital appreciation it generates if the stock rebounds and rises in value.
Two relatively cheap healthcare stocks offering above-average yields and that are trading near their 52-week lows are Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV). Here's why you should consider investing in them today.
1. Pfizer
In the past year, shares of Pfizer fell 14%, which is worse than the S&P 500 (down around 7%). Investors are bearish on the healthcare company's prospects as it looks to try and offset the inevitable decline in COVID-19-related revenue. While its vaccine (Comirnaty) and medication (Paxlovid) will still generate revenue for the business this year, the drop-off is enough for Pfizer to project that its total revenue will drop by around 30% this year, to no more than $71 billion (sales topped $100 billion in 2022).
But even at around $71 billion, that's far higher than the revenue Pfizer generated before the pandemic, and before it spun off its Upjohn business (which happened in late 2020). In 2019, for instance, revenue was less than $52 billion. Plus, Pfizer made multiple acquisitions to help expand its business. The company projects that by 2030, it will add $25 billion to its top line through the help of its pipeline and acquisitions. Nonetheless, investors remain bearish on the healthcare stock, which today trades just a few dollars above its 52-week low of $41.45 a share.
But for income investors, there isn't a serious concern about the dividend. This year, Pfizer expects its adjusted diluted earnings per share to be at least $3.25 -- nearly double the $1.64 it pays in dividends over the course of a full year. The stock yields 3.7% right now, a full 2 percentage points higher than the S&P 500 average of 1.6%.
Pfizer stock is trading at just 13 times its future earnings (the average healthcare stock trades at a multiple of 17). If you're looking for a solid income stock to own, this one could make for an underrated buy.
2. AbbVie
Another stock investors are not enthused about these days is AbbVie. The company's top-selling rheumatoid arthritis drug Humira is losing a level of patent protection, and this year, its sales could nosedive by as much as 37% due to rising competition from newly introduced biosimilars. That's a potentially huge hit for a product that represents such a big part of the business. During the last three months of 2022, Humira's sales totaled $5.6 billion, accounting for nearly 37% of the company's total net revenue of $15.1 billion.
But AbbVie management has said it isn't too concerned, as it believes the combination of two promising immunology drugs, Rinvoq and Skyrizi, can make up for the shortfall in the long haul. And even though the company is expecting a challenging year in 2023 with the potential drop in Humira's sales, it's projecting that its adjusted diluted earnings per share will be at least $10.70. That total is 81% higher than its dividend payments, which total $5.92 for a full year.
As is the case with Pfizer, AbbVie is facing some headwinds, but they shouldn't affect its ability to pay dividends. And with a yield of 3.9%, AbbVie offers its investors an even higher return than Pfizer. The stock price recently rallied but it remains near its 52-week low of $134.09. Its forward price-to-earnings multiple of 13 is also in line with Pfizer's. Picking up one or even both of these stocks can be a great move for investors in the long run.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But AbbVie management has said it isn't too concerned, as it believes the combination of two promising immunology drugs, Rinvoq and Skyrizi, can make up for the shortfall in the long haul. Two relatively cheap healthcare stocks offering above-average yields and that are trading near their 52-week lows are Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV). AbbVie Another stock investors are not enthused about these days is AbbVie. | Two relatively cheap healthcare stocks offering above-average yields and that are trading near their 52-week lows are Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV). AbbVie Another stock investors are not enthused about these days is AbbVie. But AbbVie management has said it isn't too concerned, as it believes the combination of two promising immunology drugs, Rinvoq and Skyrizi, can make up for the shortfall in the long haul. | Two relatively cheap healthcare stocks offering above-average yields and that are trading near their 52-week lows are Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV). AbbVie Another stock investors are not enthused about these days is AbbVie. But AbbVie management has said it isn't too concerned, as it believes the combination of two promising immunology drugs, Rinvoq and Skyrizi, can make up for the shortfall in the long haul. | Two relatively cheap healthcare stocks offering above-average yields and that are trading near their 52-week lows are Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV). AbbVie Another stock investors are not enthused about these days is AbbVie. But AbbVie management has said it isn't too concerned, as it believes the combination of two promising immunology drugs, Rinvoq and Skyrizi, can make up for the shortfall in the long haul. | cfe7268f-b483-4d0d-987c-0111993f3f4f |
22787.0 | 2023-02-14 00:00:00 UTC | 3 of the BEST Dividend Growth Stocks | ABBV | https://www.nasdaq.com/articles/3-of-the-best-dividend-growth-stocks | nan | nan | Today, I will discuss three of the best dividend growth stocks to invest in. Not only do all these companies increase their dividends at a fast pace, but they are also high-quality companies. One of those happens to be AbbVie (NYSE: ABBV), which I consider the "Investor's Trifecta."
Check out this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of Feb. 10, 2023. The video was published on Feb. 13, 2023.
10 stocks we like better than AbbVie
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Mark Roussin, CPA has positions in AbbVie and Broadcom. The Motley Fool recommends Broadcom and Lowe's Companies. The Motley Fool has a disclosure policy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One of those happens to be AbbVie (NYSE: ABBV), which I consider the "Investor's Trifecta." 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | See the 10 stocks *Stock Advisor returns as of February 8, 2023 Mark Roussin, CPA has positions in AbbVie and Broadcom. One of those happens to be AbbVie (NYSE: ABBV), which I consider the "Investor's Trifecta." 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Mark Roussin, CPA has positions in AbbVie and Broadcom. One of those happens to be AbbVie (NYSE: ABBV), which I consider the "Investor's Trifecta." | See the 10 stocks *Stock Advisor returns as of February 8, 2023 Mark Roussin, CPA has positions in AbbVie and Broadcom. One of those happens to be AbbVie (NYSE: ABBV), which I consider the "Investor's Trifecta." 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | 57871eb1-875e-4998-94a9-8e1bac380e5e |
22788.0 | 2023-02-14 00:00:00 UTC | AbbVie Inc. (ABBV) Is a Trending Stock: Facts to Know Before Betting on It | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-4 | nan | nan | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned +0.1% over the past month versus the Zacks S&P 500 composite's +3.6% change. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AbbVie is expected to post earnings of $2.58 per share for the current quarter, representing a year-over-year change of -18.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
The consensus earnings estimate of $11.14 for the current fiscal year indicates a year-over-year change of -19.1%. This estimate has changed -4.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.02 indicates a change of -1.1% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -3.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AbbVie, the consensus sales estimate of $12.52 billion for the current quarter points to a year-over-year change of -7.6%. The $52.48 billion and $53.25 billion estimates for the current and next fiscal years indicate changes of -9.6% and +1.5%, respectively.
Last Reported Results and Surprise History
AbbVie reported revenues of $15.12 billion in the last reported quarter, representing a year-over-year change of +1.6%. EPS of $3.60 for the same period compares with $3.31 a year ago.
Compared to the Zacks Consensus Estimate of $15.35 billion, the reported revenues represent a surprise of -1.52%. The EPS surprise was +1.69%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.7% over this period. AbbVie is expected to post earnings of $2.58 per share for the current quarter, representing a year-over-year change of -18.4%. | For the next fiscal year, the consensus earnings estimate of $11.02 indicates a change of -1.1% from what AbbVie is expected to report a year ago. AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.7% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.7% over this period. | Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AbbVie is rated Zacks Rank #3 (Hold). AbbVie (ABBV) has recently been on Zacks.com's list of the most searched stocks. The Zacks Large Cap Pharmaceuticals industry, to which AbbVie belongs, has lost 2.7% over this period. | 7768dfd7-1ae9-4f51-9e7c-85e13a6122cf |
22789.0 | 2023-02-14 00:00:00 UTC | Better Buy: Johnson & Johnson or AbbVie? | ABBV | https://www.nasdaq.com/articles/better-buy%3A-johnson-johnson-or-abbvie | nan | nan | Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) are two of the bigger names in healthcare stocks. The companies are favored by income-oriented investors because each has raised its dividend for 50 years or more.
This is a pivotal year for both. Johnson & Johnson is expected to complete the spinoff of its consumer health segment later this year, perhaps the biggest shake-up in the company's history. AbbVie's Humira, for years the world's top-selling drug, will begin to face generic competition in the U.S. for the first time this year.
Johnson & Johnson is a little more diversified than AbbVie, even after the expected spinoff, because it is also a pharmaceutical company and a medtech company. AbbVie, while it is strictly a pharmaceutical company, offers more growth and a better dividend. Which is the better buy right now? Let's take a look.
The case for Johnson & Johnson
The company is a great stock to own during a recession because of its consistency, regardless of economic conditions. While 2022 was a dreary year for some healthcare companies, Johnson & Johnson's shares are down around just 3% over the past year. Over the past decade, the company delivered a total return of slightly more than 180.7%.
More importantly, when a real recession hits, Johnson & Johnson stock is seen as a safe harbor by investors. During the Great Recession of 2007 to 2009, its shares dropped 21%, but that's less than half of the S&P 500's 54% decline during that period.
Part of the reason for that is the company's steady quarterly dividend, which it raised 6.6% last year to $1.13 per share, the 60th consecutive year the company has increased its dividend. Its current yield is around 2.78%.
As a mature company, its growth is slow but steady. In 2022, the company reported revenue of $94.9 billion, up 1.3% over 2021, though earnings per share (EPS) dropped 13.8% to $6.73, due in great part to the effect of a stronger dollar making the company's products overseas more expensive.
Johnson & Johnson should show greater margins once it completes its spinoff of consumer health, the only segment that saw declining sales in 2022 ($15 billion, down 0.5% over 2021). The new company, called Kenvue, filed for its initial public offering on Jan. 4, so it will likely go public this year. The talcum powder lawsuits Johnson & Johnson is facing will now fall on Kenvue, though Johnson & Johnson will retain, for now, 80.1% ownership of the new company.
The company's other divisions are thriving. Pharmaceutical reported revenue of $52.6 billion, up 1.7% year over year, and medtech saw revenue of $27.4 billion, up 1.4% over 2021. The company's acquisition of Abiomed, known for its Impella heart pump, gives medtech 12 products with more than $1 billion in annual sales.
The company forecasted 2023 revenue of between $96.9 billion and $97.9 billion, up 5% at the midpoint, over 2022. Those numbers count, for now, the consumer health segment.
JNJ Total Return Level data by YCharts
The case for AbbVie
As strong as Johnson & Johnson's total returns were over the past decade, AbbVie's were far better at 516.9%. Despite overhanging concerns about how the company will fare now that blockbuster immuno-oncology drug Humira is beginning to face generic competition in the U.S., AbbVie's shares are up more than 7% over the past year.
Investors realize the company may face a couple of down years of revenue, but also know the company's up-and-coming immuno-oncology drugs, Skyrizi and Rinvoq, could easily make up for that deficit as they continue to add applications. In 2022, AbbVie reported revenue of $58.1 billion, up 3.3% over 2021 and EPS of $6.63, up 2.8% year over year. While the company acknowledges it probably won't top 2022's revenue number the next two years, it says it expects to return to revenue growth by 2025. Also, Humira's sales won't plummet right away as it will take awhile for biosimilars to take market share.
AbbVie has an even better dividend than Johnson & Johnson. It raised its quarterly dividend by 5% this year to $1.48, the 52nd consecutive year it has increased its dividend, counting its time as part of Abbott Laboratories. If you just look at what AbbVie has done since it became an independent company in 2013, it has raised its dividend by 270% in that period. The current yield on the dividend is 3.89%.
No bad choices here
Of the two, Johnson & Johnson is certainly the safer pick, even with the talcum powder lawsuits and the complications around its consumer health spinoff. However, safer isn't necessarily better.
AbbVie has a better dividend, more dividend growth, and a slightly lower valuation (23 times earnings versus 24 times earnings). In the short term, it will likely take a hit to its share price this year once its quarterly reports show revenue slipping year over year. However, considering the company's potential in immuno-oncology therapies, it appears to be the better long-term buy right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Despite overhanging concerns about how the company will fare now that blockbuster immuno-oncology drug Humira is beginning to face generic competition in the U.S., AbbVie's shares are up more than 7% over the past year. Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) are two of the bigger names in healthcare stocks. AbbVie's Humira, for years the world's top-selling drug, will begin to face generic competition in the U.S. for the first time this year. | Despite overhanging concerns about how the company will fare now that blockbuster immuno-oncology drug Humira is beginning to face generic competition in the U.S., AbbVie's shares are up more than 7% over the past year. Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) are two of the bigger names in healthcare stocks. AbbVie's Humira, for years the world's top-selling drug, will begin to face generic competition in the U.S. for the first time this year. | Johnson & Johnson is a little more diversified than AbbVie, even after the expected spinoff, because it is also a pharmaceutical company and a medtech company. Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) are two of the bigger names in healthcare stocks. AbbVie's Humira, for years the world's top-selling drug, will begin to face generic competition in the U.S. for the first time this year. | AbbVie has an even better dividend than Johnson & Johnson. Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) are two of the bigger names in healthcare stocks. AbbVie's Humira, for years the world's top-selling drug, will begin to face generic competition in the U.S. for the first time this year. | 5c48c959-c71f-4829-a67d-e7c65ef67751 |
22790.0 | 2023-02-14 00:00:00 UTC | Ironwood (IRWD) Gets FDA Priority Tag for Linzess sNDA | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-gets-fda-priority-tag-for-linzess-snda | nan | nan | Ironwood Pharmaceuticals IRWD announced that the FDA has accepted and granted priority review to a supplemental new drug application (sNDA), seeking expanded use of Linzess (linaclotide) for children and adolescents with functional constipation (“FC”). The FDA has assigned a PDUFA date of Jun 14, 2023.
Ironwood had filed the sNDA in December last year. Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. Linzess is currently indicated for the treatment of irritable bowel syndrome with constipation (“IBS-C”) and chronic idiopathic constipation in adults above 18 years of age. Presently, it is not approved for use in patients below 18 years.
Functional constipation is one of the most common gastrointestinal issues in pediatric patients and currently has no FDA-approved treatments for children.
Shares of Ironwood have risen 5% in the past year against the industry’s decline of 14.7%.
Image Source: Zacks Investment Research
The sNDA was based on data from a phase III study, which evaluated Linzess in pediatric FC patients six to 17 years of age. The study met its primary and secondary end points. The top-line data from the study showed that Linzess led to a statistically significant and clinically meaningful improvement from baseline in 12-week spontaneous bowel movement (SBM) frequency rate. SBM frequency was the study’s primary endpoint.
With no FDA-approved prescription pediatric therapies for FC, the indication represents a significant opportunity. Approximately 6 million kids in the age bracket of 6-17 suffer from FC in the United States. Ironwood is also evaluating linaclotide in IBS-C for pediatric patients between six to 17 years.
Ironwood and partner AbbVie co-develop and co-commercialize Linzess and equally share Linzess' U.S. collaboration profits or losses as well as all development costs. Linzess is marketed by AbbVie for IBS-C in Europe and Canada under the brand name Constella. Ironwood receives royalties on sales of Constella in Europe and Canada from AbbVie. As reported by partner AbbVie, Linzess generated net sales of $1.0 billion in the United States in 2022. Ironwood reports its share of net profits from the sales of Linzess in the United States, which is included in collaborative revenues. It will report this number for 2022 when it announces its full-year results later this month.
Ironwood also has agreements with two other partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively. Ironwood records royalties on sales of Linzess from Astellas and AstraZeneca in their respective territories.
Zacks Rank & Stock to Consider
Currently, Ironwood carries a Zacks Rank #4 (Sell). A better stock in the same sector is Catalyst Pharmaceuticals CPRX, which has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Catalyst’s earnings per share estimates for 2023 have improved from 88 cents to $1.13 in the past 60 days.
Earnings of Catalyst missed estimates in two of the trailing four quarters and beat the same twice. The average negative earnings surprise for CPRX is 4.10%.
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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. | Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. Ironwood and partner AbbVie co-develop and co-commercialize Linzess and equally share Linzess' U.S. collaboration profits or losses as well as all development costs. Linzess is marketed by AbbVie for IBS-C in Europe and Canada under the brand name Constella. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Catalyst Pharmaceuticals, Inc. (CPRX) : Free Stock Analysis Report To read this article on Zacks.com click here. Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. Ironwood and partner AbbVie co-develop and co-commercialize Linzess and equally share Linzess' U.S. collaboration profits or losses as well as all development costs. | Ironwood and partner AbbVie co-develop and co-commercialize Linzess and equally share Linzess' U.S. collaboration profits or losses as well as all development costs. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Catalyst Pharmaceuticals, Inc. (CPRX) : Free Stock Analysis Report To read this article on Zacks.com click here. Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. | Linzess, developed by Ironwood and its partner AbbVie ABBV, is the sole commercial product in Ironwood’s portfolio. Ironwood and partner AbbVie co-develop and co-commercialize Linzess and equally share Linzess' U.S. collaboration profits or losses as well as all development costs. Linzess is marketed by AbbVie for IBS-C in Europe and Canada under the brand name Constella. | b2ec65dc-2f7d-499c-bf72-1a9e59faf879 |
22791.0 | 2023-02-13 00:00:00 UTC | The 7 Most Undervalued Dividend Aristocrats to Buy | ABBV | https://www.nasdaq.com/articles/the-7-most-undervalued-dividend-aristocrats-to-buy | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If there’s anything better than having at least some exposure to passive income-providing enterprises, it’s loading the boat on the most undervalued dividend aristocrats to buy. Per Investopedia, “[d]ividend aristocrats are stocks of companies that have raised their dividends for at least 25 consecutive years.” Several of these enterprises have raised them for far longer, providing confidence for investors.
Fundamentally, the most undervalued dividend aristocrats may come in hand this year due to lingering uncertainties. While speculation about a gradual return to normal lift equities for the year so far, questions started to pop up. In particular, a robust labor market implies that the Federal Reserve may still need to raise rates significantly.
Plus, we have geopolitical tensions rising throughout the world, sending jitters into the financial system. While the most undervalued dividend aristocrats don’t provide perfect mitigation, they offer significant insulation. Below are seven ideas with analyst support to consider.
AFL Aflac $71.01
DOV Dover $155.70
ABBV AbbVie $153.73
PNR Pentair $56.54
GD General Dynamics $232.88
EMR Emerson Electric $86.91
ADM Archer Daniels Midland $81.90
Aflac (AFL)
Source: jittawit21/Shutterstock.com
An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. In fact, per its public profile, it’s the largest such provider in the nation. Because of its all-around relevance, AFL performed well. In the trailing year, shares gained 7% of equity value.
At the moment, Aflac carries a forward yield of 2.4%. To be sure, it’s not the greatest amount among undervalued dividend stocks to buy. For instance, the underlying financial sector’s average yield stands at 3.18%. However, the company commands an impressive 40 years of consecutive dividend increases. Plus, its payout ratio sits at 27.78%, providing confidence regarding sustainability.
Objectively, the market prices AFL at a trailing multiple of 10.64. As a discount to earnings, Aflac ranks better than 57% of its peers. Also, the company enjoys a strong net margin of 21.69%, adding to its overall appeal.
Finally, Wall Street analysts peg AFL as a consensus moderate buy. Their average price target pings at $72.11, implying over 3% upside potential. Thus, it makes for a solid candidate for most undervalued dividend aristocrats to buy.
Dover (DOV)
Source: iQoncept/shutterstock.com
Based in Illinois, Dover (NYSE:DOV) is a conglomerate manufacturer of industrial products. So far this year, DOV delighted stakeholders. Since the January opener, shares popped up over 13%. However, it still has some work to do. In the trailing year, DOV gave up more than 4% of equity value.
Be that as it may, DOV makes for an interesting case for undervalued dividend aristocrats, particularly for investors that don’t want to rock the boat. Currently, Dover carries a forward yield of 1.32%, admittedly a low rate of passive income. The industrial sector’s average yield stands at 2.36%. However, Dover commands 67 years of consecutive dividend increases. Furthermore, its payout ratio is subterranean at 20.61%.
According to data from Gurufocus.com, the market prices DOV at a trailing multiple of 20.63. As a discount to earnings, Dover ranks better than 51.47% of its competitors. Moreover, the company features above-average stats for revenue growth and net margin. Lastly, Wall Street analysts peg DOV as a consensus moderate buy. Their average price target stands at $158.92, implying 3.7% upside potential.
AbbVie (ABBV)
Source: Shutterstock
One of the largest biopharmaceutical companies, AbbVie (NYSE:ABBV) generally performed well during the post-coronavirus pandemic new normal. In the trailing year, ABBV gained 7% of equity value (though the price action was choppy). Further, in the trailing five years, shares gained 28%. However, since the January opener, ABBV slipped more than 6%.
Still, investors might consider the red ink as an opportunity among undervalued dividend aristocrats. Presently, AbbVie offers a forward yield of 3.89%. Conspicuosly, this ranks much higher than the healthcare sector’s average yield of 1.58%. Further, AbbVie enjoys 51 years of consecutive dividend increases. To note, AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2013.
Objectively, the market prices ABBV at a trailing multiple of 20.3. As a discount to earnings, AbbVie ranks better than 53.54% of the competition. Also, ABBV trades hands at 12.41-times forward earnings, coming in below the sector median of 15.27 times.
Right now, analysts peg AbbVie as a consensus moderate buy. Moreover, their average price target stands at $163.50, implying 7.53% upside potential. Thus, it’s well worth consideration for undervalued dividend aristocrats to buy.
Pentair (PNR)
Source: Shutterstock
A water treatment company, Pentair (NYSE:PNR) might not be one of the most well-known examples of undervalued dividend aristocrats. However, its relevance has served the company well recently. In the last six months, PNR gained over 11% of equity value. And since the January opener, shares moved up more than 22%.
Like some of the more conservative plays among undervalued dividend aristocrats, Pentair represents a don’t-rock-the-boat type of investment. Presently, its forward yield pings at 1.59%. That’s noticeably lower than the industrial sector’s average yield of 2.36%. However, Pentair commands 48 years of consecutive dividend increases. Moreover, its payout ratio sits at 21.9%, a very sustainable metric.
Financially, the market prices PNR at a trailing multiple of 19.1. As a discount to earnings, Pentair ranks better than 54.12% of its peers. Also, PNR trades hands at 15.5-times forward earnings, below the sector median of 18.87 times. Turning to Wall Street, covering analysts peg Pentair as a consensus moderate buy. In addition, their average price target stands at $60.50, implying almost 10% upside potential.
General Dynamics (GD)
Source: Shutterstock
Headquartered in Reston, Virginia, General Dynamics (NYSE:GD) is an aerospace and defense corporation. As of 2020, the company represented the fifth-largest defense contractor in the world by arms sales. Cynically speaking, relevancies associated with geopolitical flashpoints helped boost GD in 2022 while other securities struggled. However, GD dipped over 6% in the year thus far.
Nevertheless, contrarians might view this as an opportunity to pick up undervalued dividend aristocrats. Currently, General Dynamics offers a forward yield of 2.16%. This stat just slips below the industrial sector’s average yield. Interestingly, GD represents a relatively new entry among the dividend aristocrats, featuring 26 years of consecutive dividend increases. Still, this circumstance implies that management won’t be too quick to give up this hard-earned status.
Objectively, the market prices GD at a trailing multiple of 19.12. As a discount to earnings, General Dynamics ranks better than 70.93% of its rivals. Also, GD trades at 18.38-times forward earnings, below the sector median of 20.79 times. Finally, covering analysts peg the defense contractor as a consensus moderate buy. Further, their average price target stands at $272.50, implying nearly 17% upside potential.
Emerson Electric (EMR)
Source: Shutterstock
Based in Missouri, Emerson Electric (NYSE:EMR) is a multinational corporation that manufactures products and provides engineering services for industrial, commercial and consumer markets. To be sure, recent developments haven’t been kind to Emerson. In the trailing year, EMR gave up more than 9% of equity value. Since the Jan. opener, shares slipped nearly 11%.
Still, for contrarians, EMR could rank among the undervalued dividend aristocrats to buy. Presently, Emerson carries a forward yield of 2.42%. In this case, the yield just pips the underlying sector’s average value. Impressively, the company commands 66 years of consecutive dividend increases. Further, its payout ratio is manageable at 45.73%.
At time of writing, the market prices EMR at a trailing multiple of 10.89. As a discount to earnings, Emerson ranks better than 76.67% of its sector peers. Other than that, the company enjoys a strong profitability metrics. Lastly, Wall Street analysts peg EMR as a consensus moderate buy. Further, their average price target stands at $103.53, implying upside potential of almost 21%.
Archer Daniels Midland (ADM)
Source: Shutterstock
Headquartered in Chicago, Illinois, Archer Daniels Midland (NYSE:ADM) is a multinational food processing and commodities trading corporation. Thanks to its unparalleled relevance, ADM performed well in 2022. During the trailing year, ADM gained over 7% of equity value. And in the past five years, shares almost doubled. That said, this year saw ADM slip over 8% so far.
Nevertheless, it’s easy to imagine astute investors targeting ADM as one of the undervalued dividend aristocrats to buy. Currently, the company offers a forward yield of 2.19%. That’s a bit higher than the consumer staple sector’s average yield of 1.89%. Moreover, the company features 51 years of consecutive dividend increases and a payout ratio of 26.74%.
Right now, the market prices ADM at a trailing multiple of 10.65. As a discount to earnings, ADM ranks better than 72.67% of its rivals. Also, shares trade hands at 12.14-times forward earnings, below the sector median of 16.25 times. Finally, Wall Street analysts peg ADM as a consensus strong buy. Their average price target stands at $104.20, implying upside potential of 27%.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post The 7 Most Undervalued Dividend Aristocrats to Buy 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. | AFL Aflac $71.01 DOV Dover $155.70 ABBV AbbVie $153.73 PNR Pentair $56.54 GD General Dynamics $232.88 EMR Emerson Electric $86.91 ADM Archer Daniels Midland $81.90 Aflac (AFL) Source: jittawit21/Shutterstock.com An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. AbbVie (ABBV) Source: Shutterstock One of the largest biopharmaceutical companies, AbbVie (NYSE:ABBV) generally performed well during the post-coronavirus pandemic new normal. In the trailing year, ABBV gained 7% of equity value (though the price action was choppy). | AFL Aflac $71.01 DOV Dover $155.70 ABBV AbbVie $153.73 PNR Pentair $56.54 GD General Dynamics $232.88 EMR Emerson Electric $86.91 ADM Archer Daniels Midland $81.90 Aflac (AFL) Source: jittawit21/Shutterstock.com An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. AbbVie (ABBV) Source: Shutterstock One of the largest biopharmaceutical companies, AbbVie (NYSE:ABBV) generally performed well during the post-coronavirus pandemic new normal. In the trailing year, ABBV gained 7% of equity value (though the price action was choppy). | AFL Aflac $71.01 DOV Dover $155.70 ABBV AbbVie $153.73 PNR Pentair $56.54 GD General Dynamics $232.88 EMR Emerson Electric $86.91 ADM Archer Daniels Midland $81.90 Aflac (AFL) Source: jittawit21/Shutterstock.com An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. AbbVie (ABBV) Source: Shutterstock One of the largest biopharmaceutical companies, AbbVie (NYSE:ABBV) generally performed well during the post-coronavirus pandemic new normal. In the trailing year, ABBV gained 7% of equity value (though the price action was choppy). | AFL Aflac $71.01 DOV Dover $155.70 ABBV AbbVie $153.73 PNR Pentair $56.54 GD General Dynamics $232.88 EMR Emerson Electric $86.91 ADM Archer Daniels Midland $81.90 Aflac (AFL) Source: jittawit21/Shutterstock.com An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. AbbVie (ABBV) Source: Shutterstock One of the largest biopharmaceutical companies, AbbVie (NYSE:ABBV) generally performed well during the post-coronavirus pandemic new normal. In the trailing year, ABBV gained 7% of equity value (though the price action was choppy). | 7c558a2c-7c0e-4c3f-bc3b-303c757a52e4 |
22792.0 | 2023-02-13 00:00:00 UTC | AbbVie Has a Mixed Outlook After Mixed Earnings | ABBV | https://www.nasdaq.com/articles/abbvie-has-a-mixed-outlook-after-mixed-earnings | nan | nan | AbbVie Inc. (NYSE: ABBV) stock is back to where it started after the day after posting a mixed fourth-quarter earnings report. The company delivered a slight beat on expected earnings but came in light on the top line.
Immediately after the report, ABBV stock gapped up 5.8% in pre-market trading. But investors began to pull back after digesting the company’s guidance. A fresh round of mostly positive analyst sentiment is fueling the stock’s rise.
The Good and the Bad About the Company’s Guidance
One reason why AbbVie’s stock took a tumble was its earnings guidance for 2023. AbbVie is now forecasting its full-year earnings per share (EPS) to come in between $10.70 and $11.10.
The bad news is that the high end of that range will come in lower than the consensus range offered by analysts which is $11.77 and $11.23 on the low end. But the good news is that on theearnings call management stated its conviction that the $10.70 was a solid floor and that it was possible that earnings could see some upside revisions.
It’s All About Humira
Any investor following AhbVie for the last couple of years understands the expiring patent protection on its blockbuster drug, Humira. The drug has generated over $200 billion over 20 years. Even with that, it’s hard to understate Humira's impact on the company’s revenue.
Humira sales came to $5.6 billion in the most recent quarter. AbbVie generated $57.87 billion in revenue in 2023. If we simply assume that full-year sales of Humira were roughly $20 billion. That seems logical because the company is projecting Humira sales to be 37% lower in 2023 to $13.7 billion. And with a 23% profit margin, it’s fair to suggest that Humira boost AbbVie’s earnings per share.
So with Humira now facing biosimilar competition in the United States, the concern is about how much erosion will the company see in its sales. There are two reasons for cautious optimism.
First, the company lost patent protection for Humira in 2018. In 2017, global Humira sales came in at $18.4 billion and included approximately $6 billion from outside the United States. If this year’s sales were approximately $20 billion, then the company has either made up a lot of international revenue. Or the erosion in Europe has been less than feared.
Of course, it could just make the loss of patent protection in the U.S. that much worse. But that, as they say, is why they play the game.
The second reason for optimism is the company’s successful launch of Skyrizi and Rinvoq. AbbVie believes that, by 2025, the two drugs will bring in a combined $15 billion in revenue divided equally between two drugs. The pair combined for approximately $2.3 billion in revenue in the last quarter, suggesting that AbbVie is on track to hit that number.
Wait for a Better Entry Point Before Buying AbbVie
Analyst sentiment has been generally bullish since the company’s earnings report. But the price targets don’t contradict the consensus price target, which still comes in at $161, a mere 5.6% gain from the stock’s current price.
AbbVie has hung its hat on its reliable dividend for years. And if you’re an income investor, I can’t tell you ABBV stock is a bad investment. AbbVie is a Dividend King that has increased its dividend in the last 51 years and pays out $5.92 per share annually with a yield of 3.89%.
That may be enough in a year when stocks fall further, but I'd be waiting for a better entry point if you don't currently have a position.
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. (NYSE: ABBV) stock is back to where it started after the day after posting a mixed fourth-quarter earnings report. Wait for a Better Entry Point Before Buying AbbVie Analyst sentiment has been generally bullish since the company’s earnings report. Immediately after the report, ABBV stock gapped up 5.8% in pre-market trading. | The Good and the Bad About the Company’s Guidance One reason why AbbVie’s stock took a tumble was its earnings guidance for 2023. The pair combined for approximately $2.3 billion in revenue in the last quarter, suggesting that AbbVie is on track to hit that number. Wait for a Better Entry Point Before Buying AbbVie Analyst sentiment has been generally bullish since the company’s earnings report. | The Good and the Bad About the Company’s Guidance One reason why AbbVie’s stock took a tumble was its earnings guidance for 2023. AbbVie Inc. (NYSE: ABBV) stock is back to where it started after the day after posting a mixed fourth-quarter earnings report. Immediately after the report, ABBV stock gapped up 5.8% in pre-market trading. | The Good and the Bad About the Company’s Guidance One reason why AbbVie’s stock took a tumble was its earnings guidance for 2023. AbbVie Inc. (NYSE: ABBV) stock is back to where it started after the day after posting a mixed fourth-quarter earnings report. Immediately after the report, ABBV stock gapped up 5.8% in pre-market trading. | 6977e9e0-9861-4b6a-a335-5dc1938f3068 |
22793.0 | 2023-02-11 00:00:00 UTC | Here's Exactly How AbbVie Stock Can Beat the Market In 2023 | ABBV | https://www.nasdaq.com/articles/heres-exactly-how-abbvie-stock-can-beat-the-market-in-2023 | nan | nan | AbbVie (NYSE: ABBV) stated this week that its earnings could potentially plunge more than 20% this year. The culprit is no secret: The company's top-selling drug, Humira, now faces biosimilar competition in the U.S.
With this forecast, you might think that AbbVie is destined to perform poorly for a while. However, that isn't a foregone conclusion. Here's exactly how AbbVie stock can beat the market in 2023.
Win the expectations game
The single most important thing AbbVie needs to do to outperform major market indexes is to win the expectations game. Everyone who follows AbbVie knows that the company's revenue and earnings will decline significantly this year. Those assumptions are baked into the stock's price. But if AbbVie can exceed expectations -- even bleak ones -- its shares will almost certainly rise.
Perhaps the most obvious way for AbbVie to top expectations is for Humira to hold up relatively well against biosimilar competition. There's already some reason for optimism on this front. AbbVie CEO Rick Gonzalez said in the recent quarterly update that U.S. Humira sales should fall by around 37% this year. That's at the low end of the company's previous projection of sales erosion between 35% and 55%.
Investors shouldn't be overly giddy if AbbVie's first- and second-quarter results show relatively minor sales declines for Humira. There's only one biosimilar to Humira on the market right now. By mid-year, that number could increase to 10. Therefore, AbbVie anticipates steeper sales erosion in the second half of the year. However, it's still quite possible that Humira's sales will be better than expected in 2023.
AbbVie could also have stronger performances from other drugs in its lineup. The best candidates to provide an extra boost are Humira's two successors, Rinvoq and Skyrizi. As it stands right now, AbbVie projects that the two drugs will together rake in $11.1 billion this year.
Get help from the economy
On a related note, AbbVie could beat expectations (and the market) if it gets help from the economy. The company's aesthetics products would especially benefit from a strong economic recovery.
To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. It forecasts a 10% decline for the U.S. filler market (in which AbbVie's Juvederm is the leader). But Gonzalez said that if the U.S. economy recovers, AbbVie "would fully expect for the aesthetics business to return back to historical growth rates very quickly."
There is perhaps a twist for investors to consider, though. AbbVie trounced the S&P 500 in 2022. Worries about high inflation and a potential economic downturn weighed heavily on the broader market, but didn't do so for AbbVie.
I think one key reason this was the case is that AbbVie is viewed widely as a safe haven stock. Investors typically turn to these kinds of stocks when they're unsure about what the future holds. Even the certainty that Humira was about to lose U.S. exclusivity wasn't enough to drag AbbVie stock down in that environment.
What economic conditions give AbbVie the best chance to again beat the market in 2023? Perhaps the best answer is an economy that isn't so weak that the company's aesthetics franchise struggles significantly, but isn't so strong that investors move away from safe haven stocks.
Don't forget the dividend
It's easy to sometimes overlook the fact that total returns are more important than share price gains. Don't forget AbbVie's dividend as a key weapon to help the stock beat the market this year.
AbbVie is a Dividend King with 51 consecutive years of dividend increases. Its dividend yield currently stands at 4.0%. This attractive yield gives AbbVie an extra boost in outperforming the market. Indeed, over the last 10 years, AbbVie's total return was over 520%, while its share price gains during the period were below 320%. That shows the power of the drugmaker's dividend.
I don't know whether or not AbbVie will actually beat the market in 2023. However, with its strong dividend and solid post-Humira strategy, my prediction is that the stock will be a big winner for investors 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 culprit is no secret: The company's top-selling drug, Humira, now faces biosimilar competition in the U.S. With this forecast, you might think that AbbVie is destined to perform poorly for a while. Investors shouldn't be overly giddy if AbbVie's first- and second-quarter results show relatively minor sales declines for Humira. But Gonzalez said that if the U.S. economy recovers, AbbVie "would fully expect for the aesthetics business to return back to historical growth rates very quickly." | Indeed, over the last 10 years, AbbVie's total return was over 520%, while its share price gains during the period were below 320%. AbbVie (NYSE: ABBV) stated this week that its earnings could potentially plunge more than 20% this year. The culprit is no secret: The company's top-selling drug, Humira, now faces biosimilar competition in the U.S. With this forecast, you might think that AbbVie is destined to perform poorly for a while. | Here's exactly how AbbVie stock can beat the market in 2023. Don't forget AbbVie's dividend as a key weapon to help the stock beat the market this year. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Keith Speights has positions in AbbVie. | Here's exactly how AbbVie stock can beat the market in 2023. I don't know whether or not AbbVie will actually beat the market in 2023. AbbVie (NYSE: ABBV) stated this week that its earnings could potentially plunge more than 20% this year. | 113c652a-2583-4184-a3d6-24e15e605f67 |
22794.0 | 2023-02-10 00:00:00 UTC | Pharma Stock Roundup: AZN, ABBV Mixed Q4 Results, BAYRY's New CEO | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-azn-abbv-mixed-q4-results-bayrys-new-ceo | nan | nan | This week, AstraZeneca AZN and AbbVie ABBV announced their fourth-quarter results, with both companies beating estimates for earnings but missing on sales, like most of their counterparts. Bayer BAYRY announced the appointment of Bill Anderson as its new chief executive officer (CEO). Roche RHHBY and J&J JNJ announced positive data from clinical studies on pipeline candidates for rare diseases.
Recap of the Week’s Most Important Stories
AstraZeneca and AbbVie’s Mixed Q4 Results: AstraZeneca’s fourth-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Total revenues rose 1% in the quarter at constant exchange rates (CER). Higher sales of key medicines like Tagrisso, Lynpaza and Farxiga were offset by a steep decline in sales of AstraZeneca’s COVID vaccine, Vaxzevria. Excluding Vaxzevria, total revenues in the quarter increased 17%.
However, AstraZeneca’s sales outlook for 2023 looked encouraging as it expects sales, excluding COVID products, to rise by a double-digit percentage.
AbbVie too beat estimates for earnings but missed the same for sales. Sales rose 3.8% as higher sales of key drugs like Rinvoq, Skyrizi and Vraylar were partially offset by lower sales of Juvederm and Imbruvica. AbbVie issued a fresh EPS guidance for 2023. The company expects adjusted EPS in the range of $10.70-$11.10, suggesting a year-over-year decline of 19.4-22.3%.
Bayer Gets a New CEO: Bayer announced the appointment of Bill Anderson, Roche’s former CEO of Pharmaceuticals Division, as its new CEO, effective from Jun 1, 2023. Bill replaces Bayer’s present CEO, Werner Baumann, whose service ends in May 2023. Bayer’s board was under a lot of investor pressure to change its CEO who had served the company for 35 years reportedly due to the failure of its 2018 Monsanto acquistion. Bayer said the selection process began in mid-2022.
J&J’s Phase II Study on Nipocalimab Meets Primary Goal: J&J’s proof-of-concept phase II study, evaluating nipocalimab for treating pregnant individuals at high risk of severe hemolytic disease of the fetus and newborn (HDFN), met the primary endpoint. In the study, the majority of pregnant women who were given nipocalimab achieved a live birth at or after the gestational age (GA) of 32 weeks, without the need for an intrauterine transfusion (IUT) throughout their entire pregnancy. HDFN is a rare condition in which life-threatening anemia can occur in the fetus when the blood types of a pregnant individual and their fetus are incompatible
Nipocalimab was added to J&J’s pipeline with the 2020 acquisition of Momenta Pharmaceuticals. Nipocalimab is being evaluated in mid-and late-stage development for autoantibody-driven rare diseases and has the potential to create a pipeline in a product
AstraZeneca’s Forxiga Gets Europe Nod for a Broader Indication: The European Commission approved the label expansion of AstraZeneca’s Forxiga for the treatment of symptomatic chronic heart failure with mildly reduced or preserved ejection fraction, (HFmrEF, HFpEF). At present, Forxiga is already approved in the EU for the treatment of symptomatic chronic heart failure with reduced ejection fraction (HFrEF) in adults with and without type-II diabetes. With approval for the broader indication in heart failure, Forxiga will be the first heart failure therapy indicated across the full ejection fraction range in Europe. The approval was based on positive results from the DELIVER phase III study. A regulatory application for a broader indication in HF is under review in the United States.
Roche’s Pivotal Study on PNH Drug Meets Goals: Roche’s global phase III COMMODORE 2 study, evaluating the efficacy and safety of crovalimab for paroxysmal nocturnal hemoglobinuria (PNH), a rare, life-threatening blood condition, met its co-primary efficacy endpoints by showing that crovalimab achieved disease control in patients with PNH who have not been previously treated with complement inhibitors. In the study, crovalimab was also non-inferior to eculizumab, a current standard-of-care medicine, which is given intravenously every two weeks. The study’s co-primary efficacy endpoints were transfusion avoidance and control of hemolysis.
Roche also announced efficacy and safety data from the phase III COMMODORE 1 study conducted on PNH patients switching from currently approved C5 inhibitors to crovalimab. The study supported crovalimab’s favorable benefit-risk profile as seen in the pivotal COMMODORE 2 study. Results from both studies will be submitted to regulatory authorities soon.
The NYSE ARCA Pharmaceutical Index rose 0.9% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, AstraZeneca rose the most (6.8%), while J&J declined the most (2.4%).
In the past six months, Merck has risen the most (19.7%), while Pfizer declined the most (13.1%).
(See the last pharma stock roundup here: MRK, LLY, PFE Q4 Results, J&J’s Loss in Talc Lawsuits)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This week, AstraZeneca AZN and AbbVie ABBV announced their fourth-quarter results, with both companies beating estimates for earnings but missing on sales, like most of their counterparts. Recap of the Week’s Most Important Stories AstraZeneca and AbbVie’s Mixed Q4 Results: AstraZeneca’s fourth-quarter results were mixed as it beat estimates for earnings but missed the same for sales. AbbVie too beat estimates for earnings but missed the same for sales. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. This week, AstraZeneca AZN and AbbVie ABBV announced their fourth-quarter results, with both companies beating estimates for earnings but missing on sales, like most of their counterparts. Recap of the Week’s Most Important Stories AstraZeneca and AbbVie’s Mixed Q4 Results: AstraZeneca’s fourth-quarter results were mixed as it beat estimates for earnings but missed the same for sales. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. This week, AstraZeneca AZN and AbbVie ABBV announced their fourth-quarter results, with both companies beating estimates for earnings but missing on sales, like most of their counterparts. Recap of the Week’s Most Important Stories AstraZeneca and AbbVie’s Mixed Q4 Results: AstraZeneca’s fourth-quarter results were mixed as it beat estimates for earnings but missed the same for sales. | AbbVie too beat estimates for earnings but missed the same for sales. This week, AstraZeneca AZN and AbbVie ABBV announced their fourth-quarter results, with both companies beating estimates for earnings but missing on sales, like most of their counterparts. Recap of the Week’s Most Important Stories AstraZeneca and AbbVie’s Mixed Q4 Results: AstraZeneca’s fourth-quarter results were mixed as it beat estimates for earnings but missed the same for sales. | b0f81bd7-fa5c-459e-abc9-77a74304c5af |
22795.0 | 2023-02-10 00:00:00 UTC | Compared to Estimates, AbbVie (ABBV) Q4 Earnings: A Look at Key Metrics | ABBV | https://www.nasdaq.com/articles/compared-to-estimates-abbvie-abbv-q4-earnings%3A-a-look-at-key-metrics | nan | nan | For the quarter ended December 2022, AbbVie (ABBV) reported revenue of $15.12 billion, up 1.6% over the same period last year. EPS came in at $3.60, compared to $3.31 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $15.35 billion, representing a surprise of -1.52%. The company delivered an EPS surprise of +1.69%, with the consensus EPS estimate being $3.54.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue-Venclexta-United States: $269 million versus $269.60 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8% change.
Revenue-Imbruvica-International: $274 million versus the five-analyst average estimate of $272.54 million. The reported number represents a year-over-year change of +1.1%.
Revenue-Mavyret-United States: $193 million versus the five-analyst average estimate of $196.22 million. The reported number represents a year-over-year change of -2%.
Revenue-Mavyret-International: $187 million versus $200.65 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -18.7% change.
Net Product Sales-Venclexta: $516 million compared to the $528.66 million average estimate based on five analysts. The reported number represents a change of +5.7% year over year.
Net Product Sales-Imbruvica: $1.12 billion compared to the $1.12 billion average estimate based on five analysts. The reported number represents a change of -19.5% year over year.
Immunology-Skyrizi-Total: $1.58 billion compared to the $1.55 billion average estimate based on five analysts. The reported number represents a change of +76.1% year over year.
Rinvoq- Total: $770 million versus the five-analyst average estimate of $867.71 million. The reported number represents a year-over-year change of +48.9%.
Hematologic Oncology-Total: $1.63 billion versus the five-analyst average estimate of $1.54 billion. The reported number represents a year-over-year change of -12.9%.
Immunology-Total: $7.93 billion compared to the $8 billion average estimate based on five analysts. The reported number represents a change of +17.5% year over year.
Neuroscience- Total: $1.71 billion versus $1.90 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.4% change.
Other Neuroscience- Total: $61 million versus $132.51 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -66.7% change.
View all Key Company Metrics for AbbVie here>>>
Shares of AbbVie have returned -8% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the quarter ended December 2022, AbbVie (ABBV) reported revenue of $15.12 billion, up 1.6% over the same period last year. Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue-Venclexta-United States: $269 million versus $269.60 million estimated by five analysts on average. View all Key Company Metrics for AbbVie here>>> | Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue-Venclexta-United States: $269 million versus $269.60 million estimated by five analysts on average. For the quarter ended December 2022, AbbVie (ABBV) reported revenue of $15.12 billion, up 1.6% over the same period last year. View all Key Company Metrics for AbbVie here>>> | Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue-Venclexta-United States: $269 million versus $269.60 million estimated by five analysts on average. For the quarter ended December 2022, AbbVie (ABBV) reported revenue of $15.12 billion, up 1.6% over the same period last year. View all Key Company Metrics for AbbVie here>>> | For the quarter ended December 2022, AbbVie (ABBV) reported revenue of $15.12 billion, up 1.6% over the same period last year. Here is how AbbVie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue-Venclexta-United States: $269 million versus $269.60 million estimated by five analysts on average. View all Key Company Metrics for AbbVie here>>> | 60ccf5e5-ceec-45d0-ad80-22fa749613e7 |
22796.0 | 2023-02-10 00:00:00 UTC | SVB Leerink Upgrades AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/svb-leerink-upgrades-abbvie-abbv | nan | nan | On February 10, 2023, SVB Leerink upgraded their outlook for AbbVie from Underperform to Market Perform.
Analyst Price Forecast Suggests 11.73% Upside
As of February 10, 2023, the average one-year price target for AbbVie is $166.14. The forecasts range from a low of $136.35 to a high of $210.00. The average price target represents an increase of 11.73% from its latest reported closing price of $148.70.
The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.87%. The projected annual EPS is $11.88, an increase of 57.73%.
What are large shareholders doing?
Jpmorgan Chase & holds 58,479K shares representing 3.31% ownership of the company. In it's prior filing, the firm reported owning 56,111K shares, representing an increase of 4.05%. The firm decreased its portfolio allocation in ABBV by 5.86% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 52,745K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 52,037K shares, representing an increase of 1.34%. The firm decreased its portfolio allocation in ABBV by 7.42% over the last quarter.
Capital International Investors holds 45,827K shares representing 2.59% ownership of the company. In it's prior filing, the firm reported owning 43,155K shares, representing an increase of 5.83%. The firm decreased its portfolio allocation in ABBV by 0.21% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,081K shares representing 2.27% ownership of the company. In it's prior filing, the firm reported owning 39,113K shares, representing an increase of 2.41%. The firm decreased its portfolio allocation in ABBV by 7.15% over the last quarter.
Capital Research Global Investors holds 36,193K shares representing 2.05% ownership of the company. In it's prior filing, the firm reported owning 26,296K shares, representing an increase of 27.34%. The firm increased its portfolio allocation in ABBV by 27.22% over the last quarter.
What is the Fund Sentiment?
There are 4443 funds or institutions reporting positions in AbbVie. This is an increase of 41 owner(s) or 0.93% in the last quarter. Average portfolio weight of all funds dedicated to ABBV is 0.90%, an increase of 0.47%. Total shares owned by institutions increased in the last three months by 0.29% to 1,425,997K shares. The put/call ratio of ABBV is 0.87, indicating a bullish outlook.
Abbvie Background Information
(This description is provided by the company.)
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. The Company strives to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On February 10, 2023, SVB Leerink upgraded their outlook for AbbVie from Underperform to Market Perform. AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. Analyst Price Forecast Suggests 11.73% Upside As of February 10, 2023, the average one-year price target for AbbVie is $166.14. | On February 10, 2023, SVB Leerink upgraded their outlook for AbbVie from Underperform to Market Perform. Analyst Price Forecast Suggests 11.73% Upside As of February 10, 2023, the average one-year price target for AbbVie is $166.14. The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.87%. | On February 10, 2023, SVB Leerink upgraded their outlook for AbbVie from Underperform to Market Perform. Analyst Price Forecast Suggests 11.73% Upside As of February 10, 2023, the average one-year price target for AbbVie is $166.14. The projected annual revenue for AbbVie is $55,229MM, a decrease of 4.87%. | The firm increased its portfolio allocation in ABBV by 27.22% over the last quarter. On February 10, 2023, SVB Leerink upgraded their outlook for AbbVie from Underperform to Market Perform. Analyst Price Forecast Suggests 11.73% Upside As of February 10, 2023, the average one-year price target for AbbVie is $166.14. | 1c7f287f-99db-4cc8-b726-d04651f61f73 |
22797.0 | 2023-02-09 00:00:00 UTC | ABBV Makes Bullish Cross Above Critical Moving Average | ABBV | https://www.nasdaq.com/articles/abbv-makes-bullish-cross-above-critical-moving-average | nan | nan | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $149.06, changing hands as high as $153.70 per share. AbbVie Inc shares are currently trading up about 5.5% 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 $134.09 per share, with $175.91 as the 52 week high point — that compares with a last trade of $152.66. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $149.06, changing hands as high as $153.70 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $175.91 as the 52 week high point — that compares with a last trade of $152.66. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Howard Marks Stock Picks Funds Holding BBSA Top Ten Hedge Funds Holding FPA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $149.06, changing hands as high as $153.70 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $175.91 as the 52 week high point — that compares with a last trade of $152.66. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Howard Marks Stock Picks Funds Holding BBSA Top Ten Hedge Funds Holding FPA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $149.06, changing hands as high as $153.70 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $134.09 per share, with $175.91 as the 52 week high point — that compares with a last trade of $152.66. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Howard Marks Stock Picks Funds Holding BBSA Top Ten Hedge Funds Holding FPA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $149.06, changing hands as high as $153.70 per share. AbbVie Inc shares are currently trading up about 5.5% 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 $134.09 per share, with $175.91 as the 52 week high point — that compares with a last trade of $152.66. | fe6c9f27-bab5-49e2-a52b-370ac13038ba |
22798.0 | 2023-02-09 00:00:00 UTC | AbbVie (ABBV) Q4 2022 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q4-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q4 2022 Earnings Call
Feb 09, 2023, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. Thank you for standing by. Welcome to the AbbVie fourth quarter 2022earnings conference call [Operator instructions] I would now like to turn -- introduce the call to Ms.
Liz Shea, senior vice president of investor relations. You may proceed.
Liz Shea -- Vice President, Investor Relations
Good morning and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Rob Michael, vice chairman and president; Jeff Stewart, executive vice president, chief commercial officer; Carrie Strom, senior vice president and president, allergan aesthetics; and Tom Hudson, senior vice president, R&D, and chief scientific officer. Joining us for the Q&A portion of the call are Scott Reents, senior vice president and chief financial officer; and Roopal Thakkar, vice president, global regulatory affairs. Before we get started, I'll note that some statements we make today may be considered forward-looking statements based on our current expectations.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand Abbvie's business performance.
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These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions. So, with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll provide perspective on our overall performance and outlook and then Jeff, Carrie, Tom, and Rob for your business highlights, pipeline progress, financial results, and 2023 guidance in more detail. Today, we reported another strong quarter and a highly productive year for AbbVie.
We delivered full year 2022 adjusted earnings per share of $13.77, reflecting double-digit growth. Total net revenues of more than $58 billion were up 5.1% on an operational basis, driven by impressive growth from Skyrizi and Rinvoq, which generated nearly $7.7 billion of combined sales in 2022. As I reflect on our 10 years as an independent company, we have made excellent progress evolving AbbVie into a leading biopharmaceutical company. We have successfully created a well-diversified portfolio with multiple growth platforms in attractive and sustainable markets.
This includes the rapid development and launch of Skyrizi and Rinvoq across all of Humira's major indications, plus a distinct new indication, atopic dermatitis. We anticipate these two products will collectively exceed the peak revenues achieved by Humira by 2027, with significant growth expected through the end of the decade. We're also building a substantial portfolio of novel heme and solid tumor assets for oncology. The anticipated launches and indication ramp of several new products like venetoclax in multiple myeloma and MDS, epcoritamab across B-cell malignancies, and Teliso-V, a new treatment option in non-small cell lung cancer will collectively support growth in the middle of the decade.
We expect continued robust performance in neuroscience with our leading on-market portfolio to address migraine and psychiatric conditions, as well as a promising pipeline for neurodegenerative diseases. And we see significant long-term growth potential for aesthetics, an extremely attractive market which is underpenetrated, where we have the leading position in toxins with Botox Cosmetic and fillers with Juvederm. Second, we have established a productive, innovation-driven R&D organization with a robust pipeline. Our R&D engine has discovered and developed five major billion-dollar-plus medicines over the past decade.
We are committed to pursuing new ways to address patients' most serious health issues and have more than doubled our annual R&D investment since our inception. The breadth and the depth of our pipeline, which now includes more than 80 programs across all development stages, further supports our long-term growth outlook. Lastly, we have maintained a strong financial position to fully invest in innovative science and commercial initiatives across our therapeutic categories to drive long-term growth. We've also used that financial position to support a robust and growing dividend, which we have increased by 270% since our inception, and we have also used it as capacity to pursue value-enhancing business development to augment our existing portfolio and pipeline.
With these strong operating characteristics, we remain well-positioned to absorb the impact from the Humira LOE and quickly return to robust sales growth in 2025. As it pertains to AbbVie's near-term outlook, we anticipate 2023 adjusted earnings per share of $10.70 to $11.10. This guidance range contemplates the expected headwind from direct biosimilar competition, with U.S. Humira sales down approximately 37%, which is at the lower end of our previous erosion projection of 35% to 55%; robust performance from Skyrizi and Rinvoq, which we expect will collectively generate $11.1 billion of revenue, reflecting year-over-year growth of nearly 45%; revenue pressure in hema, with recent challenging market and share dynamics impacting Imbruvica, partially offset by strong sales growth of venetoclax; double-digit revenue growth of neuroscience, including accelerating sales of Vraylar with our recent MDD approval.
Our guidance also contemplates the transient economic impact, primarily in the U.S., on a steady procedure growth, affecting near-term performance for toxins, fillers, and body contouring. Given that it's difficult to predict the duration of economic and inflationary pressures, we have not assumed a recovery in 2023. And finally, this guidance reflects increasing investments in both R&D and SG&A to support our long-term growth opportunities. It's also important to note that while it is possible 2023 could outperform our guidance, depending upon the shape of the Humira erosion curve, we don't anticipate that 2024 earnings will be lower than the $10.70 floor of the 2023 adjusted earnings per share guidance, which we are issuing today.
In summary, we are executing well across our business and see numerous opportunities for our diverse portfolio to drive long-term growth. With that, I'll turn the call over to Jeff. Jeff.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Thank you, Rick. I'll start with the quarterly results for immunology, which delivered total revenues of more than $7.9 billion, up 19.5% on an operational basis. Skyrizi and Rinvoq are performing exceptionally well, contributing more than $2.3 billion in combined sales this quarter, reflecting operational growth of 70%. Skyrizi continues to exceed our expectations, outperforming our initial full year guidance by more than $750 million.
Global revenues this quarter were nearly $1.6 billion, up 12.8% on a sequential basis. Skyrizi is achieving strong market share momentum globally with in-play psoriatic disease leadership in 24 countries and total market share leadership in more than a dozen key markets. In psoriasis, Skyrizi's total prescription share of the U.S. biologic psoriasis market has increased to more than 28%, and there is substantial room for continued growth in psoriasis based on Skyrizi leading in-play share of new and switching patients, which remains at nearly 50%.
Psoriatic arthritis is also providing a nice inflection to Skyrizi sales, especially in the U.S. dermatology segment, where we have achieved approximately 10% share of the total biologic market. And we are also seeing encouraging Skyrizi new patient starts in the U.S. room segment as well, which accounts for more than 80% of all PsA treatments.
Skyrizi is being co-positioned with Rinvoq to rheumatologists, where these two products combined have already achieved a leading in-play PsA room share of approximately 16%. In Crohn's disease, we are making excellent progress with the U.S. launch. Feedback from gastroenterologists has been very positive, especially as it relates to Skyrizi's novel dosing and overall clinical profile.
We recently started DTC promotion for this indication and are already achieving a total in-play patient share of more than 15%. Turning now to Rinvoq, which delivered global sales of $770 million, representing double-digit sequential growth. In rheumatology, global prescriptions are ramping nicely across Rinvoq's four approved indications: RA, PsA, ankylosing spondylitis, and nonradiographic axial SpA. We continue to see positive market share momentum in both the U.S.
and across key international geographies. In atopic dermatitis, Rinvoq is demonstrating strong uptake in both treatment-naive and second-line patients globally. Feedback from the global derm community supports the importance of Rinvoq as a long-term chronic therapy to control atopic dermatitis, especially as it relates to skin clearance and rapid itch relief. Rinvoq AD prescriptions are trending up globally, with 20% to 35% in-play shares across our major international markets and a mid-teens in-play share in the U.S., which are both tracking in line with our expectations.
In gastroenterology, the launch trends for Rinvoq in ulcerative colitis are very strong. Physicians have been pleased with Rinvoq's high rates of endoscopic healing, as well as the speed of onset, which has quickly resulted in Rinvoq achieving approximately 20% in-play share in the U.S. second-line plus setting. Internationally, Rinvoq UC is now approved in 50 countries, with reimbursement discussions progressing in line with our expectations.
This strong adoption in UC among gastroenterologists is very encouraging for Rinvoq's potential in Crohn's disease as well. We are on track for U.S. and EMA regulatory decisions in the second quarter and are preparing for the commercial launch. Global Humira sales were approximately $5.6 billion, up 6% on an operational basis, with 9.9% growth in the U.S., partially offset by international, where revenues were down 16.9% operationally due to biosimilar competition.
In the U.S., we have secured broad formulary access for Humira, encompassing more than 90% of all covered lives, which enables us to compete for patient volume at parity to biosimilars. Turning now to hematologic oncology, where total revenues were $1.6 billion, down 11.2% on an operational basis. Imbruvica global revenues were approximately $1.1 billion, down 19.5%. The U.S.
performance continues to be impacted by challenging market and share dynamics attributed to the pace of COVID recovery, as well as increasing competition. Venclexta global sales were $516 million, up 12.2% on an operational basis, with continued strong demand in both AML and CLL. We are particularly pleased with the international performance, driven by robust share gains in the EU and across Asia. In neuroscience, revenues were $1.7 billion, up 5.1% on an operational basis.
Vraylar continues to demonstrate robust growth. Sales of $565 million were up 15.5% on an operational basis, reflecting increasing market share, primarily in bipolar I disorder. Vraylar was also recently approved as an adjunctive treatment for major depressive disorder, marking its fourth approved indication and adding a new substantial opportunity for long-term growth. We are very pleased with the A-MDD label, which confirms Vraylar's strong benefit-risk profile, dosing flexibility, with positive efficacy results for both the 1.5- and three-milligram dose, and the ability to reduce depressive symptoms as an add-on for the partial responders who present, and this is important, with or without symptoms of anxiety.
The A-MDD launch is off to a strong start, and we are already seeing a nice inflection in total new prescriptions in the marketplace. Within migraine, our leading oral CGRP portfolio contributed $249 million in combined sales this quarter, reflecting growth of nearly 30% as we continue to see strong prescription demand for both Ubrelvy and Qulipta. We are also pursuing in the U.S. commercial approval for Qulipta as a preventative treatment for patients with chronic migraine, which would further strengthen our competitive profile and uniquely position Qulipta as the only oral CGRP available as a preventative treatment for patients with both chronic and episodic migraine.
Rounding out the migraine portfolio is Botox Therapeutic, a unique treatment with a dozen approved therapeutic indications and the clear branded leader in chronic migraine prevention. Total Botox Therapeutic's sales were $728 million, up 10.7% on an operational basis. And last, we continue to prepare for the launch of ABBV-951 in both the U.S., Europe, and Japan later this year. 951 represents a potentially transformative next-generation therapy for advanced Parkinson's disease and $1 billion-plus peak sales opportunity.
So, overall, I'm pleased with the performance and the momentum across the therapeutic portfolio. And with that, I'll turn the call over to Carrie for additional comments on aesthetics. Carrie.
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Thank you, Jeff. Full year 2022 global aesthetics sales were approximately $5.3 billion, reflecting growth of 5% on an operational basis. Global Botox Cosmetic sales were approximately $2.6 billion, up nearly 21% operationally; and global Juvederm sales were approximately $1.4 billion, down roughly 2% operationally. Our global aesthetics portfolio grew in 2022 despite several headwinds, most notably inflationary dynamics in the U.S., COVID-related lockdowns in China, and suspension of our operations in Russia.
In the U.S., we began to see a slowdown in aesthetic procedures in the second quarter of last year, which coincided with a softening in economic metrics. These trends continued through the end of the year, with the most significant impact on higher-priced, more deferrable procedures, including fillers and body contouring. Despite these economic pressures, U.S. Botox Cosmetic sales grew approximately 16% in 2022, driven by strong first half sales, with growth moderating over the remainder of the year.
Similarly, U.S. Juvederm saw strong growth in the first quarter of the year, but filler market declines throughout the second half of the year, resulted in full year sales being down approximately 17% versus a robust 2021. We continue to track a number of key external economic metrics, including real personal consumption and the U.S. Consumer Confidence Index.
While we have not seen major improvements in these metrics, data over the course of the last several months have shown stabilization. It remains difficult to predict the duration of these economic headwinds, but as Rick noted, we have modeled them to persist through the end of 2023. Our international aesthetics portfolio continued to demonstrate robust growth, with a strong performance in most major markets offsetting impacts from China and Russia. International Botox Cosmetic sales of nearly $1 billion were up approximately 29% operationally, and international Juvederm sales grew approximately 9% on an operational basis.
We delivered this performance despite the significant headwinds we faced last year in our two largest international filler markets, China and Russia. While our aesthetics portfolio in China continues to be impacted by COVID-related headwinds, the current wave appears to have peaks. We expect the situation to improve through the first half of 2023, with full recovery in China beginning in the third quarter. Despite the transitory challenges we're facing, we remain confident in the long-term outlook for our aesthetics portfolio.
Consumers continue to be very interested in the aesthetics category and in our brands. We see substantial room for further market penetration across each of our aesthetics categories and are continuing to invest to support long-term growth. Our promotional efforts are focused on driving more consumers into our customers' offices while increasing retention and productivity of existing patients. We have built a best-in-class commercial technology team known for developing our consumer loyalty program, Alle.
We have over 5 million consumers who use Alle in more than 20,000 of our customers' offices. We have a series of new technology products launching this year to drive growth in the aesthetics market and support our customers and consumers. Internationally, we are focused on markets with significant growth potential. We have increased investments in injector training and expanded our field force in China, which is our second-largest market; Latin America, which is very aesthetically oriented; and Japan, which is growing rapidly and is expected to be one of our fastest-growing markets in 2023.
Additionally, we are focused on delivering new product innovation. This year, we're launching two new fillers in the U.S.: Volux for improvement of jawline, which was approved late last year; and [Inaudible] for enhanced skin quality attributes, including hydration, which is expected to be approved in the first half of 2023. We're also continuing to launch HArmonyCa, our hybrid bio-stimulatory HA filler in several international markets. The investments we're making to support long-term growth for our aesthetics portfolio, along with a stabilizing economic outlook and improving COVID dynamics in China, leave us well-positioned for future growth.
With that, I'll turn the call over to Tom.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Thank you, Carrie. We expect significant program advancement across all stages of our pipeline this year. In immunology, we continue to make very good progress with programs in our core diseases, as well as in adjacent areas of rheumatology and dermatology, where we are expanding our portfolio. We're nearing completion of Skyrizi's registrational program in ulcerative colitis, which is the last major indication expansion program for Skyrizi.
In the first half of this year, we'll see data from the phase 3 induction and maintenance studies for Skyrizi in ulcerative colitis, with our regulatory submissions anticipated later this year. We'll also see data this year from our head-to-head comparison studies evaluating Skyrizi versus other commonly used agents, which we expect will further distinguish its profile from competitive offerings. These studies include our phase 3 trial in Crohn's disease versus Stelara and our phase 3 trial in psoriasis versus Otezla. Results from these studies will add to the body of evidence supporting Skyrizi as a best-in-category agent in these indications.
We're also nearing completion of the core indication expansion programs for Rinvoq. Our regulatory applications for Rinvoq in Crohn's disease are under review, and we anticipate approval decisions in the second quarter. Rinvoq demonstrated very strong rates of remission and endoscopic improvement in our phase 3 induction and maintenance studies, and we believe Rinvoq will be an important new treatment option once approved in Crohn's disease. This is a market where approximately 80% of bio-experienced patients have used a TNF inhibitor, and there remains considerable unmet need for therapies that can deliver high rates of response and long-term remission.
Beyond our core immunology indications, we're developing Rinvoq in several diseases where we've seen strong evidence that our JAK inhibitor has the potential to become a highly effective therapy. Our phase 3 program is already underway in one of these indications, giant cell arteritis. And later this year, we plan to begin phase 3 studies for four additional diseases: systemic lupus, hidradenitis suppurativa, vitiligo, and alopecia areata. Moving now to our oncology portfolio, where we expect several important regulatory and clinical milestones this year.
In the area of hematologic oncology, we'll see data from several phase 3 studies, including results from Venclexta's event-driven CANOVA trials in relapsed refractory multiple myeloma patients with a t(11;14) mutation and navitoclax's Transform-1 trial in front-line myelofibrosis. Results from these studies are expected to support regulatory submissions in the second half of the year for Venclexta and navitoclax in their respective indications. We also anticipate regulatory approvals this year for epcoritamab in relapsed refractory large B-cell lymphoma in several major geographies, including the U.S. in the second quarter and in Europe and Japan in the second half of the year.
Based on the very deep and durable responses demonstrated thus far in our clinical program, we believe that epcoritamab has the potential to significantly improve upon treatment options for these patients. We believe that epcoritamab has the potential to become a core therapy for B-cell malignancies. And we continue to make very good progress expanding our development programs for epcoritamab across several indications. Over the course of 2023, we expect to begin several new studies, including a phase 3 study in front-line DLBCL in combination with R-CHOP and multiple phase 2 studies in CLL and MCL.
We remain very excited about epcoritamab's potential to become a best-in-class therapy across multiple B-cell malignancies and look forward to providing updates on these programs as the data mature. Now, moving to our solid tumor pipeline. We remain on track to see data later this year from our phase 2 study evaluating Teliso-V in second-line plus advanced non-squamous non-small cell lung cancer. As a reminder, we received a breakthrough therapy designation for Teliso-V, our c-Met ADC, based on the encouraging results from Stage 1 of this phase 2 study.
And the data we'll see later this year has the potential to support an accelerated approval. Our phase 3 confirmatory study in patients with overexpressed c-Met is also ongoing. Treatment options for these cancer patients who have exhausted platinum-based chemotherapy, immunotherapy, and targeted therapy are very limited, and prognosis for these patients is extremely poor. As a targeted therapy for patients with overexpressed c-Met, which represents approximately 25% of the non-squamous non-small cell lung cancer population, we believe Teliso-V has the potential to become an important new treatment option for these patients.
We're also making good progress with our next-generation c-Met ADC, ABBV-400, which utilizes a more potent topoisomerase inhibitor payload to potentially drive deeper tumor responses, as well as broaden the range of solid tumors where c-Met therapies can be used such as gastroesophageal and colorectal tumors. We expect to see early data from our phase 1 program in 2024. Elsewhere in the solid tumor pipeline, we have begun to see very encouraging data from several programs which we plan to advance into phase two studies this year. Our anti-GARP antibody, ABBV-151, is showing strong signals of activity, including deep responses with prolonged durability.
Based on this preliminary efficacy, we plan to initiate phase 2 studies in several tumor types. We also plan to advance ABBV-647 into phase 2 dose-optimizing studies this year based on the promising results from our early stage program. This ADC targets PTK7, which is a subset of non-squamous non-small cell lung cancer and represents approximately 25% of patients and has little overlap with c-Met. So, our c-Met ADC and PTK7 ADC combined will target approximately 45% of non-squamous non-small cell lung cancer patients.
Now, moving to neuroscience, where we recently received FDA approval for Vraylar as an adjunctive treatment for major depressive disorder, which marks its fourth indication approval. We're very excited by this approval and pleased with the label, which highlights Vraylar's strong benefit-risk profile in this indication. Vraylar is an important new treatment option for patients who are currently taking an antidepressant but continue to have unresolved depression symptoms. We also recently received approval in Japan for ABBV-951 or novel subcutaneous levodopa/carbidopa delivery system for treatment of advanced Parkinson's disease.
This innovative approach to delivering Duopa-like efficacy through a subcutaneous delivery system represents a potentially transformative improvement to current treatment options. With a less invasive nonsurgical delivery system, it also has the potential to significantly expand the patient population could be addressed by Duopa or other more invasive therapies for advanced PD patients such as deep brain stimulation. We remain on track for approval decisions this year in both the U.S. and Europe.
In the U.S., we anticipate approval in the first half of the year, with product launch expected in the second half after we've secured reimbursement. And in Europe, we anticipate approval in the fourth quarter of this year. And in the area of migraine, we remain on track for an FDA approval decision in the second quarter of this year for Qulipta as a preventive treatment for patients with chronic migraine. In Europe, we anticipate an approval decision in the third quarter for atogepant as a preventive treatment for patients with both chronic and episodic migraine.
If approved, this would be another differentiating feature for Qulipta as it would be the only oral CGRP approved for prevention in patients with chronic migraine. This is a common and debilitating disease that significantly impacts quality of life, and we look forward to make this new oral treatment option available to patients once approved. And in our aesthetics pipeline, we expect to see results this year from several toxin programs, including data from our phase 3 study for Botox in platysma prominence, with regulatory submission in the U.S. expected near the end of 2023, as well as data from our phase 3 study for Botox in masseter muscle prominence, where we expect to submit regulatory applications in certain international markets in the second half of the year, including China and Canada.
These two novel indications for prominent neck and jaw muscles will help to further build our portfolio in the lower face segment. We'll also see data from our phase 3 trial for BoNT/E, our short-acting toxin in glabellar lines near the end of this year, with regulatory applications planned for 2024. So, in summary, we continue to demonstrate significant progress across all stages of our pipeline and anticipate numerous important regulatory and clinical milestones again in 2023. With that, I'll turn the call over to Rob for additional comments on our fourth quarter performance and our 2023 financial outlook.
Rob.
Rob Michael -- Vice Chairman and President
Thank you, Tom. AbbVie's performance and financial foundation remain strong. With our leadership positions across a diverse portfolio, we are well-positioned to return to robust growth by 2025. Starting with fourth quarter results, we reported adjusted earnings per share of $3.60, which is $0.07 above our guidance midpoint.
These results include a 13% unfavorable impact from acquired IPR&D expense. Full net revenues were $15.1 billion, up 3.8% on an operational basis, excluding a 2.2% unfavorable impact from foreign exchange. The adjusted operating margin ratio was 52.1% of sales. This includes adjusted gross margin of 86% of sales, adjusted R&D investment of 11.5% of sales, acquired IPR&D expense of 1.6% of sales, and adjusted SG&A expense of 20.8% of sales.
Net interest expense was $476 million, and the adjusted tax rate was 13.4%. Turning to our financial outlook for 2023, our full year adjusted earnings per share guidance is between $10.70 and $11.10. This earnings per share guidance does not include an estimate for acquired IPR&D expense that may be incurred throughout the year. We expect net revenues of approximately $52 billion.
At current rates, we expect foreign exchange to have a neutral impact on full year sales growth. This revenue forecast comprehends the following approximate assumptions for our key products and therapeutic areas. We expect immunology sales of $24.8 billion, including Skyrizi sales of $7.4 billion, reflecting growth of more than 2.2 billion due to strong market share performance across all approved indications; Rinvoq revenue of $3.7 billion, reflecting growth of more than 45% with continued indication expansion; and Humira sales of $13.7 billion, including U.S. erosion of 37% following the loss of exclusivity in late January.
With one biosimilar currently in the market and potentially nine more biosimilars available in the middle of the year, we anticipate that sales erosion will be more heavily weighted toward the second half of 2023. In hematologic oncology, we expect Venclexta sales of $2.2 billion and Imbruvica revenue of $3.5 billion. For aesthetics, we expect sales of $5.2 billion, including $2.5 billion from Botox Cosmetic and $1.4 billion from Juvederm, with growth rates expected to improve when we lap the market slowdown in the middle of the year. For neuroscience, we expect revenue of $7.2 billion, representing growth of more than 10%, including Botox Therapeutic sales of $2.8 billion, Vraylar sales of $2.5 billion, and total oral CGRP revenue of $1.1 billion, including Ubrelvy growth of approximately 17.5%.
For eye care, we expect sales of $2.2 billion, and we expect Mavyret revenue of $1.4 billion. Moving in the P&L for 2023, we are forecasting full year adjusted gross margin of 84% of sales, adjusted R&D investment of $6.8 billion, and adjusted SG&A expense of $12.4 billion. We forecast an adjusted operating margin ratio of 47% of sales. This profile includes a 70-basis-point benefit that is fully offset in tax expense given the transition of Puerto Rico's excise tax to an income tax effective at the beginning of this year.
We expect adjusted net interest expense of $1.8 billion, and we forecast our non-GAAP tax rate to be 15.3%, including an impact of 1.3 points from the Puerto Rico tax transition. Finally, we expect our share count to be roughly flat to 2022. Turning to the first quarter, we anticipate net revenues of $11.8 billion. At current rates, we expect foreign exchange have a 1% unfavorable impact on sales growth.
This revenue forecast comprehends the following approximate assumptions for our key therapeutic areas: immunology sales of $5.5 billion, which includes U.S. Humira erosion of 27%; oncology revenue of $1.4 billion; aesthetics sales approaching $1.2 billion; neuroscience revenue of $1.5 billion; and eye care sales approaching $600 million. We are forecasting an adjusted operating margin ratio of 46% of sales, and we model a non-GAAP tax rate of 13.3%. We expect adjusted earnings per share between $2.39 and $2.49.
This guidance does not include acquired IPR&D expense that may be incurred in the quarter. Finally, AbbVie's strong business performance and outlook continues to support our capital allocation priorities. We expect to generate adjusted free cash flow of nearly $19 billion in 2023, which is net of $1.4 billion in Skyrizi royalty payments. This cash flow will fully support a strong and growing dividend, which we have increased by 270% since inception; continued debt repayment, where we expect to pay down 4 billion in maturities this year, bringing our cumulative debt reduction to $34 billion.
Our strong cash flow also provides capacity for continued business development to further augment our portfolio. In closing, we are very pleased with AbbVie's strong results in 2022. And with our diverse portfolio, we continue to be well-positioned to deliver long-term growth. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President, Investor Relations
Thanks, Rob. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question, please.
Questions & Answers:
Operator
Thank you. Our first question comes from Mohit Bansal with Wells Fargo. Your line is open.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Great. Thank you very much for taking my question. And so, maybe a question -- a bigger question for Rick. So, AbbVie -- when we talk to investors, AbbVie has always been one of those -- you know, the R&D as a percentage of sales has always been low.
And right now, even -- it is still less than 15%. And that's the pushback we get that the company cannot grow organically. And in some ways, you have always been playing defensive given that since inception, Humira has always been an issue. Now that you are beginning to get past it, do you think something will change -- you would want to change fundamentally with the company and the way you allocate internal versus extraordinarily R&D spend? That would be very helpful.
Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
OK, Mohit. This is Rick. So, it's a good question. We've obviously heard that question.
I think there's a number of dynamics that play into it. When you look at our R&D expense as a profile, one is obviously we have a large volume of Humira revenue that requires relatively little R&D support. And so, that obviously dilutes out the profile of the business. As we see biosimilar impact, obviously, there will be some impact on that as Humira revenues will go down.
The second thing is the aesthetics business, we are funding it aggressively to grow it. But by definition, it's not that expensive to be able to fund many of those programs. So, it has a much lower profile. So, some of it is mix, when you think about it.
The second thing I'd say is we obviously fund R&D at a level that we believe we can drive productivity. And I think if you look at our productivity over the last 10 years, the data I've seen suggests we are one of the most productive R&D engines in the industry. And certainly, when you look at products like Skyrizi and Rinvoq, the return on those assets is tremendous. The third thing I'd say is, look, what drives R&D expense to the greatest extent is when you have large volumes of phase 3 programs, and we're coming into a phase as we move forward over the next three or four years where we have a number of programs that if they are successful, they will create a scenario where we will increase R&D.
So, an example of that will be our GARP program. We've seen some incredibly encouraging data out of that program thus far. It's a next-generation, you know, oncology program that combines with checkpoint inhibitors. And if that program continues to advance the way we see it now, we will want to expand our phase 2 and then phase 3 trials in that program significantly across the road to the broad range of solid tumors.
That will require a significant increase in investment to be able to do that. So, we tend to drive R&D based on programs that we have a high level of confidence, it can be productive, and it can be successful. And we don't constrain R&D in any way from that perspective. Another program will be our a-beta program.
If that program proves to deliver high rates of amyloid reduction and low ARIA, that will be another program that we want to rapidly move into phase 3. And so, I can tell you, I'm very comfortable with the productivity we're getting out of R&D. And certainly, we will want to continue to increase that, and that's one of our objectives. We always look at programs on the outside to bring them in.
And in fact, I'd say over the last couple of years, we brought in a number of programs, earlier-stage programs. And we're fortunate from the standpoint that we had the ability to drive very strong growth, as we've indicated to investors. Between now and the end of this decade, we can drive high single-digit growth. We're going to return to robust growth in '25.
So, we're looking mostly for assets that will allow us to drive growth in that late 20s and early 30s time frame. So, again, if those mature and they're successful and they go into later-stage development programs, they will drive further need for investment.
Rob Michael -- Vice Chairman and President
Mohit, this is Rob. I'll just add that if you look at this year's guide, it's a great example of our willingness to increase R&D investment where it's needed. So, if you look at -- you know, we're increasing it from 6.4 billion to 6.8 billion, those increase our focus on epcoritamab, as well as midphase assets such as GARP and PTK7. We also have several new phase 3 studies for additional Rinvoq indications, which could contribute several billion dollars of revenue in the latter half of the decade.
So, even in a year where we're seeing a decline in the top line, we're increasing R&D investments. We're very committed to increasing innovation investment, whether it's internal or external.
Mohit Bansal -- Wells Fargo Securities -- Analyst
Super helpful. Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Mohit. Operator, next question, please.
Operator
Thank you for your question. Our next question is from Terence Flynn with Morgan Stanley. Your line is open, sir.
Terence Flynn -- Morgan Stanley -- Analyst
Great. Thanks so much for taking the questions and thanks for all the color on the guidance. I guess I just wondered high level if there was anything different, Rick or Rob, about your approach to guidance on the revenue side this year versus last year? I think last year, you know, performance was choppy across a number of different franchises. So, as you thought about the guidance this year, anything different as you approached it? And then my second question is, any other details you can provide on how you're thinking about Humira in 2024? Obviously appreciate the color this year, but how should we think about 2024 dynamics in the U.S.? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
OK, so maybe I'll start and then Rob can fill in anything that I might miss. You know, I think whenever we look at guidance, we look at it -- and I think this has been our historical practice. We obviously look at guidance as something that we have a very high level that we can execute against that guidance. I would say, this year, you've seen that the range is a little bit wider than what we normally project, and we did that based on the fact that, you know, as Humira goes biosimilar, obviously, very small changes in the assumptions we're making on erosion.
For Humira, it can have a fairly significant impact. So, we widened the range by about $0.10, and that's reflected in this guidance. And so, I would say that as we have and historically, we have a high level of confidence we're going to deliver on this guidance. As it relates to 2024, you know, we have provided as part of this guidance what we are projecting to be a floor because we've gotten a lot of requests from investors about when will we hit the trough and will it be '23 or will it be '24? So, maybe to give you a little color around how we think about that.
One, the 10.70 is a floor. That doesn't mean that we will go down the 10.70, but it means that we would say to the -- to investors that that's what you should assume as the absolute floor. Now, when will that floor, if it were to occur, when will it occur? Will we see the trough in 2023 or will we see the trough in 2024? And I would tell you that our expectations will be, based on this plan, the trough should occur in 2023. But what I would tell you is if we significantly overachieve this plan in 2023, then there's obviously somewhat greater risk that could move into '24.
The reason why it is in '23 versus '24 based on our current planning assumptions is because the strength of the growth platform has the ability to where we will grow in '23 and where we will grow in '24 to offset what will obviously be further erosion of Humira in 2024. 2024, you will basically have two impacts on Humira. You have the annualization of this year, and as Rob said in his remarks, we expect more of an impact in the second half of '23. So, when you annualize that, you're going to have an impact that flows through to '24, and then we would expect further erosion of Humira, both price and, probably to a greater extent, volume in 2024.
But those growth -- the growth platform has the ability to grow through that based on those assumptions. And so, that's the velocity that we operate with on the guidance. Rob, anything you'd add?
Rob Michael -- Vice Chairman and President
And if you reflect back on the history of AbbVie, we've had a long track record of, you know, delivering -- exceeding our guidance. And I think 2022 is an exception. And if you look on the top line -- now, we did make earnings so that's important to highlight. But if you look at the top line, the two biggest factors that drove the miss versus original guidance in 2022 were in -- with Imbruvica and Venclexta, CLL market.
We did not anticipate that that market would actually not recover. I mean, that's actually -- it's down 20% versus pre-pandemic levels. And then we did see some additional share impact on Imbruvica. And then aesthetics, we saw -- obviously, in the month of May, we start to see a slowdown in the economy.
We had a very strong first quarter. So, both those things really are what drove the top-line miss. We made our earnings. Now, we have factored both those things into the -- in the 2023 guidance to give investors confidence that we set it appropriately.
But, you know, we always look to set the most responsible guidance we can, and we feel good about where we set 2023.
Liz Shea -- Vice President, Investor Relations
Thanks, Terence. Operator, next question, please.
Operator
Thank you for your question. It comes -- our next question comes from Chris Schott with J.P. Morgan. Your line is open, sir.
Chris Schott -- JPMorgan Chase and Company -- Analyst
Great. Thanks so much. Just a two for me. Maybe just following up on the 2023 guidance being a trough number, it seems that you're still going to have about a $12 billion U.S.
Humira franchise here. So, can you just provide maybe a little bit more color of what you're envisioning 2024 to look like for Humira? OK. Is it reasonable to think about net down 35% to 40% year as we look out to '24? I think we're turning our hands around just how much growth in that core platform, you know, and how much of a headwind, I guess, Humira is going to be facing at the same time. My second question was just on aesthetics trends as we move through this year.
You've talked about some signs of at least sequential stability in last few quarters. You're talking about stepping up investments. You've got a couple new products launching. I guess why shouldn't we think about some recovery in this business as we look out to the second half of the year? Thanks so much.
Rick Gonzalez -- Chairman and Chief Executive Officer
OK. Chris, this is Rick. Let me talk a little bit about Humira and the trough. You know, we're two weeks into the biosimilar activity, so it's a little difficult to give you precise predictions for 2024.
I think the way to think about Humira going forward is what we would expect is the most significant impact on Humira is going to be price. And obviously, we're trying to predict going forward what that price will look like. Certainly, as we look at this year, the most significant impact is clearly price. So, that's more predictable because we obviously know what the pricing is in the contracts that we put together.
And so, I think that's something that we have a high level of confidence. There'll be further pressure on price as we move into '24, and there'll probably be further pressure on volume in '24. But I would say, at the end of '24, I would expect Humira to start to develop a more stable tail of revenue. It will still have some pressure as we move in '25.
But '25 and '26 is where we should see that more stable tail for Humira emerge. And as one of the things that allows us to be able to see the underlying growth from the growth platform. So, a number of things happen between '23 and '24 and then '25 as we move forward. As you mentioned in your second comment, we would certainly expect that the U.S.
economy will start to recover in '24. It may recover earlier than that. And if it does, that would be great. We didn't want to put our plan together to assume that because, obviously, that's difficult for us to predict.
But I think we would all expect that in '24, we'll see a recovery in the U.S. economy, and we would fully expect for the aesthetics business to return back to historical growth rates very quickly when that happens. And so, that will be another opportunity for that business to be able to grow. And then I would say Imbruvica is the other key issue for us as we move forward.
We would expect the majority of the erosion that we see on Imbruvica will occur this year, and there will be less downward pressure as we move to '24. So, that's what allows the growth to be able to come up. What I would tell you, even though I don't want to make a prediction in '24 of what Humira will look like, I think we have a high level of confidence that we have the ability -- if the erosion curve looks like how we've modeled it now between '23 and '24, that we have the ability to be able to have the growth platform and flow through that, so we can absorb that impact. And o far, like I said, it's early on, but I'd say, so far, we're comfortable with how things are playing out.
Rob, anything you'd on the first question, and, Carrie, maybe you can give a little more color?
Rob Michael -- Vice Chairman and President
I think -- yeah, I think you characterized it well, Rick. I mean, the thing that I'd highlight for this year, for '23, the way we think about Humira, really, you know, in the first half of the year, the vast majority of that erosion will be price. In the second half, you'll see -- because we've contracted rebates, you'll see a step-up in the price erosion, although you also will see more volume -- with nine biosimilars coming in the market in the middle of the year, we would expect more volume erosion. I think as we think about '24, we would expect, you know, based on the contract to see a step-up in price, but albeit not the same level as we see in '23, but '24 would be more volume.
It's probably the best way to think about it right now. We're not giving guidance, but if you think about how to model Humira in '23 and '24, that's the way to think through it.
Rick Gonzalez -- Chairman and Chief Executive Officer
OK. Carrie, anything you want to add on aesthetics?
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Yes. Hi, this is Carrie. The -- in terms of the aesthetics market and how we're thinking about it for 2023, I mean, first I'd say, yes, this is still a very strong fundamental market, with consumers are very interested in entering the category. And so, you know, that remains a strong opportunity for aesthetics now and in the future.
But what we saw as we exited 2022 is as these economic metrics were softening, we also saw that reflected in demand for a set of procedures. And in our conversations with customers, we saw that reflected in their practices, market research with consumers, where they said, yes, we're interested in the category, but we want to see what's going on with the economy perhaps before a new patient might want to enter the category. And based on that, we are modeling for those trends to continue in 2023. And what that means for U.S.
toxin market is that market growth would be around a mid-single-digit decline; for U.S. filler market, around a 10% decline. And like we said, those growth rates would be different by quarter as we lap a strong first part of the year. Now, of course, if there is a scenario like a deep recession where unemployment skyrockets, that is not something that we've contemplated.
Or on the other hand, if the macroeconomic environment stabilizes or improves, that would represent favorability to our plan.
Liz Shea -- Vice President, Investor Relations
Thanks, Chris. Operator, next question, please.
Operator
Thank you for your question. Our next question is from Gary Nachman with BMO Capital Markets. Your line is open.
Gary Nachman -- BMO Capital Markets -- Analyst
Hi. Good morning. First question is on neuro. In the quarter, it's actually weaker than we thought.
So, was there any additional pressure on gross to net maybe for the oral CGRPs? And, you know, what sort of inflection are you expecting for Vraylar and MDD? How rapid do you think that adoption might be this year? And then, Rick, you recently said that you would be -- you know, in an article that you would be lifting the self-imposed 2 billion annual cap on business development so you'll have more capacity to do deals. So, how much capacity do you guys have? What areas are you looking to be most aggressive? And how important is it to add sizable marketed products into the mix? Or would it be mostly focused on pipeline? Thanks.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Hi. I'll take the first one. It's Jeff.
Thanks for the question. No, we did not see, you know, material incremental pressure on the gross to net. We did see a little softening versus our expectation on the overall preventative marketplace. But it was quite modest.
So, no, fairly consistent trending. I mean, if you look at our new prescription capture in the oral market, it's basically a 50-50 shared capture rate between ourselves and the major competitor. In terms of the Vraylar adoption trend, now, we had discussed previously because we really have very, very strong access for Vraylar that we would anticipate a pretty rapid inflection in adoption for the depression indication, the adjunctive depression indication. And as I mentioned in my remarks, that's what we've seen.
So, we're quite encouraged. I mean, we can see a significant trend break on the new prescription adoption versus what was already a very nice growth rate for the bipolar I indication. So, I think the early dynamics, and again, it's only really been a month here in January where our sales force has been out promoting the new indication, we're quite encouraged in terms of the market response, both from the metrics, in terms of acute mania, the scripts we see, but also the qualitative feedback from customers.
Rick Gonzalez -- Chairman and Chief Executive Officer
And on the deal capacity, you know, we obviously look at business development based on what we believe are -- we're trying to accomplish strategically in each of the therapeutic areas that we're operating, and we identify areas that we think would be good opportunities for us. And then we look to see if we can find those kinds of assets. As I mentioned before, I think we're in the fortunate position that we can drive very strong growth with the assets that we have on the market today, as well as what's coming out of our pipeline over the next three or four years. That gives us the ability to be able to return to growth and then drive that high single-digit growth through the end of the decade.
And we're also fortunate that after Humira, we have a -- you know, relative to our peers, we have a very low LOE exposure. So, we don't have a lot of downward pressure on the business. Now, having said that, we've done an excellent job of paying down the incremental debt from the Allergan transaction. We put that $2 billion cap in place when we did the Allergan acquisition.
That allowed us to focus on getting on some earlier-stage assets. And I'd remind everyone, that was about four times where our historical practice had been for those kinds of assets. So, it was plenty of capacity to do that. But we're certainly in a position now that if the right thing were to come along, we could do a transaction that would be much larger.
We certainly have the financial wherewithal to be able to do that, and we've certainly shown that we were able to do that and create value in the assets that we bring in. The areas that we typically look in are aligned with our therapeutic growth areas. So, immunology, oncology, certain areas of neuroscience, and eye care, I would say, are the predominant areas, as well as aesthetics. We obviously continue to look for opportunities in aesthetics.
They tend to be smaller acquisitions, though. And so, at the end of the day, I feel good about where we are, and we've been quite active. We have a very active business development group, and we'll continue to look at those. And like I said, if we find something that's of interest and it could really help us round out a category that we're in, then you should expect us to act on that.
Liz Shea -- Vice President, Investor Relations
Thanks, Gary. Operator, next question, please.
Operator
Thank you for your question. It comes from Carter Gould with Barclays. Your line is open.
Carter Gould -- Barclays -- Analyst
Great. Thank you. Thanks for taking the question. Maybe to come back to aesthetics, it does sound like you've built in, you know, conservatism on a number of fronts.
I wanted to also -- but you didn't touch as much around sort of China reopening and how you expect that sort of business to -- as this comes back, if you expect it to sort of return to how it was or if that will evolve differently. And then, you know, in the -- I guess, as we think then around the guidance for '23 and the link you've drawn to '24 as you sort of maybe -- if the guidance potentially evolves over '23, should we think about that link remaining intact or is that sort of a near-term phenomenon and that will sort of, I guess, disappear going forward? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
Carrie, why don't you touch on the aesthetics question?
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Yes. So, your question around China, and I'd say, you know, China is our second largest global business. It has demonstrated significant growth in the past few years and proven to be very responsive to the increased promotion that we're putting into that market. Of course, in 2022, China -- COVID-related issues did impact the aesthetics market, but especially in the second and fourth quarters.
Now, as we look at the year beginning and China and as everyone's returning from the Chinese New Year, it does look like the current wave has peaked and that the situation is beginning to improve and will continue to improve through the first half of 2023. And we're expecting a full recovery in the market in Q3 and for the last -- the second half of the year. So, you know, despite the challenges in 2022, China still posted positive growth, and we will definitely be continuing our investments in China in 2023 and beyond.
Rob Michael -- Vice Chairman and President
And, Carter, this is Rob. I'll try to answer your second question. I think the way to think about '24, you know, clearly, as we go through the year, we always look at the trends and contemplate what that could mean for flow through into '24. But the reason we gave you that guidance range, we mentioned that, you know, the 10.70 being the way you think about it as a, you know, floor for '24 is because of the dynamics around Humira erosion.
So, if we do better in '23 and more of it happens in '24, then you can at least anchor back to we're not going to fall below that 10.70 EPS floor in our guidance range. So, you know, we always would factor in trends, but that's the way to think about it. If it's just the erosion on Humira is better this year than we have in this guidance, we want to make sure you understood that, you know, what it means potentially for '24. So, that's -- you know, again, always factor in trends.
But as we sit here today, that's the best way to think about it.
Carter Gould -- Barclays -- Analyst
Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
Maybe just let me add one thing that might help clarify it. I think you should think about Humira in '24 that we believe we're going to get to a certain level of price and volume in '24 almost regardless of what happens in '23 because of the competitive dynamics. And so, when we talk about this shift, what we're really talking about is inflating '23. If you anchor '24 as a solid point that we have a high level of confidence of where Humira's tail will be in '24, then the only thing that happens to shift it between '23 and '24 is that we do much better in '23 than we expected, right? So, that inflates '23, but it still anchors against the '24 point.
That's the way to think about this.
Liz Shea -- Vice President, Investor Relations
Thanks, Carter. Operator, next question, please
Operator
Thank you for your question. It comes from Steve Scala with Cowen. Your line is open.
Steve Scala -- Cowen and Company -- Analyst
Thank you so much. The low end of 2023 guidance implies 22% EPS erosion. The high end of Q1 guidance assumes 21% EPS erosion. How is it possible that Q1 could be in line with the full year and not appreciably better? It seems as though the Q1 guide is low.
Or is that because AbbVie believes the floor on Humira price is already reached? Maybe another way to restate the question. What should be our anticipation for the quarterly cadence of EPS as we go through the year? Thank you.
Rob Michael -- Vice Chairman and President
So, Steve, so I think the best way is, one, anchor on the guidance we gave you on U.S. Humira today. So, we said -- for the first quarter, we said it would be 27% erosion. And so -- and that's going to -- you know, vast majority that will be price.
And we said because there'll be nine biosimilars coming to market in the middle of the year, we would expect more of the erosion to come in the second half of the year. So, you have to factor that dynamic into the way you look at the quarters that there'll be more erosion in the second half of the year for Humira versus the first half of the year. Then you also have to factor in that you've got things like in aesthetics, where we haven't quite lapped the economic impact yet, right? So, in the first quarter, you have a dynamic where you will see aesthetics still down, right? But when we get in the middle of the year, when we lap it, that also affects year-over-year growth rates. And then the underlying performance of the growth platform as we continue to drive those brands, you'll see those growth rates accelerate.
So, those are all the things I would factor in. As you look at the quarterly, really, we've given you Q1 and then, you know, full year, so we haven't given you Q2, 3, and 4, but that's -- those are the variables I would look at. There's not really a whole lot in terms of if you look at investment, for example, that you have to, you know, flex -- you know, we do tend to see some higher levels typically in the fourth quarter. So, you could -- you can look at historically our investment patterns and use that as a proxy.
But those are the variables to consider as you think about the first quarter versus the rest of the year.
Steve Scala -- Cowen and Company -- Analyst
Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Steve. Operator, next question, please.
Operator
Thank you for your question. It will come from Tim Anderson with Wolfe Research. Your line is open.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. I'm going to toward you with a couple more questions on the same subject as others. The U.S. Humira erosion guidance of minus 37% in '23, how much of that is price versus volume? If I look at what your Q1 U.S.
Humira erosion is, so the guidance is minus 27%. Given that volumes for Humira are, call it, 5% positive, that would suggest the price cuts maybe in the 30% to 35% range. So, can we triangulate off of the Q1 guidance to understand what percent of that minus 37% comes from price? And then the second question again goes back to 2024. I know there's lots of uncertainty on the exact rate of erosion for Humira in '23, but if you hit that minus 37% right on the nose, would 2024 erosion likely be slower or faster than that minus 37%?
Rob Michael -- Vice Chairman and President
So, Tim, on your question related to price and volume, the way to think about it is in the first half of the year, the 27% in the first quarter, it's -- the vast majority of that is price, right? So, that -- you know, there is some volume impact but not very much. It's in the second half -- you'll see is the second half, the overall erosion will step up and think of it as, you know, equivalent between price and volume because you're going to have -- you know, we know we'll have rebate rates, in some cases, increasing, as well as there were nine biosimilars come in the market, we would expect to see more volume erosion. So, as you think about -- as you try to triangulate that price-volume with the guidance we've given, 27% [Inaudible] is price. Second half of the year, you'll have some more volume kicking in.
That's, I think, the best way to think about the price-volume split. And then your question on '24, is your question in terms of the percentage or the absolute?
Tim Anderson -- Wolfe Research -- Analyst
Percentage. So, if you hit the minus 37% this year, which is your guidance for U.S. Humira, would the rate of erosion in '24 be greater or less than that 37%.
Rob Michael -- Vice Chairman and President
So, we're not going to give you 2024 guidance, Tim. I think the way to think about '24 is we would expect to see additional price, but albeit not the same level as '23, and more volume coming through because you're going to have 10 biosimilars in the market for the full year. So, we would expect to see more of a volume impact in '24 than we would expect to see in '23.
Tim Anderson -- Wolfe Research -- Analyst
OK. Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Tim. Operator, next question, please.
Operator
Thank you for your question. It comes from Chris Shibutani with Goldman Sachs. Your line is open.
Chris Shibutani -- Goldman Sachs -- Analyst
Thank you very much. You've previously commented about the operating margin trajectory of '23 into '24, I believe, characterizing them as basically flattish. Is that still the case? And then across the immunology category broadly, we're seeing some -- a lot of crosscurrents mix dynamics clearly with your portfolio being part of that. What is your expectation about the potential for some of the newer mechanisms that are emerging with clinical data? Are you keen to figure out whether you want to invoke those as part of your portfolio? What do you see the outlook for novel mechanisms given that we're going to have some biosimilars to some of the most standard-of-care approaches, TNFs, IL-23? Thank you.
Rob Michael -- Vice Chairman and President
Chris, this is Rob. I'll take your first question. I think for modeling purposes, I would expect operating margins to stay roughly at this level in '24 and then begin expanding again in '25 with our return to robust sales growth. I think the pace of that expansion will depend on investment needs as we always prioritize R&D and SG&A investment to drive long-term growth.
But that's the best way to think through '24 and then what operating margin will look like in '25 and beyond.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
And, Chris, it's Jeff. I'll maybe kick off on your immunology question then ask Tom to comment on some dynamics as well. So, it is very, very clear that certainly in the midterm, the most excitement across these immunology categories are for Skyrizi and Rinvoq. It's quite striking.
And I think Tom mentioned there's still incredible interest in a next wave of dermatologic indications that follow on for atopic dermatitis that he highlighted. And really, as I noted in my remarks, I mean, the amount of excitement around the IL-23, and particularly our IL-23, across these indications is really profound. Now, having said that, we are watching the competitive landscape for some, you know, maybe potentially some novel orals. We don't see them as major players.
As we look deeper in the pipeline, we can see that there's the possibility for combination use of novel biologics or biomarker-driven approaches, particularly in IBD. And we monitor those very carefully as we look at our long-range plan. And, Tom, I don't know if you want to address some of the things that are back in our pipeline in terms of immunology.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Sure. I mean, I think the -- just want to start saying that with Skyrizi and Rinvoq really raised the bar in terms of efficacy in UC, you know, with the -- because of healing for example. So, the bar is getting higher, and we will continue to do that. But even to show that we're raising the bar, we're also going to do -- we're going to readouts head-to-head studies this year as to with Stelara.
And if there's less, that's another way to kind of show that what we have is really a very, very profound in terms of the responses we're seeing with patients. And if we continue -- I mean, I think we look at the field, we look at competitors. We're hearing data S1P1 inhibitors, but the data appears to be less effective based on the number of patients which are discontinuing treatment. And the signals that we see are cardiovascular and others that are similar to what we've seen with previous ones.
So, I think without having seen the data at all, it's difficult to kind of predict how they'll be able to do, except that our data with Rinvoq and Skyrizi are very strong, durable, and again, very strong at the level of endoscopy also. So, we think we have already a competitive edge. We continue -- we'll see PMR data later this year. We have talked about our RIPK1 inhibitor, again, for mucosal healing.
That's in the clinic right now. We're looking at additional indications. So, over time, obviously, we're going to look at additional mechanisms, but not necessarily just pushing down on the same cytokines as JAKs, but looking at other orthogonal pathways of things that happen in the skin or in GI, again, mucosal healing being an orthogonal pathway. And this is where we think a combination of our immunomodulators like Rinvoq and Skyrizi with other mechanisms will combine well to give you even more profound responses.
Chris Shibutani -- Goldman Sachs -- Analyst
Great. Thank you.
Liz Shea -- Vice President, Investor Relations
Operator, next question, please.
Operator
Thank you for your question. It comes from Colin Bristow with UBS. Your line is open.
Colin Bristow -- UBS -- Analyst
Hey, good morning, and thanks for taking the questions and for all the helpful color so far. So, maybe a broader question. This is with regard to Humira biosimilars. I'm just -- I'm curious, like, what is the broader impact you anticipate on the I&I market just in terms of net price? This has been sort of a question we've been getting a lot of and people are trying to wrap their heads around.
And then maybe just wondering with CF triplet. I know that the trial is ongoing. Can you give us an update here? How's the progress? Should we still expect data later this year? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. I'll take the one the immunology marketplace. I think that, you know, the impact overall in the category for net price would be modest. And I think a lot of it has to do what Tom and I have discussed before, which is the -- just the pure profile of some of these agents, particularly Skyrizi and Rinvoq and either -- others in the pipeline that are coming, and they really are setting different standards of care versus what they've seen in the past.
And certainly, the physicians and the payers are recognizing this. I'll give a really quick example on one of our major products, which is Rinvoq. I mean, Rinvoq, based on the label changes that have taken place, is already a post-TNF type of dynamic. And so, you know, the pricing is going to be the pricing.
There's no incremental ability to step it, for example. The other thing I would note is on Skyrizi, you know, we have four head-to-head trials against all the major competitors, and another one coming with Otezla, as Tom noted. So, you start to see that level of performance, whether it's against Stelara, multiple TNFs, Otezla, as I said, that's pending here. And it just becomes very clear that you're just going to achieve much higher levels of clearance and relief.
So, we feel pretty confident that the pricing impact over time, particularly in the U.S. market, will be very modest. And certainly, we can navigate that based on the power of the performance of the portfolio.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Hey, this is Tom. I will just answer about cystic fibrosis program. Again, this program continues. And just to remind you, we're working on a triplet and where we believe that two of the three components of -- for this drug, this triplet, we have best-in-class assets.
But we were looking for another part of the triplet called C2 corrector, where last year -- or the previous ones basically didn't give the meaningful improvement we were expecting in FEV1 or sweat chloride. So, we've actually in our discovery groups continue to develop new ones. In the last year, we moved our -- we've moved our ABBV-576 forward in a side -- phase 1 studies. We continue to see these, again, safety, high exposures, good PK, things that with -- if you combine it with our preclinical data makes us think it will -- it has a potential to be best in class, and that's triplet again with -- is [Inaudible] being tested.
We'll have data this year to actually show how they behave together. And later this part of this year, I'll be able to give an update.
Liz Shea -- Vice President, Investor Relations
Thanks, Colin. Operator, next question, please.
Operator
Thank you. Our next question is from Trung Huynh with Credit Suisse. Your line is open.
Trung Huynh -- Credit Suisse -- Analyst
Hi, guys. Trung Huynh from Credit Suisse. Thanks for taking my questions. Two, if I may.
So, I was just wondering on your thoughts more broadly on the pricing dynamics in the EU and U.S. So, in the EU, you recently exited the U.K. pricing agreement. In Europe, it does feel like there's -- it's just becoming an increasingly complicated pricing environment.
There are a number of reforms being proposed in Europe. So, I guess my first question is, do you see these changes being material or any headwinds to you in your growth ex-U.S.? And then secondly, can you just perhaps talk about your reasons you decided not to renew your membership for PhRMA and BIO? How are you going to remain engaged in D.C. and have a voice when it comes to things like IRA and pricing controls? Thank you.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Yeah. Thanks for the question. I'll take the first one there in terms of the EU. You know, we do see some movement there, particularly in the, let's say, industry tax.
And I'll comment on the so-called VPass in the U.K. In some ways, whether or not we were in that voluntary program or outside of the voluntary program, the impact is about the same. And frankly, it was a policy decision because we really think that the U.K. government needs to reform that VPass.
They didn't plan properly for how things might dynamically evolve in the U.K., and it's a very substantial part of the revenue now that is causing problems, I think, across all of the companies. So, it was a position of policy position. Net neutral. It didn't matter, frankly, whether we were in or not.
And the U.K. is a relatively modest business for us. We are seeing, perhaps more importantly, you know, some changes in the German law, as you're probably aware of. And that is, I think, a modest, you know, net pressure that will come in Europe or in Germany, in particular, because there's the move, as you may know, from one year of free pricing to six months, there's a modest increase in rebates, for example.
So, we do see some austerity impact. But on the bigger scheme, it's -- I wouldn't say it's material to our growth platform that we've been discussing.
Rob Michael -- Vice Chairman and President
And, Trung, this is Rob. In terms of international price, I mean, typically, we see year-over-year decline of low to mid-single digits, and that's the way we're modeling it for '23 as well.
Rick Gonzalez -- Chairman and Chief Executive Officer
And then on PhRMA, and this is Rick, you know, obviously, every year, we evaluate any kind of significant investment that we're going to make, and we make a decision as to whether or not we believe that investment is appropriate and is going to have the right level of return at that point in time. And ultimately, we made the decision on PhRMA based on that. We have a very significant government affairs group that's been active and been in place ever since we came into existence back in 2013. We've grown that organization.
We did grow it somewhat this year as well in anticipation of not being part of PhRMA. We plan on being active, as we have been in the past, to try to appropriately advocate for things that we think are appropriate for patients. And I think that group is quite capable of being able to do that. And I would tell you that at a point in the future, we might decide to go back into PhRMA.
But at this point, we've made the decision that we think that investment could be used elsewhere to be more effective. It's as simple as that.
Liz Shea -- Vice President, Investor Relations
Thanks. Operator, next question, please.
Operator
Thank you. Our next question is from Geoff Meacham with Bank of America. Your line is open.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Morning, guys. Thanks so much for the question. I appreciate all the perspective on guidance. I just had a follow-up on it.
You know, Rick, on your comment on the Humira scale for, you know, starting next year in the U.S., I think when you look at other geographies' international revenue, they're still seeing, you know, double-digit declines after four years or so. Maybe just give us some context for, you know, what you're seeing there broadly versus what we could expect for the U.S. And just to be clear, when you see next year the impact from all the Humira biosimilars, how much do you think that biosimilar Stelara may play a role here when you look at your assumptions for Humira erosion? And then the second question is just on the BD front. You guys talked about some of the therapeutic categories that you're interested in.
But what's the appetite to expand into -- expand the menu here into, say, more orphan indications? I think across the landscape, some companies in I&I space are getting into more niche indications. I wasn't sure if that was something that you guys would consider. Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
So, I think on the Humira tail, just to maybe clarify, what I said is I would expect that as we move through 2024, then in 2025 and 2026, we would start to see a more stable tail for Humira. We're going to see erosion in 2024. I want to make sure I didn't somehow, you know, communicate that that wasn't the case. So, if you look at OUS, I think what's probably deceiving to you is, you know, you had different countries going biosimilar at different periods in time.
So, you can't necessarily look at that as an analog because it's so heterogeneous in the year that those countries went biosimilar. So, you are correct. Yes, it is still experiencing double-digit decline, but it's being driven by the fact that those countries have not -- some of those countries haven't reached stability yet. But typically -- and U.S.
markets are a little different because you have all -- a large number -- you have a small number of large payers who drive the bulk of the activity in this market. So, it's more like some of the countries that did other kinds of, you know, governmentwide activity, like in Germany as an example. And there, we do see. After a couple of years, we've seen stability.
So, I think what's misleading you is you're looking at the overall number, but you're not factoring into that the fact that these countries went biosimilar across a number of years.
Rob Michael -- Vice Chairman and President
And, Geoff, this is Rob. Just to add to that, if you just look at this year, so about half of the erosion is going to come from newer markets like Puerto Rico, Canada, and Mexico. So, that, as Rick mentioned, we have different waves. And so, you're still seeing some of those waves come through.
You also have some volume going to new agents like Skyrizi and Rinvoq, right? So, that's something to keep in mind that, you know, that's a dynamic that's also playing out for Humira in those markets. And then you typically see, you know, negative price trends in international markets, again, low to mid-single digits. You're going to see some level of pressure there. So, those are all factoring into the year-over-year on international Humira.
It's something to make sure you're keeping in mind.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
And if you look at the Stelara dynamic with the biosimilar, I think there's a couple of dynamics that we're watching. And it does go back to my prior comments over the clinical differentiation. The first is that there will be less biosimilar competitive intensity against Stelara. Certainly, you know, we've not seen anything like the nine that we're -- nine or 10 that we're going to see on Humira.
And so -- and that price point is quite high, actually, if you look at where Stelara is now with the branded program. Now, I think maybe more importantly, as we've highlighted before, we've anticipated that entry. And certainly, in Crohn's, we have an ongoing head-to-head trial against Stelara that we'll read out toward the end of the year. We plan on putting that into promotion if, and we believe it will be positive, particularly what we're studying, which is that endoscopic endpoint, which is really becoming the standard in the gastroenterology space.
So, we think we can parry quite well with the ultimate arrival of that IL -- the 12/23 versus our pure 23. So, I hope that helps.
Rick Gonzalez -- Chairman and Chief Executive Officer
I think on your third question, again, what tends to drive our BD strategy is the long-term strategic road map that we put in place across the franchise. So, if you think about it, you mentioned immunology as an example. I would say, in immunology, we have two fundamental objectives that we're trying to drive. There are still areas within immunology where we believe we can significantly raise the effectiveness of the therapies that are used on patients to drive higher levels of remission or higher levels of endoscopic healing, in other words, better clinical outcomes within the areas that we're in.
And so, we have a tremendous amount of effort in those areas to bring next-generation assets. Or, as Tom mentioned in his comments, there are opportunities to potentially combine two mechanisms together to achieve that level of therapeutic benefit. And then we look outside those areas at the adjacencies, and we look for where are the opportunities for us to be able to bring in either an existing mechanism or something we can either develop within our own discovery group or something that we can acquire on the outside as a mechanism that we don't currently have. But we tend to look for where there are areas of large unmet need and relatively significant patient populations.
So, I use two examples to illustrate the point. Vitiligo is a disease that is pretty prevalent. There aren't good therapeutic options in it today at all. We do believe there are mechanisms that will allow you to effectively treat vitiligo.
If those are effective, that could be a very significant opportunity over time. Alopecia is another good example of that. So, that's how we focus BD in these areas. That's not to say we will never look at a more niche opportunity or an orphan opportunity.
But I wouldn't say orphan is something that is core to our strategy.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Great. Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Geoff. Operator, next question, please.
Operator
Thank you for your question. It comes from Robyn Karnauskas with Truist. Your line is open.
Robyn Karnauskas -- Truist Securities -- Analyst
Hi. Thank you very much. And it was great with all the color you've given. I just had some -- I'm going to follow up on you mentioned vitiligo.
With the competition with topical rux, you know, which might have a first-mover advantage, and then they have an oral as well in Pfizer, how do you see the opportunity for you vitiligo for Rinvoq? Can it compete? And then my second question is, you know, last year's earnings calls, you highlighted your GARP TGF beta, so that's 151. And I know there's been a lot of cardio talks in the space, so what gives you some confidence -- what features and what indications, like how do you focus on this and how do you view the competition profile? Thanks.
Rick Gonzalez -- Chairman and Chief Executive Officer
So, on vitiligo, maybe Jeff and I will tag team on it. You know, I would certainly say a topical has a place, but it is difficult for people that have large areas of their body that are impacted by something like vitiligo for a topical to be a manageable therapy for those patients. So, an oral for those patients that have more severe disease typically has greater benefit and frankly better compliance among those patients, which ultimately gives you better clinical outcomes. So, I think the Rinvoq will stack up against whoever the competitive alternatives are based on the data.
Based on how we've seen Rinvoq perform in other areas, I think we feel pretty good about what the potential is, but the data will speak for itself. Let's see what the data looks like. Jeff and Tom, would you add anything?
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Just to build on that, when we look at the valuation of, for example, that indication or HS or alopecia, which, again, are those derm-oriented indications that will follow on pretty quickly in the middle of the decade on top of atopic dermatitis, we do exactly what Rick highlighted, is we will segment the patients based on the body surface area. We know that the topicals will be important for a certain percentage of population. For example, if it's maybe highly located to the face, that might be more appropriate, at least as a first course of action. But we do believe that, you know, in almost all indications that we've looked at for Rinvoq, it just performs exceptionally well in the clinic, and we would anticipate that as well above a base-case scenario.
A perfect example is Crohn's disease. You know, there will not be another JAK inhibitor in Crohn's disease for the United States just because they just don't work. And yet, you have spectacular results with the selective JAK with Rinvoq. So, we take that all into -- that competitive context, all into our calculations as we look for the return for those future derm indications.
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
If I can just continue vitiligo, I mean, we will have readouts for our phase 2 study this year, and we will mostly be looking at those cases where there's more extensive body coverage disease or the face. So, I think it would be different. It's much better to take an oral than a cream when you actually have significant body coverage. Again, we'll see the data.
We will report in another quarter call. Thank you, Robyn, for the second question. Yes, TGF beta is a known tumor suppressor pathway that people have tried to drug it to increase the response to endo therapies. The first generation TGF beta because the target is some -- so many parts of the body, you actually have effects.
The cardiovascular effects having related to the TGF beta activity in the -- in some of the endothelial cells, in the bowels, and so on, of the heart. Here, we're using GARP as our target. GARP is actually a receptor for TGF beta that's called latent, inactive. That's -- GARP is so -- only on Treg cells, a little bit on some fibers -- some external cells, but it's not found in the heart or other tissues.
That's what gives us our safety profile, ability to cause a suppression on Treg cells found on tumor cells as opposed to other places in the body. So, that -- we felt from the beginning was that we needed to go, to target this pathway would be -- something that would be tumor-selective, and that's what we've been able to see so far.
Rick Gonzalez -- Chairman and Chief Executive Officer
She asked about what tumors potentially?
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
What tumors? So, in our -- initially, we focused on tumors. So, this pathway is found on almost every solid tumor has -- some subset of tumors which express a lot of TGF beta and GARP. We started off thinking that we'd do a phase 1 CC study, which we did well, that we would expand. And we had picked liver and bladder because we saw a lot of TGF beta pathway in those indications.
And we also -- although we knew there was some in CRC, we saw it in patients in our phase 1 study, which were unselected into the tumor-type, we saw responses. So, we've actually continued expanding studying CRC, but we did see responses in liver cancer where we expected to see it based on expression of TGF beta. We did see it in bladder cancer, and we're expanding in that indication at this point. Given the fact I said earlier that we see TGF beta in all types of tumors, both tumors called hot or cold, we're actually expanding in other tumors to get signals right now.
And again, we have -- we'll have baskets to actually continue [Inaudible] indication space. But right now, we're expanding. When do I see we're going to phase 2 those -- when -- those [Inaudible] studies, it's indications where we've actually seen data in our phase 1 study.
Liz Shea -- Vice President, Investor Relations
OK. Thanks, Robyn. Next question, please.
Operator
Thank you for your question. It comes from Simon Baker with Redburn. Your line is open.
Simon Baker -- Redburn -- Analyst
Thank you very much for taking my questions. Two, if I may, please. Just going back to U.S. Humira, giving us the expected erosion is extremely helpful.
It's also extremely impressive that you feel confident enough to give a point estimate for the percentage erosion in '23. So, notwithstanding that, I wonder if you could give us what the likely pushes and pulls are. Is this something where we should be thinking more about the being upside risk due to inability of those additional generics -- biosimilars to supply the market? So, any cut pushes and pulls there and also into 2024 and your confidence around the erosion curve in '24. And then a question on tax.
And one topic that's been raised by some of your peers has been an impact from the OECD minimum global tax rate initiatives in '23. Your guidance would suggest that isn't a factor for you. I just wonder if you could give us any color on when and if you expect those initiatives to impact your tax rate. Thank you so much.
Rob Michael -- Vice Chairman and President
Simon, this is Rob. I'll take your first question. So, when we give guidance, we typically give approximate assumptions, and we do use point estimates. We don't typically give product-level ranges.
So, it has been our practice. So, we've said, you know, approximately 37% erosion for U.S. Humira. We have confidence in that number, obviously.
But I think in terms of the pushes and pull, it's really going to be about volume erosion, right? I think that's -- if you think, over the course of the year, as we made assumptions around volume erosion, we have good visibility of the price. Now, it's a question of what will the volume erosion look like. And obviously, as we go through the year, we'll update you on that.
Scott Reents -- Senior Vice President, Chief Financial Officer
Hi, this is Scott. I'll give you some thoughts on the OECD question that you asked regarding tax. So, you're right. For 2023, we do not see any impact from this.
In our view, there's a lot of things to be worked out with respect to the global minimum tax OECD mentioned. We have in the U.S., as you know, a minimum tax. We see ultimately this OECD tax being a top-up on that if that does occur. But there's a lot of details to be worked out, and we wouldn't anticipate any impact there until 2025 if there is an impact.
Simon Baker -- Redburn -- Analyst
Thanks so much.
Liz Shea -- Vice President, Investor Relations
Thanks, Simon. Operator, next question, please.
Operator
Thank you for your question. It comes from Navann Ty with BNP Paribas. Your line is open.
Navann Ty -- Exane BNP Paribas -- Analyst
Hi. Good morning. Thanks for taking my questions. I have three quick follow-up questions.
And the first one on aesthetics. In addition to the macro impact, are you seeing or do you expect increasing competition from your smaller competitors, DTC campaigns, and new products? The second question is on Humira. Was Amjevita pricing in line with your expectation? And the third follow-up is on capital allocation. So, can we think of two times as a soft net leverage target, which is relevant for AbbVie to consider a material business development? Thank you.
Rick Gonzalez -- Chairman and Chief Executive Officer
Carrie.
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Hi. I'll take that first question on aesthetics competition. So, in terms of U.S. Botox Cosmetic, this is a product that's run for 20 years and has faced increased competition and still commands market -- leading market share in the high 60s.
And we know, though, that the competitive market will expand as new entrants are coming and have entered in terms of our advances in toxin at the end of last year. What we've seen in the aesthetics market is that, of course, customers are going to try these new products there. It's highly kind of newness driven and there's a novelty factor and trial and competitive trial is to be expected. And what we see is that these products in past aesthetic launches that we've watched, the share ramps for the first 12 to 18 months and then tends to stabilize.
And so, of course, we don't underestimate any of our competitors. And so, in 2023, we are modeling what we think is a competitive amount of share erosion in terms of our Botox business. And we expect that in '23 and beyond that U.S. Botox Cosmetic will continue to be the clear No.
1 market leader. And the new toxins that enter the market will be competing for their position as No. 2, 3, or 4 in our customers' offices.
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Hi, it's Jeff. On your comment on Amjevita. No, the range of pricings that were released were not really a surprise. There's been some external thoughts that this is of interest where there were two different Amjevitas, one high WAC and one low WAC.
But again, we've seen this across very different categories and studied it very carefully, as you would expect. So, we've seen variably priced WAC products in our own HCV market with the authorized generics from competitors. We've seen it in the diabetes space across multiple competitors, including biosimilar competitors, and certainly with the -- with Amgen and in other segments of their own business. They were often moving around the list prices as well.
So, all in all, you know, within the range that we would expect from Amjevita.
Rob Michael -- Vice Chairman and President
This is Rob, I'll take the question on net leverage. So, the two times is -- think about it as our sustainable target. So, as long as there's a path back to net leverage of two times, you know, could take us -- in some cases, it could take two to three years to get back to that. But as long as there's a path, a very clear path to get back to net leverage of two times, that's the best way to think about how we would evaluate it.
Liz Shea -- Vice President, Investor Relations
OK. Thank you. Operator, we have time for one final question.
Operator
Thank you. Our final question will come from Gavin Clark-Gartner with Evercore ISI. Your line is open.
Gavin Clark-Gartner -- Evercore ISI -- Analyst
Hey, thanks for squeezing then. Wanted to confirm if you're planning to submit the Imbruvica plus Venclexta front-line CLL combination to the FDA following the ASH this year. And then on 951 in Parkinson's, we saw top-line data from competitors from last month. I don't have the full data yet, but one thing that sticks out is that they have lower discontinuation rates.
So, just wondering if there's any insight on devices or trial design that may explain this. Thank you.
Roopal Thakkar -- Vice President, Global Regulatory Affairs
So, hi, it's Roopal. I'll take those. So, for the I plus V that you referenced, we have that in Europe. And I think you're talking about the ASH data overall survival there as it clears a couple of years is 0.5 or less and the PFS still stays low.
At this time, we're not submitting here at the FDA. There -- we'd like to see a little more prospective data in another trial setting. So, that's I plus V. On 951, you know, this is interesting on the competitors you bring up.
So, the -- when you run these patients in, you can have discontinuation rates. And if you include them or not include them is going to impact what happens post-run-in. So, for example, when you see our data set, we count the run-in discontinuation and post-run-in as you get into the main part of the trial. So, you see that in the 20 percentile range or so, and that's fairly consistent with what you would see with a subcutaneous 24-hour infusion.
And it's not clear to us how that data, as you're speaking about, is reported. Also, we don't know if that's more than one injection or two injections. And is it rotated daily? I can tell you about 951, we have a dosing exposure that gets up to Duopa. Unique from Duopa, it's 24 hours.
It's a single injection, and you can leave it in for 72 hours.
Gavin Clark-Gartner -- Evercore ISI -- Analyst
Great. Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Gavin. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Liz Shea -- Vice President, Investor Relations
Rick Gonzalez -- Chairman and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Chief Commercial Officer
Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics
Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer
Rob Michael -- Vice Chairman and President
Mohit Bansal -- Wells Fargo Securities -- Analyst
Terence Flynn -- Morgan Stanley -- Analyst
Chris Schott -- JPMorgan Chase and Company -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Carter Gould -- Barclays -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Chris Shibutani -- Goldman Sachs -- Analyst
Colin Bristow -- UBS -- Analyst
Trung Huynh -- Credit Suisse -- Analyst
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Robyn Karnauskas -- Truist Securities -- Analyst
Simon Baker -- Redburn -- Analyst
Scott Reents -- Senior Vice President, Chief Financial Officer
Navann Ty -- Exane BNP Paribas -- Analyst
Gavin Clark-Gartner -- Evercore ISI -- Analyst
Roopal Thakkar -- Vice President, Global Regulatory Affairs
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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. | Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Yes. AbbVie (NYSE: ABBV) Q4 2022 Earnings Call Feb 09, 2023, 9:00 a.m. Welcome to the AbbVie fourth quarter 2022earnings conference call [Operator instructions] I would now like to turn -- introduce the call to Ms. Liz Shea, senior vice president of investor relations. | Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Yes. Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Vice Chairman and President Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Chris Schott -- JPMorgan Chase and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Carter Gould -- Barclays -- Analyst Steve Scala -- Cowen and Company -- Analyst Tim Anderson -- Wolfe Research -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Colin Bristow -- UBS -- Analyst Trung Huynh -- Credit Suisse -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Robyn Karnauskas -- Truist Securities -- Analyst Simon Baker -- Redburn -- Analyst Scott Reents -- Senior Vice President, Chief Financial Officer Navann Ty -- Exane BNP Paribas -- Analyst Gavin Clark-Gartner -- Evercore ISI -- Analyst Roopal Thakkar -- Vice President, Global Regulatory Affairs More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q4 2022 Earnings Call Feb 09, 2023, 9:00 a.m. | Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Yes. Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Vice Chairman and President Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Chris Schott -- JPMorgan Chase and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Carter Gould -- Barclays -- Analyst Steve Scala -- Cowen and Company -- Analyst Tim Anderson -- Wolfe Research -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Colin Bristow -- UBS -- Analyst Trung Huynh -- Credit Suisse -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Robyn Karnauskas -- Truist Securities -- Analyst Simon Baker -- Redburn -- Analyst Scott Reents -- Senior Vice President, Chief Financial Officer Navann Ty -- Exane BNP Paribas -- Analyst Gavin Clark-Gartner -- Evercore ISI -- Analyst Roopal Thakkar -- Vice President, Global Regulatory Affairs More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q4 2022 Earnings Call Feb 09, 2023, 9:00 a.m. | Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Yes. Operator [Operator signoff] Duration: 0 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman and Chief Executive Officer Jeff Stewart -- Executive Vice President, Chief Commercial Officer Carrie Strom -- Senior Vice President, AbbVie, and President, Global Allergan Aesthetics Tom Hudson -- Senior Vice President, Research and Development and Chief Scientific Officer Rob Michael -- Vice Chairman and President Mohit Bansal -- Wells Fargo Securities -- Analyst Terence Flynn -- Morgan Stanley -- Analyst Chris Schott -- JPMorgan Chase and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Carter Gould -- Barclays -- Analyst Steve Scala -- Cowen and Company -- Analyst Tim Anderson -- Wolfe Research -- Analyst Chris Shibutani -- Goldman Sachs -- Analyst Colin Bristow -- UBS -- Analyst Trung Huynh -- Credit Suisse -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Robyn Karnauskas -- Truist Securities -- Analyst Simon Baker -- Redburn -- Analyst Scott Reents -- Senior Vice President, Chief Financial Officer Navann Ty -- Exane BNP Paribas -- Analyst Gavin Clark-Gartner -- Evercore ISI -- Analyst Roopal Thakkar -- Vice President, Global Regulatory Affairs More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q4 2022 Earnings Call Feb 09, 2023, 9:00 a.m. | 9b49fb0b-865c-4e75-a1d4-af43a1710334 |
22799.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Treasury yields rise after auction | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-treasury-yields-rise-after-auction-0 | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02%
Weak demand for $21 bln sale of 30-year Treasury bonds
PepsiCo gains on quarterly profit, sales beat
Disney beats earnings estimates but ends down
Salesforce rises on reports Third Point owns stake
Updates prices, details; adds comments
By Carolina Mandl
Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
"The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. He said investors were also still digesting recent comments from Fed officials.
Yields on the U.S. 30-year note rose after the Treasury Department saw weak demand for a $21 billion sale, the final sale of $96 billion in coupon-bearing supply this week. In a note to clients, Jefferies said "the buyside bid failed to come together."
The Dow Jones Industrial Average .DJI fell 249.13 points on Thursday, or 0.73%, to 33,699.88, the S&P 500 .SPX lost 36.36 points, or 0.88%, to 4,081.5 and the Nasdaq Composite .IXIC dropped 120.94 points, or 1.02%, to 11,789.58.
Volume on U.S. exchanges was 11.49 billion shares, compared with the 11.93 billion average for the full session over the last 20 trading days.
"With Treasury yields higher, it becomes a legitimate alternative to equities," said Michael Rosen, chief investment officer at Angeles Investments.
Wall Street's three main indexes opened higher on Thursday after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 4.7%. All 11 S&P 500 sectors posted losses.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Disney Co DIS.N beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat. Still, it ended down 1.27%.
Salesforce Inc CRM.N rose 2.38% on reports that hedge fund Third Point LLC owns a stake in the company.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 2.82% after beating fourth-quarter profit expectations.
Tapestry Inc TPR.N soared 3.47% on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell 1.93%.
Declining issues outnumbered advancing ones on the NYSE by a 2.74-to-1 ratio; on Nasdaq, a 2.37-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 75 new highs and 57 new lows.
(Reporting by Carolina Mandl, in New York, Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PepsiCo Inc PEP.O rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 2.82% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. Disney Co DIS.N beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat. | PepsiCo Inc PEP.O rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 2.82% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | PepsiCo Inc PEP.O rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 2.82% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | PepsiCo Inc PEP.O rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 2.82% after beating fourth-quarter profit expectations. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. All 11 S&P 500 sectors posted losses. | 24866893-ecd0-4724-8eb8-8962d1f35248 |
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