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23500.0 | 2022-04-06 00:00:00 UTC | Warren Buffett's Top Stocks | ABBV | https://www.nasdaq.com/articles/warren-buffetts-top-stocks | nan | nan | Warren Buffett is often considered the greatest investor of all time. He has built Berkshire Hathaway (NYSE: BRK.B) into a multinational conglomerate holding company with the seventh-largest market cap of any publicly traded company, currently valued at over $765 billion. Berkshire Hathaway is highly diversified, owning companies in various sectors as well as shares of stock in several public companies. Buffett is known for concentration in his stock portfolio, with five stocks comprising over 75% of it. Many of these companies are the best dividend stocks to buy and hold, so investors often follow Buffett's buys and sells. What are Warren Buffett's top stocks now?
In today's video, I break down the history of the company, discuss what the business owns, compare the stock's performance to the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), and provide insights and commentary. Please don't forget to subscribe to the channel.
*Stock prices used are from the trading day of April 5, 2022. The video was published on April 5, 2022.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka owns AbbVie, Alphabet (A shares), Amazon, Apple, Bank of America, Invesco QQQ Trust, Microsoft, Nvidia, SentinelOne, Inc., Snowflake Inc., Tesla, UnitedHealth Group, and Visa. The Motley Fool owns and recommends Activision Blizzard, Alphabet (A shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, Moodys, Nvidia, Snowflake Inc., Taiwan Semiconductor Manufacturing, Tencent Holdings, Tesla, and Visa. The Motley Fool recommends Alphabet (C shares), UnitedHealth Group, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Eric Cuka owns AbbVie, Alphabet (A shares), Amazon, Apple, Bank of America, Invesco QQQ Trust, Microsoft, Nvidia, SentinelOne, Inc., Snowflake Inc., Tesla, UnitedHealth Group, and Visa. In today's video, I break down the history of the company, discuss what the business owns, compare the stock's performance to the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), and provide insights and commentary. The Motley Fool owns and recommends Activision Blizzard, Alphabet (A shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, Moodys, Nvidia, Snowflake Inc., Taiwan Semiconductor Manufacturing, Tencent Holdings, Tesla, and Visa. | Eric Cuka owns AbbVie, Alphabet (A shares), Amazon, Apple, Bank of America, Invesco QQQ Trust, Microsoft, Nvidia, SentinelOne, Inc., Snowflake Inc., Tesla, UnitedHealth Group, and Visa. The Motley Fool owns and recommends Activision Blizzard, Alphabet (A shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, Moodys, Nvidia, Snowflake Inc., Taiwan Semiconductor Manufacturing, Tencent Holdings, Tesla, and Visa. The Motley Fool recommends Alphabet (C shares), UnitedHealth Group, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Eric Cuka owns AbbVie, Alphabet (A shares), Amazon, Apple, Bank of America, Invesco QQQ Trust, Microsoft, Nvidia, SentinelOne, Inc., Snowflake Inc., Tesla, UnitedHealth Group, and Visa. See the 10 stocks *Stock Advisor returns as of March 3, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool owns and recommends Activision Blizzard, Alphabet (A shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, Moodys, Nvidia, Snowflake Inc., Taiwan Semiconductor Manufacturing, Tencent Holdings, Tesla, and Visa. | Eric Cuka owns AbbVie, Alphabet (A shares), Amazon, Apple, Bank of America, Invesco QQQ Trust, Microsoft, Nvidia, SentinelOne, Inc., Snowflake Inc., Tesla, UnitedHealth Group, and Visa. Berkshire Hathaway is highly diversified, owning companies in various sectors as well as shares of stock in several public companies. Many of these companies are the best dividend stocks to buy and hold, so investors often follow Buffett's buys and sells. | c4bc364a-6170-4f4d-a286-2d483ed49f0b |
23501.0 | 2022-04-05 00:00:00 UTC | 7 Safe Stocks to Buy to Guard Against a Recession | ABBV | https://www.nasdaq.com/articles/7-safe-stocks-to-buy-to-guard-against-a-recession | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the chances of a recession keep climbing, the clock’s ticking when it comes to getting your portfolio ready to ride out the continued storms in the markets. Fortunately, it’s not too late to do so by cycling into safe stocks.
These types of high-quality, low-volatility names hold up far better than many of the more speculative stocks that could drop even further if today’s challenges (inflation, interest rates and Russian-Ukraine war) cause a recession.
But it’s not simply just a matter of “these stocks will go down less than the overall market.”
These safe harbor plays also have a strong chance of providing solid returns for your portfolio. Why? They are the types of stocks that perform well during an inflationary environment. In other words, they are fundamentally superior stocks that can serve as inflation hedges.
7 Dividend Stocks to Buy for April With Yields Over 6%
Here are seven safe stocks, all ‘A’-rated in my Portfolio Grader, that you should consider adding to your portfolio today:
AbbVie (NYSE:ABBV)
Bank of Montreal (NYSE:BMO)
Equinor (NYSE:EQNR)
Pfizer (NYSE:PFE)
Prologis (NYSE:PLD)
Regeneron Pharmaceuticals (NASDAQ:REGN)
Exxon Mobil (NYSE:XOM)
Safe Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Over the past six months, shares in pharmaceutical giant AbbVie have been on a tear. In sharp contrast to how the overall market has performed.
What’s behind this? For most of 2021, ABBV stock delivered a mixed performance. Mostly, because of concerns that patent expiration of its main blockbuster drug, Humira, would severely impact its operating performance going forward.
However, it’s now clear the company’s robust pipeline will more than make up for this. The company’s most recent guidance update indicated it will likely deliver results this year above prior expectations.
Seeing it as good value, with a solid dividend (3.5% forward yield), investors have pounced on it. Yet while it has gone up about 50% in the past six months, and over 19% year-to-date, don’t assume you’ve missed the boat adding this safe stock to your portfolio.
As it remains reasonably priced, at 11.3x this year’s estimated earnings, there’s still good reason to enter a position in this recession-resistant healthcare play.
Bank of Montreal (BMO)
Source: Shutterstock
Don’t let its name fool you. Although this is a bank headquartered in Montreal, Canada, this financial services giant has a large footprint in the United States. It’s the parent company of Chicago-based BMO Harris Bank, one of America’s top 25 largest banks.
BMO is expanding its U.S. operations further, through its pending acquisition of Bank of The West. It may be pursuing this deal at the right time. With interest rates moving higher, the banking sector is expected to see higher profitability this year and the next.
In turn, that’s good news for investors in BMO stock. Not only will higher profits justify additional gains for shares. Higher profits mean an increased chance of a high dividend increase as well.
3 Tech Stocks to Buy to Benefit From Antitrust Action
Currently paying out a 3.5% yield, this financial institution has raised its dividend six years in a row. Its average annual dividend increase over the past five years has been 6.51%. Consider it one of the safe stocks to add to your watchlist.
Equinor (EQNR)
Source: II.studio / Shutterstock.com
Norway-based Equinor may not be a household name stateside. But with a $111.6 billion market capitalization, it’s hardly a small fry in the energy industry. This integrated oil and gas company has operations all over the world, including the U.S.
For example, it’s the fifth-largest producer of oil and gas in the Gulf of Mexico. That’s not to say, however, that this stock is under-the-radar among investors. Year-to-date, it has gone up by over 43%, in line with the big increase in crude oil and natural gas prices.
Already performing strongly, you may be wondering why I’m still recommending it. Although investors have priced-in an improved environment for the oil and gas industry (which underperformed during the 2010s), that doesn’t mean it has run out of runway.
With the economic sanctions imposed on Russia sending its oil east instead of west? Oil companies based in North America and Europe will make up the difference. That bodes well for EQNR stock, as higher earnings will likely support additional moves higher for this cheap (it trades for around 7x this year’s earnings) stock.
Safe Stocks: Pfizer (PFE)
Source: photobyphm / Shutterstock.com
After performing well in 2021, PFE stock has delivered more choppy performance so far in 2022. A big reason for this is waning excitement over both its pandemic vaccine tailwind, as well as its Paxlovid Covid-19 treatment.
As the virus has fallen out of the headlines, that’s no surprise. But while sales of its vaccine peaked last year, Pfizer is still expected to generate $32 billion from the vaccine and boosters this year. Paxlovid could generate another $22 billion this year for the big pharma giant.
Beyond the pandemic, it’s important to note that it has more going for it than just this catalyst. Yet the market has put too much emphasis on this event. In turn, it has been oversold. It trades for just 7.1x this year’s expected earnings, and has a high dividend yield (3.03%).
3 Reddit Stocks That Could Roar in Q2
Having said that, Investors are starting to catch on that its pullback in January and February was an overreaction. Consider buying it now, before it re-hits its past high, and hits new highs, between now and the end of 2022.
Prologis (PLD)
Source: rafapress / Shutterstock.com
Real estate, like energy, is a great inflation hedge. As the U.S. dollar uses purchasing power (i.e., what’s happening now), hard assets like property become more valuable. Yet among the scores of real estate investment trusts (REITs) out there, PLD stock may be one in particular you should consider adding.
The acceleration of e-commerce growth since 2020 has been a boon for Prologis, a global provider of warehouse space. Growth in this industry may be taking a post-virus breather. The risk that a recession brings the post-pandemic recovery to a screeching halt.
However, per CEO Hamid Moghadam, demand for its properties “shows no signs of slowing.” The REIT expects another year of solid results. Core Funds From Operations (FFO), a common metric for measuring REIT earnings, is expected to come in between $5 and $5.10 per share.
Continuing to expand its presence, and able to raise rents in line with inflation, this high-quality industrial real estate lessor is likely to remain a top performer in its industry.
Regeneron Pharmaceuticals (REGN)
Source: madamF / Shutterstock.com
Biotech firm Regeneron is best known for its Covid-19 antibody treatment. This product resulted in a massive increase in revenue during 2021. For the year, sales were up nearly 100%.
Yet like Pfizer, the market may be putting too much emphasis on its pandemic catalyst. This particular treatment is far from being the company’s sole blockbuster. Macular degeneration treatment Eylea remains its largest treatment by revenue.
Granted, there are concerns that even its non-Covid catalysts are not long for this world. Eylea’s patents will expire later this decade. However, with its robust pipeline, concerns about this are overblown.
Regeneron has a strong track record of developing and bringing to market treatments for rare diseases. As InvestorPlace’s Dana Blankenhorn argued late last year, a big reason for this is the company’s Velocisuite drug discovery method. You could say this is the “secret sauce” that gives it a deep economic moat.
7 Medical Device Stocks to Buy as Covid-19 Fears Fade
A biotech company may not be what first enters your mind when talking about safe stocks. But demand for rare disease treatment stays strong, even in a recession. This is definitely a defensive play to consider.
Safe Stocks: Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
What a difference a year has made for the fortunes of Exxon Mobil. Last year, even as oil began to recover, doubts ran high that this oil giant would have to cut its dividend.
Now? With crude oil back above $100 per barrel, a dividend cut is the last thing on anyone’s mind. As a result of a secure payout, and stronger earnings ahead, XOM stock has surged over 48% in the past twelve months.
So, as it has gone from out-of-favor to very in-favor, is it time to cash out or stay away? Not so fast. The crisis playing out in Eastern Europe will likely continue to keep crude oil prices high. This will result in large profits for the integrated oil and gas giant.
That’s not all. Like I discussed in early March, Exxon Mobil has laid out a long-term plan to create shareholder value. Through cost cutting, and wise capital allocation, it’s well-positioned to deliver strong earnings, irrespective of crude oil prices. In turn, it’ll return these earnings to investors, via its high dividend (forward yield of 4.13%), as well as through the repurchase of shares.
On the date of publication, Louis Navellier has positions in ABBV and REGN in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 7 Dividend Stocks to Buy for April With Yields Over 6% Here are seven safe stocks, all ‘A’-rated in my Portfolio Grader, that you should consider adding to your portfolio today: AbbVie (NYSE:ABBV) Bank of Montreal (NYSE:BMO) Equinor (NYSE:EQNR) Pfizer (NYSE:PFE) Prologis (NYSE:PLD) Regeneron Pharmaceuticals (NASDAQ:REGN) Exxon Mobil (NYSE:XOM) Safe Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Over the past six months, shares in pharmaceutical giant AbbVie have been on a tear. For most of 2021, ABBV stock delivered a mixed performance. On the date of publication, Louis Navellier has positions in ABBV and REGN in this article. | 7 Dividend Stocks to Buy for April With Yields Over 6% Here are seven safe stocks, all ‘A’-rated in my Portfolio Grader, that you should consider adding to your portfolio today: AbbVie (NYSE:ABBV) Bank of Montreal (NYSE:BMO) Equinor (NYSE:EQNR) Pfizer (NYSE:PFE) Prologis (NYSE:PLD) Regeneron Pharmaceuticals (NASDAQ:REGN) Exxon Mobil (NYSE:XOM) Safe Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Over the past six months, shares in pharmaceutical giant AbbVie have been on a tear. For most of 2021, ABBV stock delivered a mixed performance. On the date of publication, Louis Navellier has positions in ABBV and REGN in this article. | 7 Dividend Stocks to Buy for April With Yields Over 6% Here are seven safe stocks, all ‘A’-rated in my Portfolio Grader, that you should consider adding to your portfolio today: AbbVie (NYSE:ABBV) Bank of Montreal (NYSE:BMO) Equinor (NYSE:EQNR) Pfizer (NYSE:PFE) Prologis (NYSE:PLD) Regeneron Pharmaceuticals (NASDAQ:REGN) Exxon Mobil (NYSE:XOM) Safe Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Over the past six months, shares in pharmaceutical giant AbbVie have been on a tear. For most of 2021, ABBV stock delivered a mixed performance. On the date of publication, Louis Navellier has positions in ABBV and REGN in this article. | 7 Dividend Stocks to Buy for April With Yields Over 6% Here are seven safe stocks, all ‘A’-rated in my Portfolio Grader, that you should consider adding to your portfolio today: AbbVie (NYSE:ABBV) Bank of Montreal (NYSE:BMO) Equinor (NYSE:EQNR) Pfizer (NYSE:PFE) Prologis (NYSE:PLD) Regeneron Pharmaceuticals (NASDAQ:REGN) Exxon Mobil (NYSE:XOM) Safe Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Over the past six months, shares in pharmaceutical giant AbbVie have been on a tear. For most of 2021, ABBV stock delivered a mixed performance. On the date of publication, Louis Navellier has positions in ABBV and REGN in this article. | da3294b5-cb57-4885-8344-119d31f15e37 |
23502.0 | 2022-04-05 00:00:00 UTC | Notable Tuesday Option Activity: MRK, ADI, ABBV | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-mrk-adi-abbv | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Merck & Co Inc (Symbol: MRK), where a total volume of 72,349 contracts has been traded thus far today, a contract volume which is representative of approximately 7.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 71.9% of MRK's average daily trading volume over the past month, of 10.1 million shares. Particularly high volume was seen for the $85 strike call option expiring April 14, 2022, with 15,684 contracts trading so far today, representing approximately 1.6 million underlying shares of MRK. Below is a chart showing MRK's trailing twelve month trading history, with the $85 strike highlighted in orange:
Analog Devices Inc (Symbol: ADI) saw options trading volume of 27,030 contracts, representing approximately 2.7 million underlying shares or approximately 71.4% of ADI's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $140 strike put option expiring May 20, 2022, with 20,038 contracts trading so far today, representing approximately 2.0 million underlying shares of ADI. Below is a chart showing ADI's trailing twelve month trading history, with the $140 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 40,981 contracts, representing approximately 4.1 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 6.5 million shares. Particularly high volume was seen for the $165 strike call option expiring April 14, 2022, with 9,254 contracts trading so far today, representing approximately 925,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for MRK options, ADI options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $165 strike call option expiring April 14, 2022, with 9,254 contracts trading so far today, representing approximately 925,400 underlying shares of ABBV. Below is a chart showing ADI's trailing twelve month trading history, with the $140 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 40,981 contracts, representing approximately 4.1 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 6.5 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for MRK options, ADI options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing ADI's trailing twelve month trading history, with the $140 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 40,981 contracts, representing approximately 4.1 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 6.5 million shares. Particularly high volume was seen for the $165 strike call option expiring April 14, 2022, with 9,254 contracts trading so far today, representing approximately 925,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for MRK options, ADI options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing ADI's trailing twelve month trading history, with the $140 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 40,981 contracts, representing approximately 4.1 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 6.5 million shares. Particularly high volume was seen for the $165 strike call option expiring April 14, 2022, with 9,254 contracts trading so far today, representing approximately 925,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for MRK options, ADI options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing ADI's trailing twelve month trading history, with the $140 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 40,981 contracts, representing approximately 4.1 million underlying shares or approximately 63% of ABBV's average daily trading volume over the past month, of 6.5 million shares. Particularly high volume was seen for the $165 strike call option expiring April 14, 2022, with 9,254 contracts trading so far today, representing approximately 925,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for MRK options, ADI options, or ABBV options, visit StockOptionsChannel.com. | efcf3b9a-dbf7-4628-90ea-a1dcabbee67a |
23503.0 | 2022-04-05 00:00:00 UTC | Allergan Reveals Positive Phase 3 Results Of VUITY In Adults With Age-Related Blurry Near Vision | ABBV | https://www.nasdaq.com/articles/allergan-reveals-positive-phase-3-results-of-vuity-in-adults-with-age-related-blurry-near | nan | nan | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Tuesday that the Phase 3 VIRGO trial evaluating the safety and efficacy of investigational twice-daily administration of VUITY (pilocarpine HCl ophthalmic solution) 1.25% in adults with presbyopia met its primary efficacy endpoint, improving near vision without compromising distance vision at Hour 9 (3 hours after the second drop) on Day 14.
The trial data will serve as the basis for a supplemental New Drug Application submission for an optional twice-daily administration to the U.S. Food and Drug Administration (FDA) in the second quarter of 2022.
Approved by the FDA in October 2021 for once-daily use, VUITY is the first and only eye drop to treat age-related blurry near vision in adults.
In the VIRGO Phase 3 trial, a total of 230 participants aged 40 to 55 years old with presbyopia were randomized in a one-to-one ratio of vehicle (placebo) to VUITY, receiving two drops in each eye per day for 14 days, with the second drop at Hour 6 (6 hours after the first drop).
The study met its primary endpoint, showing a statistically significant proportion of participants treated with VUITY twice daily gained three lines (or more in mesopic (low light), high contrast, binocular Distance Corrected Near Visual Acuity (DCNVA) with no more than 5-letter loss in low light Corrected Distance Visual Acuity (CDVA) at Day 14, Hour 9 (3 hours after the second drop) versus the vehicle (placebo).
The safety profile was similar to that observed in studies with once-daily administration of VUITY. The twice-daily use of VUITY is not approved and its safety and efficacy have not been evaluated by the FDA.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Tuesday that the Phase 3 VIRGO trial evaluating the safety and efficacy of investigational twice-daily administration of VUITY (pilocarpine HCl ophthalmic solution) 1.25% in adults with presbyopia met its primary efficacy endpoint, improving near vision without compromising distance vision at Hour 9 (3 hours after the second drop) on Day 14. Approved by the FDA in October 2021 for once-daily use, VUITY is the first and only eye drop to treat age-related blurry near vision in adults. The study met its primary endpoint, showing a statistically significant proportion of participants treated with VUITY twice daily gained three lines (or more in mesopic (low light), high contrast, binocular Distance Corrected Near Visual Acuity (DCNVA) with no more than 5-letter loss in low light Corrected Distance Visual Acuity (CDVA) at Day 14, Hour 9 (3 hours after the second drop) versus the vehicle (placebo). | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Tuesday that the Phase 3 VIRGO trial evaluating the safety and efficacy of investigational twice-daily administration of VUITY (pilocarpine HCl ophthalmic solution) 1.25% in adults with presbyopia met its primary efficacy endpoint, improving near vision without compromising distance vision at Hour 9 (3 hours after the second drop) on Day 14. In the VIRGO Phase 3 trial, a total of 230 participants aged 40 to 55 years old with presbyopia were randomized in a one-to-one ratio of vehicle (placebo) to VUITY, receiving two drops in each eye per day for 14 days, with the second drop at Hour 6 (6 hours after the first drop). The study met its primary endpoint, showing a statistically significant proportion of participants treated with VUITY twice daily gained three lines (or more in mesopic (low light), high contrast, binocular Distance Corrected Near Visual Acuity (DCNVA) with no more than 5-letter loss in low light Corrected Distance Visual Acuity (CDVA) at Day 14, Hour 9 (3 hours after the second drop) versus the vehicle (placebo). | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Tuesday that the Phase 3 VIRGO trial evaluating the safety and efficacy of investigational twice-daily administration of VUITY (pilocarpine HCl ophthalmic solution) 1.25% in adults with presbyopia met its primary efficacy endpoint, improving near vision without compromising distance vision at Hour 9 (3 hours after the second drop) on Day 14. In the VIRGO Phase 3 trial, a total of 230 participants aged 40 to 55 years old with presbyopia were randomized in a one-to-one ratio of vehicle (placebo) to VUITY, receiving two drops in each eye per day for 14 days, with the second drop at Hour 6 (6 hours after the first drop). The study met its primary endpoint, showing a statistically significant proportion of participants treated with VUITY twice daily gained three lines (or more in mesopic (low light), high contrast, binocular Distance Corrected Near Visual Acuity (DCNVA) with no more than 5-letter loss in low light Corrected Distance Visual Acuity (CDVA) at Day 14, Hour 9 (3 hours after the second drop) versus the vehicle (placebo). | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Tuesday that the Phase 3 VIRGO trial evaluating the safety and efficacy of investigational twice-daily administration of VUITY (pilocarpine HCl ophthalmic solution) 1.25% in adults with presbyopia met its primary efficacy endpoint, improving near vision without compromising distance vision at Hour 9 (3 hours after the second drop) on Day 14. The trial data will serve as the basis for a supplemental New Drug Application submission for an optional twice-daily administration to the U.S. Food and Drug Administration (FDA) in the second quarter of 2022. The safety profile was similar to that observed in studies with once-daily administration of VUITY. | 09ef69ce-0110-443b-8b50-fe7a43b53959 |
23504.0 | 2022-04-04 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-0 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $161.89, marking a -0.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.37%.
Heading into today, shares of the drugmaker had gained 8.05% over the past month, outpacing the Medical sector's gain of 6.56% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.13 per share and revenue of $60.2 billion, which would represent changes of +11.26% and +7.13%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system 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 0.03% 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 11.52. For comparison, its industry has an average Forward P/E of 13, which means AbbVie is trading at a discount to the group.
We can also see that ABBV currently has a PEG ratio of 4.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $161.89, marking a -0.49% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. | In the latest trading session, AbbVie (ABBV) closed at $161.89, marking a -0.49% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. | In the latest trading session, AbbVie (ABBV) closed at $161.89, marking a -0.49% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. | In the latest trading session, AbbVie (ABBV) closed at $161.89, marking a -0.49% move from the previous day. Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. | 0a4b7e6f-ac73-4f7d-8245-4310fbef4076 |
23505.0 | 2022-04-04 00:00:00 UTC | West Virginia says J&J, drugmakers created 'tsunami' of opioid addiction | ABBV | https://www.nasdaq.com/articles/west-virginia-says-jj-drugmakers-created-tsunami-of-opioid-addiction | nan | nan | By Dietrich Knauth
April 4 (Reuters) - West Virginia's attorney general on Monday urged a judge to hold Johnson & Johnson JNJ.N, Teva Pharmaceuticals Industries Ltd TEVA.TA, and AbbVie Inc's ABBV.N Allergen liable for causing a "tsunami" of opioid addiction in the state.
Attorney General Patrick Morrisey said during his opening statement in Kanawha County Circuit Court that opioid addiction has affected the state's police forces, hospitals, foster care system and jails, with effects that will linger for more than a generation.
"This epidemic has impacted virtually all of West Virginia," Morrissey said. "Our lawsuit speaks for all West Virginians who have suffered due to the defendants' unlawful, callous and destructive conduct."
West Virginia has been hard hit by the epidemic, with a per capita opioid mortality rate nearly three times the national average in 2020, according to data from the National Center for Health Statistics.
J&J and the three largest U.S. drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - have reached nationwide settlements worth $26 billion to resolve state and local government opioid claims. West Virginia was one of five states that did not sign on to the J&J portion of that settlement.
West Virginia has accused the drug manufacturers of creating a "public nuisance" by deceiving prescribers about the risks of opioid painkillers and of violating the state’s Consumer Credit and Protection Act.
The companies' marketing efforts caused opioids to become a common treatment for chronic pain in West Virginia, which led to an increase in substance abuse and overdose deaths, according to West Virginia's complaint.
The companies have denied the allegations.
Morrisey said that he expects the trial before Judge Derek Swope will take up to two months.
Drugmaker Endo International Plc ENDP.O, which was a co-defendant in the case, reached a $26 million settlement with West Virginia on March 30.
More than 3,300 lawsuits have been filed against drugmakers, distributors and pharmacies over the crisis. There have been a wave of recent settlements over companies' responsibility for the opioid epidemic.
Last month, Rhode Island and Florida struck settlements to resolve opioid litigation on the eve of trials. Rhode Island reached a deal valued at $107 million with Teva and Allergen and Florida settled with Teva, CVS Health Corp CVS.N, Allergan and Endo for a combined $878 million.
(Reporting by Dietrich Knauth; Editing by Noeleen Walder and Aurora Ellis and Bill Berkrot)
((Dietrich.Knauth@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dietrich Knauth April 4 (Reuters) - West Virginia's attorney general on Monday urged a judge to hold Johnson & Johnson JNJ.N, Teva Pharmaceuticals Industries Ltd TEVA.TA, and AbbVie Inc's ABBV.N Allergen liable for causing a "tsunami" of opioid addiction in the state. Attorney General Patrick Morrisey said during his opening statement in Kanawha County Circuit Court that opioid addiction has affected the state's police forces, hospitals, foster care system and jails, with effects that will linger for more than a generation. West Virginia has accused the drug manufacturers of creating a "public nuisance" by deceiving prescribers about the risks of opioid painkillers and of violating the state’s Consumer Credit and Protection Act. | By Dietrich Knauth April 4 (Reuters) - West Virginia's attorney general on Monday urged a judge to hold Johnson & Johnson JNJ.N, Teva Pharmaceuticals Industries Ltd TEVA.TA, and AbbVie Inc's ABBV.N Allergen liable for causing a "tsunami" of opioid addiction in the state. J&J and the three largest U.S. drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - have reached nationwide settlements worth $26 billion to resolve state and local government opioid claims. Last month, Rhode Island and Florida struck settlements to resolve opioid litigation on the eve of trials. | By Dietrich Knauth April 4 (Reuters) - West Virginia's attorney general on Monday urged a judge to hold Johnson & Johnson JNJ.N, Teva Pharmaceuticals Industries Ltd TEVA.TA, and AbbVie Inc's ABBV.N Allergen liable for causing a "tsunami" of opioid addiction in the state. J&J and the three largest U.S. drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - have reached nationwide settlements worth $26 billion to resolve state and local government opioid claims. The companies' marketing efforts caused opioids to become a common treatment for chronic pain in West Virginia, which led to an increase in substance abuse and overdose deaths, according to West Virginia's complaint. | By Dietrich Knauth April 4 (Reuters) - West Virginia's attorney general on Monday urged a judge to hold Johnson & Johnson JNJ.N, Teva Pharmaceuticals Industries Ltd TEVA.TA, and AbbVie Inc's ABBV.N Allergen liable for causing a "tsunami" of opioid addiction in the state. There have been a wave of recent settlements over companies' responsibility for the opioid epidemic. Rhode Island reached a deal valued at $107 million with Teva and Allergen and Florida settled with Teva, CVS Health Corp CVS.N, Allergan and Endo for a combined $878 million. | a5ffc133-0963-4f4c-a15b-175db41eeaea |
23506.0 | 2022-04-03 00:00:00 UTC | Why Dividend Stocks With Low Payout Ratios Can Be Better Than Those With High Yields | ABBV | https://www.nasdaq.com/articles/why-dividend-stocks-with-low-payout-ratios-can-be-better-than-those-with-high-yields | nan | nan | Dividend-paying stocks in the S&P 500 have historically outperformed their non-dividend-paying index peers. Dividend-growing companies in the index have performed even better.
So should we buy the highest-yielding dividend-growth stocks in the S&P 500 and call it a day?
Maybe, but there is one last (and less popular) metric that has historically led to outperformance -- the payout ratio. Specifically, dividend-growing stocks that maintain a payout ratio below 50% help create the exact type of stocked pond people like to fish in, offering investors a healthy balance between returning cash to shareholders and funding company growth.
As a result, it's not the top quintile of highest-yield stocks (and their 74% average payout ratio) that outperform at the highest rate, but the second quintile (and its 41% average payout ratio), according to data from Wellington Management.
Let's find out what this means for investors interested in optimizing their dividend strategy.
Image source: Getty Images.
High-yield dividends, low growth prospects
While high-yield dividend stocks may be alluring at first glance, many tend to have higher payout ratios. The payout ratio is a stock's dividend payout as a percentage of its net income, and it can quickly tell investors how much of a company's profits are going directly back to shareholders.
When these high-yield stocks continue to increase their dividend payments over time, they eventually begin to test the limits of their financial security, paying out bigger portions of their earnings.
High payout ratios typically mean two things.
First, the company will have less money to reinvest back into the business, spending which could have fueled future sales growth, eventually growing the bottom line. Sales growth is a strong indicator of a stock's long-term performance, putting companies with high payout ratios at a disadvantage thanks to their hampered growth prospects.
Furthermore, if a company has a high payout ratio, its dividend growth potential is similarly restricted -- or worse yet, it may need to cut its payout to maintain financial security. While dividend cuts are far from death knells (sometimes even wise decisions), they generally lead to a sell-off in the stock as income-focused investors flee.
S&P 500 companies that cut their dividend not only underperformed their peers over a 48-year period but produced a negative annual return overall, reinforcing the importance of a well-funded dividend.
Low payout ratios, long-term growth potential
On the flip side, stocks with low payout ratios offer a balanced approach between returning cash to shareholders and funding future growth. Thanks to this extra cash available to reinvest in the business, a flywheel effect can take hold.
First, a portion of the excess profits go back into the business, creating new sales that flow through to the bottom line. With this rising net income, the company can increase its dividend, often without raising its payout ratio as profits and dividends paid out rise at a similar rate.
Additionally, if the company still has earnings to spare, management can also consider lowering its share count through share repurchase programs. For example, consider the declining share counts for two great low payout ratio stocks, Lowe's and Union Pacific.
Data by YCharts.
Despite the capital required to maintain their respective operations, these two have not only funded many years of annual dividend increases but rapidly lowered their total shares outstanding over the last decade. Fewer shares make the dividends cheaper to maintain while boosting earnings per share -- furthering the flywheel effect.
Because of these benefits, looking for low payout ratios over high yields is akin to choosing longer-term cash flow potential over higher near-term income.
The best of both worlds
Best yet for investors, a handful of stocks offer relatively high dividend yields and low payout ratios. Let's look at three here:
METRIC CUMMINS INTEL TARGET
Dividend yield 2.9% 3.0% 1.7%
Payout ratio 38.3% 28.6% 22.4%
Maximum dividend potential 7.6% 10.5% 7.6%
Consecutive years of dividend increases 8 19 53
Source: Yahoo! Finance. Maximum dividend potential = dividend yield/payout ratio.
Notice that despite not having the highest dividend yield, Intel has the highest maximum dividend potential based on its dividend yield divided by its payout ratio. Similarly, Target has a dividend yield about one percentage point lower than Cummins, but they have comparable maximums.
I bring these three companies up to illuminate the power of a low payout ratio. Yes, you may be sacrificing some near-term dividend income by forgoing high-yield stocks, but your long-term dividend potential should one day dwarf that high initial income if you hold for the long haul.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool owns and recommends Intel. The Motley Fool recommends Cummins, Lowe's, and Union Pacific and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 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. | When these high-yield stocks continue to increase their dividend payments over time, they eventually begin to test the limits of their financial security, paying out bigger portions of their earnings. Despite the capital required to maintain their respective operations, these two have not only funded many years of annual dividend increases but rapidly lowered their total shares outstanding over the last decade. Because of these benefits, looking for low payout ratios over high yields is akin to choosing longer-term cash flow potential over higher near-term income. | Low payout ratios, long-term growth potential On the flip side, stocks with low payout ratios offer a balanced approach between returning cash to shareholders and funding future growth. Dividend yield 2.9% 3.0% 1.7% Payout ratio 38.3% 28.6% 22.4% Maximum dividend potential 7.6% 10.5% 7.6% Consecutive years of dividend increases 8 19 53 Source: Yahoo! The Motley Fool recommends Cummins, Lowe's, and Union Pacific and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. | Low payout ratios, long-term growth potential On the flip side, stocks with low payout ratios offer a balanced approach between returning cash to shareholders and funding future growth. Dividend yield 2.9% 3.0% 1.7% Payout ratio 38.3% 28.6% 22.4% Maximum dividend potential 7.6% 10.5% 7.6% Consecutive years of dividend increases 8 19 53 Source: Yahoo! Notice that despite not having the highest dividend yield, Intel has the highest maximum dividend potential based on its dividend yield divided by its payout ratio. | Furthermore, if a company has a high payout ratio, its dividend growth potential is similarly restricted -- or worse yet, it may need to cut its payout to maintain financial security. The best of both worlds Best yet for investors, a handful of stocks offer relatively high dividend yields and low payout ratios. Dividend yield 2.9% 3.0% 1.7% Payout ratio 38.3% 28.6% 22.4% Maximum dividend potential 7.6% 10.5% 7.6% Consecutive years of dividend increases 8 19 53 Source: Yahoo! | cb125298-3c1f-4ac6-bfe1-347cfb7c97b8 |
23507.0 | 2022-04-03 00:00:00 UTC | 3 Dividend Aristocrats to Buy in April | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-in-april | nan | nan | Do you want to know a secret? Many Dividend Aristocrats are overrated by investors.
Sure, it's impressive that these companies have delivered 25 or more consecutive years of dividend increases. However, many of them offer sub-par total returns and dividend yields.
That's not true in every case, though. Here are three Dividend Aristocrats to buy in April that should be winners.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) isn't merely a Dividend Aristocrat; the company is also a Dividend King with 50 years in a row of dividend increases. Its dividend yield of nearly 3.5% blows away most yields of the dividend royalty.
The big pharma company's dividend yield has been even higher throughout most of the past three years. However, AbbVie's share price has grown faster than its dividend has. The stock's performance is especially notable in 2022. While the broader market indices have fallen, AbbVie stock is up close to 20%.
Despite the solid gains, AbbVie's valuation remains attractive. Its shares trade at less than 11.5 times expected earnings. By comparison, the forward earnings multiple of the S&P 500 is 19.3.
The main knock against AbbVie is that sales for its top-selling drug Humira will fall steeply next year with biosimilar rivals entering the U.S. market. However, the company should still deliver solid growth throughout this decade thanks to its strong product lineup.
2. Air Products & Chemicals
Unlike AbbVie, Air Products & Chemicals (NYSE: APD) has lagged behind the S&P 500 so far this year and over the past three years. However, investors at least have received a solid dividend that currently yields nearly 2.6%.
But Wall Street analysts think that Air Products could soar over the next 12 months. The consensus price target for the stock reflects an upside potential of around 23%.
Air Products expects to increase its adjusted earnings per share by 13% to 15% in 2022. That's better than many Dividend Aristocrats will manage to deliver. And it's higher than the average 11% earnings growth that the company has achieved since 2014.
However, the best thing about this stock is its long-term growth prospects. Air Products continues to leverage its top position in the industrial gases market to expand into high-growth areas including carbon capture and clean hydrogen. I think it's likely that this underperformer in the past will transition from laggard to leader in the future.
3. Walmart
Walmart (NYSE: WMT) has increased its dividend for 49 consecutive years, putting the giant retailer only one dividend hike away from becoming a Dividend King. Although its dividend yield of 1.5% isn't overly impressive, there are other reasons for investors to like Walmart.
Perhaps the best argument for the stock is that it could hold up quite well if a recession is on the way. And that could be the case, with the two-year U.S. Treasury bond yield rising above the 10-year yield last week. This inverted yield curve has often been a predictor of recessions in the past.
Even if a recession isn't right around the corner, high inflation seems likely to cause consumers to shop for bargains. That works to Walmart's favor as the biggest discount retailer in the world.
Over the long term, Walmart's investments in technology should help keep it at the top of the retail world. While there could be times when the stock doesn't beat the market, Walmart is without question built to survive and thrive.
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Keith Speights owns AbbVie and Air Products & Chemicals. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The main knock against AbbVie is that sales for its top-selling drug Humira will fall steeply next year with biosimilar rivals entering the U.S. market. AbbVie AbbVie (NYSE: ABBV) isn't merely a Dividend Aristocrat; the company is also a Dividend King with 50 years in a row of dividend increases. However, AbbVie's share price has grown faster than its dividend has. | AbbVie AbbVie (NYSE: ABBV) isn't merely a Dividend Aristocrat; the company is also a Dividend King with 50 years in a row of dividend increases. Air Products & Chemicals Unlike AbbVie, Air Products & Chemicals (NYSE: APD) has lagged behind the S&P 500 so far this year and over the past three years. However, AbbVie's share price has grown faster than its dividend has. | AbbVie AbbVie (NYSE: ABBV) isn't merely a Dividend Aristocrat; the company is also a Dividend King with 50 years in a row of dividend increases. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Keith Speights owns AbbVie and Air Products & Chemicals. However, AbbVie's share price has grown faster than its dividend has. | AbbVie AbbVie (NYSE: ABBV) isn't merely a Dividend Aristocrat; the company is also a Dividend King with 50 years in a row of dividend increases. However, AbbVie's share price has grown faster than its dividend has. While the broader market indices have fallen, AbbVie stock is up close to 20%. | afb2ecc0-2c9f-49b8-9d26-b40a7a812672 |
23508.0 | 2022-04-03 00:00:00 UTC | 2 Drugmakers Set for Explosive Revenue This Decade | ABBV | https://www.nasdaq.com/articles/2-drugmakers-set-for-explosive-revenue-this-decade | nan | nan | A blockbuster drug is one that brings in $1 billion or more in annual sales. Every pharmaceutical company aims for that level of sales. That's because these drugs often are the main drivers of the revenue engine. Blockbuster drugs accounted for 56% of the top 20 pharmaceutical companies' drug sales in 2018, according to a paper in Nature Reviews Drug Discovery.
So, blockbusters are great. But even in this category of high-revenue products, there are the superstars. And two companies are set to benefit from sales of these superstars this decade. I'm talking about Bristol Myers Squibb (NYSE: BMY) and Merck (NYSE: MRK). Two charts explain why.
Image source: Getty Images.
Vast product portfolios
First, it's important to note that Bristol Myers Squibb and Merck both have vast product portfolios covering a variety of treatment areas. Bristol Myers Squibb had eight blockbusters as of the end of last year and Merck had five. And Bristol Myers Squibb brought in full-year revenue of more than $46 billion while Merck generated more than $48 billion. These companies already are delivering major revenue. But growth from here could continue.
The following chart shows a forecast of the top 10 pharmaceutical products by sales four years from now. And the top two are Merck's Keytruda and Bristol Myers Squibb's Opdivo. They're set to bring in more than $26 billion and more than $14 billion, respectively. Both are oncology drugs.
Image source: Statista.
The top-selling drug category
Now, let's move on to our next chart. This one shows sales of oncology drugs -- already the top-selling drug category -- continue to grow. In fact, oncology drug sales are expected to climb 82% to more than $320 billion by 2026, according to the chart. And this category is set to remain the top seller. The second-biggest category is far behind. That's immunosuppressants, with projected sales of $77 billion.
Image source: Statista.
All of this points to increasing revenue for both Bristol Myers Squibb and Merck. First, their already best-selling oncology drugs are expected to gain. And second, the outlook for growth in oncology drugs in general means demand isn't going away. Bristol Myers Squibb and Merck can benefit through sales of their existing oncology drugs and possibly new ones. Bristol Myers Squibb has more than 20 new candidates in its oncology pipeline -- and it's also studying its current drugs in additional oncology indications. Merck has more than 60 oncology candidates in the pipeline.
What does this mean for investors? Now may be a good time to take a second look at these pharmaceutical companies that have what it takes to bring in blockbuster revenue throughout this decade.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bristol Myers Squibb. The Motley Fool recommends Gilead Sciences, Johnson & Johnson, and Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bristol Myers Squibb and Merck can benefit through sales of their existing oncology drugs and possibly new ones. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bristol Myers Squibb wasn't one of them! | Blockbuster drugs accounted for 56% of the top 20 pharmaceutical companies' drug sales in 2018, according to a paper in Nature Reviews Drug Discovery. This one shows sales of oncology drugs -- already the top-selling drug category -- continue to grow. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Blockbuster drugs accounted for 56% of the top 20 pharmaceutical companies' drug sales in 2018, according to a paper in Nature Reviews Drug Discovery. Bristol Myers Squibb and Merck can benefit through sales of their existing oncology drugs and possibly new ones. Bristol Myers Squibb has more than 20 new candidates in its oncology pipeline -- and it's also studying its current drugs in additional oncology indications. | This one shows sales of oncology drugs -- already the top-selling drug category -- continue to grow. All of this points to increasing revenue for both Bristol Myers Squibb and Merck. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bristol Myers Squibb wasn't one of them! | f9b7a2ae-d617-4147-900d-5ce4ba7a028d |
23509.0 | 2022-04-01 00:00:00 UTC | 3 Warren Buffett Stocks to Buy in April | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-buy-in-april | nan | nan | It's April Fools' Day. If Warren Buffett wanted to pull a trick for the ages, he might announce that he's adding $10 billion of several cryptocurrency meme coins to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
I'm not sure that very many people would believe the joke, though. Buffett has been a steadfast opponent of cryptocurrencies in the past. Instead, he has been a firm believer in the merits of investing in businesses that produce products and services that people want to buy.
There are quite a few stocks of such businesses in Berkshire's current portfolio that have solid growth prospects. Here are three Buffett stocks to buy in April.
Image source: The Motley Fool.
1. Amazon.com
Some people are hemming and hawing about whether it's better to buy Amazon.com (NASDAQ: AMZN) before or after its upcoming stock split. I suspect that Buffett would say to forget about the split and instead focus on the company's underlying business.
Amazon remains the dominant player in e-commerce. There's still a massive growth opportunity for the company, with U.S. e-commerce sales making up only 13.2% of total retail sales in the fourth quarter of 2021.
However, the Amazon Web Services (AWS) cloud hosting unit stands as an even bigger growth driver. Net sales for the unit soared nearly 40% year over year in Q4. And AWS generated more profits than all of Amazon's other businesses combined.
Buffett would likely also tell investors to look to the future. Amazon is poised to expand in artificial intelligence (AI), healthcare, self-driving vehicles, streaming, and more. This internet giant should continue generating strong cash flows -- and that should lead to a market-beating performance over the long term.
2. AbbVie
Admittedly, AbbVie (NYSE: ABBV) doesn't rank among Buffett's favorite stocks. Berkshire's stake in the big drugmaker topped $410 million at the end of 2021. However, Buffett has reduced the position in AbbVie quite a bit.
Buffett's moves with AbbVie look like a mistake in retrospect. The stock has trounced the S&P 500 so far this year with a gain of more than 20%. Its total return is well above that of Berkshire Hathaway as well.
I suspect that many investors are drawn to AbbVie's attractive valuation and dividend during a time of overall uncertainty. The big pharma company's shares trade at only 11.5 times expected earnings despite the big gain in recent months. AbbVie is also a Dividend King with a dividend that currently yields north of 3.4%.
Don't dismiss the company's growth prospects, either. AbbVie does face the loss of U.S. exclusivity for its top-selling drug Humira next year. However, the company has multiple other growth drivers in its lineup that should enable it to quickly return to growth.
3. Bank of America
Buffett has been a fan of bank stocks for years. While he's trimmed Berkshire's positions in several banks, there's one bank stock that he hasn't sold: Bank of America (NYSE: BAC).
My view is that Bank of America is an especially good stock to own over the near term. Why? The Federal Reserve plans to increase interest rates. Bank of America benefits from a rising-rate environment. The company's net margin and return on equity tend to improve as interest rates increase.
Buffett almost certainly continues to view Bank of America as a solid long-term investment as well. The company is strong financially. Its reputation stands at the top of the industry. Bank of America has also improved its efficiency significantly through investing in technology.
Could Bank of America's business model be disrupted at some point? Maybe. However, the company has positioned itself well with its Zelle digital payments app and other online apps. Bank of America has demonstrated that it can survive and thrive in a changing financial and technological landscape.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights owns AbbVie, Amazon, Bank of America, and Berkshire Hathaway (B shares). The Motley Fool owns and recommends Amazon and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Admittedly, AbbVie (NYSE: ABBV) doesn't rank among Buffett's favorite stocks. However, Buffett has reduced the position in AbbVie quite a bit. Buffett's moves with AbbVie look like a mistake in retrospect. | Keith Speights owns AbbVie, Amazon, Bank of America, and Berkshire Hathaway (B shares). AbbVie Admittedly, AbbVie (NYSE: ABBV) doesn't rank among Buffett's favorite stocks. However, Buffett has reduced the position in AbbVie quite a bit. | AbbVie Admittedly, AbbVie (NYSE: ABBV) doesn't rank among Buffett's favorite stocks. However, Buffett has reduced the position in AbbVie quite a bit. Buffett's moves with AbbVie look like a mistake in retrospect. | AbbVie Admittedly, AbbVie (NYSE: ABBV) doesn't rank among Buffett's favorite stocks. However, Buffett has reduced the position in AbbVie quite a bit. Buffett's moves with AbbVie look like a mistake in retrospect. | d0596d86-02e2-44d7-838e-2a7981d91083 |
23510.0 | 2022-03-31 00:00:00 UTC | Abbvie Inc Shares Near 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-near-52-week-high-market-mover-4 | nan | nan | Abbvie Inc (ABBV) shares closed today at 1.2% below its 52 week high of $164.66, giving the company a market cap of $287B. The stock is currently up 21.4% year-to-date, up 56.9% over the past 12 months, and up 214.3% over the past five years. This week, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 rose 0.3%.
Trading Activity
Trading volume this week was 33.0% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
The stock closed at 0.1% higher than its 5-day moving average, 3.7% higher than its 20-day moving average, and 16.5% higher than its 90-day moving average.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 818.4%
The company's stock price performance over the past 12 months beats the peer average by 225.7%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -89.3% lower than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 1.2% below its 52 week high of $164.66, giving the company a market cap of $287B. This week, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 rose 0.3%. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4. | Abbvie Inc (ABBV) shares closed today at 1.2% below its 52 week high of $164.66, giving the company a market cap of $287B. This week, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 rose 0.3%. The stock closed at 0.1% higher than its 5-day moving average, 3.7% higher than its 20-day moving average, and 16.5% higher than its 90-day moving average. | Abbvie Inc (ABBV) shares closed today at 1.2% below its 52 week high of $164.66, giving the company a market cap of $287B. The stock closed at 0.1% higher than its 5-day moving average, 3.7% higher than its 20-day moving average, and 16.5% higher than its 90-day moving average. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 818.4% The company's stock price performance over the past 12 months beats the peer average by 225.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -89.3% lower than the average peer. | Abbvie Inc (ABBV) shares closed today at 1.2% below its 52 week high of $164.66, giving the company a market cap of $287B. Trading Activity Trading volume this week was 33.0% higher than the 20-day average. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. | 921babe8-ba72-445c-9348-013944c6808e |
23511.0 | 2022-03-31 00:00:00 UTC | 3 Top Healthcare ETFs to Buy Now and Hold for the Long Haul | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-etfs-to-buy-now-and-hold-for-the-long-haul | nan | nan | Investing in individual stocks can make some investors nervous due to the amount of necessary research and the risk associated with volatility in the market. One way to quiet those nerves is to place your money into exchange-traded funds that follow a market or sector index and are managed by a financial institution. Each ETF holds positions in a group of stocks and can be traded in real-time, just like stocks.
Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI).
Image source: Getty Images.
1. Vanguard goes heavy on pharma, and light on expenses
The average expense ratio for ETFs has trended downward since 2008, driven by an injection of new ETFs on the market, giving investors an opportunity to increase their gains. But even at an average rate of 0.18% for asset-weighted funds, Vanguard comes in lower at 0.10%. With no minimum investment and a low expense ratio, it removes potential front-end obstacles that might scare away some investors.
This healthcare ETF also provides investors with an expansive diversification of stocks within the sector, including companies that sell medical products, services, equipment, and technology. The aim is to track the performance of a benchmark index, but 25% of the holdings are weighted toward pharmaceuticals. Moreover, 44% of its total assets are in its top-10 holdings, including Abbott Laboratories, AbbVie, and UnitedHealth, strong companies to hold for the long term.
Because the fund aims to track the healthcare index as a whole, it should continue to benefit from two growth areas. First, the pharmaceutical market is projected to grow at a 5.7% compound annual rate through 2026. Second, the population of people reaching age 65 over the next 10 years is expected to increase, leading to more spending on Medicare and Medicaid services.
Topping off the benefits of this ETF is a 1.14% dividend yield, which amounted to a $3.05-per-share distribution in dividends for 2021, and leads the pack of these three ETFs. A 15% average annualized return over the past 10 years is impressive as well.
2. Blackrock's U.S. Healthcare Providers ETF has a strong record
When long-term investors look to build out a portfolio, it's a good practice to compile a few investments that serve with consistency to support a foundational base. This ETF has provided positive returns in 13 of the 14 years since its inception.
Comparing it to the Vanguard healthcare ETF, there are some similarities and some trade-offs. Similarities include UnitedHealth as a top holding, which has been a rocket ship of growth, and has the right stuff to keep it going. But the rest of the top holdings are led by healthcare providers, including pharmacy market leader CVS. At the same time, its average annualized return of 17.3% over the past 10 years exceeds that of the Vanguard ETF.
The minor trade-off to the higher returns is that this ETF carries an expense ratio of 0.42%, which more closely resembles the 0.47% average of a simple, non-asset-weighted ETF. This basically means you're paying more for your gains.
But when the returns average 2% higher per year than Vanguard's ETF, they can make up for that higher expense ratio -- assuming that this winning streak can continue. And the heavier reliance on healthcare providers, as opposed to pharmaceuticals, can provide balance when letting both ETFs work in tandem for your portfolio.
3. Blackrock's U.S. Medical Devices ETF is well worth a high expense ratio
A third healthcare ETF for a solid portfolio could be the Blackrock U.S. Medical Devices ETF. If it's higher returns you're looking for from your ETF, you'll find it here, at a 19% average annualized total return over the past 10 years compared to the S&P 500 Healthcare average of 15.9%.
But like Blackrock's healthcare provider ETF, this medical devices-focused ETF has a heavy 72% of its total assets in the top 10 holdings, making it riskier than an ETF that is more broadly spread out. Other trade-offs to its higher returns include a higher 0.42% expense ratio and a slightly lower consistency rate of years with positive returns. It also delivers a lower dividend compared to each of the other two ETFs highlighted, at only 0.33%.
Holdings like Abbott Labs, Intuitive Surgical, and Medtronic have helped pace this large-growth ETF. It should benefit from a projected compound annual growth rate of 5.4% for the medical devices market through 2028, driven by such advancements in technology as artificial intelligence and robotics.
How does the S&P average match up?
The chart below shows the 10-year annualized return for each of these three ETFs compared to that of the broader S&P 500 and S&P 500 Healthcare indices. As you can see, both S&P averages fall below all three of these healthcare-focused ETFs.
^SPX data by YCharts.
While all three could be good additions to your portfolio, each may serve its purpose depending on your investment stage. Younger investors may opt to go with a higher-risk approach for higher potential annual returns, whereas someone closing in on retirement may want to go with an ETF that can deliver more consistency with less risk. Meanwhile, a higher-dividend-paying ETF can help generate some quarterly income and benefit investors at all stages.
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Jeff Little owns iShares Dow Jones US Medical Dev. The Motley Fool owns and recommends Intuitive Surgical. The Motley Fool recommends CVS Health and UnitedHealth Group. 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. | Moreover, 44% of its total assets are in its top-10 holdings, including Abbott Laboratories, AbbVie, and UnitedHealth, strong companies to hold for the long term. This healthcare ETF also provides investors with an expansive diversification of stocks within the sector, including companies that sell medical products, services, equipment, and technology. Blackrock's U.S. Healthcare Providers ETF has a strong record When long-term investors look to build out a portfolio, it's a good practice to compile a few investments that serve with consistency to support a foundational base. | Moreover, 44% of its total assets are in its top-10 holdings, including Abbott Laboratories, AbbVie, and UnitedHealth, strong companies to hold for the long term. Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI). But like Blackrock's healthcare provider ETF, this medical devices-focused ETF has a heavy 72% of its total assets in the top 10 holdings, making it riskier than an ETF that is more broadly spread out. | Moreover, 44% of its total assets are in its top-10 holdings, including Abbott Laboratories, AbbVie, and UnitedHealth, strong companies to hold for the long term. Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI). Blackrock's U.S. Medical Devices ETF is well worth a high expense ratio A third healthcare ETF for a solid portfolio could be the Blackrock U.S. Medical Devices ETF. | Moreover, 44% of its total assets are in its top-10 holdings, including Abbott Laboratories, AbbVie, and UnitedHealth, strong companies to hold for the long term. Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI). But even at an average rate of 0.18% for asset-weighted funds, Vanguard comes in lower at 0.10%. | 6d204980-0fb3-4bf3-a8b6-e592344d42a7 |
23512.0 | 2022-03-31 00:00:00 UTC | May 13th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/may-13th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 13th contracts and identified one put and one call contract of particular interest.
The put contract at the $160.00 strike price has a current bid of $2.67. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $160.00, but will also collect the premium, putting the cost basis of the shares at $157.33 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $163.37/share today.
Because the $160.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.67% return on the cash commitment, or 14.16% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $160.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of $2.48. If an investor was to purchase shares of ABBV stock at the current price level of $163.37/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $165.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.52% if the stock gets called away at the May 13th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red:
Considering the fact that the $165.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.52% boost of extra return to the investor, or 12.89% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 27%, while the implied volatility in the call contract example is 23%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $163.37) to be 18%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 13th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 13th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $160.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of $2.48. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 13th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 13th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 13th expiration. | 3b30d37d-9751-4fe2-a046-c01801d3d3ea |
23513.0 | 2022-03-30 00:00:00 UTC | 3 Unstoppable Stocks to Buy in a Bear Market | ABBV | https://www.nasdaq.com/articles/3-unstoppable-stocks-to-buy-in-a-bear-market-0 | nan | nan | For investors, it may seem difficult to believe that 2022 is only three months old. First, the tech market corrected harshly, and the other major indexes quickly followed. In January, inflation reached a 40-year high and then edged even higher in February. Four projected interest rate hikes have turned rapidly to indications of as many as seven in 2022. Finally, Russian President Vladimir Putin ordered his army to invade Ukraine, causing a humanitarian crisis and surging gas prices.
This has made for many gloomy headlines and volatility in the markets. However, the tide may be turning. Either way, long-term investors don't need to react to the news of the day. Some companies win no matter what and deserve to be cornerstones of long-term portfolios. Let's take a look at a few.
Image source: Getty Images.
AbbVie
As the saying goes, "Hair grows even during a recession." The same sentiment can be applied to prescription medications. AbbVie (NYSE: ABBV) is unlikely to take a significant sales hit during an economic downturn as its products are, for the most part, a necessity.
A steady, growing dividend is also a terrific way for investors to relax when the market is stormy. AbbVie currently pays investors $1.41 quarterly per share. This puts the annual dividend yield at around 3.5%. The dividend has increased annually since the company was created in 2013. With a rising dividend, investors who buy and hold will see their effective yield rise.
For instance, an investor who purchased AbbVie stock three years ago would have paid about $81 per share and now have an effective annual yield of almost 7% -- and a pot of capital gains to boot. The dividend increases are likely to continue. AbbVie made $9.3 billion in dividend payments in 2021 but earned over $22.7 billion in cash from operations.
Management has done a terrific job transforming the company from being reliant on Humira to one that is prepared for the future. Humira will soon have competition from biosimilars in the U.S. This will likely cut sales significantly. However, new drugs like Skyrizi and Rinvoq are forecast to produce $15 billion in combined sales by 2025, making up for much of the lost Humira sales.
As shown below, AbbVie's total sales are expanding, and the reliance upon Humira is shrinking. This is an excellent sign of things to come.
Data source: AbbVie. Chart by author.
Intuitive Surgical
Robotic-assisted, minimally invasive surgery is no longer the stuff of science fiction. It is now quite common around the world. Intuitive Surgical's (NASDAQ: ISRG) da Vinci Surgical System is even shown on some reality television shows where it is used to perform bariatric procedures on high-risk patients. There were 6,730 systems installed worldwide as of the end of 2021. Intuitive dominates the market with a nearly 80% share, according to one estimate. The company often receives the "overvalued" label from some analysts and investors; however, they may be missing the long-term picture.
First, Intuitive has its financial house in tip-top condition. At the end of 2021, the company had over $8.6 billion in cash and investments on the balance sheet and no long-term debt. This is a massive 8.3% of the current market cap and $1.75 billion more than at the end of 2020. Who wouldn't want to own part of a company with this free cash flow? Intuitive has also an operating margin of 32%, putting it head and shoulders above other medical device companies, as shown below.
ISRG Operating Margin (TTM) data by YCharts
Finally, Intuitive does not just make money from selling machines. Were this the case, then market saturation would be a serious concern. Instead, most sales come from recurring sources like parts and instruments. Over 70% of sales in 2021 were recurring. It is a safe bet that this revenue will keep rolling in, given the high switching costs associated with surgical systems.
COVID-19 dampened recent growth as hospitals had to put off some elective procedures. Now that the worst of COVID-19 appears over, growth could accelerate.
O'Reilly Automotive
The prices of new and used cars have skyrocketed. Much of this is due to the semiconductor shortage, which has crimped supply in the new car market. Because of the high costs, many folks will likely try to hold on to their existing vehicles for as long as possible.
O'Reilly Automotive (NASDAQ: ORLY) could be a beneficiary here. The company's sales come from both do-it-yourselfers and professional service providers to the tune of about 60% and 40%, respectively.
US Consumer Price Index: New Cars data by YCharts
In fact, the company reported that comparable stores sales rose 13% in 2021 and 14.5% year over year in the fourth quarter. Gross profit grew over 15% in 2021, while diluted earnings per share jumped 32%.
One of the ways in which O'Reilly achieves massive EPS growth is through its generous share buyback program. In 2021, the company returned $2.48 billion to shareholders this way or about 5% of the current market cap.
O'Reilly stock has gained more than 36% over the last year, and the P/E ratio is just over 22, which is in its recent normal range. Look for this company to capitalize on the robust market demand.
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Bradley Guichard owns AbbVie, Intuitive Surgical, and OReilly Automotive. The Motley Fool owns and recommends Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For instance, an investor who purchased AbbVie stock three years ago would have paid about $81 per share and now have an effective annual yield of almost 7% -- and a pot of capital gains to boot. AbbVie As the saying goes, "Hair grows even during a recession." AbbVie (NYSE: ABBV) is unlikely to take a significant sales hit during an economic downturn as its products are, for the most part, a necessity. | AbbVie currently pays investors $1.41 quarterly per share. AbbVie As the saying goes, "Hair grows even during a recession." AbbVie (NYSE: ABBV) is unlikely to take a significant sales hit during an economic downturn as its products are, for the most part, a necessity. | For instance, an investor who purchased AbbVie stock three years ago would have paid about $81 per share and now have an effective annual yield of almost 7% -- and a pot of capital gains to boot. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Bradley Guichard owns AbbVie, Intuitive Surgical, and OReilly Automotive. AbbVie As the saying goes, "Hair grows even during a recession." | AbbVie currently pays investors $1.41 quarterly per share. AbbVie made $9.3 billion in dividend payments in 2021 but earned over $22.7 billion in cash from operations. AbbVie As the saying goes, "Hair grows even during a recession." | 97c36d8c-b9af-457e-a309-c775f7187ee8 |
23514.0 | 2022-03-30 00:00:00 UTC | Florida reaches $878 million opioid settlements with CVS, Teva, others | ABBV | https://www.nasdaq.com/articles/florida-reaches-%24878-million-opioid-settlements-with-cvs-teva-others | nan | nan | By Jonathan Stempel and Dietrich Knauth
March 30 (Reuters) - Florida has reached more than $878 million in settlements with CVS Health Corp CVS.N and three drug companies to resolve claims and avert a trial next month over their roles in fueling an opioid epidemic in the third most populous U.S. state.
CVS will pay $484 million, Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million, Florida's attorney general Ashley Moody said in a statement on Wednesday.
Most of the money will be spent on opioid abatement. Teva will also provide $84 million of its generic Narcan nasal spray, which can temporarily reverse the effects of opioid overdoses.
All of the companies denied wrongdoing in agreeing to settle. Endo's accord had been reached in January.
Moody said the pharmacy chain Walgreens WBA.N is the only remaining defendant in the state's opioid litigation, with jury selection scheduled to begin on April 5.
Walgreens in a statement said its 2012 opioid-related settlement with Florida covered the state's latest claims, and that it will defend against "unjustified attacks" on its pharmacists.
CVS and Teva said they would defend against other lawsuits relating to opioids. Teva also said it "continues to actively negotiate a national settlement" of similar claims.
Abbvie and Endo did not immediately respond to requests for comment.
Florida announced the settlements nine days after Rhode Island reached similar accords with Teva and Allergan that it valued at $107 million.
More than 500,000 people have died from opioid overdoses in the past two decades, including 75,673 in the year ending April 2021, according to the U.S. Centers for Disease Control and Prevention.
On Feb. 25, Johnson & Johnson JNJ.N and drug distributors AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N reached final settlements worth $26 billion over their roles in the epidemic.
State, local and Native American tribal governments in the United States have filed more than 3,300 lawsuits accusing drugmakers such as OxyContin maker Purdue Pharma of fueling opioid abuse, including by downplaying the risks of addiction.
(Reporting by Jonathan Stempel and Dietrich Knauth in New York; Nate Raymond in Boston; Tom Hals in Wilmington, Delaware; and Ankur Banerjee in Bengaluru; Editing by Shinjini Ganguli, Will Dunham and Chizu Nomiyama)
((ankur.banerjee@thomsonreuters.com;; Mobile - +919008417318; Twitter: @AnkurBanerjee17))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | CVS will pay $484 million, Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million, Florida's attorney general Ashley Moody said in a statement on Wednesday. Abbvie and Endo did not immediately respond to requests for comment. By Jonathan Stempel and Dietrich Knauth March 30 (Reuters) - Florida has reached more than $878 million in settlements with CVS Health Corp CVS.N and three drug companies to resolve claims and avert a trial next month over their roles in fueling an opioid epidemic in the third most populous U.S. state. | CVS will pay $484 million, Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million, Florida's attorney general Ashley Moody said in a statement on Wednesday. Abbvie and Endo did not immediately respond to requests for comment. By Jonathan Stempel and Dietrich Knauth March 30 (Reuters) - Florida has reached more than $878 million in settlements with CVS Health Corp CVS.N and three drug companies to resolve claims and avert a trial next month over their roles in fueling an opioid epidemic in the third most populous U.S. state. | CVS will pay $484 million, Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million, Florida's attorney general Ashley Moody said in a statement on Wednesday. Abbvie and Endo did not immediately respond to requests for comment. By Jonathan Stempel and Dietrich Knauth March 30 (Reuters) - Florida has reached more than $878 million in settlements with CVS Health Corp CVS.N and three drug companies to resolve claims and avert a trial next month over their roles in fueling an opioid epidemic in the third most populous U.S. state. | CVS will pay $484 million, Teva Pharmaceutical Industries Ltd TEVA.TA will pay $194.8 million, Abbvie Inc's ABBV.N Allergan unit will pay $134.2 million and Endo International Plc ENDP.O will pay $65 million, Florida's attorney general Ashley Moody said in a statement on Wednesday. Abbvie and Endo did not immediately respond to requests for comment. By Jonathan Stempel and Dietrich Knauth March 30 (Reuters) - Florida has reached more than $878 million in settlements with CVS Health Corp CVS.N and three drug companies to resolve claims and avert a trial next month over their roles in fueling an opioid epidemic in the third most populous U.S. state. | 284ef670-c7a8-4aa2-ba5e-0d90d3f4b808 |
23515.0 | 2022-03-30 00:00:00 UTC | 5 Charts That Show Why Bristol-Myers Squibb Is a No-Brainer Buy | ABBV | https://www.nasdaq.com/articles/5-charts-that-show-why-bristol-myers-squibb-is-a-no-brainer-buy | nan | nan | Are you looking for a safe investment that you can just buy and forget? One stock that will definitely tick off many check marks for you is Bristol-Myers Squibb (NYSE: BMY). The healthcare giant is worth close to $160 billion, has a proven track record, pays a high dividend, and continues to find ways to grow.
But rather than simply telling you all the reasons why it's an easy investment to justify holding in your portfolio, I can also show you through the following five charts:
Image source: Getty Images.
Bristol-Myers has multiple drugs that are top 10 in sales
No drug or vaccine came close to the revenue Pfizer's COVID-19 vaccine generated last year -- and that isn't likely to change this year, either, especially with a fourth dose possibly on the way. But Bristol-Myers was more diverse, and had three of the top-selling pharmaceutical products in 2021:
Image source: Statista.
Revlimid, Eliquis, and Opdivo each brought in more than $7 billion in sales last year. But as well as those three drugs did in 2021, they still only accounted for two-thirds of the company's sales, demonstrating just how diverse its operations are. Healthcare companies would covet even one of those money-making machines, and Bristol-Myers has three of them.
That diversification makes the business a stable one; through 2025, the company projects that its revenue will grow annually in the low-to-mid-single digits. While it isn't an astronomical growth rate, it's a steady one. And combined with strong margins, it should ensure that the business continues to expand its bottom line.
Its gross profit margin is normally well above 70%
To make the most of its revenue, a company needs to be operating efficiently and maximizing its margins. And with gross margins normally above 70%, this is another area of strength for Bristol-Myers:
BMY Gross Profit Margin (Quarterly) data by YCharts
A strong gross margin can help improve profitability and also lead to strong free cash flow, which is demonstrated in the next chart.
Free cash flow has grown significantly in recent years
Bristol-Myers has grown its business over the years through acquisitions. What's impressive is that even amid all those changes, it has been generating plenty of free cash flow along the way. Not only does that show investors that the company knows how to efficiently incorporate new businesses into its operations, but it could mean more cash for further investments in the future.
BMY Free Cash Flow (Annual) data by YCharts
Between 2022 and 2024, Bristol-Myers expects its free cash flow to total as much as $50 billion, as it expects even more money to flow through its business in the near future. And with all that cash, even if it pursues acquisitions, the company may have plenty of room to continue raising its dividend.
The dividend has increased 59% over the past decade
Bristol-Myers currently pays a quarterly dividend of $0.54 vs. $0.34 back in 2012. The company has been steadily raising its payouts, and today the stock yields 3% -- far above the S&P 500 average of 1.3%. With the free cash flow continuing to come in, the company should have room to make more dividend hikes.
BMY Dividend data by YCharts
With growth and dividends, investors can get the best of both worlds with a relatively safe stock in Bristol-Myers. And its relatively low valuation only sweetens the deal today.
Low forward P/E suggests Bristol-Myers is a cheap buy
A forward price-to-earnings multiple can help investors gauge a stock's premium when taking into account what analysts are expecting from its business in the year ahead. And at a multiple of a little over nine, Bristol-Myers looks like a cheap investment compared to other healthcare stocks.
BMY PE Ratio (Forward) data by YCharts
The ultimate buy-and-forget stock?
Year to date, Bristol-Myers stock has risen 17%, outperforming the S&P 500 and its 4% declines thus far. And that's without factoring in its above-average dividend yield. Bristol-Myers' robust and diverse business makes this a top stock to buy right now. It has a little something for all investors -- modest growth, a high dividend, and a good valuation.
There is no shortage of reasons to invest in Bristol-Myers -- and amid all the turmoil in the markets right now, its could be one of the safest long-term stocks to add to your portfolio today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The healthcare giant is worth close to $160 billion, has a proven track record, pays a high dividend, and continues to find ways to grow. That diversification makes the business a stable one; through 2025, the company projects that its revenue will grow annually in the low-to-mid-single digits. There is no shortage of reasons to invest in Bristol-Myers -- and amid all the turmoil in the markets right now, its could be one of the safest long-term stocks to add to your portfolio today. | Bristol-Myers has multiple drugs that are top 10 in sales No drug or vaccine came close to the revenue Pfizer's COVID-19 vaccine generated last year -- and that isn't likely to change this year, either, especially with a fourth dose possibly on the way. And with gross margins normally above 70%, this is another area of strength for Bristol-Myers: BMY Gross Profit Margin (Quarterly) data by YCharts A strong gross margin can help improve profitability and also lead to strong free cash flow, which is demonstrated in the next chart. BMY Free Cash Flow (Annual) data by YCharts Between 2022 and 2024, Bristol-Myers expects its free cash flow to total as much as $50 billion, as it expects even more money to flow through its business in the near future. | And with gross margins normally above 70%, this is another area of strength for Bristol-Myers: BMY Gross Profit Margin (Quarterly) data by YCharts A strong gross margin can help improve profitability and also lead to strong free cash flow, which is demonstrated in the next chart. BMY Free Cash Flow (Annual) data by YCharts Between 2022 and 2024, Bristol-Myers expects its free cash flow to total as much as $50 billion, as it expects even more money to flow through its business in the near future. BMY Dividend data by YCharts With growth and dividends, investors can get the best of both worlds with a relatively safe stock in Bristol-Myers. | With the free cash flow continuing to come in, the company should have room to make more dividend hikes. BMY Dividend data by YCharts With growth and dividends, investors can get the best of both worlds with a relatively safe stock in Bristol-Myers. Bristol-Myers' robust and diverse business makes this a top stock to buy right now. | f711a40d-fca9-45fd-8434-dbe8c36b9813 |
23516.0 | 2022-03-29 00:00:00 UTC | XLV, UNH, JNJ, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-unh-jnj-abbv%3A-large-inflows-detected-at-etf-0 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $693.2 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 266,270,000 to 271,320,000). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.6%, Johnson & Johnson (Symbol: JNJ) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $116.02 per share, with $141.975 as the 52 week high point — that compares with a last trade of $138.15. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.6%, Johnson & Johnson (Symbol: JNJ) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $693.2 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 266,270,000 to 271,320,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.6%, Johnson & Johnson (Symbol: JNJ) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $116.02 per share, with $141.975 as the 52 week high point — that compares with a last trade of $138.15. Free Report: Top 7%+ 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 XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.6%, Johnson & Johnson (Symbol: JNJ) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $693.2 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 266,270,000 to 271,320,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $116.02 per share, with $141.975 as the 52 week high point — that compares with a last trade of $138.15. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.6%, Johnson & Johnson (Symbol: JNJ) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $693.2 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 266,270,000 to 271,320,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $116.02 per share, with $141.975 as the 52 week high point — that compares with a last trade of $138.15. | f0c3749d-5ce7-483d-ab50-e2b94443db95 |
23517.0 | 2022-03-28 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-2 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $161.97, moving +0.4% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the drugmaker had gained 7.88% over the past month. This has outpaced the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.13, up 6.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.13 per share and revenue of $60.2 billion. These totals would mark changes of +11.26% and +7.13%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 12.83, which means AbbVie is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 4.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.29 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For comparison, its industry has an average Forward P/E of 12.83, which means AbbVie is trading at a discount to the group. AbbVie (ABBV) closed the most recent trading day at $161.97, moving +0.4% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. | AbbVie (ABBV) closed the most recent trading day at $161.97, moving +0.4% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. It is also important to note the recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the most recent trading day at $161.97, moving +0.4% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. It is also important to note the recent changes to analyst estimates for AbbVie. | AbbVie (ABBV) closed the most recent trading day at $161.97, moving +0.4% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. It is also important to note the recent changes to analyst estimates for AbbVie. | 7dfb4921-92ac-4495-8a05-32203260d5f7 |
23518.0 | 2022-03-28 00:00:00 UTC | 3 Warren Buffett Stocks I'd Buy Without Any Hesitation | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-stocks-id-buy-without-any-hesitation | nan | nan | I'll admit that I've sometimes succumbed to "analysis paralysis" in the past. When faced with an investment decision, I hemmed and hawed for way more time than I should have.
With the current market conditions, there are probably plenty of investors experiencing a similar condition right now. Warren Buffett himself acknowledged recently that he and his investing team "find little that excites us."
However, there are some stocks that I think shouldn't need over-analysis before buying. A few of them are even in Buffett's investment portfolio. Here are three Buffett stocks I'd buy without any hesitation.
Image source: The Motley Fool.
1. Berkshire Hathaway
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stands at the top of my list. I don't include it merely because it's where most of Buffett's own money is invested, though. My take on Berkshire is that it's almost like an exchange-traded fund (ETF). You can get a diversified basket of stocks in one fell swoop. That diversification can lower your risk.
When you buy Berkshire, you become a part-owner in more than 60 businesses that are part of the Berkshire family. These include businesses such as Geico, Duracell, and railroad giant BNSF. But you also get a position in the 40 or so stocks that Berkshire owns.
I like that purchasing shares of Berkshire gains access to two of the greatest investing minds of all time -- Buffett and his longtime business partner Charlie Munger. The company also has two other solid investment managers (Todd Combs and Ted Weschler) who have expanded Berkshire's horizons.
Last, but certainly not least, Berkshire has proved to be a winner. The stock has outperformed the S&P 500 index over the past one, three, and 10 years. I expect that Berkshire will keep up its winning ways.
2. Amazon.com
Buffett was really late to the part in buying Amazon.com (NASDAQ: AMZN) for Berkshire's portfolio. However, the old saying that "better late than never" is right in this case. I wouldn't have to think very long before buying the stock now.
For one thing, e-commerce still has a lot of room to run. Last year, e-commerce sales in the U.S. accounted for only 13.2% of total retail sales. I fully expect that percentage to grow, with Amazon leading the way.
However, Amazon's biggest growth driver is Amazon Web Services (AWS). Sales for AWS soared nearly 40% year over year in the fourth quarter of 2021. And the cloud unit is a lot more profitable than Amazon's e-commerce business.
I also love how Amazon continually looks to expand into new markets. The company's recent acquisition of MGM makes its Prime Video service even more formidable in streaming. Amazon is also a rising force in healthcare and self-driving car technology. All of these are areas that should grow tremendously in the future.
3. AbbVie
Buffett sold some of Berkshire's stake in AbbVie (NYSE: ABBV) in the fourth quarter of 2021. That proved to be a mistake -- at least over the short term. The pharma stock has jumped 19% year to date while many stocks have floundered.
I think that AbbVie's long-term prospects look good, too. Sure, the company faces the loss of U.S. exclusivity next year for its top-selling drug, Humira. However, AbbVie's management team says it expects to quickly return to solid growth. I believe the team is right.
AbbVie already has two successors to Humira on the market. Rinvoq and Skyrizi should help offset much of the anticipated sales declines on the way for Humira. The company also has several other growth drivers, including blood cancer drug Venclexta and antipsychotic drug Vraylar.
Don't forget AbbVie's juicy dividend. The company's dividend currently yields 3.5%. AbbVie is a Dividend King with 50 consecutive years of dividend increases. I look for the company to keep that streak going with more dividend increases in the future.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights owns AbbVie, Amazon, and Berkshire Hathaway (B shares). The Motley Fool owns and recommends Amazon and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Buffett sold some of Berkshire's stake in AbbVie (NYSE: ABBV) in the fourth quarter of 2021. I think that AbbVie's long-term prospects look good, too. However, AbbVie's management team says it expects to quickly return to solid growth. | AbbVie Buffett sold some of Berkshire's stake in AbbVie (NYSE: ABBV) in the fourth quarter of 2021. I think that AbbVie's long-term prospects look good, too. However, AbbVie's management team says it expects to quickly return to solid growth. | AbbVie Buffett sold some of Berkshire's stake in AbbVie (NYSE: ABBV) in the fourth quarter of 2021. I think that AbbVie's long-term prospects look good, too. However, AbbVie's management team says it expects to quickly return to solid growth. | AbbVie Buffett sold some of Berkshire's stake in AbbVie (NYSE: ABBV) in the fourth quarter of 2021. I think that AbbVie's long-term prospects look good, too. However, AbbVie's management team says it expects to quickly return to solid growth. | 5136ec32-29ab-4728-89ce-a6c08571b578 |
23519.0 | 2022-03-26 00:00:00 UTC | Have $1,000? 2 Warren Buffett Stocks to Buy | ABBV | https://www.nasdaq.com/articles/have-%241000-2-warren-buffett-stocks-to-buy-0 | nan | nan | Whether you're an investor just starting out or one who might have a limited budget, it's a good practice to invest an amount that you're willing to be without in the short term so that you can build for the long term. If $1,000 is that mark for you, these two Warren Buffett-backed stocks could provide the foundation you want for your long-term investment strategy.
AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. They also carry a special characteristic that is shared by 63% of the stocks owned by Buffett in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
Image source: Getty Images.
AbbVie: Building a pipeline to keep revenue flowing
AbbVie is one of the smallest holdings in Buffett's Berkshire Hathaway portfolio, at only 0.1% of the portfolio's total holdings. But that's the only thing small about this leading innovator in biopharmaceuticals that has seen its stock price grow 53% over the past year -- crushing the S&P 500's 14.7% one-year return.
AbbVie has experienced strong growth of its best-selling drug, Humira, which helped the company realize a 22.7% increase in net revenue in 2021. That growth is expected to continue with an 8% increase in sales for Humira during 2022, but could come to a screeching slowdown in 2023. The company estimates a 45% erosion in sales as a result of biosimilar competition entering the U.S. market on the heels of an expiring patent, with a rebound not expected to happen until 2024.
To offset those losses, the company is depending on a spike in sales of two potential successors to Humira, Rinvoq and Skyrizi. Together these two medications brought in a combined $4.5 billion in 2021 and are expected to reach $15 billion in 2025. AbbVie is also seeing positive results from its Allergan acquisition in 2020, which netted the company Botox, contributing nearly $5 billion to total sales in 2021.
Going forward, the company has high expectations for a post-COVID rebound in sales of two leading cancer treatment drugs, as well as a pipeline of late-stage programs in cancer treatment. In total, the company has 13 drugs in phase 3 trials across immunology, neuroscience, eye care, oncology, and gastroenterology. Some of these drugs are already approved for certain indications, which could lead to a smoother path toward approval by the U.S. Food and Drug Administration.
AbbVie also offers a quarterly dividend that can help keep investors engaged during times of trouble. If you include the time before AbbVie was spun off from Abbott Laboratories, the company has been increasing its annual dividend for 50 years, placing it among the elite class of Dividend Kings. At the current share price, the stock's annual payout of $5.64 per share results in yield of 3.5%. Over the long term, this can be quite a hefty sum due to compounding gains.
A robust pipeline of drugs combined with a hefty dividend yield of 3.5% that leads most of its big-cap pharma peers makes AbbVie a Buffett-backed stock I'd see no problem investing $1,000 in.
Verizon: Checking off boxes to keep investors satisfied
Verizon ranks ninth in Buffett's Berkshire Hathaway portfolio of 47 stocks in terms of portfolio holding and total value. But the company's investors have not been exempt from the broader market volatility that has impacted tech stocks, as Verizon's stock price has seen a 15% decline since May of last year.
Fortunately, CEO Hans Vestberg, who came on board in 2018 after a stint as chief technology officer, has a clear plan in place that could trigger a rebound. It includes reducing the company's capital intensity to under 12%, growing dividends, paying down debt, and speeding up a timeline for share repurchases.
Boxes are already being checked off for that plan. Verizon's Q4 report highlighted a 6.5% year-over-year growth in wireless services revenue, driven by higher revenue per account, meaning existing customers are spending more. Growth is also coming from an increase in subscriptions for wireless and broadband. FiOS (its bundled service for internet, cable, and telephone) finished Q4 of last year with a 5.7% year-over-year spike in revenue, allowing the company to post its best full-year performance for FiOS since 2014.
The company expects to check off a few more boxes during 2022, starting with a continued quarterly dividend payout of $0.64 per share, to be paid on May 2 to investors of record on April 8. This represents a 5% dividend yield, topping the telecom sector average of 4.36%.
By year-end, the company is looking to complete an accelerated plan to bring 5G ultra wideband service to an additional 30 major markets serving over 175 million people -- a full year ahead of schedule. And while doing so, Vestberg has his eyes on reducing capital expenditures 9% to $16.5 billion.
If 2022 goes according to plan, the company is projecting full-year earnings per share that just slightly tops Wall Street estimates. Management is also looking for 9% to 10% growth in services revenue. Ultimately, Verizon's technological advancements should lead to new revenue, supported by acquisitions in the telecom space and collaborations with companies such as Meta Platforms (formerly Facebook) as the two work toward building out the immersive digital world referred to as the metaverse.
Verizon investors should stand to gain from continued dividends and a wireless market that is projected to grow at a 15.4% compound annual rate through 2027. The company's shares currently trade at a P/E ratio of 9.6, far below the wireless telecom industry average of 30. All in all, Verizon is an excellent opportunity for long-term investors who are looking for somewhere to invest $1,000.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeff Little has no position in any of the stocks mentioned. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Meta Platforms, Inc. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A robust pipeline of drugs combined with a hefty dividend yield of 3.5% that leads most of its big-cap pharma peers makes AbbVie a Buffett-backed stock I'd see no problem investing $1,000 in. AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. AbbVie: Building a pipeline to keep revenue flowing AbbVie is one of the smallest holdings in Buffett's Berkshire Hathaway portfolio, at only 0.1% of the portfolio's total holdings. | AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. AbbVie: Building a pipeline to keep revenue flowing AbbVie is one of the smallest holdings in Buffett's Berkshire Hathaway portfolio, at only 0.1% of the portfolio's total holdings. AbbVie has experienced strong growth of its best-selling drug, Humira, which helped the company realize a 22.7% increase in net revenue in 2021. | AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. AbbVie: Building a pipeline to keep revenue flowing AbbVie is one of the smallest holdings in Buffett's Berkshire Hathaway portfolio, at only 0.1% of the portfolio's total holdings. AbbVie has experienced strong growth of its best-selling drug, Humira, which helped the company realize a 22.7% increase in net revenue in 2021. | AbbVie is also seeing positive results from its Allergan acquisition in 2020, which netted the company Botox, contributing nearly $5 billion to total sales in 2021. AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. AbbVie: Building a pipeline to keep revenue flowing AbbVie is one of the smallest holdings in Buffett's Berkshire Hathaway portfolio, at only 0.1% of the portfolio's total holdings. | a7087228-ab9c-42ac-afc1-0d3e33bdc108 |
23520.0 | 2022-03-25 00:00:00 UTC | 3 Profitable Passive Income Stocks to Buy for Your Retirement Years | ABBV | https://www.nasdaq.com/articles/3-profitable-passive-income-stocks-to-buy-for-your-retirement-years | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie (NYSE:ABBV): The pharma giant has been expanding its portfolio to compensate for the upcoming loss of Humira exclusivity
Chevron Corporation (NYSE:CVX): CVX stock recently hit a record high and the bullish sentiment will likely continue
Cincinnati Financial Corporation (NASDAQ:CINF): CINF is a well-respected Dividend King with a profitable insurance business
Source: Shutterstock
Wall Street has been nervous since the start of the year. Amidst the soaring inflation and geopolitical turmoil, investors are scrambling to find alternative investment strategies that may offer decent returns with minimum risk. One possibility is to purchase passive income stocks, as regular dividend returns effectively decrease overall portfolio risk.
Research by S&P Global (NYSE:SPGI) indicates that since 1926, dividends have accounted for roughly 32% of total return for the S&P 500 index, “while capital appreciations have contributed 68%.” Moreover, dividend-paying stocks have seen returns that have consistently outpaced the broader market.
Analysts also highlight the strength of Dividend Aristocrat stocks, which have had at least 25 consecutive years of payout increases. Similarly, Dividend Kings, which have increased payouts for at least 50 consecutive years, deserve readers’ attention, as well.
6 Blue-Chip Stocks That Will Survive Any Bubble Burst
With that information, here are 3 passive income stocks to buy that could see consistent low-risk returns in the long-term:
ABBV AbbVie $161.94
CVX Chevron Corporation $166.60
CINF Cincinnati Financial Corporation $136.48
Passive Income Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
52 week range: $103.84 – $161.98
Dividend yield: 3.56%
AbbVie is among the largest pharmaceutical companies worldwide, focusing mainly on immunology and oncology. ABBV stock is a Dividend King with an appealing yield.
Management issued fourth-quarter (Q4) 2021 results on Feb. 2. Revenue increased 7.4% year-over-year (YOY) to $14.88 billion. Adjusted earnings stood at $5.92 billion, or $3.31 per diluted share, compared to $2.92 per diluted share in the prior-year quarter.
Its main product, Humira, currently accounts for nearly half of its profits. While the expected loss of its U.S. patent exclusivity looms large, the company seems well prepared for it. Rinvoq sales doubled to $1.65 billion, while revenue from Skyrizi surged 85% YOY to $2.9 billion. Management reiterated guidance for combined revenue of $15 billion from these two drugs in 2025.
ABBV stock has risen 57% over the past 12 months. Shares are trading at 10.6 times forward earnings and 4.7 times trailing sales. The 12-month median price forecast for ABBV stock stands at $153.
Chevron Corporation (CVX)
Source: LesPalenik / Shutterstock.com
52-week range: $92.86 – $174.76
Dividend Yield: 3.42%
Major oil company Chevron is the second-largest oil and gas company stateside. It offers exposure to the entire oil and gas value chain, including exploration, production, transportation, storage, refining, and marketing.
Chevron released Q4 2021 results on Jan. 28. Revenue soared 91% YOY to $48 billion. Adjusted earnings came in at $4.9 billion, or $2.56 per diluted share, up from $298 million a year ago. Cash and equivalents ended the period at $5.64 billion.
Like other energy names, Chevron has benefited from rising oil prices. Thanks to its low cost of production, the company reported a record free cash flow of $21.1 billion in 2021. In addition, CVX stock has a track record of 35 consecutive years of annual dividend hikes and generates an attractive 3.42% dividend yield.
7 Healthcare Stocks to Buy for the Long Term
CVX stock has risen 56.4% over the past 12 months. Shares are trading at 17.1 times forward earnings and 2.1 times trailing sales. Meanwhile, the 12-month median price forecast for Chevron stock is $169.50.
Passive Income Stocks: Cincinnati Financial Corporation (CINF)
Source: IgorGolovniov / Shutterstock.com
52-week range: $102.18 – $136.51
Dividend Yield: 2.05%
Cincinnati Financial is a property and casualty insurance company that also offers leasing and financing services. It is an attractive stock to hold during periods of high inflation, as insurance companies often have the pricing power to adjust premiums charged against the soaring cost of claims. In addition, over the past decade, the company has written consistently profitable policies.
Management announced Q4 2021 results on Feb. 15. Revenue increased 23% YOY to $3.3 billion. Net income came in at $1.47 billion, or $9.04 per share, up from $1.05 billion in the prior-year quarter.
The insurer is a Dividend King, having increased its dividend payout for 62 consecutive years. The current stock price generates a yield of 2.05%.
CINF stock has risen 31.1% over the past year. Shares are trading at 22.7 times forward earnings and 2.1 times trailing sales. Finally, the 12-month median price forecast for Cincinnati Financial stock stands at $135.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Profitable Passive Income Stocks to Buy for Your Retirement Years appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV): The pharma giant has been expanding its portfolio to compensate for the upcoming loss of Humira exclusivity Chevron Corporation (NYSE:CVX): CVX stock recently hit a record high and the bullish sentiment will likely continue Cincinnati Financial Corporation (NASDAQ:CINF): CINF is a well-respected Dividend King with a profitable insurance business Source: Shutterstock Wall Street has been nervous since the start of the year. 6 Blue-Chip Stocks That Will Survive Any Bubble Burst With that information, here are 3 passive income stocks to buy that could see consistent low-risk returns in the long-term: ABBV AbbVie $161.94 CVX Chevron Corporation $166.60 CINF Cincinnati Financial Corporation $136.48 Passive Income Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $103.84 – $161.98 Dividend yield: 3.56% AbbVie is among the largest pharmaceutical companies worldwide, focusing mainly on immunology and oncology. ABBV stock is a Dividend King with an appealing yield. | 6 Blue-Chip Stocks That Will Survive Any Bubble Burst With that information, here are 3 passive income stocks to buy that could see consistent low-risk returns in the long-term: ABBV AbbVie $161.94 CVX Chevron Corporation $166.60 CINF Cincinnati Financial Corporation $136.48 Passive Income Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $103.84 – $161.98 Dividend yield: 3.56% AbbVie is among the largest pharmaceutical companies worldwide, focusing mainly on immunology and oncology. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV): The pharma giant has been expanding its portfolio to compensate for the upcoming loss of Humira exclusivity Chevron Corporation (NYSE:CVX): CVX stock recently hit a record high and the bullish sentiment will likely continue Cincinnati Financial Corporation (NASDAQ:CINF): CINF is a well-respected Dividend King with a profitable insurance business Source: Shutterstock Wall Street has been nervous since the start of the year. ABBV stock is a Dividend King with an appealing yield. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV): The pharma giant has been expanding its portfolio to compensate for the upcoming loss of Humira exclusivity Chevron Corporation (NYSE:CVX): CVX stock recently hit a record high and the bullish sentiment will likely continue Cincinnati Financial Corporation (NASDAQ:CINF): CINF is a well-respected Dividend King with a profitable insurance business Source: Shutterstock Wall Street has been nervous since the start of the year. 6 Blue-Chip Stocks That Will Survive Any Bubble Burst With that information, here are 3 passive income stocks to buy that could see consistent low-risk returns in the long-term: ABBV AbbVie $161.94 CVX Chevron Corporation $166.60 CINF Cincinnati Financial Corporation $136.48 Passive Income Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $103.84 – $161.98 Dividend yield: 3.56% AbbVie is among the largest pharmaceutical companies worldwide, focusing mainly on immunology and oncology. ABBV stock is a Dividend King with an appealing yield. | 6 Blue-Chip Stocks That Will Survive Any Bubble Burst With that information, here are 3 passive income stocks to buy that could see consistent low-risk returns in the long-term: ABBV AbbVie $161.94 CVX Chevron Corporation $166.60 CINF Cincinnati Financial Corporation $136.48 Passive Income Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com 52 week range: $103.84 – $161.98 Dividend yield: 3.56% AbbVie is among the largest pharmaceutical companies worldwide, focusing mainly on immunology and oncology. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV): The pharma giant has been expanding its portfolio to compensate for the upcoming loss of Humira exclusivity Chevron Corporation (NYSE:CVX): CVX stock recently hit a record high and the bullish sentiment will likely continue Cincinnati Financial Corporation (NASDAQ:CINF): CINF is a well-respected Dividend King with a profitable insurance business Source: Shutterstock Wall Street has been nervous since the start of the year. ABBV stock is a Dividend King with an appealing yield. | 57de61f9-2bed-4865-8de5-28421b4feb13 |
23521.0 | 2022-03-25 00:00:00 UTC | 1 Green Flag for Eli Lilly Investors in 2022 -- and 1 Red Flag | ABBV | https://www.nasdaq.com/articles/1-green-flag-for-eli-lilly-investors-in-2022-and-1-red-flag | nan | nan | Pharma giant Eli Lilly & Company (NYSE: LLY) has performed splendidly in the past year, leaving both the broader market and the pharmaceutical industry in the dust. But it's difficult to predict whether the company will continue on its upward trajectory for the rest of the year. Geopolitical tensions, which are already high, could escalate further and send Eli Lilly (along with the rest of the market) crashing.
If we put these marketwide worries aside, though, there is at least one key reason why the future looks bright for Eli Lilly. On the other hand, there is also a company-specific reason why investors might want to stay away from the stock for now.
LLY data by YCharts
Green flag: A highly promising pipeline
Developing and marketing novel therapies is capital-intensive, but companies that succeed in getting drugs approved can at least know that, thanks to patent protections, they'll have some time to recoup their investments and profit before competitors can come out with cheaper, generic versions. In the U.S., new medications are granted 20 years of patent protection. Once that period ends for a product, generics usually hit the market, driving sales down sharply for the original branded version.
For a pharmaceutical company to continue growing its revenue and earnings, it has to be capable of developing new products to replace the sales lost following the inevitable patent expirations. That's why having a solid pipeline is essential, and Eli Lilly possesses an admirable one, with a few dozen ongoing clinical programs.
Some of Eli Lilly's candidates are worth singling out for mention. First, there is Basal Insulin-Fc (BIF), a potential once-weekly insulin product for type 2 diabetes patients. People with type 2 diabetes don't always need insulin, but those who do typically take it daily. A weekly option could be highly appealing to these patients. BIF has already shown promise in a phase 2 clinical trial.
Image source: Getty Images.
Second, there is tirzepatide, a potential treatment for type 2 diabetes. According to Eli Lilly, tirzepatide significantly reduced average blood sugar levels and body weight -- both of which are critical for type 2 diabetics -- in a pair of phase 3 studies. Eli Lilly submitted tirzepatide to regulatory authorities in the U.S. and Europe in 2020. Investors can expect regulatory decisions in the coming months.
Last year, the research company Evaluate Pharma ranked tirzepatide as the most valuable research and development project in the pharma industry with a net present value of $22.1 billion. Other promising products in Eli Lilly's pipeline include donanemab, an investigational Alzheimer's disease therapy, and mirikizumab, a potential treatment for ulcerative colitis.
Meanwhile, Eli Lilly's current lineup of drugs remains strong. Its revenue grew by 15% year over year in 2021 to $28.3 billion and, excluding its COVID-19 products, the top line grew by 10%. With several potential blockbuster products in the works, the company's future looks promising.
Red flag: Valuation is a concern
The combination of Eli Lilly's exciting pipeline and solid financial results have contributed to an impressive stock market performance in recent years. But as a result of that run, the drugmaker's shares now look a bit overvalued compared to pharmaceutical industry peers such as AbbVie and Pfizer.
LLY PE Ratio (Forward) data by YCharts
Note as well that the average forward price-to-earnings (P/E) ratio for the industry is 11.7, while for the S&P 500 it stands at 18.2. Eli Lilly's shares, at a P/E of 33, don't look cheap at the moment compared to either of those averages -- not by a long shot. And that's something investors ought to keep in mind.
Should you buy?
While investors cannot overlook Eli Lilly's pricey valuation, its exciting pipeline is arguably worth a premium, at least in my view. And there are likely more big winners to come. Eli Lilly has been a leader in the diabetes drug market for decades, a space it shares with two other leading players -- Novo Nordisk and Sanofi.
Investors can expect Eli Lilly to continue delivering new diabetes products in the coming years. The drugmaker also boasts candidates and approved drugs in immunology and oncology. Given its track record, and its lineup and pipeline, Eli Lilly looks like an excellent stock for long-term investors to buy, even at its current levels.
10 stocks we like better than Eli Lilly and Company
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But as a result of that run, the drugmaker's shares now look a bit overvalued compared to pharmaceutical industry peers such as AbbVie and Pfizer. Pharma giant Eli Lilly & Company (NYSE: LLY) has performed splendidly in the past year, leaving both the broader market and the pharmaceutical industry in the dust. LLY data by YCharts Green flag: A highly promising pipeline Developing and marketing novel therapies is capital-intensive, but companies that succeed in getting drugs approved can at least know that, thanks to patent protections, they'll have some time to recoup their investments and profit before competitors can come out with cheaper, generic versions. | But as a result of that run, the drugmaker's shares now look a bit overvalued compared to pharmaceutical industry peers such as AbbVie and Pfizer. LLY data by YCharts Green flag: A highly promising pipeline Developing and marketing novel therapies is capital-intensive, but companies that succeed in getting drugs approved can at least know that, thanks to patent protections, they'll have some time to recoup their investments and profit before competitors can come out with cheaper, generic versions. First, there is Basal Insulin-Fc (BIF), a potential once-weekly insulin product for type 2 diabetes patients. | But as a result of that run, the drugmaker's shares now look a bit overvalued compared to pharmaceutical industry peers such as AbbVie and Pfizer. Red flag: Valuation is a concern The combination of Eli Lilly's exciting pipeline and solid financial results have contributed to an impressive stock market performance in recent years. Investors can expect Eli Lilly to continue delivering new diabetes products in the coming years. | But as a result of that run, the drugmaker's shares now look a bit overvalued compared to pharmaceutical industry peers such as AbbVie and Pfizer. LLY data by YCharts Green flag: A highly promising pipeline Developing and marketing novel therapies is capital-intensive, but companies that succeed in getting drugs approved can at least know that, thanks to patent protections, they'll have some time to recoup their investments and profit before competitors can come out with cheaper, generic versions. Investors can expect Eli Lilly to continue delivering new diabetes products in the coming years. | 77152d9e-7a69-4a79-b17b-52c6c90fabd6 |
23522.0 | 2022-03-24 00:00:00 UTC | May 6th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/may-6th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 6th contracts and identified one put and one call contract of particular interest.
The put contract at the $150.00 strike price has a current bid of $1.63. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $150.00, but will also collect the premium, putting the cost basis of the shares at $148.37 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $160.25/share today.
Because the $150.00 strike represents an approximate 6% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 85%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.09% return on the cash commitment, or 9.22% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $150.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of $1.40. If an investor was to purchase shares of ABBV stock at the current price level of $160.25/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $165.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.84% if the stock gets called away at the May 6th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red:
Considering the fact that the $165.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 69%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.87% boost of extra return to the investor, or 7.42% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 32%, while the implied volatility in the call contract example is 25%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $160.25) to be 18%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 6th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 6th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $150.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of $1.40. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 6th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 6th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 6th expiration. | b0bd1d8f-cd81-4ebb-be1b-25cd4324a55d |
23523.0 | 2022-03-24 00:00:00 UTC | 2 Surging Stocks to Buy to Fight Market Volatility | ABBV | https://www.nasdaq.com/articles/2-surging-stocks-to-buy-to-fight-market-volatility | nan | nan | Stocks ripped off a solid stretch over the last week that helped many investors breathe a sigh of relief amid the triple threat of higher interest rates, rising energy prices, and geopolitical chaos. The Nasdaq is up about 10% from its March 14 lows, even with Wednesday’s 1.3% drop.
Wall Street appeared to cheer the fact that the first rate hike came in at 25 basis points and not 50 bps. Perhaps most importantly, investors are pleased that Powell and the Fed provided a roadmap for the remainder of 2022 as the U.S. ends its easy-money policies and attempts to clamp down on 40-year high inflation.
The current outlook for interest rate hikes could easily change if inflation doesn’t start to slowly come down. Plus, higher rates are historically bad for stocks. The continued Russian attacks in Ukraine only amplify the nerves and uncertainty. The fighting and sanctions have also sent global energy and oil prices, which were already surging well before the invasion, even higher.
The backdrop may continue to keep many investors on the sidelines, especially after the tumultuous start to 2022. But hoarding cash amid 7%+ inflation is also somewhat risky. Even though the 10-year U.S. Treasury is near three-year highs that only puts them at 2.3%.
Therefore, we could see many on Wall Street continue chasing returns in stocks for the foreseeable future, even if the big tech trade of the last decade goes a bit dormant for the time being as investors look to energy and other recently booming areas.
Here are a couple strong, dividend-paying stocks to consider buying amid the current economic uncertainty and market volatility.
Public Storage PSA
Public Storage is a REIT that primarily acquires, develops, owns and operates self-storage facilities. PSA’s portfolio included nearly 2,800 self-storage facilities in roughly 40 states at the end of 2021. Public Storage has been gaining momentum for years as Americans continue to buy more things, from furniture to clothing, electronics, and beyond.
Tons of this stuff is poised to end up in Public Storage units and other self-storage facilities that are full of what function like giant walk-in lockers or garages. People all over the country from all walks of life pay to rent units, often on a monthly or yearly basis. No matter whether you live in a big city to a rural area, it shouldn’t be too hard to spot a self-storage facility.
Public Storage and other players have benefited from the covid economy and the housing boom. Businesses use these facilities as well, and some people even use them to store cars and other large items. Public Storage is also focused on bolstering its digital offerings where people can currently sign up, manage their accounts, and open gates and doors all from PSA’s mobile app.
Image Source: Zacks Investment Research
Public Storage had grown its revenue a steady clip for the past decade before it posted blowout FY21 results in late February that saw it top our Q4 FFO estimates and issue upbeat guidance. PSA’s revenue climbed 17% to help lift its FFO (which are essentially earnings for REITs) by 22%.
Zacks estimates call for Public Storage’s revenue to climb 15% in 2022 to reach $3.9 billion and lift its adjusted FFO by 17%. The company’s improved bottom-line outlook for FY22 and FY23 helps it land a Zacks Rank #2 (Buy) right now. The post-fourth quarter release revisions are part of a much longer trend of strong upward FFO revisions over the last several years.
PSA shares have surged 50% in the past year to blow away the S&P 500’s 15% and its industry’s 7%. The stock has also managed to move roughly sideways in 2022, even as the market drops. This is part of a 170% climb over the last 10 years that’s helped Public Storage crush its industry and the broader Zacks Financial sector that it's a part of.
Public Storage stock trades a few percentage points below the records it hit earlier this month. Despite its run and current levels, PSA trades at a 16% discount to its year-long highs at 23.7X forward 12-month earnings and slightly below its median. The stock is also trading just above its 10-year median despite its 170% climb.
Wall Street is also rather high on PSA, with eight of the 13 brokerage recommendations Zacks has at strong buys. And its 2.17% dividend yield is not too far below the 10-year U.S. Treasury and blows away the S&P 500’s average. It is also worth stressing just how much stuff the average person or family has and how unlikely many are to ever get rid of it.
AbbVie ABBV
AbbVie and its stock price are thriving even as patent protections run out for one of the world’s best-selling drugs, Humira. Biosimilars are currently available outside of the U.S. Thankfully, AbbVie prepared to move forward, in part, through its $63 billion Allergan acquisition that it completed in 2020.
AbbVie’s deal brought Botox and other popular drugs into a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. ABBV’s FY20 revenue surged 38%, fueled by its Allergan deal. Most recently, the pharmaceutical giant topped our Q4 estimates in early February and its fiscal 2021 revenue surged another 23%, even though international Humira revenue dropped nearly 10%.
The strong top-line growth helped ABBV’s adjusted earnings climb 20%. Zacks estimates call for its FY22 EPS to jump another 11% on 7% higher sales that would see it pull in just over $60 billion. AbbVie, which lands a Zacks Rank #3 (Hold) at the moment, has seen its FY22 and FY23 consensus earnings estimates pop since its release.
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AbbVie has consistently topped our quarterly EPS estimates and it lands “B” grades across the board for Value, Growth, and Momentum in our Style Scores system. Plus, Wall Street is high on the stock, with nine of the 13 brokerage recommendations Zacks has at “Strong Buys,” with nothing below a “Hold.”
AbbVie also offers investors a solid dividend payment that it’s continually raised, with the payout up 250% since the inception in 2013. ABBV’s current 3.5% yield crushes its industry’s 2.5% average and the 30-year U.S. Treasury’s 2.60%.
AbbVie’s yield isn’t boosted by a falling stock price. The stock has surged 141% in the last five years to blow away the Large-Cap Pharma’s 65% and the S&P 500’s 100%. This includes a stellar 54% run in the past 12 months and a 17% climb in 2022, as investors rotate out of technology into more stable, dividend-paying names. In fact, ABBV touched new records Wednesday of over $161 per share.
Despite the run, AbbVie trades at 11.7X forward 12-month earnings at the moment. This marks a nearly 20% discount vs. the Large Cap Pharma’s 14.2X and 40% compared to the benchmark. Plus, AbbVie trades 35% beneath its own highs over this stretch and not too far above its median.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV AbbVie and its stock price are thriving even as patent protections run out for one of the world’s best-selling drugs, Humira. Biosimilars are currently available outside of the U.S. Thankfully, AbbVie prepared to move forward, in part, through its $63 billion Allergan acquisition that it completed in 2020. AbbVie’s deal brought Botox and other popular drugs into a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. | Image Source: Zacks Investment Research AbbVie has consistently topped our quarterly EPS estimates and it lands “B” grades across the board for Value, Growth, and Momentum in our Style Scores system. AbbVie ABBV AbbVie and its stock price are thriving even as patent protections run out for one of the world’s best-selling drugs, Humira. Biosimilars are currently available outside of the U.S. Thankfully, AbbVie prepared to move forward, in part, through its $63 billion Allergan acquisition that it completed in 2020. | Plus, Wall Street is high on the stock, with nine of the 13 brokerage recommendations Zacks has at “Strong Buys,” with nothing below a “Hold.” AbbVie also offers investors a solid dividend payment that it’s continually raised, with the payout up 250% since the inception in 2013. AbbVie ABBV AbbVie and its stock price are thriving even as patent protections run out for one of the world’s best-selling drugs, Humira. Biosimilars are currently available outside of the U.S. Thankfully, AbbVie prepared to move forward, in part, through its $63 billion Allergan acquisition that it completed in 2020. | AbbVie ABBV AbbVie and its stock price are thriving even as patent protections run out for one of the world’s best-selling drugs, Humira. Biosimilars are currently available outside of the U.S. Thankfully, AbbVie prepared to move forward, in part, through its $63 billion Allergan acquisition that it completed in 2020. AbbVie’s deal brought Botox and other popular drugs into a diversified portfolio that features immunology, oncology, neuroscience, a strong R&D pipeline, and beyond. | 348a8af0-a123-4603-bf95-e12e6f70f2a6 |
23524.0 | 2022-03-24 00:00:00 UTC | Texas demands drug companies turn over documents on 'puberty blocking' drugs for children | ABBV | https://www.nasdaq.com/articles/texas-demands-drug-companies-turn-over-documents-on-puberty-blocking-drugs-for-children | nan | nan | By Dan Whitcomb
March 24 (Reuters) - The Texas attorney general on Thursday ordered drugmakers Abbvie Inc ABBV.N and Endo International ENDP.O to turn over materials related to the sale of puberty blockers to children who believe they are transgender, part of an investigation into their off-label use.
The demand comes during a growing controversy over the use of medication given to halt the development of puberty and secondary sex characteristics in children as young as 8 who have been diagnosed with gender dysphoria. Transgender issues and treatments have increasingly become part of a national debate in America.
Texas Attorney General Ken Paxton has said he is investigating whether pharmaceutical companies are promoting hormone therapies such as Supprelin LA and Lupron to children and their parents without disclosing potential long-term effects.
"I will not allow Big Pharma to misleadingly promote these drugs that may pose a high risk of serious physical and psychological damage to Texas children who cannot yet fathom or consent to the potential long-term effects of such use," Paxton said in a statement.
"Endo Pharmaceuticals Inc manufactures and markets Supprelin LA for the treatment of children with central precocious puberty. The Company does not promote its medications for off-label uses. That said, we intend to cooperate with this investigation," a spokeswoman for Endo said.
Representatives for Abbvie could not be reached for comment by Reuters on Thursday.
Paxton said that the medications Supprelin LA, which is manufactured by Endo, and Lupron Depot, made by Abbvie, were approved by the U.S. Food and Drug Administration for other medical conditions but were being used to halt puberty in children with gender dysphoria.
In a related development, Arizona and Oklahoma on Thursday passed legislation that would ban transgender children born as boys from participating in girls' sports.
Those bills were approved after Lia Thomas, a transgender swimmer for the University of Pennsylvania who was born male, won the women's Division 1 NCAA championship in the 500-yard freestyle race.
(Reporting by Dan Whitcomb; editing by Jonathan Oatis)
((Dan.Whitcomb@tr.com; 310-491-7290;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dan Whitcomb March 24 (Reuters) - The Texas attorney general on Thursday ordered drugmakers Abbvie Inc ABBV.N and Endo International ENDP.O to turn over materials related to the sale of puberty blockers to children who believe they are transgender, part of an investigation into their off-label use. Representatives for Abbvie could not be reached for comment by Reuters on Thursday. Paxton said that the medications Supprelin LA, which is manufactured by Endo, and Lupron Depot, made by Abbvie, were approved by the U.S. Food and Drug Administration for other medical conditions but were being used to halt puberty in children with gender dysphoria. | By Dan Whitcomb March 24 (Reuters) - The Texas attorney general on Thursday ordered drugmakers Abbvie Inc ABBV.N and Endo International ENDP.O to turn over materials related to the sale of puberty blockers to children who believe they are transgender, part of an investigation into their off-label use. Paxton said that the medications Supprelin LA, which is manufactured by Endo, and Lupron Depot, made by Abbvie, were approved by the U.S. Food and Drug Administration for other medical conditions but were being used to halt puberty in children with gender dysphoria. Representatives for Abbvie could not be reached for comment by Reuters on Thursday. | By Dan Whitcomb March 24 (Reuters) - The Texas attorney general on Thursday ordered drugmakers Abbvie Inc ABBV.N and Endo International ENDP.O to turn over materials related to the sale of puberty blockers to children who believe they are transgender, part of an investigation into their off-label use. Paxton said that the medications Supprelin LA, which is manufactured by Endo, and Lupron Depot, made by Abbvie, were approved by the U.S. Food and Drug Administration for other medical conditions but were being used to halt puberty in children with gender dysphoria. Representatives for Abbvie could not be reached for comment by Reuters on Thursday. | By Dan Whitcomb March 24 (Reuters) - The Texas attorney general on Thursday ordered drugmakers Abbvie Inc ABBV.N and Endo International ENDP.O to turn over materials related to the sale of puberty blockers to children who believe they are transgender, part of an investigation into their off-label use. Paxton said that the medications Supprelin LA, which is manufactured by Endo, and Lupron Depot, made by Abbvie, were approved by the U.S. Food and Drug Administration for other medical conditions but were being used to halt puberty in children with gender dysphoria. Representatives for Abbvie could not be reached for comment by Reuters on Thursday. | 2a789283-fc27-4bba-9f1d-45c455561824 |
23525.0 | 2022-03-24 00:00:00 UTC | Pfizer's (PFE) Etrasimod Meets Ulcerative Colitis Study Goals | ABBV | https://www.nasdaq.com/articles/pfizers-pfe-etrasimod-meets-ulcerative-colitis-study-goals | nan | nan | Pfizer Inc. PFE announced topline data from the phase III ELEVATE UC 12 study, which evaluated its immuno-inflammatory pipeline candidate etrasimod for moderately-to-severely active ulcerative colitis (UC).
The ELEVATE UC 12 study evaluated etrasimod versus placebo over a 12-week treatment period in 354 UC patients who already received at least one conventional, biologic or JAK therapy. It achieved both primary and key secondary endpoints with statistically significant improvements. Participants administered with etrasimod achieved the primary endpoint of clinical remission with statistical significance over placebo.
Shares of Pfizer have declined 11.6% this year so far against the industry’s 1.5% rise.
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Pfizer is also evaluating the candidate in another phase III ELEVATE UC 52 study in UC patients for a 52-week treatment period. Results from the same study are awaited by the end of first-quarter 2022. PFE plans to use data from both the ELEVATE UC 12 and ELEVATE UC 52 studies to seek regulatory approvals for etrasimod to address UC indication.
Apart from UC, etrasimod is being studied across multiple gastroenterology and dermatology indications, including atopic dermatitis (AD), eosinophilic esophagitis, Crohn’s disease (CD) and alopecia areata.
We remind investors that etrasimod was added to Pfizer’s pipeline following its acquisition of Arena Pharmaceuticals in an all-cash transaction for a total equity value of approximately $6.7 billion. The transaction closed earlier this month.
Other than etrasimod, the acquisition added two mid-stage candidates, namely APD418 and temanogrel to Pfizer’s pipeline, which are being developed as treatments for cardiovascular disorders.
The targeted UC market is highly competitive with many companies like AbbVie ABBV and Johnson & Johnson JNJ marketing their own drugs, which utilize different mechanisms of action to treat the indication.
Earlier this month, AbbVie received an approval for label expansion from the FDA for its JAK inhibitor drug Rinvoq to address UC indication. ABBV’s Rinvoq is already approved for three indications in the United States, such as AD, active psoriatic arthritis and rheumatoid arthritis. In the full year 2021, AbbVie generated $1.6 billion from Rinvoq product sales.
J&J markets its blockbuster drug Stelara, a human IL-12 and IL-23 antagonist, approved by the FDA for treating moderate-to-severely active UC. The drug is also approved for CD indication. Evidently, Stelara is also JNJ’s largest product, accounting for 9.7% of its total 2021 revenues. For the full year, J&J recorded revenues worth $9.1 billion from Stelara sales.
Pfizer Inc. Price
Pfizer Inc. price | Pfizer Inc. Quote
Zacks Rank & Stock to Consider
Pfizer currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Vertex Pharmaceuticals VRTX, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals’ earnings per share estimates for 2022 have increased from $14.33 to $14.52 in the past 30 days. Shares of VRTX have risen 13% year to date.
Earnings of Vertex Pharmaceuticals beat estimates in each of the last four quarters, the average being 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. | Earlier this month, AbbVie received an approval for label expansion from the FDA for its JAK inhibitor drug Rinvoq to address UC indication. The targeted UC market is highly competitive with many companies like AbbVie ABBV and Johnson & Johnson JNJ marketing their own drugs, which utilize different mechanisms of action to treat the indication. ABBV’s Rinvoq is already approved for three indications in the United States, such as AD, active psoriatic arthritis and rheumatoid arthritis. | The targeted UC market is highly competitive with many companies like AbbVie ABBV and Johnson & Johnson JNJ marketing their own drugs, which utilize different mechanisms of action to treat the indication. Earlier this month, AbbVie received an approval for label expansion from the FDA for its JAK inhibitor drug Rinvoq to address UC indication. ABBV’s Rinvoq is already approved for three indications in the United States, such as AD, active psoriatic arthritis and rheumatoid arthritis. | The targeted UC market is highly competitive with many companies like AbbVie ABBV and Johnson & Johnson JNJ marketing their own drugs, which utilize different mechanisms of action to treat the indication. Earlier this month, AbbVie received an approval for label expansion from the FDA for its JAK inhibitor drug Rinvoq to address UC indication. ABBV’s Rinvoq is already approved for three indications in the United States, such as AD, active psoriatic arthritis and rheumatoid arthritis. | Earlier this month, AbbVie received an approval for label expansion from the FDA for its JAK inhibitor drug Rinvoq to address UC indication. The targeted UC market is highly competitive with many companies like AbbVie ABBV and Johnson & Johnson JNJ marketing their own drugs, which utilize different mechanisms of action to treat the indication. ABBV’s Rinvoq is already approved for three indications in the United States, such as AD, active psoriatic arthritis and rheumatoid arthritis. | aafe109a-8a3d-4242-886c-2ba85038ea11 |
23526.0 | 2022-03-22 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $160.01, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 1.13%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 0.87%.
Prior to today's trading, shares of the drugmaker had gained 11.12% over the past month. This has outpaced the Medical sector's gain of 5.72% and the S&P 500's gain of 2.65% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.13 per share. This would mark year-over-year growth of 6.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.51 billion, up 3.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.13 per share and revenue of $60.2 billion. These totals would mark changes of +11.26% and +7.13%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AbbVie. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. AbbVie is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 11.33. This valuation marks a discount compared to its industry's average Forward P/E of 12.69.
We can also see that ABBV currently has a PEG ratio of 4.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.26 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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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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 $160.01, marking a -0.02% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.13 per share. | In the latest trading session, AbbVie (ABBV) closed at $160.01, marking a -0.02% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.13 per share. | In the latest trading session, AbbVie (ABBV) closed at $160.01, marking a -0.02% move from the previous day. AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.13 per share. | In the latest trading session, AbbVie (ABBV) closed at $160.01, marking a -0.02% move from the previous day. AbbVie is currently a Zacks Rank #3 (Hold). AbbVie will be looking to display strength as it nears its next earnings release. | 8d8ca19e-1430-418f-aa9a-2a54b7ce87f1 |
23527.0 | 2022-03-21 00:00:00 UTC | Rhode island reaches opioid settlements valued at $107 mln | ABBV | https://www.nasdaq.com/articles/rhode-island-reaches-opioid-settlements-valued-at-%24107-mln | nan | nan | Adds AG quote, Teva comment
March 21 (Reuters) - Rhode Island's attorney general on Monday announced settlements he valued at $107 million against the drugmakers Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit to resolve claims over their roles in fueling an opioid epidemic in the state.
Attorney General Peter Neronha said the settlements include $28.5 million in cash, plus the delivery to Rhode Island of anti-overdose treatments - 1 million Naloxone sprays and 67,000 bottles of Suboxone pills - over 10 years.
"While no amount of money will ever be enough to undo the harm suffered by Rhode Islanders throughout the ongoing opioid epidemic, these additional recoveries will further support public health efforts to respond to the challenges," Neronha said.
Teva called its settlement "a critical step forward in getting life-saving treatments to the people who need them." It said it is still "actively" negotiating a national settlement over its role in the U.S. opioid epidemic.
(Reporting by Jonathan Stempel in New York; Editing by Chris Reese and Bill Berkrot)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds AG quote, Teva comment March 21 (Reuters) - Rhode Island's attorney general on Monday announced settlements he valued at $107 million against the drugmakers Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit to resolve claims over their roles in fueling an opioid epidemic in the state. "While no amount of money will ever be enough to undo the harm suffered by Rhode Islanders throughout the ongoing opioid epidemic, these additional recoveries will further support public health efforts to respond to the challenges," Neronha said. Teva called its settlement "a critical step forward in getting life-saving treatments to the people who need them." | Adds AG quote, Teva comment March 21 (Reuters) - Rhode Island's attorney general on Monday announced settlements he valued at $107 million against the drugmakers Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit to resolve claims over their roles in fueling an opioid epidemic in the state. Attorney General Peter Neronha said the settlements include $28.5 million in cash, plus the delivery to Rhode Island of anti-overdose treatments - 1 million Naloxone sprays and 67,000 bottles of Suboxone pills - over 10 years. "While no amount of money will ever be enough to undo the harm suffered by Rhode Islanders throughout the ongoing opioid epidemic, these additional recoveries will further support public health efforts to respond to the challenges," Neronha said. | Adds AG quote, Teva comment March 21 (Reuters) - Rhode Island's attorney general on Monday announced settlements he valued at $107 million against the drugmakers Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit to resolve claims over their roles in fueling an opioid epidemic in the state. Attorney General Peter Neronha said the settlements include $28.5 million in cash, plus the delivery to Rhode Island of anti-overdose treatments - 1 million Naloxone sprays and 67,000 bottles of Suboxone pills - over 10 years. (Reporting by Jonathan Stempel in New York; Editing by Chris Reese and Bill Berkrot) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds AG quote, Teva comment March 21 (Reuters) - Rhode Island's attorney general on Monday announced settlements he valued at $107 million against the drugmakers Teva Pharmaceutical Industries TEVA.TA and AbbVie's ABBV.N Allergan unit to resolve claims over their roles in fueling an opioid epidemic in the state. Attorney General Peter Neronha said the settlements include $28.5 million in cash, plus the delivery to Rhode Island of anti-overdose treatments - 1 million Naloxone sprays and 67,000 bottles of Suboxone pills - over 10 years. "While no amount of money will ever be enough to undo the harm suffered by Rhode Islanders throughout the ongoing opioid epidemic, these additional recoveries will further support public health efforts to respond to the challenges," Neronha said. | 26789c79-604a-4348-a7ee-71572a4d3fb0 |
23528.0 | 2022-03-21 00:00:00 UTC | XLV, UNH, JNJ, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-unh-jnj-abbv%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $705.2 million dollar inflow -- that's a 2.0% increase week over week in outstanding units (from 261,120,000 to 266,270,000). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.3%, Johnson & Johnson (Symbol: JNJ) is up about 0.9%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $113.35 per share, with $141.975 as the 52 week high point — that compares with a last trade of $136.82. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.3%, Johnson & Johnson (Symbol: JNJ) is up about 0.9%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $705.2 million dollar inflow -- that's a 2.0% increase week over week in outstanding units (from 261,120,000 to 266,270,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.3%, Johnson & Johnson (Symbol: JNJ) is up about 0.9%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $113.35 per share, with $141.975 as the 52 week high point — that compares with a last trade of $136.82. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.3%, Johnson & Johnson (Symbol: JNJ) is up about 0.9%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $705.2 million dollar inflow -- that's a 2.0% increase week over week in outstanding units (from 261,120,000 to 266,270,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $113.35 per share, with $141.975 as the 52 week high point — that compares with a last trade of $136.82. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.3%, Johnson & Johnson (Symbol: JNJ) is up about 0.9%, and AbbVie Inc (Symbol: ABBV) is up by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $705.2 million dollar inflow -- that's a 2.0% increase week over week in outstanding units (from 261,120,000 to 266,270,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $113.35 per share, with $141.975 as the 52 week high point — that compares with a last trade of $136.82. | df8572a7-7b75-4dd8-8376-cf17f3091b1a |
23529.0 | 2022-03-21 00:00:00 UTC | Amgen (AMGN) Outperforms Industry This Year So Far: What Next? | ABBV | https://www.nasdaq.com/articles/amgen-amgn-outperforms-industry-this-year-so-far%3A-what-next | nan | nan | Amgen AMGN has a diverse and growing portfolio of medicines in large therapeutic categories that it expects will help it drive growth through the end of the decade despite a declining pricing environment.
Amgen stock has risen 6% this year so far against a decrease of 12.6% for the industry.
Image Source: Zacks Investment Research
Amgen’s key drugs like Prolia, Repatha, Xgeva and biosimilars are driving sales driven by volume growth as these key drugs are gaining consistent approvals for label expansions. Moreover,
Amgen is also evaluating Prolia/Xgeva, Vectibix, Repatha, Nplate, Kyprolis and Blincyto for additional indications. Kyprolis is being investigated for weekly dosing in combinations with lenalidomide and dexamethasone for relapsed multiple myeloma while Repatha is being investigated for hypercholesterolemia as well as in a cardiovascular outcomes study (VESALIUS-CV) in patients with high cardiovascular risk without a prior heart attack or stroke in phase III. Nplate is being studied in phase III for chemotherapy-induced thrombocytopenia. Otezla was approved to treat plaque psoriasis in December 2021 while it is in phase III for moderate-to-severe genital psoriasis.
Amgen expects worldwide Otezla sales to grow by low double digits annually, on average, before its U.S. loss of exclusivity. Amgen acquired global commercial rights to Otezla from Celgene, which is now part of Bristol-Myers BMY. The acquisition of Otezla from Bristol-Myers significantly strengthened its inflammation portfolio, which should boost long-term growth.
Repatha surpassed $1 billion of sales in 2021 and is expected to grow into a multi-billion-dollar franchise through 2030.
Amgen is also rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in 2022, which could act as catalysts for the stock.
A key drug, Lumakras (sotorasib), was approved for advanced non-small cell lung cancer (NSCLC) in the United States in May 2021 and EU in January 2022. It is now approved in 35 counties. Lumakras is off to an excellent start while its label expansion studies, which have the potential to significantly expand the currently addressable patient population, are progressing rapidly.
Amgen also boasts a strong biosimilars portfolio, which is an important long-term growth driver. Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi ( a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In 2020, Amgen launched Avsola, a biosimilar of J&J/Merck’s blockbuster immunology medicine Remicade and in January 2021, the company launched Riabni, a biosimilar of Roche’s Rituxan. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023.
In 2022, volume growth of biosimilars is expected to be offset by lower pricing due to increased competition and average sales price erosion. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023.
Amgen faces its share of challenges. Pricing and competitive pressure are impacting many of Amgen’s products and franchises. Several of Amgen’s marketed drugs are facing increased pricing headwinds and continued COVID-19 headwinds. Nonetheless, continued strong growth of key drugs, higher sales from ex U.S. markets, increased contribution from its high-quality biosimilars and costs savings should keep the stock afloat in 2022.
Zacks Rank and Stock to Consider
Amgen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi ( a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi ( a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi ( a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | Amgen markets Kanjinti (a biosimilar of Roche’s [RHHBY] Herceptin) and Mvasi ( a biosimilar of Roche’s Avastin) in the United States and Amgevita (a biosimilar of AbbVie’s [ABBV] Humira), Kanjinti and Mvasi outside the United States. In the United States, AbbVie’s Humira biosimilar, Amjevita is expected to be launched in 2023. However, biosimilar revenues are expected to return to growth with the launch of Amjevita (AbbVie’s Humira biosimilar) in 2023. | b974af5e-bc79-4b60-ac2f-51fe96c837f1 |
23530.0 | 2022-03-20 00:00:00 UTC | 5 Unexpected Sources of Retirement Income | ABBV | https://www.nasdaq.com/articles/5-unexpected-sources-of-retirement-income-1 | nan | nan | If you're thinking about retirement, and you're worried that your expected income may not be enough, here's some good news: There are many possible sources of retirement income, and some of them may be surprises to you.
Here's a look at some ways to generate income in your later years. See which ones make the most sense for you.
Image source: Getty Images.
1. Dividends
Dividend income is probably the least unexpected in this group, but the amount of income dividend stocks can generate is often underappreciated and potentially surprising. For example, if you retire with a stock portfolio valued at $500,000, and it has an overall dividend yield of 3%, you're looking at around $15,000 in annual income -- and that sum is likely to grow over time, as dividends from healthy companies tend to be increased every year or two.
Here are some examples of well-regarded dividend payers -- and their recent yields:
STOCK
RECENT DIVIDEND YIELD
Enbridge
6.1%
IBM
5.3%
Unilever
4.6%
3M
4.2%
AbbVie
3.8%
Sanofi
3.8%
Chevron
3.3%
Pfizer
3.2%
Coca-Cola
3%
Data source: Yahoo! Financial.
If you don't already have some dividend-paying stocks in your portfolio, consider adding them.
2. Your house
Your house, perhaps unbeknownst to you, is a possible income generator -- now and/or in retirement. For one thing, you might rent out space in it -- or rent out the whole home -- for short or long periods via services such as Airbnb. You might also take in a boarder for a few years, if you and your home can accommodate that.
Then there are reverse mortgages, which are not suitable for all retirees, but which can serve some very well. They involve essentially borrowing from a lender with your home as collateral. The lender can pay you a lump sum or regular payments over time, while you stay in the home. Once you no longer do -- because, for example, you moved to a retirement home or died -- the lender claims the home, unless your heirs want to and can pay back the loan.
3. Your car
Your car can also be a source of income for retirement. Now, or in your early years of retirement, you might earn money driving for a service such as Uber or Lyft.
Another strategy is to pare one vehicle from your household's fleet. If you have three, try living with two. If you have two, see if you can get by with one. It can be fairly easy for many couples to share just one vehicle once they're retired and not commuting to jobs. By shedding one vehicle, you can collect some cash for it upfront, and then you'll simply save money in the future, not having to pay for insurance, maintenance, and repairs.
4. Your junk
Some of the money you'll want in retirement is all around you, in the form of items you no longer need or desire -- and perhaps have never even used. Spend a little time reviewing things in your attic, basement, garage, and even your storage unit, if you have one. All those unnecessary things could fetch lots of dollars at a yard sale -- and some you might want to offer online. Particularly valuable items, such as some collectibles, might be sold to dealers or others who appreciate their value.
5. Downsizing
Finally, an often overlooked way to generate more money for retirement while getting to keep more money in your pocket over time is downsizing. You can downsize in a variety of ways. If you love your neighborhood or town, you could sell your home and buy a smaller and/or less costly one in it. If you're not so attached to your current location, you might move to a less costly town or state -- or even a less costly country. You might be able to move closer to family or loved ones that way, too.
By downsizing to a less costly home, you can probably pocket some gains, and you'll likely pay less in utilities, property taxes, insurance, landscaping, and maintenance (among other things) over time.
These are just some ways to generate more money for your future, for a financially secure retirement. If some of them make a lot of sense for you, start looking into acting on them.
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Selena Maranjian owns AbbVie and Enbridge. The Motley Fool owns and recommends Airbnb, Inc. and Enbridge. The Motley Fool recommends 3M, Uber Technologies, and Unilever. 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. | 4.2% AbbVie 3.8% Sanofi 3.8% Chevron 3.3% Pfizer 3.2% Coca-Cola 3% Data source: Yahoo! Selena Maranjian owns AbbVie and Enbridge. By shedding one vehicle, you can collect some cash for it upfront, and then you'll simply save money in the future, not having to pay for insurance, maintenance, and repairs. | 4.2% AbbVie 3.8% Sanofi 3.8% Chevron 3.3% Pfizer 3.2% Coca-Cola 3% Data source: Yahoo! Selena Maranjian owns AbbVie and Enbridge. By shedding one vehicle, you can collect some cash for it upfront, and then you'll simply save money in the future, not having to pay for insurance, maintenance, and repairs. | 4.2% AbbVie 3.8% Sanofi 3.8% Chevron 3.3% Pfizer 3.2% Coca-Cola 3% Data source: Yahoo! Selena Maranjian owns AbbVie and Enbridge. If you're thinking about retirement, and you're worried that your expected income may not be enough, here's some good news: There are many possible sources of retirement income, and some of them may be surprises to you. | 4.2% AbbVie 3.8% Sanofi 3.8% Chevron 3.3% Pfizer 3.2% Coca-Cola 3% Data source: Yahoo! Selena Maranjian owns AbbVie and Enbridge. Here's a look at some ways to generate income in your later years. | af9aedcf-2f5d-4294-bf66-89ab4a147974 |
23531.0 | 2022-03-20 00:00:00 UTC | 3 Dividend Stocks That We'd Buy Without Any Hesitation | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-wed-buy-without-any-hesitation | nan | nan | Reluctant to jump back into buying stocks right now? That's understandable. While the stock market rebounded somewhat last week, there's still a lot of uncertainty about what's around the corner. However, many stocks are available at attractive valuations. And lower share prices have pushed dividend yields higher in many cases.
We asked three Motley Fool contributors to identify dividend stocks that they'd buy right now without any hesitation. Here's why they chose AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE).
Image source: Getty Images.
A continuing reign
Keith Speights (AbbVie): AbbVie has been a Dividend Aristocrat for years. It's now also a Dividend King with the company increasing its dividend for the 50th consecutive year. Some members of dividend royalty don't offer especially attractive dividend yields. Not AbbVie -- its dividend yield tops 3.5%.
I have no doubt whatsoever that AbbVie will continue its reign as an elite dividend stock. The company remains highly profitable and generates strong cash flow.
But what about the looming loss of U.S. exclusivity for AbbVie's top-selling drug Humira? That doesn't worry me at all. Sure, the company will experience a decline in revenue at first. However, sales for Humira won't evaporate overnight. The drug should still be a megablockbuster for a long time to come.
More importantly, AbbVie has other products in its lineup that should take up the slack. In particular, the company projects that autoimmune-disease drugs Rinvoq and Skyrizi will rake in at least $15 billion in combined sales in 2025.
Most stocks have been pulled down with the overall stock market sinking. AbbVie, though, has delivered a 17% year-to-date gain. My view is that the big pharma stock will keep up its winning ways over the long term.
Rest easy with this biotech giant
Prosper Junior Bakiny (Amgen): The COVID-19 pandemic, geopolitical tensions, inflation. These are just some of the problems facing the world right now. The uncertainty of it all has affected the stock market. Finding stable companies with robust businesses and steady dividends is practically a luxury in this environment. But that's precisely what Amgen offers.
This drugmaker has been around since the early 1980s, which means it has lived through many crises. Since the beginning of the year, Amgen's stock price has increased by 4%, compared with an 8.3% drop for the S&P 500. While the company has been dealing with patent cliffs of late, there's reason to be excited about what's to come.
A couple of new approvals have helped replenish Amgen's lineup of drugs. In December, the company earned the regulatory nod from the U.S. Food and Drug Administration for Tezspire under the Priority Review program. Amgen developed this medicine in collaboration with AstraZeneca. The Priority Review designation is reserved for those medicines that would be more effective than existing therapies if approved.
According to Amgen, Tezspire "is the first and only biologic to consistently and significantly reduce asthma exacerbations across Phase 2 and 3 clinical trials." There are plenty of competing options for asthma. However, the evidence strongly suggests that Tezspire is on its way to becoming one of the major players within this therapeutic area. Look for it to contribute substantially to Amgen's revenue in the coming quarters.
Other relatively new approvals for Amgen include osteoporosis treatment Evenity -- which earned the nod in 2019 -- and cancer medicine Lumakras, which was approved in the U.S. last year and has since earned the green light in other countries. These medicines will continue to grow their revenue for a long time before the company has to worry about losing patent protection. And they will help deal with Amgen's drugs whose sales are currently dropping.
Backed by its strong business, investors can be confident that Amgen's dividend payouts are safe. The company currently offers an above-average yield of 3.09% and a conservative cash payout ratio of 47.9%. In short, Amgen is a top dividend stock to consider adding to your portfolio today.
Plenty of cash for dividends and growth
David Jagielski (Pfizer): The one reason I sometimes hesitate to buy dividend stocks is that I know there's often limited growth potential there. If you buy a utility stock or a bank stock, you're looking at modest long-term gains in most cases. But Pfizer is one of the more exceptional dividend stocks on the market. It pays a yield of 3.2%, which is more than double the S&P 500 average of 1.3%. Its business is also booming.
This year is going to be a huge one for Pfizer, with the company potentially reporting more than $100 billion in revenue. More than half of that will come from its COVID-19 vaccine and pill. The windfall of cash that the company makes from COVID-19 could help pave the way for some incredible growth down the road. There's nothing like a boatload of cash to not just help pay dividends but also make acquisitions that drive growth.
In 2021 alone, Pfizer announced three acquisitions, including Amplyx Pharmaceuticals, Trillium Therapeutics, and Arena Pharmaceuticals. All those deals can help the company quickly expand its capabilities and strengthen its pipeline, leading to future growth.
Building up a strong cash balance can help facilitate more deals in the future. As of the end of 2021, Pfizer had more than $31 billion in cash and short-term investments on its books. That, along with its positive cash flow, can help the business balance both growth opportunities and a strong payout.
Last year, Pfizer spent $8.7 billion on its dividend. That's less than one-third of the nearly $30 billion in free cash it generated in 2021. Its dividend is incredibly safe. The company increased its payouts regularly since 2010.
The main reason I wouldn't hesitate to buy Pfizer is because of the strength of the business today. Its COVID-19 revenue may not be as significant in a few years as it is right now, but the company is taking advantage of the strong profits and cash flow it is generating from that to make its business better in the long run.
By not spending all of its extra cash on a huge dividend hike, the company can provide investors with recurring income while still focusing on long-term growth. That's why Pfizer is a stock that's easy to justify investing in right now as it ticks off boxes for both income and growth-oriented investors.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends 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. | Here's why they chose AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE). A continuing reign Keith Speights (AbbVie): AbbVie has been a Dividend Aristocrat for years. Not AbbVie -- its dividend yield tops 3.5%. | A continuing reign Keith Speights (AbbVie): AbbVie has been a Dividend Aristocrat for years. Here's why they chose AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE). Not AbbVie -- its dividend yield tops 3.5%. | Here's why they chose AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE). A continuing reign Keith Speights (AbbVie): AbbVie has been a Dividend Aristocrat for years. Not AbbVie -- its dividend yield tops 3.5%. | Not AbbVie -- its dividend yield tops 3.5%. Here's why they chose AbbVie (NYSE: ABBV), Amgen (NASDAQ: AMGN), and Pfizer (NYSE: PFE). A continuing reign Keith Speights (AbbVie): AbbVie has been a Dividend Aristocrat for years. | 54381895-b574-479b-9a64-99be0c6182c6 |
23532.0 | 2022-03-19 00:00:00 UTC | Could This Be Eli Lilly's Next Blockbuster Drug? | ABBV | https://www.nasdaq.com/articles/could-this-be-eli-lillys-next-blockbuster-drug | nan | nan | On Feb. 18, Eli Lilly (NYSE: LLY) announced impressive results from its first phase 3 clinical trial of mirikizumab in patients with moderately to severely active ulcerative colitis (UC) who didn't benefit from conventional therapies.
Eli Lilly also stated that data from the second trial would be shared in the first half of 2022. With the pharma stock set to file with the U.S. Food and Drug Administration (FDA) for approval of mirikizumab in the first half of this year, this raises the following question: Could approval for a UC indication in the U.S. create another blockbuster drug for Eli Lilly?
Let's dig into the results from the first phase 3 clinical trial and the UC market in the U.S. to try to answer this question.
Image source: Getty Images.
A potent treatment for a potentially disruptive condition
UC is an inflammatory bowel disease (IBD) that results in damage to the gastrointestinal (GI) tract. The condition affects only the colon and the rectum, which is a contrast to the other form of IBD called Crohn's disease. The symptoms of UC like abdominal pain, weight loss, and fatigue overlap with Crohn's disease. But the latter can impact any part of the GI tract from the mouth to the anus.
Healthcare professionals are able to determine the severity of UC by the number of a patient's bowel movements per day and whether the condition affects their daily life. Disease severity is often classified as mild if the patient has less than five bowel movements a day and is able to adapt to the disease. On the other hand, moderate-to-severe disease entails up to 10 bowel movements a day and can interfere with work or school attendance.
It's estimated that in any given year, 21% to 22% of the approximately 900,000 UC patients in the U.S. have moderate-to-severe disease activity. The good news is that mirikizumab looks like it will provide a significant improvement in the quality of life for many patients experiencing moderate-to-severe UC.
Eli Lilly enrolled over 1,000 patients in its first phase 3 study with moderate-to-severe UC that either never tried a biologic treatment or didn't benefit from biologic therapies in the past. Patients receiving mirikizumab achieved a much higher rate of symptomatic remission at week 12 than those taking a placebo. More specifically, 45.5% of patients treated with mirikizumab had their symptoms clear up at week 12 compared to 27.9% of patients treated with placebo at week 12.
The drug boasted an exceptional safety profile to boot. Only 2.8% of patients receiving mirikizumab reported serious adverse events, which was well below the 5.3% of the placebo group that reported serious adverse events during the clinical trial.
The indication would be a big boost for Eli Lilly
Based on the data from its first phase 3 clinical trial, mirikizumab is an overwhelmingly safe and effective treatment for UC on its way to an eventual FDA approval. But what will that mean for Eli Lilly's sales?
There are roughly 200,000 moderate-to-severe UC patients in the U.S. in a given year. Factoring in mirikizumab's efficacy and safety profile, my best guess is that the drug can conservatively capture 8% of the patient share or 16,000 patients. While the drug's efficacy and safety profile are major selling points, there are numerous drugs on the market.
Although an annual list price for the drug won't be announced until its potential launch, drugs like AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara could be good gauges for what mirikizumab's annual list price may be. The former two drugs have respective annual list prices of approximately $80,000 and $150,000.
But I'll assume that mirikizumab will be priced at a lower annual price of $70,000 to try to establish itself in a crowded field. Factoring in insurance adjustments and patient assistance programs, I end up with a net annual price of $50,000 per patient (likely paid mostly by the insurer).
This would work out to just short of blockbuster status at $800 million in annual sales potential. Even for a large-cap pharma stock like Eli Lilly, this is enough to move the needle. If approved, mirikizumab's UC indication would be a 3% bump over Eli Lilly's $25.9 billion in 2022 sales that analysts are forecasting.
Eli Lilly offers investors a deep pipeline
A potential UC indication alone for mirikizumab will probably fall short of blockbuster status for Eli Lilly. But with the drug also in phase 3 clinical trials for Crohn's disease, there's a good chance it will be the next blockbuster for the company.
Even without it, Eli Lilly has a pipeline of dozens of compounds. These include the immunology drug lebrikizumab, potential diabetes mega-blockbuster tirzepatide, and a host of other promising drugs. This is why I believe Eli Lilly will deliver low-double-digit annual non-GAAP (adjusted) diluted earnings per share (EPS) growth over the medium-term.
At a forward price-to-earnings ratio of 29.6, Eli Lilly appears to be a buy for growth investors with a long-term investing mindset.
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Kody Kester owns AbbVie and Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although an annual list price for the drug won't be announced until its potential launch, drugs like AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara could be good gauges for what mirikizumab's annual list price may be. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Kody Kester owns AbbVie and Johnson & Johnson. On Feb. 18, Eli Lilly (NYSE: LLY) announced impressive results from its first phase 3 clinical trial of mirikizumab in patients with moderately to severely active ulcerative colitis (UC) who didn't benefit from conventional therapies. | Although an annual list price for the drug won't be announced until its potential launch, drugs like AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara could be good gauges for what mirikizumab's annual list price may be. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Kody Kester owns AbbVie and Johnson & Johnson. On Feb. 18, Eli Lilly (NYSE: LLY) announced impressive results from its first phase 3 clinical trial of mirikizumab in patients with moderately to severely active ulcerative colitis (UC) who didn't benefit from conventional therapies. | Although an annual list price for the drug won't be announced until its potential launch, drugs like AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara could be good gauges for what mirikizumab's annual list price may be. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Kody Kester owns AbbVie and Johnson & Johnson. With the pharma stock set to file with the U.S. Food and Drug Administration (FDA) for approval of mirikizumab in the first half of this year, this raises the following question: Could approval for a UC indication in the U.S. create another blockbuster drug for Eli Lilly? | Although an annual list price for the drug won't be announced until its potential launch, drugs like AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara could be good gauges for what mirikizumab's annual list price may be. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Kody Kester owns AbbVie and Johnson & Johnson. It's estimated that in any given year, 21% to 22% of the approximately 900,000 UC patients in the U.S. have moderate-to-severe disease activity. | 3653e7da-fdf1-4167-a9be-94ceea4b79f3 |
23533.0 | 2022-03-18 00:00:00 UTC | 3 Top Health Care Stocks To Watch Right Now | ABBV | https://www.nasdaq.com/articles/3-top-health-care-stocks-to-watch-right-now | nan | nan | Do You Have These Health Care Stocks On Your Watchlist Today?
Health care stocks have long been a popular segment of the stock market among investors. Regardless of geopolitical sentiments or the state of the economy, the industry would still be relevant given its importance to our daily lives. Stocks in the health care sector would thrive when there is new drug discovery or a positive trial result. Likewise, there will be setbacks when the drugs do not live up to expectations. So, this makes the industry quite interesting in its very own way. After all, there is a continuous stream of new developments.
For example, Eiger BioPharmaceuticals (NASDAQ: EIGR) soared by more than 40% this week. This is largely due to its recent announcement regarding the effect of Peginterferon Lambda (Lambda) on patients infected with the coronavirus. According to its Phase 3 TOGETHER study, it appears that the drug significantly reduces the risk of hospitalizations or emergency room visits greater than six hours by 50% and death by 60%. Understandably, any new developments to reduce the impact of the coronavirus would be a huge welcome.
Elsewhere, Apexigen announced that it will be going public by merging with the special purpose acquisition company Brookline Capital Acquisition Corp (NASDAQ: BCAC). The deal will likely strengthen Apexigen’s balance sheet to further advance its Phase 2 development lead program, sotigalimab. Also, it would hopefully maximize the therapeutic potential of Apexigen’s APXiMAB™ antibody discovery platform. Overall, it is understandable why the health care sector is a staple among investors. With that in mind, here are 3 of the top health care stocks in the stock market today.
Health Care Stocks To Watch Today
Merck & Co., Inc (NYSE: MRK)
AbbVie Inc (NYSE: ABBV)
Moderna Inc (NASDAQ: MRNA)
Merck & Co
To kick start the list, we will be looking at the global health care company, Merck & Co. Essentially, the company offers various health solutions such as prescription medicines, vaccines, biologic therapies, and even animal health products. It sells human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, governments, and managed health care providers. Now, despite the volatility of the stock market, MRK stock has shown resilience over the past year. Furthermore, there have been several positive developments lately that may excite investors.
For starters, the company and AstraZeneca (NASDAQ: AZN) recently announced additional positive results from the Phase 3 OlympiA trial. The trial aims to determine the effectiveness of adjuvant treatment of patients with germline BRCA-mutated, human epidermal growth factor receptor 2 (HER2)-negative high-risk early breast cancers. Specifically, for patients who have been treated with neoadjuvant or adjuvant chemotherapy. To the company’s delight, LYNPARZA showed a statistically significant improvement in overall survival versus the use of a placebo. To say the least, this is a great development for the prospect of the treatment of breast cancer.
On top of that, Merck’s collaboration with the European Organisation for Research and Treatment of Cancer, and the European Thoracic Oncology Platform also showed encouraging results from their pivotal Phase 3 KEYNOTE-091 trial. It appears that adjuvant treatment with KEYTRUDA improves disease-free survival and reduces the risk of disease recurrence or death by 24% compared to placebo in patients with non-small cell lung cancer. In fact, this would mark the 6th positive pivotal study evaluating a KEYTRUDA-based regimen in the early stages of cancer. Thus, it has now become a foundation in the treatment of metastatic non-small cell lung cancer. Given these exciting developments, would you consider adding MRK stock to your watchlist?
[Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; GameStop (GME) To Launch NFT Marketplace
AbbVie
Another top health care company right now would be AbbVie. For those unaware, this is a research-based biopharmaceutical company. For most parts, it engages in the research and development, manufacturing, commercialization, and sale of medicines and therapies. In less than a decade, the company had invested more than $50 billion in research to discover and develop new medicines. Despite all the medicinal advancements, there are still many diseases with unmet needs. Therefore, AbbVie aims to be a frontrunner to have a positive impact and provide a better standard of care.
On Wednesday, AbbVie announced that its RINVOQ (upadacitinib) has received the U.S. Food and Drug Administration (FDA) approval for the treatment of adults with moderately to severely active ulcerative colitis. The drug is meant for patients who had inadequate response or intolerance to one or more tumor necrosis factor blockers. Well, most patients who received RINVOQ achieved clinical response as early as week 2 and steroid-free clinical remission at one year. This is an important milestone for the treatment of ulcerative colitis as it remains one of the diseases with unpredictable symptoms that can affect a patient’s daily activities.
Additionally, there was another drug approved by Health Canada for the treatment of adults with active psoriatic arthritis. The company’s SKYRIZI (risankizumab) can be used alone or in combination with a conventional non-biologic disease-modifying antirheumatic drug. This is the second indication for SKYRIZI in Canada whereby it was previously approved for the treatment of adults with plaque psoriasis back in 2019. With that in mind, would ABBV stock be a top health care stock to watch now?
[Read More] Top Stock Market News For Today March 18, 2022
Moderna
Last but not least, we have one of the pioneers that developed the coronavirus vaccine, Moderna. In detail, the biotechnology company focuses its resources on creating transformative medicines based on messenger ribonucleic acid (mRNA). It believes that mRNA is the “software of life” as every cell in the body uses it to provide real-time instructions to make the proteins necessary to drive all aspects of biology. MRNA stock has risen more than 15% within the past month.
Two years into the pandemic, the company’s coronavirus vaccine remains an integral part of our efforts to combat the pandemic. Earlier this week, the Ministry of Health, Labour, and Welfare of Japan announced an agreement with Moderna for an additional 70 million doses of its booster vaccine. If authorized, the delivery will begin in the second half of 2022. On top of that, Health Canada has also recently approved the usage of its vaccine for active immunization in children aged 6 to 11 years old. This follows the recent authorization of its vaccine in the same age group in Australia and the European Union.
Meanwhile, in the U.S., Moderna announced that it has submitted a request to the FDA for an amendment to the emergency use authorization to allow the fourth dose of its coronavirus vaccine. This is based on the recently published data in the U.S. and Israel following the emergence of Omicron. As such, the demand for the company’s vaccine would likely still be in high demand in the near term. All things considered, should investors be paying more attention to MRNA 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. | On Wednesday, AbbVie announced that its RINVOQ (upadacitinib) has received the U.S. Food and Drug Administration (FDA) approval for the treatment of adults with moderately to severely active ulcerative colitis. Health Care Stocks To Watch Today Merck & Co., Inc (NYSE: MRK) AbbVie Inc (NYSE: ABBV) Moderna Inc (NASDAQ: MRNA) Merck & Co To kick start the list, we will be looking at the global health care company, Merck & Co. [Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; GameStop (GME) To Launch NFT Marketplace AbbVie Another top health care company right now would be AbbVie. | Health Care Stocks To Watch Today Merck & Co., Inc (NYSE: MRK) AbbVie Inc (NYSE: ABBV) Moderna Inc (NASDAQ: MRNA) Merck & Co To kick start the list, we will be looking at the global health care company, Merck & Co. [Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; GameStop (GME) To Launch NFT Marketplace AbbVie Another top health care company right now would be AbbVie. Therefore, AbbVie aims to be a frontrunner to have a positive impact and provide a better standard of care. | Health Care Stocks To Watch Today Merck & Co., Inc (NYSE: MRK) AbbVie Inc (NYSE: ABBV) Moderna Inc (NASDAQ: MRNA) Merck & Co To kick start the list, we will be looking at the global health care company, Merck & Co. [Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; GameStop (GME) To Launch NFT Marketplace AbbVie Another top health care company right now would be AbbVie. Therefore, AbbVie aims to be a frontrunner to have a positive impact and provide a better standard of care. | Health Care Stocks To Watch Today Merck & Co., Inc (NYSE: MRK) AbbVie Inc (NYSE: ABBV) Moderna Inc (NASDAQ: MRNA) Merck & Co To kick start the list, we will be looking at the global health care company, Merck & Co. [Read More] Stock Market Today: Dow Jones, S&P 500 Mixed; GameStop (GME) To Launch NFT Marketplace AbbVie Another top health care company right now would be AbbVie. Therefore, AbbVie aims to be a frontrunner to have a positive impact and provide a better standard of care. | eb39a615-03e7-4153-9948-1781db71c7a1 |
23534.0 | 2022-03-18 00:00:00 UTC | AbbVie's (ABBV) Rinvoq Gets FDA Nod for Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-rinvoq-gets-fda-nod-for-ulcerative-colitis | nan | nan | AbbVie Inc. ABBV announced that the FDA approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication on Mar 16. The drug is now approved for the treatment of moderately to severely active ulcerative colitis (“UC”) in adult patients whose disease had an inadequate response or is intolerant to one or more TNF-blocker.
This marks the fourth approved indication for Rinvoq in the United States and the drug’s first gastroenterology indication.
The latest FDA nod was based on efficacy and safety data from two phase III induction studies and one maintenance study that evaluated Rinvoq (15 mg and 30 mg) for treating UC. Data from these studies showed that a higher number of patients who were treated with Rinvoq achieved the primary endpoint of clinical remission as well as all secondary endpoints versus placebo.
AbbVie is also seeking a label expansion of Rinvoq to include UC patients in Europe.
Rinvoq is approved in the United States for treating moderate-to-severe rheumatoid arthritis (“RA”) in adults who have had an inadequate response or intolerance to one or more tumor necrosis factor (“TNF”) blockers. In December 2021, the FDA approved Rinvoq for its second indication — treatment of adults with active psoriatic arthritis (PsA) who had an inadequate response or intolerance to one or more TNF blockers. This was followed by its label expansion in January 2022 to include atopic dermatitis (“AD”) patients.
Ongoing Label Expansion Studies
AbbVie is evaluating Rinvoq in several clinical stage studies for additional indications. In December 2021, the company announced positive top-line results from a late-stage study, U-EXCEED, evaluating Rinvoq in patients with moderate-to-severe Crohn's disease who had an inadequate response or were intolerant to biologic therapy. Data from the study showed that a significantly higher proportion of patients with moderate-to-severe Crohn's disease treated with Rinvoq achieved both primary endpoints of clinical remission and endoscopic response compared to placebo at week 12.
Please note that U-EXCEED study is the first of the two phase III induction studies to evaluate the safety and efficacy of Rinvoq in adults with moderate-to-severe Crohn's disease.
Several phase III studies in rheumatoid arthritis, atopic dermatitis, psoriatic arthritis, axial spondyloarthritis, Crohn's disease, ulcerative colitis, giant cell arteritis and Takayasu arteritis are currently ongoing.
We note that in December 2021, the company updated Rinvoq’s label to include a Drug Safety Communication (“DSC”) issued by the FDA. The FDA limited approved use of the drug to certain RA patients who have not responded or cannot tolerate one or more TNF blockers.
In September 2021, the FDA issued a DSC to include warnings about an increased risk of serious heart-related events, cancer, blood clots and even death, to be added to the label of three JAK inhibitor drugs — including Rinvoq, Pfizer’s PFE Xeljanz and Eli Lilly LLY /Incyte’s INCY Olumiant (baricitinib) — in patients for RA. The decision was based on the FDA’s review of a post-marketing study on Pfizer’s Xeljanz in patients with RA.
Pfizer’s Xeljanz is approved to treat RA, UC, active psoriatic arthritis and ankylosing spondylitis. In January, the FDA approved Pfizer’s JAK inhibitor, Cibinqo (abrocitinib), for the treatment of adults with refractory, moderate-to-severe AD.
Eli Lilly and Incyte’s Olumiant (baricitinib) is approved for treating RA and COVID-19 (hospitalized patients). In Europe, baricitinib is approved for AD and is under review for the same in the United States. Lilly and Incyte’s baricitinib is also under review for severe alopecia areata and in phase III studies systemic lupus erythematosus.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ABBV announced that the FDA approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication on Mar 16. AbbVie is also seeking a label expansion of Rinvoq to include UC patients in Europe. Ongoing Label Expansion Studies AbbVie is evaluating Rinvoq in several clinical stage studies for additional indications. | AbbVie Inc. ABBV announced that the FDA approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication on Mar 16. AbbVie is also seeking a label expansion of Rinvoq to include UC patients in Europe. Ongoing Label Expansion Studies AbbVie is evaluating Rinvoq in several clinical stage studies for additional indications. | AbbVie Inc. ABBV announced that the FDA approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication on Mar 16. AbbVie is also seeking a label expansion of Rinvoq to include UC patients in Europe. Ongoing Label Expansion Studies AbbVie is evaluating Rinvoq in several clinical stage studies for additional indications. | Ongoing Label Expansion Studies AbbVie is evaluating Rinvoq in several clinical stage studies for additional indications. AbbVie Inc. ABBV announced that the FDA approved its promising JAK inhibitor, Rinvoq (upadacitinib), for a new indication on Mar 16. AbbVie is also seeking a label expansion of Rinvoq to include UC patients in Europe. | 83814a95-1de0-4ad9-98de-4d54f6ae6d8c |
23535.0 | 2022-03-17 00:00:00 UTC | These 2 Stocks Just Hit All-Time Highs | ABBV | https://www.nasdaq.com/articles/these-2-stocks-just-hit-all-time-highs | nan | nan | The stock market had a big upward move on Wednesday, with investors eventually deciding that the Federal Reserve's stance on interest rates was consistent with what they wanted to see over the long run. Although there's still considerable uncertainty about what 2022 will bring in terms of macroeconomic improvement and the unstable geopolitical situation, market participants always like having at least an idea of where policymakers at the Fed are likely to take things. After big gains, Thursday morning's premarket activity brought some very modest pullbacks. As of 7:30 a.m. ET, futures on the Dow Jones Industrial Average (DJINDICES: ^DJI) were down 54 points to 34,005. S&P 500 (SNPINDEX: ^GSPC) futures had fallen 8 points to 4,350, while Nasdaq Composite (NASDAQINDEX: ^IXIC) futures had given back 32 points to 13,921.
The size of the stock market pullback since November has been big enough that many stocks are still 20%, 30%, or even 50% below their best levels over the past year. However, a few companies have been able to buck the downtrend and pushed out to new all-time highs on Wednesday. Below, you'll learn more about what's sending these stocks higher and whether the uptrend could continue.
Image source: Getty Images.
Another milestone for Buffett
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has been one of the biggest stock market success stories of all time, and even as a nonagenarian, CEO Warren Buffett remains at the top of his game. The original Class A shares closed above the $500,000 mark on Wednesday, celebrating another first as the conglomerate pushed to record levels.
The recent success of the stock stands in stark contrast to how most investors felt during the growth-heavy days of 2020 and 2021. Many pundits had suggested that Berkshire's best days were behind it, as cutting-edge tech stocks produced huge returns while the Buffett-led company straggled behind.
Investors who remembered the late 1990s and early 2000s, however, aren't surprised at how Berkshire's stock has behaved. Back then, critics said many of the same things about Berkshire, arguing that Buffett had lost his way and that tech stocks were the only way to make money in the market. In the ensuing tech bust from 2000 to 2002, many of those high-flying tech stocks never came back -- but Berkshire thrived and made up for a lot of lost ground in terms of relative performance.
Now, Berkshire remains positioned with a lot of diversification, including its core insurance operations and a hefty investment in the energy sector through wholly owned businesses and its growing stake in Occidental Petroleum, not to mention its massive holdings of Apple. Don't expect Berkshire to be a high-growth company, but its stock's performance speaks for itself.
Healthy times at AbbVie
Meanwhile, shares of AbbVie (NYSE: ABBV) also hit record levels on Wednesday. The pharmaceutical stock has attracted a lot of attention because of its business stability and its track record of dividend growth.
AbbVie has largely flown under the radar for many investors, in part because like many drugmakers, it faces the huge challenge of how to replace the revenue from blockbuster treatments that are destined to lose their patent protection. In AbbVie's case, that's Humira, which treats a variety of ailments from arthritis to ulcerative colitis and Crohn's disease. Humira generated more than a third of AbbVie's total revenue over the past 12 months, but it will lose exclusivity in the U.S. market next year.
Yet despite the threat from biosimilar rivals for Humira, AbbVie has developed new treatments that it hopes will be able to take the blockbuster drug's place in producing sales. In addition to already approved drugs, AbbVie also has a solid pipeline of candidate treatments in clinical trials.
Over the long haul, AbbVie has given shareholders a great combination of share-price gains and dividend income. With a current yield of nearly 4%, all-time highs for the stock are icing on the cake, and defensively minded investors are starting to see the value of the pharmaceutical company's business model as a way to reduce overall portfolio volatility.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has largely flown under the radar for many investors, in part because like many drugmakers, it faces the huge challenge of how to replace the revenue from blockbuster treatments that are destined to lose their patent protection. Healthy times at AbbVie Meanwhile, shares of AbbVie (NYSE: ABBV) also hit record levels on Wednesday. In AbbVie's case, that's Humira, which treats a variety of ailments from arthritis to ulcerative colitis and Crohn's disease. | Healthy times at AbbVie Meanwhile, shares of AbbVie (NYSE: ABBV) also hit record levels on Wednesday. AbbVie has largely flown under the radar for many investors, in part because like many drugmakers, it faces the huge challenge of how to replace the revenue from blockbuster treatments that are destined to lose their patent protection. In AbbVie's case, that's Humira, which treats a variety of ailments from arthritis to ulcerative colitis and Crohn's disease. | Healthy times at AbbVie Meanwhile, shares of AbbVie (NYSE: ABBV) also hit record levels on Wednesday. AbbVie has largely flown under the radar for many investors, in part because like many drugmakers, it faces the huge challenge of how to replace the revenue from blockbuster treatments that are destined to lose their patent protection. In AbbVie's case, that's Humira, which treats a variety of ailments from arthritis to ulcerative colitis and Crohn's disease. | Healthy times at AbbVie Meanwhile, shares of AbbVie (NYSE: ABBV) also hit record levels on Wednesday. AbbVie has largely flown under the radar for many investors, in part because like many drugmakers, it faces the huge challenge of how to replace the revenue from blockbuster treatments that are destined to lose their patent protection. In AbbVie's case, that's Humira, which treats a variety of ailments from arthritis to ulcerative colitis and Crohn's disease. | 7da52a85-ccd0-4580-b547-d52e435875e8 |
23536.0 | 2022-03-17 00:00:00 UTC | 3 Medical Stocks That Could Double Your Returns in the Long Run | ABBV | https://www.nasdaq.com/articles/3-medical-stocks-that-could-double-your-returns-in-the-long-run | nan | nan | A market mantra is that past returns are no guarantee of future success. However, the longer your view of a stock, the less that is true. Medical Properties Trust (NYSE: MPW), AbbVie (NYSE: ABBV), and Teladoc Health (NYSE: TDOC) all would have doubled your money, or more, if you had invested in them five years ago, based on their total returns. Looking at each stock individually, all three are still good investments.
Medical stocks in general are resilient during recessions and periods of inflation because our population is aging, creating an increased need for medical services. That means higher occupancy rates in hospitals, increased reliance on pharmaceuticals, and a greater likelihood that people will use telehealth services.
Image source: Getty Images.
1. Medical Properties Trust
Medical Properties Trust is a real estate investment trust (REIT) that focuses on building and leasing hospital facilities, primarily general acute care hospitals. As of Dec. 31, 2021, the company had 438 properties across 32 states and nine countries.
Traditional measures of finance, such as revenue and earnings per share, are less useful in quantifying REITs, so it's better to use adjusted funds from operation (AFFO) because that takes into account costs incurred by REITS and additional income sources such as rent increases. In 2021, Medical Properties Trust reported adjusted funds from operation of $811.4 million, up 26.2% year over year, and AFFO per share was $1.37, up 13.2% over 2020.
The company has increased its quarterly revenue for 10 consecutive years, including a rise of 3.5% to $0.29 per share this year, giving it a yield of 5.8%. The company's AFFO payout ratio is 81.7%, a little high, but not cause for alarm for a REIT such as Medical Properties Trust with consistent cash flows. Its average lease length is extremely long -- 17.7 years.
The stock is down more than 15% so far this year, but a $10,000 investment in Medical Properties Trust five years ago would be worth $22,474.78 as of Monday's close.
2. AbbVie
AbbVie has increased revenue every year for the past decade. That's the definition of a dependable company. In 2021, the company reported full-year revenue of $56.2 billion, a rise of 22.7% year over year, and EPS of $6.45, an increase of 135% over 2020. The company released bullish guidance for 2022 with anticipated EPS between $9.26 and $9.46.
The key for AbbVie will be how well its portfolio and pipeline perform as revenue from blockbuster immunology drug Humira declines as it comes off patent protection in the United States in 2023. The drug is already facing pressure from biosimilars in Europe and while it generated $20.6 billion last year in revenue, up 4.3% year over year, its sales fell by 9.6% in Europe.
There are plenty of reasons for optimism that the company will be able to overcome any loss in Humira revenue as its two immunology drugs, Skyrizi ($2.9 billion in 2021 revenue) and Rinvoq ($1.7 billion in 2021 revenue), are increasing label applications and grew U.S. revenue by 79.6% and 94.8%, respectively, year over year (it was just their first year of international sales). Besides those two, AbbVie has 12 other therapies that reported over $1 billion each in revenue in 2021, led by oncology drug Imbruvica, which brought in $5.4 billion.
One of the best things about the company is its quarterly dividend, which it raised last year by 8.5% to $1.41 per share, representing a yield of around 3.7%. Because AbbVie was a part of Abbott Labs before it was spun off as a separate company in 2013, it is considered a Dividend King since it has increased its dividend for at least 50 consecutive years. Since the spinoff, AbbVie has boosted its own dividend by 250%.
AbbVie's stock is up more than 12% this year and a $10,000 investment in the company five years would have been worth 28,872.33 as of Monday's close.
3. Teladoc
Teladoc Health, at first glance, may appear to be a risky bet because the company isn't profitable and never has been. However, the company is growing revenue by leaps and bounds and the pandemic drove home the point that there's an increased need for telehealth services.
In 2021, the company reported a record $2 billion in revenue, up 86% over 2020. Teladoc lost $2.73 per share for the year, but that represented an improvement of 49% over 2020. It also posted $193.9 million in annual cash flow from operations, compared to a loss of $53.5 million the year before.
The company expects 2022 revenue of $2.55 billion to $2.65 billion, representing 25% to 30% growth. In addition, it expects a loss per share of between $1.60 and $1.40, an improvement of between 70.6% and 95%. At that pace, the company could be profitable by 2024.
Telehealth services were a $62.4 billion market in 2021 and are forecasted to grow with a compound annual growth rate of 36.5% through 2028, reaching a $787.4 billion market by then, according to a report by Grand View Research. Teladoc, with its first-to-market status, is poised to benefit from that growth. The stock is down more than 30% this year, but a $10,000 investment in Teladoc five years ago would have more than doubled your investment, as it would be worth $28,742.11 as of Monday.
MPW Total Return Level data by YCharts
The choice is your preference
There are solid reasons for each of these healthcare stocks. Medical Properties Trust appears to be the safest choice of the three because its long-term leases protect its funds from operations. AbbVie poses some risk because of the unknowns regarding the loss of Humira's patent protection, but its other therapies are should replace any Humira decline. Teladoc appears to be the riskiest since it is still likely two years from being profitable. However, it is growing revenue and market trends favor more telehealth services.
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Jim Halley owns AbbVie. The Motley Fool owns and recommends Teladoc Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The key for AbbVie will be how well its portfolio and pipeline perform as revenue from blockbuster immunology drug Humira declines as it comes off patent protection in the United States in 2023. Medical Properties Trust (NYSE: MPW), AbbVie (NYSE: ABBV), and Teladoc Health (NYSE: TDOC) all would have doubled your money, or more, if you had invested in them five years ago, based on their total returns. AbbVie AbbVie has increased revenue every year for the past decade. | Medical Properties Trust (NYSE: MPW), AbbVie (NYSE: ABBV), and Teladoc Health (NYSE: TDOC) all would have doubled your money, or more, if you had invested in them five years ago, based on their total returns. AbbVie AbbVie has increased revenue every year for the past decade. The key for AbbVie will be how well its portfolio and pipeline perform as revenue from blockbuster immunology drug Humira declines as it comes off patent protection in the United States in 2023. | AbbVie's stock is up more than 12% this year and a $10,000 investment in the company five years would have been worth 28,872.33 as of Monday's close. Medical Properties Trust (NYSE: MPW), AbbVie (NYSE: ABBV), and Teladoc Health (NYSE: TDOC) all would have doubled your money, or more, if you had invested in them five years ago, based on their total returns. AbbVie AbbVie has increased revenue every year for the past decade. | Medical Properties Trust (NYSE: MPW), AbbVie (NYSE: ABBV), and Teladoc Health (NYSE: TDOC) all would have doubled your money, or more, if you had invested in them five years ago, based on their total returns. AbbVie AbbVie has increased revenue every year for the past decade. The key for AbbVie will be how well its portfolio and pipeline perform as revenue from blockbuster immunology drug Humira declines as it comes off patent protection in the United States in 2023. | f2cd7237-a000-4e1b-a861-b9ba7b61bfdc |
23537.0 | 2022-03-17 00:00:00 UTC | GSK to supply essential medicines to Russia, halt clinical trials | ABBV | https://www.nasdaq.com/articles/gsk-to-supply-essential-medicines-to-russia-halt-clinical-trials | nan | nan | Adds detail, background
March 17 (Reuters) - Britain's GSK GSK.L will keep supplying essential medicines and vaccines in Russia but halt clinical trials, following sanctions against Moscow for its invasion of Ukraine, joining other drugmakers that have taken similar steps.
The London-listed company will not start any new clinical trials in Russia or enrol more patients into existing studies, an update on its website showed on Thursday.
The healthcare sector has not pulled out of the country as medicines and medical devices and equipment are considered necessary for humanitarian reasons and are excluded from sanctions.
Merck MRK.N, Pfizer PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie ABBV.N are also pausing investments or scaling back their businesses in Russia.
GSK added it had stopped advertising for products in Russia and will stop promotion-related activities as well, while any profits from its Russian operations will be used for humanitarian relief efforts.
The company has no manufacturing operations in Russia or Ukraine and has limited supply chain, raw material reliance on the two nations, a spokesperson told Reuters last month.
Annual group sales from Russia and Ukraine total more than 500 million pounds ($658.65 million).
($1 = 0.7591 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)
((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Merck MRK.N, Pfizer PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie ABBV.N are also pausing investments or scaling back their businesses in Russia. Adds detail, background March 17 (Reuters) - Britain's GSK GSK.L will keep supplying essential medicines and vaccines in Russia but halt clinical trials, following sanctions against Moscow for its invasion of Ukraine, joining other drugmakers that have taken similar steps. The London-listed company will not start any new clinical trials in Russia or enrol more patients into existing studies, an update on its website showed on Thursday. | Merck MRK.N, Pfizer PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie ABBV.N are also pausing investments or scaling back their businesses in Russia. Adds detail, background March 17 (Reuters) - Britain's GSK GSK.L will keep supplying essential medicines and vaccines in Russia but halt clinical trials, following sanctions against Moscow for its invasion of Ukraine, joining other drugmakers that have taken similar steps. The London-listed company will not start any new clinical trials in Russia or enrol more patients into existing studies, an update on its website showed on Thursday. | Merck MRK.N, Pfizer PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie ABBV.N are also pausing investments or scaling back their businesses in Russia. Adds detail, background March 17 (Reuters) - Britain's GSK GSK.L will keep supplying essential medicines and vaccines in Russia but halt clinical trials, following sanctions against Moscow for its invasion of Ukraine, joining other drugmakers that have taken similar steps. GSK added it had stopped advertising for products in Russia and will stop promotion-related activities as well, while any profits from its Russian operations will be used for humanitarian relief efforts. | Merck MRK.N, Pfizer PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie ABBV.N are also pausing investments or scaling back their businesses in Russia. Adds detail, background March 17 (Reuters) - Britain's GSK GSK.L will keep supplying essential medicines and vaccines in Russia but halt clinical trials, following sanctions against Moscow for its invasion of Ukraine, joining other drugmakers that have taken similar steps. The London-listed company will not start any new clinical trials in Russia or enrol more patients into existing studies, an update on its website showed on Thursday. | 1cdefc5a-a230-4b51-8635-8124fb4cb6bc |
23538.0 | 2022-03-17 00:00:00 UTC | These 5 Dividend Stocks Have Generated Double-Digit Returns for Me So Far This Year | ABBV | https://www.nasdaq.com/articles/these-5-dividend-stocks-have-generated-double-digit-returns-for-me-so-far-this-year | nan | nan | Near the end of World War II, the legendary crooner Bing Crosby and the Andrews Sisters had a hit song that included the lyrics:
You got to ac-cen-tu-ate the positive,
E-lim-i-nate the negative,
And latch on to the affirmative.
Don't mess with Mr. In-between.
Unfortunately, there are a lot of negatives for investors right now that are impossible to eliminate. But the old song's idea of focusing on the positives is a good one. You can look at the opportunities that a down market provides. You can also be thankful for any stocks in your portfolio that are performing well despite the dismal overall environment.
With that in mind, I examined my own investments to identify where I could "ac-cen-tu-ate the positive." These five dividend stocks have generated double-digit returns for me so far this year.
Image source: Getty Images.
1. Devon Energy
My biggest winner in 2022 so far is Devon Energy (NYSE: DVN). Shares of the oil and gas producer have soared more than 20% and were up more than 37% just a few days ago.
Devon's total return will soon be even better. The company is scheduled to pay a dividend of $1 per share on March 31. This amounts to roughly 1.9% of the stock's current price and reflects an annualized dividend yield of 7.6%.
It's not surprising that Devon is performing well. Sky-high oil prices are serving as a major tailwind for the company. It was a huge winner last year as well, ranking No. 1 among S&P 500 members in total return.
2. Brookfield Renewable Corporation
Shares of Brookfield Renewable Corporation (NYSE: BEPC) have jumped 15% year to date. The dividends it pays make it even more attractive. The company recently increased its distribution by 5%. Its yield is around 3%.
Brookfield Renewable stands as one of the world's leading providers of renewable energy. It operates facilities for hydroelectric, solar, and wind power across the world. It makes sense that investors are much more interested in what the company has to offer in light of the current macroeconomic dynamics.
What I really like about Brookfield Renewable is its long-term growth prospects. The demand for renewable energy will almost certainly continue to increase significantly over the next few decades.
3. AbbVie
I've proclaimed in the past that AbbVie (NYSE: ABBV) is a better stock than many investors might think. That has definitely been the case thus far in 2022. Shares have vaulted close to 14% higher.
The big drugmaker also offers a juicy dividend yield of close to 3.7%. And AbbVie is a Dividend King, with 50 consecutive years of dividend increases.
Many investors have focused primarily on the bleak outlook for Humira, AbbVie's top-selling drug that will lose U.S. exclusivity next year. But the company has plenty of other strong products in its lineup. It fully expects to deliver solid growth throughout this decade after a temporary trough year in 2023.
4. Brookfield Renewable Partners
No, you're not experiencing a case of déjà vu. Brookfield Renewable Partners (NYSE: BEP) is different from Brookfield Renewable Corporation. But the two stocks share the same underlying business.
Brookfield Renewable Partners lags a little behind its sibling so far this year with a gain of around 13%. It pays the same dividend distribution, but the difference in share prices causes the yield to be slightly different. Overall, though, everything that's great about Brookfield Renewable Corporation also applies to Brookfield Renewable Partners.
5. Bristol Myers Squibb
AbbVie isn't the only big pharmaceutical stock in my portfolio that's performing well this year. Shares of Bristol Myers Squibb (NYSE: BMY) have risen 11%. The dividend is icing on the cake, with its annual yield topping 3%.
In some ways, the company is similar to AbbVie. It already faces generic competition for its top-selling drug, Revlimid. Like AbbVie, though, it has other drugs that are strong growth drivers.
I doubt that Bristol Myers Squibb would rank among my best-performing stocks in a raging bull market. But that could also be true for Devon, Brookfield Renewable, and AbbVie. For now, though, I'm glad I own all of these stocks. They're giving me something to be positive about in an otherwise dismal market.
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Keith Speights owns AbbVie, Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. The Motley Fool owns and recommends Bristol Myers Squibb and Brookfield Renewable Corporation Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Many investors have focused primarily on the bleak outlook for Humira, AbbVie's top-selling drug that will lose U.S. exclusivity next year. Bristol Myers Squibb AbbVie isn't the only big pharmaceutical stock in my portfolio that's performing well this year. AbbVie I've proclaimed in the past that AbbVie (NYSE: ABBV) is a better stock than many investors might think. | See the 10 stocks *Stock Advisor returns as of March 3, 2022 Keith Speights owns AbbVie, Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie I've proclaimed in the past that AbbVie (NYSE: ABBV) is a better stock than many investors might think. And AbbVie is a Dividend King, with 50 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of March 3, 2022 Keith Speights owns AbbVie, Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie I've proclaimed in the past that AbbVie (NYSE: ABBV) is a better stock than many investors might think. And AbbVie is a Dividend King, with 50 consecutive years of dividend increases. | But that could also be true for Devon, Brookfield Renewable, and AbbVie. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Keith Speights owns AbbVie, Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie I've proclaimed in the past that AbbVie (NYSE: ABBV) is a better stock than many investors might think. | 61227776-61b4-475c-aa70-16328cf4ec53 |
23539.0 | 2022-03-17 00:00:00 UTC | Want $1 Million in Retirement? Invest $150,000 in These 3 Stocks and Wait a Decade | ABBV | https://www.nasdaq.com/articles/want-%241-million-in-retirement-invest-%24150000-in-these-3-stocks-and-wait-a-decade | nan | nan | The last decade before retirement is when many people put their wealth-building efforts into overdrive to get ready for their golden years. However, it's important to manage your risk carefully, as a catastrophic misstep could be hard to recover from when you're close to retirement.
Investing a large sum like $150,000 into each of these three healthcare names as part of a diversified portfolio could deliver enough growth to double or more over the coming decade, helping you secure the nest egg you need to retire comfortably. Remember, managing risk can be just as important as generating returns, especially as you approach retirement.
1. Pfizer
Pharmaceutical giant Pfizer (NYSE: PFE) has benefited from COVID-19 as one of the leading vaccine manufacturers. Its vaccine Comirnaty and oral COVID-19 pill Paxlovid are expected to contribute $32 billion and $22 billion, respectively, to management's 2022 revenue guidance of between $98 billion and $102 billion. This figure would represent a 26% increase over Pfizer's 2021 sales.
Image source: Getty Images.
However, the important part of this isn't the near-term windfall of cash but what it means for the company over the long term. Pharmaceutical companies live and die by their product pipelines, and Pfizer's nearly $30 billion in 2021 free cash flow gives the company a war chest of money for research and development that should buoy Pfizer's growth efforts, even after its revenues from COVID-19 treatments fade.
Analysts expect the company to grow its earnings-per-share (EPS) by more than 12% annually over the next three to five years, and Pfizer's large balance sheet should help the company fund its growth beyond that. Investors also get the benefit of a dividend that yields 3.2%, so the ingredients are there for total returns of 10% or higher per year, more than enough to double an investment over the next decade.
2. Abbott Labs
The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets.
Abbott is positioned to cater especially to the cardiology and diabetes fields, which are both fast-growing; heart disease and diabetes are among the most prevalent health conditions in the population. Abbott sells devices for them, including pacemakers, catheters, stents for cardiovascular applications, and a glucose monitoring system for diabetes patients. The company's revenue growth has picked up, growing more than 15% annually over the past five years.
This renewed growth could set the company to perform well over the next decade. Analysts believe Abbott will grow EPS an average of 10% annually over the next three to five years. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investors can get a dividend yield of 1.6% on today's share price, which results in low-double-digit total investment returns if the stock's valuation remains constant.
3. UnitedHealth Group
Health insurance company UnitedHealth Group (NYSE: UNH) is one of the world's largest healthcare businesses, providing health insurance and other care services to more than 146 million people in the United States and around the world. Its insurance business is complemented by Optum, which provides healthcare products and services directly to consumers.
The company has done $285 billion in revenue over the past 12 months, and its $465 billion market cap makes it a core pillar of the healthcare industry as we know it. U.S. healthcare spending hit $4.1 trillion in 2020, increasing 9.7% over the previous year. It's likely that a lot of this growth was driven by COVID-19, but the prevalence of chronic conditions amid the population could drive growth for years to come. They account for more than $1 trillion in spending alone.
UnitedHealth Group just wrapped up its fiscal 2021 year, growing revenue 12% year over year, driven by double-digit growth in both of its insurance and Optum business segments. Analysts expect EPS to grow an average of nearly 15% annually over the next three to five years, giving investors all the ammunition they need to double their money over the next decade if this is accurate. The company's dividend offers a yield of 1.1% as an added bonus for shareholders.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. 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. | Abbott Labs The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investing a large sum like $150,000 into each of these three healthcare names as part of a diversified portfolio could deliver enough growth to double or more over the coming decade, helping you secure the nest egg you need to retire comfortably. | Abbott Labs The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets. | Abbott Labs The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Pharmaceutical companies live and die by their product pipelines, and Pfizer's nearly $30 billion in 2021 free cash flow gives the company a war chest of money for research and development that should buoy Pfizer's growth efforts, even after its revenues from COVID-19 treatments fade. | Abbott Labs The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investors also get the benefit of a dividend that yields 3.2%, so the ingredients are there for total returns of 10% or higher per year, more than enough to double an investment over the next decade. | ef9c0e6f-6df1-44bb-8637-cb9a28f48322 |
23540.0 | 2022-03-16 00:00:00 UTC | Merck pauses Russia investments, to supply essential medicines | ABBV | https://www.nasdaq.com/articles/merck-pauses-russia-investments-to-supply-essential-medicines | nan | nan | Adds details, background
March 16 (Reuters) - Drugmaker Merck and Co MRK.N said on Wednesday it would not make further investments in Russia, but continue to supply life-saving medicines and vaccines to the country.
Merck joins a growing list of drugmakers, including Pfizer Inc PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie Inc ABBV.N, which are pausing investments or scaling back their business in Russia after Moscow's invasion of Ukraine.
Western companies have come under pressure to leave Russia, but the healthcare sector has not pulled out because medicines and medical devices and equipment are considered necessary for humanitarian reasons and are excluded from sanctions.
Merck said it would deliver 135,000 courses of its COVID-19 pill, molnupiravir, to Ukraine under a supply agreement with the government.
The company does not have any research or production facilities in Russia, a company spokesperson said.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Anil D'Silva)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Merck joins a growing list of drugmakers, including Pfizer Inc PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie Inc ABBV.N, which are pausing investments or scaling back their business in Russia after Moscow's invasion of Ukraine. Adds details, background March 16 (Reuters) - Drugmaker Merck and Co MRK.N said on Wednesday it would not make further investments in Russia, but continue to supply life-saving medicines and vaccines to the country. Western companies have come under pressure to leave Russia, but the healthcare sector has not pulled out because medicines and medical devices and equipment are considered necessary for humanitarian reasons and are excluded from sanctions. | Merck joins a growing list of drugmakers, including Pfizer Inc PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie Inc ABBV.N, which are pausing investments or scaling back their business in Russia after Moscow's invasion of Ukraine. Adds details, background March 16 (Reuters) - Drugmaker Merck and Co MRK.N said on Wednesday it would not make further investments in Russia, but continue to supply life-saving medicines and vaccines to the country. The company does not have any research or production facilities in Russia, a company spokesperson said. | Merck joins a growing list of drugmakers, including Pfizer Inc PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie Inc ABBV.N, which are pausing investments or scaling back their business in Russia after Moscow's invasion of Ukraine. Adds details, background March 16 (Reuters) - Drugmaker Merck and Co MRK.N said on Wednesday it would not make further investments in Russia, but continue to supply life-saving medicines and vaccines to the country. Western companies have come under pressure to leave Russia, but the healthcare sector has not pulled out because medicines and medical devices and equipment are considered necessary for humanitarian reasons and are excluded from sanctions. | Merck joins a growing list of drugmakers, including Pfizer Inc PFE.N, Eli Lilly LLY.N, Novartis NOVN.S and Abbvie Inc ABBV.N, which are pausing investments or scaling back their business in Russia after Moscow's invasion of Ukraine. Adds details, background March 16 (Reuters) - Drugmaker Merck and Co MRK.N said on Wednesday it would not make further investments in Russia, but continue to supply life-saving medicines and vaccines to the country. Western companies have come under pressure to leave Russia, but the healthcare sector has not pulled out because medicines and medical devices and equipment are considered necessary for humanitarian reasons and are excluded from sanctions. | 86be94f0-ea12-4110-90f3-9720dc1bc0cd |
23541.0 | 2022-03-16 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-1 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $156.05, moving +0.11% from the previous trading session. This change lagged the S&P 500's 2.24% gain on the day. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 0.5%.
Coming into today, shares of the drugmaker had gained 7.68% in the past month. In that same time, the Medical sector lost 1.51%, while the S&P 500 lost 4.46%.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.13, up 6.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.51 billion, up 3.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.13 per share and revenue of $60.2 billion. These totals would mark changes of +11.26% and +7.13%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AbbVie currently has a Forward P/E ratio of 11.03. Its industry sports an average Forward P/E of 12.54, so we one might conclude that AbbVie is trading at a discount comparatively.
It is also worth noting that ABBV currently has a PEG ratio of 4.35. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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 $156.05, moving +0.11% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $156.05, moving +0.11% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $156.05, moving +0.11% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | AbbVie (ABBV) closed the most recent trading day at $156.05, moving +0.11% from the previous trading session. AbbVie will be looking to display strength as it nears its next earnings release. Any recent changes to analyst estimates for AbbVie should also be noted by investors. | 6f7b3b56-c0d4-4f90-919d-7f39a2980bc7 |
23542.0 | 2022-03-16 00:00:00 UTC | Top Stock Market News For Today March 16, 2022 | ABBV | https://www.nasdaq.com/articles/top-stock-market-news-for-today-march-16-2022 | nan | nan | Stock Market Futures Gain Ahead Of Federal Reserve’s Latest Update On Monetary Policy
U.S. stock futures are in the green in early morning trading at the midweek mark. This seems to be the case as investors respond to a slightly lower than expected read from February’s producer price index (PPI). In brief, the PPI rose 0.8% throughout the month, just below consensus economist estimates of a 0.9% increase. More importantly, most would also be closely eyeing the Federal Reserve for its latest policy update later today. This would include the Fed’s latest decision on interest rate hikes and its Summary of Economic Projections, or “dot plot” for short.
Providing an overview on all this is Morgan Stanley (NYSE: MS) Investment Management’s chief investment officer, Michael Kushma. He believes that “the dot plot should increase given all the news that we’ve had between December and today.” Providing his reasoning for this, Kushma continues, “We’ve got a strong labor market, higher than expected inflation. Oil prices, energy prices, commodity prices are much higher now than they were back then. All of it suggests that the Fed needs to get going, and that they need to up the dot plot. So, I think they’ll talk about the mean, maybe five rate hikes in 2022, and a couple more in 2023.” On top of that, there is also no shortage of stock market news as well. As of 6:18 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 1.10%, 1.29%, and 1.87% respectively.
Intel To Invest $36 Billion In Chip Manufacturing Operations In Europe
Intel (NASDAQ: INTC) is among the top head turners in the tech space today. For the most part, this is thanks to the company’s latest announcements regarding its European strategy. As of yesterday, Intel is now planning to shell out over $36 billion to boost its chipmaking capacity in Europe. This move would be in line with the company’s transition toward becoming more self-reliant when it comes to producing semiconductors. In the larger scheme of things, Intel’s current play is not all that surprising. This is the case as global chip shortages are persisting and chip giants rush to bolster their production lines.
In detail, among the key focuses of this round of investments is constructing two new factories in Magdeburg, Germany. According to Intel, the facilities will employ its cutting-edge chip manufacturing tech. The likes of which will help in the creation of chips that are less than two nanometers in width. By the company’s current estimates, the construction of these chip plants will begin in the first half of 2023. Should things go smoothly on the construction and regulatory fronts, Intel expects the factories to be production-ready by 2027.
Explaining its choice of location, Intel believes that Germany is a suitable place to establish a new “Silicon Junction,” mega-site. The company cites the robust talent and infrastructure at hand in the region. Alongside this, there is also an impressive network of suppliers and customers as well. Moreover, Intel is also considering a series of R&D projects across France, Ireland, Poland, Spain, and Italy. Topping all of this, the European Commission’s executive arm also recently launched a new European Chips Act last month. In essence, Europe is enabling another $16.45 billion in public and private investments into the industry through 2030.
Source: TradingView
[Read More] 3 Cloud Computing Stocks For Your March 2022 Watchlist
Meta Platforms CEO Mark Zuckerberg Teases Launch Of NFTs On Instagram
At the same time, tech companies like Meta Platforms (NASDAQ: FB) are currently eyeing the next frontier of blockchain tech. Namely, according to Meta CEO Mark Zuckerberg, Instagram is actively working on introducing non-fungible tokens (NFTs) to the platform. At the South by Southwest conference yesterday, Zuckerberg revealed that NFTs are coming to Instagram in the “near term.” Although the CEO did not reveal Meta’s entire plan for it, this could see FB stock gain attention from tech investors. After all, NFTs essentially serve as another means of monetizing content digitally. With Meta’s experience in the online marketplace business, such a move would make sense as it appeals to younger audiences.
For one thing, this would not be the first time Meta has been linked to NFTs. Back in January, a report from the Financial Times wrote that the company is developing plans to let users create and sell NFTs. Officially, Zuckerberg only spilled the tea on Instagram’s possible NFT plans. However, it would not be a far cry to assume that Meta would be keen to bring similar services to its massive Facebook platform as well. All in all, Meta does not seem to be sitting idly by as it explores all reaches of the metaverse. Whether FB stock can benefit from this, in the long run, remains to be seen.
Source: TradingView
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CrowdStrike CEO George Kurtz On Rising Cyberthreats Amidst Ukraine-Russia War
In other tech-related news, things appear to be heating up on the cybersecurity front as well. Notably, the current update on the industry comes from CrowdStrike (NASDAQ: CRWD) CEO George Kurtz. In an interview with CNBC’s Jim Cramer, Kurtz warns that cybercriminal activity is on the rise. This comes at a time when the ongoing conflict between Russia and Ukraine continues to take its toll on global economies. In Kurtz’s own words, “E-crime is actually up since the war in Ukraine started.” To put things into perspective, this information comes from CrowdStrike’s threat intelligence unit. The likes of which provide visibility and insights from across 176 countries.
According to the CEO, nation-state actors, particularly Russian hackers, are gaining all the attention now. So much so that e-criminals elsewhere are leveraging the current distractions to double down on their activities. To point out, this would be a grim follow-up from Kurtz’s last interview with Cramer late last month. In which he pointed out that some of the top banking executives are already cautious about cyberattacks on national banks. Overall, it seems that demand for cybersecurity services could continue to grow in our increasingly tech-dependent world. With that in mind, investors may want to consider watching CRWD stock among other cybersecurity stocks now.
Source: TradingView
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AbbVie In Focus As Shares Trade At Record Highs Following Numerous Positive Developments
AbbVie (NYSE: ABBV) seems to be in the midst of a hot streak in the stock market now. Evidently, ABBV stock is currently trading at around record levels. Year-to-date, the company’s shares have already risen by about 15%. By and large, these gains follow a string of operational wins for AbbVie. For starters, AbbVie completed its acquisition of Syndesi Therapeutics earlier this month. Through its portfolio of novel synaptic modulator candidates, AbbVie would, in theory, be significantly bolstering its neuroscience arm.
Additionally, the company is also actively working on collaborations to develop antiviral COVID-19 and neuropsychiatric diseases treatments. For the former, it is working with Scripps Research, an independent biomedical research, and drug discovery institute. Regarding the latter, AbbVie is working with Gedeon Richter, a major European pharmaceutical player. Worth mentioning, all of these developments are from just this month. With AbbVie seemingly firing on all cylinders, it is no wonder that investors are keen on ABBV stock now.
Source: TradingView
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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. | 4 To Watch This Week AbbVie In Focus As Shares Trade At Record Highs Following Numerous Positive Developments AbbVie (NYSE: ABBV) seems to be in the midst of a hot streak in the stock market now. Evidently, ABBV stock is currently trading at around record levels. By and large, these gains follow a string of operational wins for AbbVie. | 4 To Watch This Week AbbVie In Focus As Shares Trade At Record Highs Following Numerous Positive Developments AbbVie (NYSE: ABBV) seems to be in the midst of a hot streak in the stock market now. Evidently, ABBV stock is currently trading at around record levels. By and large, these gains follow a string of operational wins for AbbVie. | 4 To Watch This Week AbbVie In Focus As Shares Trade At Record Highs Following Numerous Positive Developments AbbVie (NYSE: ABBV) seems to be in the midst of a hot streak in the stock market now. Evidently, ABBV stock is currently trading at around record levels. By and large, these gains follow a string of operational wins for AbbVie. | 4 To Watch This Week AbbVie In Focus As Shares Trade At Record Highs Following Numerous Positive Developments AbbVie (NYSE: ABBV) seems to be in the midst of a hot streak in the stock market now. Evidently, ABBV stock is currently trading at around record levels. By and large, these gains follow a string of operational wins for AbbVie. | d6ea3dcd-384e-49ed-b618-dddb17b8d98d |
23543.0 | 2022-03-16 00:00:00 UTC | ABBV Crosses Above Average Analyst Target | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-average-analyst-target | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $153.54, changing hands for $155.88/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $133.00. And then on the other side of the spectrum one analyst has a target as high as $180.00. The standard deviation is $13.793.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $153.54/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $153.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
RECENT ABBV ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 9 9 8 9
Buy ratings: 1 1 1 1
Hold ratings: 4 3 3 3
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.64 1.54 1.58 1.54
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABBV — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $153.54, changing hands for $155.88/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $153.54/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $153.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $153.54, changing hands for $155.88/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. And so with ABBV crossing above that average target price of $153.54/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $153.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $153.54, changing hands for $155.88/share. | There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $153.54, changing hands for $155.88/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | 9292fded-87c4-411b-b187-f5669293f2be |
23544.0 | 2022-03-15 00:00:00 UTC | 3 Top Stock Trades for This Week | ABBV | https://www.nasdaq.com/articles/3-top-stock-trades-for-this-week | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For this week’s top stock trades, we’re focusing on strength. And I’m not taking the easy route by jumping on the commodity train either. Instead, I’m offering up two healthcare companies and one blue-chip industrial stock.
I could have given healthcare a clean sweep with three picks, but the industrial name was too good to pass up. Plus, this isn’t a market for concentrated bets. Playing multiple stocks in different sectors offers at least some safety.
7 Cheap Stocks to Buy If You Only Have $100 to Spend
This week’s selections are all creating bullish breakout patterns. They’re at the top right of their charts and could catch fire once resistance gives way. Remember, the broad market has been sinking like a stone. So the fact that these tickers have been pushing to new highs is impressive and an obvious sign of outperformance.
That’s the pitch. Here are the picks:
Bristol-Myers Squibb (NYSE:BMY)
Abbvie (NASDAQ:ABBV)
Deere & Co (NYSE:DE)
As always, I’ll share my preferred way to play using stock options. That will allow us to build a cheap bet with significant payout potential if the strength continues.
Top Stock Trades for the Week: Bristol-Myers Squibb (BMY)
Source: The thinkorswim® platform from TD Ameritrade
Bristol-Myers Squibb shares are behaving like an inverse exchange-traded fund. They’ve gone straight up this year in defiance of the bear market ravaging stocks. Over the past month, a high base has formed just under $70, creating a clear breakout. The appeal improves when you look at the long-term chart. For seven years, we’ve seen half a dozen rallies die at the doorstep of this round number. And that means prices have zig-zagged in a broad trading range.
I learned in charting kindergarten that you want to be a buyer when prices break out of long-term bases. It signals a powerful sentiment shift and carries high odds of follow-through. BMY stock has room to run to $77, making it the first logical target. To capitalize, I like buying call spreads.
The Trade: Buy the May $70/$75 bull call spread for $1.55.
You’re risking $1.55 to make $3.45 if BMY climbs to $75 by expiration.
Abbvie (ABBV)
Source: The thinkorswim® platform from TD Ameritrade
Abbvie shares have gained ground nearly every week this year. It’s an impressive feat and speaks to just how consistent demand has been. Recently, prices have been coiling in a tight range to create a high base pattern.
The 20-day, 50-day, and 200-day moving averages are all rising. Notably, the 20-day moving average has caught up and is putting upward pressure on prices.
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Monday saw volume swell as prices finally breached resistance at $151. The participation uptick lends credibility to the rally, making it more likely it sticks, and we see upside follow-through. Consider $160 as the next target. Call vertical spreads offer compelling profit potential.
The Trade: Buy the May $155/$160 bull call spread for $1.90.
The max loss is $1.90, and the max gain is $3.10.
Top Stock Trades for the Week: Deere & Co (DE)
Source: The thinkorswim® platform from TD Ameritrade
Deere & Co isn’t the most popular industrial stock, but it has enough liquidity to make it a viable vehicle for active traders. Surprisingly, it’s been a bastion of strength this year. So far, shares are up 15%.
It’s been a volatile ride, but prices are now testing the upper end of their one-year trading range. Resistance at $400 is the zone that bears watching. Before deploying bullish trades, we need to break out, making this a simple idea to conclude this week’s top stock trades.
The rich price tag of DE stock is filtering into its option premiums. It moves approximately $16 a day on average, so the option values deserve to trade at higher premiums. To lower the cost and avoid throwing thousands into a single trade, we’re again going with a vertical spread. In timing the entry, either wait for prices to trade above $400 intraday or close above it.
The Trade: Buy the May $400/$420 bull call spread for around $8.
You’re risking $8 to make $12.
On the date of publication, Tyler Craig did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post 3 Top Stock Trades for This Week 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. | Here are the picks: Bristol-Myers Squibb (NYSE:BMY) Abbvie (NASDAQ:ABBV) Deere & Co (NYSE:DE) As always, I’ll share my preferred way to play using stock options. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade Abbvie shares have gained ground nearly every week this year. 7 Cheap Stocks to Buy If You Only Have $100 to Spend This week’s selections are all creating bullish breakout patterns. | Here are the picks: Bristol-Myers Squibb (NYSE:BMY) Abbvie (NASDAQ:ABBV) Deere & Co (NYSE:DE) As always, I’ll share my preferred way to play using stock options. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade Abbvie shares have gained ground nearly every week this year. Top Stock Trades for the Week: Bristol-Myers Squibb (BMY) Source: The thinkorswim® platform from TD Ameritrade Bristol-Myers Squibb shares are behaving like an inverse exchange-traded fund. | Here are the picks: Bristol-Myers Squibb (NYSE:BMY) Abbvie (NASDAQ:ABBV) Deere & Co (NYSE:DE) As always, I’ll share my preferred way to play using stock options. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade Abbvie shares have gained ground nearly every week this year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips For this week’s top stock trades, we’re focusing on strength. | Here are the picks: Bristol-Myers Squibb (NYSE:BMY) Abbvie (NASDAQ:ABBV) Deere & Co (NYSE:DE) As always, I’ll share my preferred way to play using stock options. Abbvie (ABBV) Source: The thinkorswim® platform from TD Ameritrade Abbvie shares have gained ground nearly every week this year. 7 Cheap Stocks to Buy If You Only Have $100 to Spend This week’s selections are all creating bullish breakout patterns. | e5893e62-9bad-43f4-bfaa-0c99c245c452 |
23545.0 | 2022-03-15 00:00:00 UTC | AbbVie, Scripps Join Hands To Develop Direct-acting Antiviral Treatments For Covid-19 | ABBV | https://www.nasdaq.com/articles/abbvie-scripps-join-hands-to-develop-direct-acting-antiviral-treatments-for-covid-19 | nan | nan | (RTTNews) - AbbVie (ABBV) and Scripps Research, a drug discovery institute, on Tuesday announced a collaboration to develop potential novel, direct-acting antiviral treatments for Covid-19.
Tom Hudson, Chief Scientific Officer of AbbVie, said: "…We are committed to bringing differentiated, next generation oral antiviral treatments to patients and ensuring broad access to address the diverse treatment needs around the world."
The closing of the transaction is subject to regulatory approvals.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) and Scripps Research, a drug discovery institute, on Tuesday announced a collaboration to develop potential novel, direct-acting antiviral treatments for Covid-19. Tom Hudson, Chief Scientific Officer of AbbVie, said: "…We are committed to bringing differentiated, next generation oral antiviral treatments to patients and ensuring broad access to address the diverse treatment needs around the world." The closing of the transaction is subject to regulatory approvals. | (RTTNews) - AbbVie (ABBV) and Scripps Research, a drug discovery institute, on Tuesday announced a collaboration to develop potential novel, direct-acting antiviral treatments for Covid-19. Tom Hudson, Chief Scientific Officer of AbbVie, said: "…We are committed to bringing differentiated, next generation oral antiviral treatments to patients and ensuring broad access to address the diverse treatment needs around the world." The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Tom Hudson, Chief Scientific Officer of AbbVie, said: "…We are committed to bringing differentiated, next generation oral antiviral treatments to patients and ensuring broad access to address the diverse treatment needs around the world." (RTTNews) - AbbVie (ABBV) and Scripps Research, a drug discovery institute, on Tuesday announced a collaboration to develop potential novel, direct-acting antiviral treatments for Covid-19. The closing of the transaction is subject to regulatory approvals. | (RTTNews) - AbbVie (ABBV) and Scripps Research, a drug discovery institute, on Tuesday announced a collaboration to develop potential novel, direct-acting antiviral treatments for Covid-19. Tom Hudson, Chief Scientific Officer of AbbVie, said: "…We are committed to bringing differentiated, next generation oral antiviral treatments to patients and ensuring broad access to address the diverse treatment needs around the world." The closing of the transaction is subject to regulatory approvals. | 337556bb-a69a-4b48-93d1-e151c8d55ec6 |
23546.0 | 2022-03-14 00:00:00 UTC | AbbVie (ABBV) Inks Deal for Neuropsychiatric Conditions | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-inks-deal-for-neuropsychiatric-conditions | nan | nan | AbbVie, Inc. ABBV announced that it has entered into a new collaboration agreement with Hungary-based Gedeon Richter to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric indications.
Both companies will jointly finance pre-clinical and clinical R&D activities as part of this collaboration. Richter will receive an undisclosed upfront payment from AbbVie for the collaboration. Richter is eligible to receive potential developmental and commercial milestone payments. It is also eligible to receive royalties upon successful commercialization of the treatments for the given indication.
Per the terms of the deal, AbbVie will receive worldwide commercial rights to any drug developed under the collaboration, except for regions like Europe, Russia, other CIS countries and Vietnam where the drug will be marketed by Richter.
The deal expected to be completed in second-quarter 2022 is subject to customary closing conditions and clearance from regulatory authorities.
Shares of AbbVie have gained 10.1% so far this year against the industry’s 3.1% decline.
Image Source: Zacks Investment Research
This collaboration between ABBV and Richter is based on data from the preclinical studies conducted by Richter. The deal includes several novel compounds which are selected for further development.
We remind investors that AbbVie already has an existing relationship with Gedeon Richter. Both companies had previously collaborated on developing medications targeting the central nervous system (CNS) and jointly marketed Vraylar, an FDA-approved drug for schizophrenia and bipolar I disorder. Vraylar is one of the many blockbuster drugs of AbbVie. AbbVie recorded $1.7 billion from Vraylar’s U.S. sales in 2021. The drug is marketed by Richter outside the United States under the brand name Reaglia.
Like Vraylar, AbbVie has deals with many large-cap pharma companies like J&J JNJ for Imbruvica and Roche RHHBY for Venclexta/Venclyxto.
Both AbbVie and J&J jointly market Imbruvica in the United States. Imbruvica is approved for blood cancers, such as chronic lymphocytic leukemia (CLL) and certain forms of non-Hodgkin lymphoma. Both ABBV and JNJ share pre-tax profits and losses from U.S. sales, equally. Outside the United States, J&J has exclusive commercial rights for the drug.
AbbVie’s haemotology drug Venclexta is jointly marketed with Genentech, a member of the Roche Group. Like Imbruvica, both ABBV and the Roche subsidiary share pre-tax profits and losses from the U.S. sales, equally. While Venclexta is marketed outside the United States solely by AbbVie, RHHBY’s Genentech receives royalties from the ex-U.S. sales of the drug.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Vertex Pharmaceuticals VRTX, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals’ earnings per share estimates for 2022 have increased from $14.33 to $14.52 in the past 30 days. Shares of VRTX have risen 7.7% year to date.
Earnings of Vertex Pharmaceuticals beat estimates in each of the last four quarters, the average being 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. | AbbVie, Inc. ABBV announced that it has entered into a new collaboration agreement with Hungary-based Gedeon Richter to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric indications. While Venclexta is marketed outside the United States solely by AbbVie, RHHBY’s Genentech receives royalties from the ex-U.S. sales of the drug. Richter will receive an undisclosed upfront payment from AbbVie for the collaboration. | AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie, Inc. ABBV announced that it has entered into a new collaboration agreement with Hungary-based Gedeon Richter to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric indications. Richter will receive an undisclosed upfront payment from AbbVie for the collaboration. | Per the terms of the deal, AbbVie will receive worldwide commercial rights to any drug developed under the collaboration, except for regions like Europe, Russia, other CIS countries and Vietnam where the drug will be marketed by Richter. AbbVie Inc. Price AbbVie Inc. price | AbbVie Inc. Quote Zacks Rank & Stock to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc. (ABBV): Free Stock Analysis Report | AbbVie, Inc. ABBV announced that it has entered into a new collaboration agreement with Hungary-based Gedeon Richter to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric indications. Per the terms of the deal, AbbVie will receive worldwide commercial rights to any drug developed under the collaboration, except for regions like Europe, Russia, other CIS countries and Vietnam where the drug will be marketed by Richter. Like Vraylar, AbbVie has deals with many large-cap pharma companies like J&J JNJ for Imbruvica and Roche RHHBY for Venclexta/Venclyxto. | 34e0d2e5-5941-4c5a-bd46-4f7565b5db7b |
23547.0 | 2022-03-14 00:00:00 UTC | AbbVie a Top Ranked SAFE Dividend Stock With 3.8% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-a-top-ranked-safe-dividend-stock-with-3.8-yield-abbv | nan | nan | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 3.8% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.96% of the SPDR S&P Dividend ETF (SDY), which holds $398,705,673 worth of ABBV shares.
AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S. Solid return — hefty yield and strong DividendRank characteristics; A. Accelerating amount — consistent dividend increases over time; F. Flawless history — never a missed or lowered dividend; E. Enduring — at least two decades of dividend payments.
The annualized dividend paid by AbbVie Inc is $5.64/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/14/2022. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Pfizer Inc (PFE), and Eli Lilly (LLY).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
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 a long-term dividend history chart for ABBV, which the report stressed as being of key importance. ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Pfizer Inc (PFE), and Eli Lilly (LLY). AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. | AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.96% of the SPDR S&P Dividend ETF (SDY), which holds $398,705,673 worth of ABBV shares. | According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.96% of the SPDR S&P Dividend ETF (SDY), which holds $398,705,673 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.96% of the SPDR S&P Dividend ETF (SDY), which holds $398,705,673 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | 2a4ec845-3318-45b2-8a22-9f5cda45b683 |
23548.0 | 2022-03-11 00:00:00 UTC | AbbVie's (ABBV) Qulipta Meets Chronic Migraine Study Endpoints | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-qulipta-meets-chronic-migraine-study-endpoints | nan | nan | AbbVie ABBV announced that the phase III study — PROGRESS — evaluating its oral calcitonin gene-related peptide (“CGRP”) receptor antagonist, Qulipta (atogepant) — as a preventive treatment for chronic migraine in adults met all primary and secondary endpoints.
Please note that Qulipta received the first FDA approval in September 2021 as a preventive treatment of episodic migraine in adults. The approval was based on positive data from another phase III study — ADVANCE.
The company plans to file a supplemental new drug application to the FDA based on the PROGRESS study data, seeking label expansion of Qulipta to include preventive treatment of chronic migraine. It is also planning to file regulatory applications outside the United States based on data from ADVANCE and PROGRESS studies going forward, seeking approval for Qulipta as a preventive treatment for episodic as well as chronic migraine.
The PROGRESS study evaluated a once-daily 60 mg dose or twice-daily 30 mg dose of the oral drug for a period of 12 weeks in adults with chronic migraine, who experience headache for 15 or more days per month for more than three months and at least eight of these headaches has features of migraine headache.
Data from the PROGRESS study demonstrated that the two dosing regimens of Qulipta led to a statistically significant reduction from baseline in mean monthly migraine days compared to placebo, the study’s primary endpoint. The treatment with the 60 mg or the 30 mg dose of Qulipta demonstrated a reduction of 6.88 and 7.46 monthly migraine days, respectively, compared with 5.05 monthly migraine days for placebo.
While 41% and 42.7% of patients receiving the 60 mg or the 30 mg dose achieved at least a 50% reduction in mean monthly migraine days from baseline, 26% of patients receiving placebo achieved the same.
Shares of AbbVie have gained 10.1% so far this year against the industry’s decrease of 3.1%.
Image Source: Zacks Investment Research
We note that AbbVie already has an oral CGRP, Ubrelvy, approved for the treatment of acute migraine. The drug generated sales worth $552 million in 2021 and has witnessed strong uptake since its launch in 2020. Qulipta added $183 million to revenues during the fourth quarter of 2021. AbbVie’s Botox is also approved to prevent headaches in adults with chronic migraine.
AbbVie is the only company to offer three products across the full spectrum of migraine treatment, including preventive therapies for chronic and episodic migraine, as well as acute treatment for migraine attacks. A potential label expansion of Qulipta as a preventive treatment for chronic migraine should complement Botox sales in the days ahead.
However, the migraine market is heavily crowded with several anti-CGRP drugs like Amgen’s AMGN Aimovig, Lilly’s LLY Emgality and Teva’s TEVA Ajovy. The anti-CGRP drugs from Amgen, Lilly and Teva’s portfolio are currently approved as a preventive treatment for migraine. Lilly’s Emgality is also approved for treating episodic cluster headache.
While Amgen recorded $317 million in revenues from Aimovig sales in 2021, Lilly’s Emgality generated $557.2 million in sales. Teva reported Ajovy sales of $313 million last year.
Apart from these drugs, several other small biotech companies are also developing or commercializing promising migraine drugs.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV announced that the phase III study — PROGRESS — evaluating its oral calcitonin gene-related peptide (“CGRP”) receptor antagonist, Qulipta (atogepant) — as a preventive treatment for chronic migraine in adults met all primary and secondary endpoints. Shares of AbbVie have gained 10.1% so far this year against the industry’s decrease of 3.1%. Image Source: Zacks Investment Research We note that AbbVie already has an oral CGRP, Ubrelvy, approved for the treatment of acute migraine. | AbbVie ABBV announced that the phase III study — PROGRESS — evaluating its oral calcitonin gene-related peptide (“CGRP”) receptor antagonist, Qulipta (atogepant) — as a preventive treatment for chronic migraine in adults met all primary and secondary endpoints. Shares of AbbVie have gained 10.1% so far this year against the industry’s decrease of 3.1%. Image Source: Zacks Investment Research We note that AbbVie already has an oral CGRP, Ubrelvy, approved for the treatment of acute migraine. | AbbVie is the only company to offer three products across the full spectrum of migraine treatment, including preventive therapies for chronic and episodic migraine, as well as acute treatment for migraine attacks. AbbVie ABBV announced that the phase III study — PROGRESS — evaluating its oral calcitonin gene-related peptide (“CGRP”) receptor antagonist, Qulipta (atogepant) — as a preventive treatment for chronic migraine in adults met all primary and secondary endpoints. Shares of AbbVie have gained 10.1% so far this year against the industry’s decrease of 3.1%. | AbbVie ABBV announced that the phase III study — PROGRESS — evaluating its oral calcitonin gene-related peptide (“CGRP”) receptor antagonist, Qulipta (atogepant) — as a preventive treatment for chronic migraine in adults met all primary and secondary endpoints. Shares of AbbVie have gained 10.1% so far this year against the industry’s decrease of 3.1%. Image Source: Zacks Investment Research We note that AbbVie already has an oral CGRP, Ubrelvy, approved for the treatment of acute migraine. | de895ec5-9aae-4334-9e70-d130640af7c8 |
23549.0 | 2022-03-11 00:00:00 UTC | Pharma Stock Roundup: PFE, SNY, ABBV's Pipeline Updates, BAYRY's Unit Sale | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-pfe-sny-abbvs-pipeline-updates-bayrys-unit-sale | nan | nan | This week, Pfizer PFE initiated a pediatric study on its new oral antiviral pill for COVID-19, Paxlovid. AbbVie’s ABBV migraine drug, Qulipta met the primary endpoint in a late-stage chronic migraine study. Sanofi’s SNY hemophilia A candidate, efanesoctocog alfa met the primary and key secondary endpoints in a pivotal study. Bayer BAYRY announced plans to sell its Environmental Science Professional business to Cinven for $2.6 billion. J&J JNJ filed an application for the approval of a new indication for its cancer drug Imbruvica.
Recap of the Week’s Most Important Stories
Pfizer Initiates Pediatric Study on Paxlovid: Pfizer initiated a phase II/III pediatric study to evaluate the safety and efficacy of its new oral antiviral pill for COVID-19, Paxlovid in non-hospitalized, symptomatic, pediatric COVID-19 patients who are at risk of progression to severe disease. Paxlovid was granted emergency use authorization (EUA) in the United States in December 2021 to treat both high-risk adult and high-risk pediatric patients 12 years of age and older weighing at least 40 kg. Though the pill is authorized for use in pediatric patients, its safety and effectiveness have not yet been directly established in pediatric patients as previous studies on the medicine did not include participants under the age of 18. Paxlovid is the first oral antiviral pill to be studied in a pediatric clinical study.
AbbVie Qulipta Succeeds in Chronic Migraine Study: AbbVie’s phase III study evaluating its newly approved CGRP receptor antagonist, Qulipta (atogepant), for chronic migraine prevention met its primary endpoint of a statistically significant reduction from baseline in mean monthly migraine days, compared to placebo, for all doses evaluated across a 12-week treatment period. In addition, the PROGRESS study showed that both doses (60 mg once daily and 30 mg twice daily) of Qulipta resulted in statistically significant improvements in all secondary endpoints. Based on data from the PROGRESS study, the company will file regulatory applications in the United States and other countries to seek approval for the expanded use of the drug for chronic migraine. Qulipta was approved for the preventive treatment of episodic migraine in adults in September
AbbVie announced the resolution of its litigation with Alvotech over U.S. patents for its rheumatoid arthritis drug, Humira. Per the settlement, AbbVie granted Alvotech a non-exclusive license to launch its biosimilar version of Humira in the United States on Jul 1, 2023. Several companies have made biosimilar versions of Humira. AbbVie has similar settlements with several manufacturers, per which Humira biosimilars are expected to be launched in the United States in 2023. In the EU, however, Humira biosimilars have already been launched, which are causing a rapid decline in Humira sales in international markets.
Sanofi’s Hemophilia A Candidate Meets Goal in Pivotal Study: Sanofi’s pivotal phase III study evaluating Efanesoctocog alfa, its investigational factor VIII replacement therapy for previously treated hemophilia A, met the primary and key secondary endpoints. In the XTEND-1 study people with severe hemophilia A receiving weekly prophylaxis with efanesoctocog alfa for 52 weeks led to clinically meaningful prevention of bleeding episodes, thereby meeting the primary endpoint. The study also met the key secondary endpoint by showing that once-weekly efanesoctocog alfa led to a statistically significant and clinically meaningful reduction in annualized bleeding rate compared to prior factor VIII prophylaxis therapy.
J&J Seeks Approval for New Imbruvica Indication in Europe: J&J filed an application with the European Medicines Agency (EMA) seeking approval for a new indication for Imbruvica for use in combination with bendamustine and rituximab (BR) in patients with previously untreated mantle cell lymphoma (MCL). At present, Imbruvica is approved for patients with MCL, a rare blood cancer, who have received at least one prior line of therapy.
Bayer to Sell Environmental Science Unit to Cinven: Bayer announced a definitive agreement to sell its Environmental Science Professional business to private equity firm Cinven for $2.6 billion (2.4 billion euros). The spin-off of this business, which offers environmental solutions to control pests, diseases and weeds in non-agricultural areas, will allow Bayer to focus on core agricultural business and will streamline its Crop Science division.
Bayer filed regulatory applications to the FDA and the European Medicines Agency (“EMA”) seeking approval for the expanded use of its oral androgen receptor inhibitor (ARi), Nubeqa (darolutamide) in combination with docetaxel for treating patients with metastatic hormone-sensitive prostate cancer (mHSPC). Nubeqa is presently approved for the treatment of patients with non-metastatic castration-resistant prostate cancer (nmCRPC) at a high risk of developing metastatic disease. The latest label expansion filings submitted to the FDA and the EMA were based on positive data from the phase III ARASENS study.
The NYSE ARCA Pharmaceutical Index rose 0.3% 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, Lilly rose the most (2.9%) while Novartis declined the most (1%).
In the past six months, AbbVie has recorded the maximum gain (41.9%) while Novartis was flat, recording the least gain.
(See the last pharma stock roundup here: GSK, SNY Face Pipeline Setbacks, AZN Cancer Study Meets Goals)
What's Next in the Pharma World?
Watch out for regular pipeline and regulatory updates next week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Qulipta was approved for the preventive treatment of episodic migraine in adults in September AbbVie announced the resolution of its litigation with Alvotech over U.S. patents for its rheumatoid arthritis drug, Humira. AbbVie’s ABBV migraine drug, Qulipta met the primary endpoint in a late-stage chronic migraine study. AbbVie Qulipta Succeeds in Chronic Migraine Study: AbbVie’s phase III study evaluating its newly approved CGRP receptor antagonist, Qulipta (atogepant), for chronic migraine prevention met its primary endpoint of a statistically significant reduction from baseline in mean monthly migraine days, compared to placebo, for all doses evaluated across a 12-week treatment period. | AbbVie Qulipta Succeeds in Chronic Migraine Study: AbbVie’s phase III study evaluating its newly approved CGRP receptor antagonist, Qulipta (atogepant), for chronic migraine prevention met its primary endpoint of a statistically significant reduction from baseline in mean monthly migraine days, compared to placebo, for all doses evaluated across a 12-week treatment period. AbbVie’s ABBV migraine drug, Qulipta met the primary endpoint in a late-stage chronic migraine study. Qulipta was approved for the preventive treatment of episodic migraine in adults in September AbbVie announced the resolution of its litigation with Alvotech over U.S. patents for its rheumatoid arthritis drug, Humira. | AbbVie Qulipta Succeeds in Chronic Migraine Study: AbbVie’s phase III study evaluating its newly approved CGRP receptor antagonist, Qulipta (atogepant), for chronic migraine prevention met its primary endpoint of a statistically significant reduction from baseline in mean monthly migraine days, compared to placebo, for all doses evaluated across a 12-week treatment period. AbbVie’s ABBV migraine drug, Qulipta met the primary endpoint in a late-stage chronic migraine study. Qulipta was approved for the preventive treatment of episodic migraine in adults in September AbbVie announced the resolution of its litigation with Alvotech over U.S. patents for its rheumatoid arthritis drug, Humira. | AbbVie’s ABBV migraine drug, Qulipta met the primary endpoint in a late-stage chronic migraine study. AbbVie Qulipta Succeeds in Chronic Migraine Study: AbbVie’s phase III study evaluating its newly approved CGRP receptor antagonist, Qulipta (atogepant), for chronic migraine prevention met its primary endpoint of a statistically significant reduction from baseline in mean monthly migraine days, compared to placebo, for all doses evaluated across a 12-week treatment period. Qulipta was approved for the preventive treatment of episodic migraine in adults in September AbbVie announced the resolution of its litigation with Alvotech over U.S. patents for its rheumatoid arthritis drug, Humira. | 2db5bb41-77a3-411d-b66b-24f08748931b |
23550.0 | 2022-03-11 00:00:00 UTC | AbbVie, Gedeon To Develop Dopamine Receptor Modulators For Neuropsychiatric Diseases Treatment | ABBV | https://www.nasdaq.com/articles/abbvie-gedeon-to-develop-dopamine-receptor-modulators-for-neuropsychiatric-diseases | nan | nan | (RTTNews) - AbbVie (ABBV) and Gedeon Richter Plc. have collaborated to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases, AbbVie said in a statement.
The collaboration is based on the results of preclinical research carried out by Richter and includes several new chemical entities selected for development.
AbbVie and Richter have collaborated for 15 years on Central Nervous System projects, including globally launched products such as cariprazine.
As per the terms of the deal, the collaboration includes both preclinical and clinical R&D activities with shared financing by the parties. Richter will receive an upfront cash payment, along with potential future development, regulatory and commercialization milestones.
In addition, Richter may also receive sales-based royalties. AbbVie will have worldwide commercialization rights except for traditional markets of Richter, such as geographic Europe, Russia, other CIS countries and Vietnam.
The transaction is expected to close in the second quarter of 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | have collaborated to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases, AbbVie said in a statement. AbbVie and Richter have collaborated for 15 years on Central Nervous System projects, including globally launched products such as cariprazine. AbbVie will have worldwide commercialization rights except for traditional markets of Richter, such as geographic Europe, Russia, other CIS countries and Vietnam. | have collaborated to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases, AbbVie said in a statement. (RTTNews) - AbbVie (ABBV) and Gedeon Richter Plc. AbbVie and Richter have collaborated for 15 years on Central Nervous System projects, including globally launched products such as cariprazine. | have collaborated to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases, AbbVie said in a statement. AbbVie and Richter have collaborated for 15 years on Central Nervous System projects, including globally launched products such as cariprazine. (RTTNews) - AbbVie (ABBV) and Gedeon Richter Plc. | (RTTNews) - AbbVie (ABBV) and Gedeon Richter Plc. have collaborated to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases, AbbVie said in a statement. AbbVie and Richter have collaborated for 15 years on Central Nervous System projects, including globally launched products such as cariprazine. | ff1e77c7-a18d-44fb-b085-47a68c01768b |
23551.0 | 2022-03-10 00:00:00 UTC | Notable Thursday Option Activity: PTLO, ABBV, UI | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-ptlo-abbv-ui | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Portillos Inc - Class A (Symbol: PTLO), where a total of 2,919 contracts have traded so far, representing approximately 291,900 underlying shares. That amounts to about 42.7% of PTLO's average daily trading volume over the past month of 684,325 shares. Particularly high volume was seen for the $25 strike call option expiring March 18, 2022, with 1,028 contracts trading so far today, representing approximately 102,800 underlying shares of PTLO. Below is a chart showing PTLO's trailing twelve month trading history, with the $25 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,495 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 41.7% of ABBV's average daily trading volume over the past month, of 8.0 million shares. Particularly high volume was seen for the $155 strike call option expiring April 14, 2022, with 4,152 contracts trading so far today, representing approximately 415,200 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange:
And Ubiquiti Inc (Symbol: UI) options are showing a volume of 507 contracts thus far today. That number of contracts represents approximately 50,700 underlying shares, working out to a sizeable 40.6% of UI's average daily trading volume over the past month, of 124,790 shares. Especially high volume was seen for the $210 strike put option expiring April 14, 2022, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of UI. Below is a chart showing UI's trailing twelve month trading history, with the $210 strike highlighted in orange:
For the various different available expirations for PTLO options, ABBV options, or UI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $155 strike call option expiring April 14, 2022, with 4,152 contracts trading so far today, representing approximately 415,200 underlying shares of ABBV. Below is a chart showing PTLO's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,495 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 41.7% of ABBV's average daily trading volume over the past month, of 8.0 million shares. | Below is a chart showing PTLO's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,495 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 41.7% of ABBV's average daily trading volume over the past month, of 8.0 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $155 strike highlighted in orange: And Ubiquiti Inc (Symbol: UI) options are showing a volume of 507 contracts thus far today. | Particularly high volume was seen for the $155 strike call option expiring April 14, 2022, with 4,152 contracts trading so far today, representing approximately 415,200 underlying shares of ABBV. Below is a chart showing UI's trailing twelve month trading history, with the $210 strike highlighted in orange: For the various different available expirations for PTLO options, ABBV options, or UI options, visit StockOptionsChannel.com. Below is a chart showing PTLO's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,495 contracts thus far today. | Below is a chart showing UI's trailing twelve month trading history, with the $210 strike highlighted in orange: For the various different available expirations for PTLO options, ABBV options, or UI options, visit StockOptionsChannel.com. Below is a chart showing PTLO's trailing twelve month trading history, with the $25 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,495 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 41.7% of ABBV's average daily trading volume over the past month, of 8.0 million shares. | 6e349bdc-d800-4504-9532-2054519b89d8 |
23552.0 | 2022-03-10 00:00:00 UTC | AbbVie: Phase 3 Study With Atogepant In Adult Patients With Chronic Migraine Meets Primary Endpoint | ABBV | https://www.nasdaq.com/articles/abbvie%3A-phase-3-study-with-atogepant-in-adult-patients-with-chronic-migraine-meets-primary | nan | nan | (RTTNews) - AbbVie (ABBV) said the phase 3 PROGRESS trial evaluating atogepant for the preventive treatment of chronic migraine in adults, met its primary endpoint of statistically significant reduction from baseline in mean monthly migraine days compared to placebo, for both the 60 mg once daily and 30 mg twice daily doses, across the 12-week treatment period.
The study also showed that treatment with atogepant 60 mg QD and 30 mg BID resulted in statistically significant improvements in all secondary endpoints after adjustment for multiple comparisons.
The overall safety profile of the study was consistent with safety findings observed in previous studies in an episodic migraine population.
Based on the results of phase 3 PROGRESS trial in chronic migraine, AbbVie plans to submit a supplemental New Drug Application with the FDA for the expanded use of atogepant to include the preventive treatment of chronic migraine. Also, study results from the phase 3 PROGRESS trial, along with the phase 3 ADVANCE trial data, in episodic migraine, will form the basis for future regulatory submissions globally.
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 the phase 3 PROGRESS trial evaluating atogepant for the preventive treatment of chronic migraine in adults, met its primary endpoint of statistically significant reduction from baseline in mean monthly migraine days compared to placebo, for both the 60 mg once daily and 30 mg twice daily doses, across the 12-week treatment period. Based on the results of phase 3 PROGRESS trial in chronic migraine, AbbVie plans to submit a supplemental New Drug Application with the FDA for the expanded use of atogepant to include the preventive treatment of chronic migraine. Also, study results from the phase 3 PROGRESS trial, along with the phase 3 ADVANCE trial data, in episodic migraine, will form the basis for future regulatory submissions globally. | (RTTNews) - AbbVie (ABBV) said the phase 3 PROGRESS trial evaluating atogepant for the preventive treatment of chronic migraine in adults, met its primary endpoint of statistically significant reduction from baseline in mean monthly migraine days compared to placebo, for both the 60 mg once daily and 30 mg twice daily doses, across the 12-week treatment period. Based on the results of phase 3 PROGRESS trial in chronic migraine, AbbVie plans to submit a supplemental New Drug Application with the FDA for the expanded use of atogepant to include the preventive treatment of chronic migraine. Also, study results from the phase 3 PROGRESS trial, along with the phase 3 ADVANCE trial data, in episodic migraine, will form the basis for future regulatory submissions globally. | (RTTNews) - AbbVie (ABBV) said the phase 3 PROGRESS trial evaluating atogepant for the preventive treatment of chronic migraine in adults, met its primary endpoint of statistically significant reduction from baseline in mean monthly migraine days compared to placebo, for both the 60 mg once daily and 30 mg twice daily doses, across the 12-week treatment period. Based on the results of phase 3 PROGRESS trial in chronic migraine, AbbVie plans to submit a supplemental New Drug Application with the FDA for the expanded use of atogepant to include the preventive treatment of chronic migraine. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said the phase 3 PROGRESS trial evaluating atogepant for the preventive treatment of chronic migraine in adults, met its primary endpoint of statistically significant reduction from baseline in mean monthly migraine days compared to placebo, for both the 60 mg once daily and 30 mg twice daily doses, across the 12-week treatment period. Based on the results of phase 3 PROGRESS trial in chronic migraine, AbbVie plans to submit a supplemental New Drug Application with the FDA for the expanded use of atogepant to include the preventive treatment of chronic migraine. The overall safety profile of the study was consistent with safety findings observed in previous studies in an episodic migraine population. | c2e3ccb1-c42d-4e5f-9948-1d7bcdc9ae10 |
23553.0 | 2022-03-10 00:00:00 UTC | 7 Drug Stocks to Consider After the Viatris Plunge | ABBV | https://www.nasdaq.com/articles/7-drug-stocks-to-consider-after-the-viatris-plunge | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Until recently, Viatris (NASDAQ:VTRS) was considered a value play among drug stocks. But after its recent earnings report, and announced sale of a key asset? The generic drug maker has been deemed a “value trap,” and has experienced a sharp plunge in price.
Falling by about 23% right after the news, and down around 32.5% in the past month, it may take some time for Viatris to bounce back. Another generic drug maker, Teva Pharmaceutical (NYSE:TEVA), has sold off in recent weeks, too, after reporting underwhelming results and outlook. The market is also giving Teva the “value trap” designation.
Hard times for value investors looking for bargains among the drug makers. Or are they? Generic makers may be failing to deliver, yet if you want pharmaceutical plays that are can’t miss deals, they may be right in front of you with many of the major names in the space.
Not only are many of these names selling for relatively low price-to-earnings (P/E) multiples. Many you could consider “high yield” stocks, with above-average payouts. So, as Viatris and other generic drug makers plunge, what should you buy instead?
8 Strong Uptrend Stocks to Buy on the Next Dip
Consider these seven well-known drug stocks, all of which are good value in what’s still a pricey market:
AbbVie (NYSE:ABBV)
Bristol-Myers Squibb (NYSE:BMY)
GlaxoSmithKline (NYSE:GSK)
Johnson & Johnson (NYSE:JNJ)
Merck (NYSE:MRK)
Novartis (NYSE:NVS)
Pfizer (NYSE:PFE)
Drug Stocks to Buy: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
In recent months, bullishness has returned to ABBV stock. Before, the market placed heavy focus on the expected drop off in AbbVie sales of its Humira treatment. Humira biosimilars are expected to hit the market next year.
Yet with Humira sales still solid, and as two of its immunology drugs (Skyrizi and Rinvoq) perform well, the market’s back to focusing more on AbbVie’s positives than its negatives. Over the past six months, shares have surged nearly 35%. That said, while not as overly priced-in as before, the expectation of declining earnings remains priced into the stock.
Earnings per share (EPS) for ABBV is expected by analysts to come in at $14.18 this year, dropping around 13.% in 2023 to $12.29 per share. That means the stock trades for around 10.6x 2022 earnings, and 12.3x next year’s earnings. But even with its run-up, investors could still be underestimating how much its newer drugs help to make up for the pending decline of Humira sales.
This could result in further upside. The market could re-rate it at a higher multiple. On top of this, there’s also its 3.75% forward yield. A continued (albeit more gradual) rise in price, coupled with the dividend, could mean solid returns for income and value investors buying it today.
Bristol-Myers Squibb (BMY)
Source: IgorGolovniov / Shutterstock.com
Bristol-Myers Squibb is another one of the top value plays among drug stocks. At today’s prices (around $69 per share), it trades for 8.9x this year’s earnings. Alongside this, it sports a 3.11% forward dividend yield. Not only that, its payout has grown an average 5.6% per year over the past five years. It’s also raised its dividend 15 years in a row.
However, unlike ABBV stock, there isn’t a hint of earnings decline baked into the BMY stock price. Delivering strong earnings lately, it’s expected to see its EPS go up again in 2023. This is despite, as a Forbes commentator Trefis Team discussed last month, the fact that its top selling drug, Revlimid, loses market exclusivity this year.
While it’s shot back up in price since December, after a pullback last fall, it may not be too late to buy it. It may have a good chance of seeing its forward multiple continue to expand. I’m not saying 15x or 20x, which is above what most major drug stocks are trading for right now.
7 Best Long-Term Stocks to Buy for 2022
Still, a bump up from high single-digits to low double-digits would mean a solid move higher for shares. Again, like AbbVie, combined with its dividend, in a rocky stock market, this may result in a satisfying return for investors.
Drug Stocks to Buy: GlaxoSmithKline (GSK)
Source: Willy Barton / Shutterstock.com
Trading for 12.5x estimated earnings for 2022, GlaxoSmithKline trades at the higher end of multiples among the drug makers. With this, you may wonder why I’m including it on this list, which focuses mainly on value plays in the space.
The reason? It may appear to sport a more premium valuation relative to the names listed above and below. But in the case of GlaxoSmithKline, it’s possible that this is more than justified. The pharma giant stands to continue delivering solid revenue and earnings growth.
It’s not only successfully selling a Covid-19 treatment (Sotrovimab). It also has an HIV drug (Cabenuva) on the market that’s seeing a very high increase in sales.
Glaxo also sports a high 5.43% forward dividend yield, although there’s a reason for this. The payout is set to come down, once it completes the spinoff of its consumer healthcare unit, Haleon, later this year.
Even so, the value potentially unlocked from the spin off, plus the growth of its core unit, could more than up for this payout reduction. At around $39 per share, and pulling back in recent weeks, you may want to consider entering a position in GSK stock today.
Johnson & Johnson (JNJ)
Source: Raihana Asral / Shutterstock.com
A few weeks back, I argued why Johnson & Johnson may be a great low-volatility play to buy in order to minimize the impact of today’s roller coaster stock market. So far, although JNJ stock temporarily dipped on news of Russia’s invasion of Ukraine, it has more or less held steady.
Yet understandably, you may not be just looking for a stock that will lose less as 2022 plays out. Rather, you’re probably looking for something that could close out the year in the green instead of in the red. That may be more than possible here with Johnson & Johnson.
Even as the undeniably blue-chip dividend aristocrat trades for 16x this year’s earnings, well ahead of the other big pharma names. Although this valuation implies that it’s a pricey drug stock, it’s important to keep in mind that “healthcare stock” may be the more accurate term for JNJ.
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Besides its pharma unit, the company has consumer health and medical device products as well. A more diversified healthcare company, and one that trades at a discount to other “aristocrats,” it could see an inflow of investors, as rising rates and other uncertainties lead investors to safe harbors in order to ride out the storms at present.
Drug Stocks to Buy: Merck (MRK)
Source: Atmosphere1 / Shutterstock.com
With negative revenue and earnings growth expected between 2022 and 2023, admittedly it may be tough to get excited about Merck. MRK stock sports a P/E ratio (10.6x), a multiple that’s in-line with other names in the space.
Yet you may wonder how exactly this will translate into a higher price for Merck, which today trades for around $77 per share. However, per the bull case presented by Morningstar’s Damien Conover a few weeks back.
The analyst believes that the drug giant’s research and development (R&D) efforts have paid off, as only a moderate investment has resulted in new drugs that offset patent losses. In particular, oncology drug Keytruda. This drug appears set to drive Merck’s growth in the years ahead. With all this, Conover gives shares the equivalent to a buy rating, and a price target of $94 per share.
As growth could come in above sluggish projections, and with its low valuation, there’s plenty of upside potential with MRK stock. There’s also a decent-sized dividend (forward yield of 3.55%). Raising its payout 12 years in a row, over the past five years, the dividend has grown by an average of 8.15% per year. Considering its low volatility as well, this is one of the best drug stocks to buy.
Novartis (NVS)
Source: Denis Linine / Shutterstock.com
Swiss-based Novartis is another of the major drug stocks trading at a slightly higher valuation. At today’s prices, it sports a P/E ratio of 13.4x. Forward dividend yield comes in at a solid 3.96%. Sales and earnings should increase modestly between 2022 and 2023. Better than negative, but not exactly high (3.1% revenue growth, 9% earnings growth). At least, that’s what analyst estimates say.
However, like with MRK stock, it’s possible the sell-side is underestimating the impact of two upcoming drugs will have on the company’s bottom line, and in turn the price of NVS stock. As InvestorPlace’s Chris MacDonald discussed back in January, the pharma company has two potential blockbusters in its pipeline.
First, blood pressure treatment Entresto. Entresto could generate billions in revenue. Second, psoriasis treatment Cosentyx, which has a similar level of potential. Success with both these drugs could result in this year and next hitting the top end of estimates.
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That’s something that could help shares re-hit their past 52-week high ($95.17 per share), and hit new highs, over the next year. For reference, Novartis stock trades for around $82.75 per share as of this writing. If you’re looking for better options out there than the generic drug stocks, be sure to include this maker of branded pharmaceuticals to your watch list.
Drug Stocks to Buy: Pfizer (PFE)
Source: Manuel Esteban / Shutterstock.com
Capping things off, let’s look at shares in the company that spun-off Viatris: Pfizer. Last year, shares took off not once, but twice. Initially, due to it being one of the top pandemic vaccine providers. Its candidate, co-developed with BioNTech (NASDAQ:BNTX), generated $36 billion in revenue during 2021, and is set to generate tens of billions more this year.
Along with this, PFE stock took off in the last two months of 2021. At the time, the company received authorization for its Paxlovid Covid-19 treatment. This was seen to be something that would produce another big chunk of revenue (in the tens of billions).
Admittedly, now with Covid-19 falling out of the headlines, excitement for Pfizer has come down as well. Revenues and earnings stemming from its pandemic products could come down much faster than previously expected. Even so, the stock’s current valuation more than account for this decline.
At today’s prices (around $48 per share), PFE stock trades at a mid-single digit multiple (6.8x).
I wouldn’t hold my breath that the booster shot market (which is drying up) helps lower the decline in vaccine sales. Yet as the virus carries on in much of the world, demand for Paxlovid may remain robust. This may help the stock, which has a dividend yield of 3.29%, partially bounce back from its year-to-date losses.
On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Drug Stocks to Consider After the Viatris Plunge 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. | Yet with Humira sales still solid, and as two of its immunology drugs (Skyrizi and Rinvoq) perform well, the market’s back to focusing more on AbbVie’s positives than its negatives. 8 Strong Uptrend Stocks to Buy on the Next Dip Consider these seven well-known drug stocks, all of which are good value in what’s still a pricey market: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck (NYSE:MRK) Novartis (NYSE:NVS) Pfizer (NYSE:PFE) Drug Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In recent months, bullishness has returned to ABBV stock. Before, the market placed heavy focus on the expected drop off in AbbVie sales of its Humira treatment. | 8 Strong Uptrend Stocks to Buy on the Next Dip Consider these seven well-known drug stocks, all of which are good value in what’s still a pricey market: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck (NYSE:MRK) Novartis (NYSE:NVS) Pfizer (NYSE:PFE) Drug Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In recent months, bullishness has returned to ABBV stock. Before, the market placed heavy focus on the expected drop off in AbbVie sales of its Humira treatment. Yet with Humira sales still solid, and as two of its immunology drugs (Skyrizi and Rinvoq) perform well, the market’s back to focusing more on AbbVie’s positives than its negatives. | 8 Strong Uptrend Stocks to Buy on the Next Dip Consider these seven well-known drug stocks, all of which are good value in what’s still a pricey market: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck (NYSE:MRK) Novartis (NYSE:NVS) Pfizer (NYSE:PFE) Drug Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In recent months, bullishness has returned to ABBV stock. Before, the market placed heavy focus on the expected drop off in AbbVie sales of its Humira treatment. Yet with Humira sales still solid, and as two of its immunology drugs (Skyrizi and Rinvoq) perform well, the market’s back to focusing more on AbbVie’s positives than its negatives. | 8 Strong Uptrend Stocks to Buy on the Next Dip Consider these seven well-known drug stocks, all of which are good value in what’s still a pricey market: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck (NYSE:MRK) Novartis (NYSE:NVS) Pfizer (NYSE:PFE) Drug Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In recent months, bullishness has returned to ABBV stock. Before, the market placed heavy focus on the expected drop off in AbbVie sales of its Humira treatment. Yet with Humira sales still solid, and as two of its immunology drugs (Skyrizi and Rinvoq) perform well, the market’s back to focusing more on AbbVie’s positives than its negatives. | aefeaca9-3d6e-49ca-a9f4-a19d5d8c05bd |
23554.0 | 2022-03-09 00:00:00 UTC | 7 Dividend Stocks to Finance Your Golden Years | ABBV | https://www.nasdaq.com/articles/7-dividend-stocks-to-finance-your-golden-years | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Make hay while the sun shines. This old saying was certainly in full effect for the past decade when it came to the markets. But today, market forces we haven’t seen for a decade are making dividend stocks much more attractive again.
Imagine we were living in a lovely estuary, growing fat on growth stocks in a lovely, placid environment. It wasn’t always safe, but the risks were relatively low.
Then, we’re swept out to sea — the big, open, overwhelming sea. That’s how a lot of investors are feeling right now. And many of these investors have been socking away profits in their retirement portfolios fantasizing about early retirement.
I remember just before the dotcom bubble burst, brokers — remember them! — were telling their conservative, long-term investors that growth was the new income. Why hold a stock with a dividend of 2% when you could have a growth stock making 20% plus every year?
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These top-quality dividend stocks will keep the growth chugging along and deliver rock-solid dividends as well. It might not seem sexy, but it is reliable. And that’s actually kind of sexy.
AbbVie (NYSE:ABBV)
American Tower REIT (NYSE:AMT)
Comcast Corp (NASDAQ:CMCSA)
Caterpillar (NYSE:CAT)
Morgan Stanley (NYSE:MS)
Amgen (NASDAQ:AMGN)
Blackstone (NYSE:BX)
Dividend Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
With a $264 billion market cap, ABBV is well and truly a major pharmaceutical company. Its Humira is one of the top selling drugs of all time — it booked nearly $20 billion in revenue in 2020 and continues to find new uses that help sales continue to soar.
However, its main patent expires next year. But don’t fear, as the company has plenty of blockbuster drugs that are already helping revenues. AbbVie also has one of the most impressive pipelines in the business. What’s more, it has a very generous dividend that’s one of the most reliable out there. And its generous payout isn’t because ABBV stock has been languishing.
As a matter of fact, ABBV has been a strong performer, yet it remains a solid value. ABBV stock has gained 38% in the past 12 months, and 28% in the past three months. But it trades at a price-to-earnings ratio of around 23x and delivers an impressive 3.8% dividend.
This stock has a Dividend Grader rating of “A.”
American Tower REIT (AMT)
Source: SERDTHONGCHAI / Shutterstock.com
We hear a lot from the major wireless providers about their fantastic 5G telecom networks. But what they conveniently leave out is the fact that while 5G is available, it isn’t the super-duper version that we hear about.
Some big cities have pieces of it. Some big stadiums have the real deal. But it’s expensive to wire the whole country because it’s an entirely different beast than 4G LTE or any of the other predecessors. Only now are the telecoms backfilling with the high-end 5G.
And it will be a gamechanger. AMT is one of the leading telecom real estate investment trusts (REITs) that leases telecom towers to various telecom providers. This is going to be even more important during the 5G rollout. Plus, it’s well placed internationally and the conversion to 5G will play out over much of this decade.
As a REIT, it has a dividend-focused business that now passes along a 2.2% dividend. The stock has held onto a 16% return for the past 12 months, but has been hit recently like most of the broad market.
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This stock has a Dividend Grader “A” rating.
Dividend Stocks: Comcast Corp (CMCSA)
Source: Todd A. Merport / Shutterstock.com
This has long been one of the most hated companies in the U.S. But part of that was the fact that it runs businesses providing internet, telecom and media services to millions of people.
Granted, its customer service has been a sticking point, as well as its pricing. But those issues are being addressed by stronger competition and streaming services. The less you rely on a company, the less stressed you are about it.
But that’s not to say CMCSA is not doing well. It continues to dominate major markets across the U.S. And it has a thriving content business as well. Its internet service has been rebranded Xfinity and that has helped too. Streaming is becoming very similar to the old cable model, yet few consumers are catching on to this fact. All the better for CMCSA, which remains a leading cable provider.
And with the new infrastructure bill, swapping its cable for fiber optics will be subsidized by the government. That’s a big win for shareholders.
CMCSA stock has been hit in the recent selloff, so it’s basically on sale. It trades at a P/E around 15x and has a strong 2.3% dividend.
This stock has a Dividend Grader “A” rating.
Caterpillar (CAT)
Source: astudio / Shutterstock.com
Sitting closer to its 52-week lows than its highs, CAT was starting to make a big move after the passage of the first infrastructure bill. But it now has been hit by larger macro issues affecting the global economy.
But that’s good news. It means the stock is currently in limbo, and on sale. Fortunately, in the U.S., rising inflation is a consequence of rising growth. And that growth means more CAT equipment to build roads and housing developments, maintain farms and handle mining operations.
Europe also has a massive infrastructure stimulus plan underway and likely more spending due to the Russia-Ukraine conflict. CAT is even working with NASA on equipment for moon bases and beyond!
CAT stock has been treading water for the past three months. But its low P/E of 16x and solid 2.3% make it a good time put some of this CAT in your bag.
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This stock has a Dividend Grader “A” rating.
Dividend Stocks: Morgan Stanley (MS)
Source: Ken Wolter / Shutterstock.com
There tends to be a misconception that in bad markets financial services companies do poorly. But firms like MS are as prepared for down markets as soldiers are prepared for war.
Trading desks around the world are filled with professionals whose entire jobs are to make money regardless of market conditions. In down markets, go risk off and start shorting across stocks, options and futures. Buy a dip here and there and then dump it after a short technical pop. Work dark pools and bond markets.
The fact is, after more than a decade of pretty straightforward trading and easy-peasy index investing, now it’s time for trading houses to earn their money. And MS is an institution that has been around since 1924.
It’s also one of The Street’s top dividend stocks. And its fundamental reliability is a great asset for long-term investors.
MS stock is up around 8% in the past 12 months, but has lost nearly 12% in the past three months. Trading at a P/E of 10x, and offering a generous 3.2%, it’s a bargain right now.
This stock has a Dividend Grader “A” rating.
Amgen (AMGN)
Source: Michael Vi / Shutterstock.com
AMGN is one of the world’s leading biotechs and one of the sector’s top dividend stocks. It offers a very generous — and safe — 3.3% dividend at this point. And it has a very solid path to growth.
It doesn’t have a super blockbuster drug like ABBV, but it has a slew of popular medicines that are used around the world. It makes top chemotherapy drugs as well as others for high cholesterol and many other ailments.
The fact is, having a spectrum of drugs that have substantial practical use inside and outside of medical facilities makes many of products reliable workhorses more than show ponies.
AMGN stock price remains in the green during the past 12 months and has gained 15% in the past three months. And it trades at a P/E of 22x.
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This stock has a Dividend Grader “A” rating.
Dividend Stocks: Blackstone (BX)
Source: Isabelle OHara / Shutterstock.com
BX operates as a private equity and financial services company. It has a number private equity funds it manages as well as alternative investment operations and hedge funds.
Holding BX is like getting a piece of the kind of companies and opportunities institutional investors get access to. It will buy into individual companies in a similar industry, usually setting up a fund of big investors. Sometimes it will take board seats or offer funding for projects, with the expectation that it will cash out once the companies grow.
Basically, BX takes on the risks and reaps the rewards. But along the way, investors get a solid yield — at this point around 2.3% — and get a growth kicker. The growth can be volatile. For example, the stock has gained 65% in the 12 months, but it’s down 16% in the past three months. The recovery will see the stock rise again. It’s on sale now.
This stock has a Dividend Grader “A” rating.
On the date of publication, Louis Navellier has positions in ABBV, AMT, CMCSA, and AMGN in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE:ABBV) American Tower REIT (NYSE:AMT) Comcast Corp (NASDAQ:CMCSA) Caterpillar (NYSE:CAT) Morgan Stanley (NYSE:MS) Amgen (NASDAQ:AMGN) Blackstone (NYSE:BX) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com With a $264 billion market cap, ABBV is well and truly a major pharmaceutical company. AbbVie also has one of the most impressive pipelines in the business. And its generous payout isn’t because ABBV stock has been languishing. | AbbVie (NYSE:ABBV) American Tower REIT (NYSE:AMT) Comcast Corp (NASDAQ:CMCSA) Caterpillar (NYSE:CAT) Morgan Stanley (NYSE:MS) Amgen (NASDAQ:AMGN) Blackstone (NYSE:BX) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com With a $264 billion market cap, ABBV is well and truly a major pharmaceutical company. AbbVie also has one of the most impressive pipelines in the business. And its generous payout isn’t because ABBV stock has been languishing. | AbbVie (NYSE:ABBV) American Tower REIT (NYSE:AMT) Comcast Corp (NASDAQ:CMCSA) Caterpillar (NYSE:CAT) Morgan Stanley (NYSE:MS) Amgen (NASDAQ:AMGN) Blackstone (NYSE:BX) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com With a $264 billion market cap, ABBV is well and truly a major pharmaceutical company. AbbVie also has one of the most impressive pipelines in the business. And its generous payout isn’t because ABBV stock has been languishing. | AbbVie (NYSE:ABBV) American Tower REIT (NYSE:AMT) Comcast Corp (NASDAQ:CMCSA) Caterpillar (NYSE:CAT) Morgan Stanley (NYSE:MS) Amgen (NASDAQ:AMGN) Blackstone (NYSE:BX) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com With a $264 billion market cap, ABBV is well and truly a major pharmaceutical company. AbbVie also has one of the most impressive pipelines in the business. And its generous payout isn’t because ABBV stock has been languishing. | 3ffeaa93-f54b-45a2-b14a-a7722ba9ab2a |
23555.0 | 2022-03-09 00:00:00 UTC | Genmab (GMAB), AbbVie Lymphoma Candidate Gets Orphan Drug Tag | ABBV | https://www.nasdaq.com/articles/genmab-gmab-abbvie-lymphoma-candidate-gets-orphan-drug-tag | nan | nan | Denmark-based biotech Genmab A/S GMAB received Orphan Drug designation for its antibody product candidate, epcoritamab, for treating follicular lymphoma (“FL”) from the FDA.
The orphan drug designation is granted by the FDA to a drug or biologic intended to treat a rare disease or condition, which generally includes a disease or condition that affects fewer than 200,000 individuals in the United States. The orphan drug designation also includes incentives including tax credits for clinical testing, prescription drug user fee exemptions and a seven-year marketing exclusivity in the event of regulatory approval.
Please note that Genmab is co-developing the candidate with AbbVie ABBV. Genmab and AbbVie inked an oncology collaboration in 2020 to jointly develop and market three of Genmab’s early-stage investigational bispecific antibody product candidates including epcoritamab. AbbVie and Genmab share commercial responsibilities for epcoritamab in the United States and Japan while AbbVie is responsible for other regions.
Genmab and AbbVie are evaluating epcoritamab in three early- to mid-stage clinical studies for treating FL. A phase I/II study — EPCORE — is evaluating a subcutaneous formulation of Genmab and AbbVie’s candidate in patients with relapsed or refractory B-cell non-Hodgkin’s lymphoma (B-NHL), which includes diffuse large B-cell Lymphoma (DLCBL), FL, and mantle cell lymphoma (MCL). Another phase I/II study is evaluating the safety and efficacy of epcoritamab in Japanese patients with relapsed/refractory B-NHL. A phase Ib/II study is evaluating epcoritamab in combination with standard of care across different lines of therapy in patients with DLBCL or FL.
Shares of Genmab have declined 19.6% so far this year compared with the industry’s decrease of 19.4%.
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We note that epcoritamab has been developed using Genmab’s proprietary DuoBody technology platform. Apart from AbbVie, the company’s technology platform has also attracted J&J JNJ to sign an agreement. In 2012, J&J and Genmab entered into a partnership for developing bispecific antibodies using the latter’s proprietary DuoBody technology platform. In May 2021, J&J received FDA approval for Rybrevant, developed using Genmab’s DuoBody technology platform, for treating adult patients with non-small cell lung cancer with EGFR mutations. J&J’s Darzalex and Darzalex Faspro have also been developed in partnership with Genmab.
Last year, Genmab’s partner Seagen SGEN announced that the FDA had granted accelerated approval to their investigational antibody-drug conjugate, Tivdak (tisotumab vedotin-tftv). Seagen received approval for Tivdak for recurrent/metastatic cervical cancer in adult patients whose disease progressed on or after chemotherapy. Seagen and Genmab continue to evaluate Tivdak as a potential treatment for cervical cancer and other solid tumors in different clinical studies.
Genmab AS Sponsored ADR Price
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Zacks Rank
Genmab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Please note that Genmab is co-developing the candidate with AbbVie ABBV. Genmab and AbbVie inked an oncology collaboration in 2020 to jointly develop and market three of Genmab’s early-stage investigational bispecific antibody product candidates including epcoritamab. AbbVie and Genmab share commercial responsibilities for epcoritamab in the United States and Japan while AbbVie is responsible for other regions. | Please note that Genmab is co-developing the candidate with AbbVie ABBV. Genmab and AbbVie inked an oncology collaboration in 2020 to jointly develop and market three of Genmab’s early-stage investigational bispecific antibody product candidates including epcoritamab. AbbVie and Genmab share commercial responsibilities for epcoritamab in the United States and Japan while AbbVie is responsible for other regions. | Genmab and AbbVie inked an oncology collaboration in 2020 to jointly develop and market three of Genmab’s early-stage investigational bispecific antibody product candidates including epcoritamab. A phase I/II study — EPCORE — is evaluating a subcutaneous formulation of Genmab and AbbVie’s candidate in patients with relapsed or refractory B-cell non-Hodgkin’s lymphoma (B-NHL), which includes diffuse large B-cell Lymphoma (DLCBL), FL, and mantle cell lymphoma (MCL). Please note that Genmab is co-developing the candidate with AbbVie ABBV. | AbbVie Inc. (ABBV): Free Stock Analysis Report Please note that Genmab is co-developing the candidate with AbbVie ABBV. Genmab and AbbVie inked an oncology collaboration in 2020 to jointly develop and market three of Genmab’s early-stage investigational bispecific antibody product candidates including epcoritamab. | 17785553-2946-49c6-9c75-b30cb7091d05 |
23556.0 | 2022-03-09 00:00:00 UTC | Health Care Sector Update for 03/09/2022: AMYT, PFE, ABBV, IBB, XLV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-03-09-2022%3A-amyt-pfe-abbv-ibb-xlv | nan | nan | Health care stocks were climbing premarket Wednesday. The iShares Biotechnology ETF (IBB) and the Health Care SPDR (XLV) were recently up around 2%.
Amryt Pharma (AMYT) reported Q4 net earnings of $0.07 per diluted share, compared with a loss of $0.28 per share a year earlier. Three analysts polled by Capital IQ expected a loss of $0.05 per share. Amryt Pharma shares were recently slipping nearly 5%.
Pfizer (PFE) shares were more than 1% higher after saying it has started a phase 2/3 study to evaluate the safety and efficacy of Paxlovid, an oral treatment in non-hospitalized, symptomatic, pediatric participants with COVID-19 at risk of severe disease.
AbbVie (ABBV) was up more than 1% after saying it has granted Alvotech Holdings non-exclusive rights to market its Humira biosimilar product in the US, effective July 1, 2023, as part of a settlement agreement.
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) was up more than 1% after saying it has granted Alvotech Holdings non-exclusive rights to market its Humira biosimilar product in the US, effective July 1, 2023, as part of a settlement agreement. The iShares Biotechnology ETF (IBB) and the Health Care SPDR (XLV) were recently up around 2%. Pfizer (PFE) shares were more than 1% higher after saying it has started a phase 2/3 study to evaluate the safety and efficacy of Paxlovid, an oral treatment in non-hospitalized, symptomatic, pediatric participants with COVID-19 at risk of severe disease. | AbbVie (ABBV) was up more than 1% after saying it has granted Alvotech Holdings non-exclusive rights to market its Humira biosimilar product in the US, effective July 1, 2023, as part of a settlement agreement. Health care stocks were climbing premarket Wednesday. Amryt Pharma (AMYT) reported Q4 net earnings of $0.07 per diluted share, compared with a loss of $0.28 per share a year earlier. | AbbVie (ABBV) was up more than 1% after saying it has granted Alvotech Holdings non-exclusive rights to market its Humira biosimilar product in the US, effective July 1, 2023, as part of a settlement agreement. The iShares Biotechnology ETF (IBB) and the Health Care SPDR (XLV) were recently up around 2%. Amryt Pharma (AMYT) reported Q4 net earnings of $0.07 per diluted share, compared with a loss of $0.28 per share a year earlier. | AbbVie (ABBV) was up more than 1% after saying it has granted Alvotech Holdings non-exclusive rights to market its Humira biosimilar product in the US, effective July 1, 2023, as part of a settlement agreement. The iShares Biotechnology ETF (IBB) and the Health Care SPDR (XLV) were recently up around 2%. Three analysts polled by Capital IQ expected a loss of $0.05 per share. | 4cfb311e-0713-4df9-84ed-c4ca63e133c7 |
23557.0 | 2022-03-09 00:00:00 UTC | What's in Store for These 3 Big Pharma Outperformers in 2022? | ABBV | https://www.nasdaq.com/articles/whats-in-store-for-these-3-big-pharma-outperformers-in-2022 | nan | nan | The recently ended fourth-quarter earnings season was a mixed bag for the drug and biotech sector. Most companies beat estimates for earnings while missing the same for sales or vice versa. However, some companies have not only been able to beat consensus estimates but also guide better than market expectations for 2022.
The last year was probably one of the worst for the biotech sector for reasons unexplained, especially when the broader stock market hit all-time highs. While 2022 began with the S&P 500 Index reaching an all-time high, it has plummeted 11.7% year to date mainly due to uncertainty stemming from the impacts of the Omicron-related surge in infections earlier and now the Russia-Ukraine conflict and surge in oil prices. Concerns are rising over higher inflation and an overall slowing down of economic growth.
The biotech sector is also feeling the impact of overall market volatility. The Zacks Large Cap Pharmaceuticals industry is down 3.8% this year so far compared with the S&P 500’s decline of 11.7%.
Image Source: Zacks Investment Research
However, we expect the drug and biotech sector to rebound once the overall market recovers due to its strong fundamentals, an expected pick-up in M&A activity, including possible mega-mergers and positive pipeline and regulatory updates
Here we have highlighted three bigshot drugmakers, J&J JNJ, AbbVie ABBV and Merck MRK which have outperformed the industry this year and are good stocks to hold for the next few monthsand beyond. A chart showing the share price movement of these companies this year so far is given below.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merck
Merck’s stock has risen 0.4% this year so far against a decrease of 3.8% for the industry
Earnings estimates for 2022 have gone up from $6.87 to $7.28 per share while those for 2023 have moved from $6.68 to $7.18 per share over the past 60 days
Merck’s fourth-quarter results were strong as it beat estimates for both earnings and sales, unlike several other pharma companies. Its revenues rose 24% year over year in the fourth quarter, driven by additional sales from its oral COVID drug, molnupiravir, increased demand for its cancer drugs and HPV vaccines, and higher sales of Animal Health products. The company anticipates robust growth in revenues and profits to continue in 2022.
Merck’s key drugs like Keytruda, Lynparza and Bridion have been driving sales. Keytruda sales are gaining from the continued uptake in lung cancer and increasing usage in other cancer indications. In fact, in 2022, Keytruda sales growth is expected to be driven by increased expansion in the ex-U.S. market and the continued ramp-up of launches globally.
Beyond oncology, which is expected to drive durable growth in the next decade, Merck has important products in its portfolio, including the Gardasil vaccine to prevent HPV-related cancers. Sales of the Gardasil vaccine grew 40% in 2021. Merck expects Gardasil sales to double by 2030.
In addition, Merck’s Animal Health business is a key contributor to its top-line growth as the company is recording above-market growth and the trend is expected to continue in 2022.
Merck and partner Ridgeback Biotherapeutics’ oral antiviral pill, molnupiravir will be a key top-line driver in 2022. It was authorized for treating high-risk adults with mild-to-moderate COVID-19 in several countries worldwide in 2021. Merck has a number of supply and purchase agreements in place for providing approximately 10 million courses of the COVID therapy, expected to generate $5 billion to $6 billion in revenues in 2022. Molnupiravir is in late-stage development for post-exposure prophylaxis of COVID.
Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth. Numerous recent approvals and the expected launch of many additional indications, including in earlier lines of therapy, can further boost sales.
Merck currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AbbVie
AbbVie’s stock has risen 9.8% this year so far. Earnings estimates for 2022 have gone up from $14.09 to $14.18 per share while those for 2023 have moved from $12.20 to $12.50 per share over the past 60 days
AbbVie's fourth-quarter results, announced last month, were mixed as it beat estimates for earnings while missing the same for sales. However, its sales rose 7.4% year over year driven by the immunology and aesthetics franchises. Its oncology franchise is also contributing to sales growth. Its financial outlook for 2022 is also quite encouraging.
Humira continues to witness strong demand trends in the United States despite new mechanisms of action and competition from indirect biosimilars.
Among AbbVie’s other immunology medicines, Skyrizi and Rinvoq demonstrated differentiated clinical profiles versus Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021. Both Skyrizi and Rinvoq were approved for active psoriatic arthritis in 2021/early 2022. Rinvoq was also approved for atopic dermatitis. With such new indications coming in the next couple of years, sales of these drugs could be higher and have the potential to replace Humira when generics are launched in 2023.
In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion.
AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
In its oncology franchise, the strong growth of Venclexta sales is making up for lower U.S. sales of J&J-partnered Imbruvica. U.S. sales of Imbruvica are being hurt by lower new patient starts in CLL due to a slower-than-expected market recovery from the pandemic and increasing competition from newer therapies.
Strong share performance across all approved indications is boosting sales of Venclexta/Venclyxto.
In 2022, Imbruvica global revenues are expected to be approximately $5.4 billion. The Imbruvica guidance assumes recovery of the CLL market, which is expected to be partially offset by share erosion from increased competition. Venclexta global sales are expected to be approximately $2.3 billion.
Robust demand for Botox Cosmetic and Juvederm is boosting sales of AbbVie’s aesthetics franchise, helped by a strong recovery from the pandemic. Some of AbbVie’s newer medicines like Ubrelvy and Qulipta have started off well and sales are expected to pick up in 2022.
AbbVie also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Several data readouts are expected in 2022, which could be catalysts for the stock. AbbVie has a Zacks Rank of 3.
J&J
Though J&J’s stock is down 0.8% this year so far, it has still outperformed the industry. Earnings estimates for 2022 have gone up from $10.28 to $10.50 per share over the past 60 days.
J&J beat fourth-quarter estimates for earnings while missing the same for sales. J&J also issued an encouraging financial guidance for 2022 despite COVID impacts and hospital staff shortages in the Medical Devices unit, and supply constraints and inflationary pressure in the Consumer segment.
Its Pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya and its COVID-19 vaccine. J&J continues to expect its Pharmaceutical business to deliver market-leading sales growth in 2022, driven by drugs like Darzalex, Tremfya, Stelara, Erleada and the newly launched Rybrevant.
Sales of the Consumer unit are improving, withstanding external supply constraints.
As far as its Medical Devices segment is concerned, the Omicron variant softened recovery trends in medical and surgical procedures, especially toward the end of the fourth quarter. The negative impact is expected to continue in the first half of 2022. However, J&J expects the market recovery to accelerate as the year progresses as global health systems treat new patients and work through procedure backlogs. The market recovery coupled with contribution from new product launches is expected to lead to better performance in the second half of 2022. J&J launched 20 major products in 2021.
J&J is making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in 2022. J&J also plans to take a more aggressive stance for M&A activity as It expects its strong cash position to help it pursue tuck-in M&A to grow its business.
J&J has a Zacks Rank #3.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among AbbVie’s other immunology medicines, Skyrizi and Rinvoq demonstrated differentiated clinical profiles versus Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021. Image Source: Zacks Investment Research However, we expect the drug and biotech sector to rebound once the overall market recovers due to its strong fundamentals, an expected pick-up in M&A activity, including possible mega-mergers and positive pipeline and regulatory updates Here we have highlighted three bigshot drugmakers, J&J JNJ, AbbVie ABBV and Merck MRK which have outperformed the industry this year and are good stocks to hold for the next few monthsand beyond. AbbVie AbbVie’s stock has risen 9.8% this year so far. | In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion. Image Source: Zacks Investment Research However, we expect the drug and biotech sector to rebound once the overall market recovers due to its strong fundamentals, an expected pick-up in M&A activity, including possible mega-mergers and positive pipeline and regulatory updates Here we have highlighted three bigshot drugmakers, J&J JNJ, AbbVie ABBV and Merck MRK which have outperformed the industry this year and are good stocks to hold for the next few monthsand beyond. AbbVie AbbVie’s stock has risen 9.8% this year so far. | Image Source: Zacks Investment Research However, we expect the drug and biotech sector to rebound once the overall market recovers due to its strong fundamentals, an expected pick-up in M&A activity, including possible mega-mergers and positive pipeline and regulatory updates Here we have highlighted three bigshot drugmakers, J&J JNJ, AbbVie ABBV and Merck MRK which have outperformed the industry this year and are good stocks to hold for the next few monthsand beyond. In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion. AbbVie AbbVie’s stock has risen 9.8% this year so far. | Image Source: Zacks Investment Research However, we expect the drug and biotech sector to rebound once the overall market recovers due to its strong fundamentals, an expected pick-up in M&A activity, including possible mega-mergers and positive pipeline and regulatory updates Here we have highlighted three bigshot drugmakers, J&J JNJ, AbbVie ABBV and Merck MRK which have outperformed the industry this year and are good stocks to hold for the next few monthsand beyond. AbbVie AbbVie’s stock has risen 9.8% this year so far. Earnings estimates for 2022 have gone up from $14.09 to $14.18 per share while those for 2023 have moved from $12.20 to $12.50 per share over the past 60 days AbbVie's fourth-quarter results, announced last month, were mixed as it beat estimates for earnings while missing the same for sales. | 61f42e3b-f135-4215-a802-4e217c0b3ea0 |
23558.0 | 2022-03-09 00:00:00 UTC | 8 Strong Uptrend Stocks to Buy on the Next Dip | ABBV | https://www.nasdaq.com/articles/8-strong-uptrend-stocks-to-buy-on-the-next-dip | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Given the remarkable volatility we’ve seen this year, it’s a wonder there are any uptrend stocks left to find. As the saying goes, though, “There’s always a bull market somewhere.” It’s an observation that holds even in volatile 2022.
U.S. stocks topped out just days into the new year and that has allowed volatility to flourish.
First, the worry was about inflation and the Fed’s hikes. Of course, the specter of what will happen next as a result of Covid is always a pressure point. Now, as if those concerns weren’t enoguh, the focus has shifted to Eastern Europe as Russia invades Ukraine.
7 Best Long-Term Stocks to Buy for 2022
The news has caused the volatility index to roar higher, along with oil prices and gold. Other sectors — mainly energy stocks — have performed quite well too. With all that in mind, let’s look at a handful of uptrend stocks.
Chevron (NYSE:CVX)
AbbVie (NYSE:ABBV)
Coca-Cola (NYSE:KO)
Raytheon (NYSE:RTX)
Lockheed Martin (NYSE:LMT)
Freeport-McMoRan (NYSE:FCX)
Bristol-Myers Squibb (NYSE:BMY)
Alcoa (NYSE:AA)
Uptrend Stocks to Watch: Chevron (CVX)
Source: Jeff Whyte / Shutterstock.com
Chevron has been an energy sector leader, and energy has been a dominating performer over the last three, six and 12 months.
In fact, I could have listed eight energy stocks as my uptrend stocks, but I didn’t want to do that. If you want to stick to energy, though consider picking some names off this list.
As it pertains to Chevron, the company boasts a $310 billion market cap, making it the second-largest U.S. energy company behind Exxon Mobil (NYSE:XOM). Further, the company also pays out a 3.6% dividend yield.
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While shares are up 43% so far on the year, more gains may be on the way if oil prices continue to climb. Currently, Chevron is forecast to grow sales 17.5% this year and earnings by almost 40%.
Despite that, the stock trades at just 14 times earnings. The downside to all of this is that Chevron is trading alongside oil prices. If oil prices dip — and keep in mind, the headlines will move this commodity — then Chevron stock could dip as well.
Uptrend Stocks to Watch: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie has been popping up all over my relative strength list for weeks. It continues to buck the trend and anyone hiding out in this name has enjoyed a solid run in a relatively stress-free manner.
Up nearly 9% so far this year, AbbVie is a solid uptrend stock to keep on your go-to list for now. When the company reported earnings on Feb. 2, I thought there could be some risk to the name. Especially after it missed on revenue expectations.
The stock wavered, but ultimately bulls didn’t want to give up a good thing. AbbVie stock still pays out an attractive 3.75% dividend yield and trades at just over 10 times earnings.
Analysts expect roughly 11% earnings growth this year on high-single-digit revenue growth. UBS analysts recently downgraded the stock due to its valuation, but still raised their price target to $147 a share.
AbbVie will eventually cool off, but for now, it’s one of the uptrend stocks to stick with.
Uptrend Stocks to Watch: Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Feb. 10 was a big day for the beverage industry, as both Coca-Cola and PepsiCo (NYSE:PEP) reported earnings. However, PepsiCo struggled following lackluster numbers and continues to struggle almost one month later.
Coca-Cola on the other hand continues to do pretty well. In fact, shares are fresh off all-time highs.
The market is getting roiled in volatility and Coca-Cola stock is hitting new all-time highs. A Warren Buffett favorite, Coca-Cola continues to chug along without many worries even as there are more questions about the world’s stability than there has been in quite some time.
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Investors are willing to pay 25 times earnings for the stock too. Impressively though, analysts expect more than 8% revenue growth this year to go along with estimates for 5.3% growth for 2023. Earnings are forecast to climb 6% to 7.5% in 2022 and 2023, respectively.
The dependability of the company’s cash flow and earnings are on full display, driving bulls to invest. The demand for the stock is clear and its 2.8% dividend yield doesn’t hurt.
Uptrend Stocks to Watch: Raytheon (RTX)
Source: JHVEPhoto / Shutterstock.com
Chasing stocks that are headline-driven can turn out to be a disaster. That could be the case in oil and energy and it could also be the case in defense stocks.
The former group has seen strong demand for months now, while the latter has seen a more recent spike.
Shares of Raytheon are up nearly 10% so far on the year. The momentum has been more recent in this group, particularly as Russia invaded Ukraine.
Obviously there is an investment theme here, which is that defense companies will see an uptick in demand as geopolitical turmoil increases. War is never good and buying these stocks on that premise can feel like profiteering.
In some ways, I guess it is. Although Raytheon does a lot more than just make missiles. The company also makes “radars (including AESAs), electro-optical sensors, and other advanced electronics systems for airborne, naval and ground based military applications.”
Lockheed Martin (LMT)
Source: Ken Wolter / Shutterstock.com
Even though energy companies and defense contractors are seeing rising demand, that has its own risks. These uptrend stocks will quickly become “reversal stocks” should we wake up one day and the conflict is resolved.
Lockheed Martin had a good business before the Russia-Ukraine conflict and it will be a great business once there’s peace between the two sides. However, it’s hard to ignore that the stock price ramped on news of the invasion and it’s hard to deny that it will likely fall when the headlines say it’s over.
Even though revenue estimates are relatively flat for this year, consensus expectations call for roughly 17% earnings growth.
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That points to an expansion in margins, which should help the valuation. Speaking of that, shares trade at a reasonable ~16.9 times this year’s expectations, estimates of which could surely increase given the state of the world right now.
Again, we shouldn’t hope for a continuation in conflict or a drawn-out fight. But the nature of the situation is a driver for defense and energy firms.
Freeport-McMoRan (FCX)
Source: MICHAEL A JACKSON FILMS / Shutterstock.com
Freeport-McMoRan is a bit of a conglomerate, having its hands in a little bit of everything. The company mainly operates in North and South America and is headquartered in Phoenix.
It primarily mines for gold and copper, but also for molybdenum and silver. The stock has found a real wave of momentum lately.
Shares have rallied more than 40% from the January low and are now hitting new highs.
Analysts expect about 14% revenue growth this year to go alongside almost 23% earnings growth. Despite the growth, shares trade at just under 13 times earnings.
While Freeport is one of the go-to uptrend stocks at the moment, investors will need to keep their focus on gold and metal prices. A dip in these prices will likely weigh on the stock price too. That said, a continued rise in prices can push Freeport higher.
Bristol-Myers Squibb (BMY)
Source: Piotr Swat / Shutterstock.com
Like AbbVie, Bristol-Myers Squibb remains a go-to investment for investors. While the stock has been sluggish over the past few years, there’s doubt about the demand for the stock right now.
I have liked Bristol-Myers for a long time. I liked it before its huge acquisition of Celgene for $74 billion in 2019 and loved it after. While Bristol-Myers and Celgene have not received much love, the stock has been performing much better lately.
Plus it’s a great asset amid the high volatility. The stock pays out a 3% dividend yield — are you sensing a theme here yet? — and trades at a low valuation.
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Despite the stock price rallying almost 30% since Dec. 1, shares trade at just 8.8 times earnings. While the growth is modest — estimates call for earnings growth of just 4% and 6% this year and next year, respectively — it’s dependable and that’s what investors are looking for right now.
Alcoa (AA)
Source: Daniel J. Macy / Shutterstock.com
Now circling back to basic materials, Alcoa is one of our uptrend stocks to watch as well. Like energy stocks, Alcoa has been booming on the upside.
Shares are up about 14% over the past month and more than 175% over the past 12 months.
Despite the enormous rally, Alcoa’s earnings are exploding as well. Now forecast to earn more than $8 a share this year, the stock trades at just over 10 times earnings. That’s not a rich price for more than 20% earnings growth.
When this trend cools, so too will Alcoa, but until then, it remains one of our uptrend stocks to watch.
Driving the move in earnings and the stock price is aluminum prices, which are hitting new records and have jumped 37% since mid-December.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 8 Strong Uptrend Stocks to Buy on the Next Dip appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Chevron (NYSE:CVX) AbbVie (NYSE:ABBV) Coca-Cola (NYSE:KO) Raytheon (NYSE:RTX) Lockheed Martin (NYSE:LMT) Freeport-McMoRan (NYSE:FCX) Bristol-Myers Squibb (NYSE:BMY) Alcoa (NYSE:AA) Uptrend Stocks to Watch: Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Chevron has been an energy sector leader, and energy has been a dominating performer over the last three, six and 12 months. Uptrend Stocks to Watch: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie has been popping up all over my relative strength list for weeks. Up nearly 9% so far this year, AbbVie is a solid uptrend stock to keep on your go-to list for now. | Chevron (NYSE:CVX) AbbVie (NYSE:ABBV) Coca-Cola (NYSE:KO) Raytheon (NYSE:RTX) Lockheed Martin (NYSE:LMT) Freeport-McMoRan (NYSE:FCX) Bristol-Myers Squibb (NYSE:BMY) Alcoa (NYSE:AA) Uptrend Stocks to Watch: Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Chevron has been an energy sector leader, and energy has been a dominating performer over the last three, six and 12 months. Uptrend Stocks to Watch: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie has been popping up all over my relative strength list for weeks. Bristol-Myers Squibb (BMY) Source: Piotr Swat / Shutterstock.com Like AbbVie, Bristol-Myers Squibb remains a go-to investment for investors. | Chevron (NYSE:CVX) AbbVie (NYSE:ABBV) Coca-Cola (NYSE:KO) Raytheon (NYSE:RTX) Lockheed Martin (NYSE:LMT) Freeport-McMoRan (NYSE:FCX) Bristol-Myers Squibb (NYSE:BMY) Alcoa (NYSE:AA) Uptrend Stocks to Watch: Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Chevron has been an energy sector leader, and energy has been a dominating performer over the last three, six and 12 months. Uptrend Stocks to Watch: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie has been popping up all over my relative strength list for weeks. Up nearly 9% so far this year, AbbVie is a solid uptrend stock to keep on your go-to list for now. | Chevron (NYSE:CVX) AbbVie (NYSE:ABBV) Coca-Cola (NYSE:KO) Raytheon (NYSE:RTX) Lockheed Martin (NYSE:LMT) Freeport-McMoRan (NYSE:FCX) Bristol-Myers Squibb (NYSE:BMY) Alcoa (NYSE:AA) Uptrend Stocks to Watch: Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Chevron has been an energy sector leader, and energy has been a dominating performer over the last three, six and 12 months. Uptrend Stocks to Watch: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie has been popping up all over my relative strength list for weeks. Up nearly 9% so far this year, AbbVie is a solid uptrend stock to keep on your go-to list for now. | f711dde9-f0e0-40a1-940d-3cc82da27006 |
23559.0 | 2022-03-08 00:00:00 UTC | AbbVie Resolves All U.S. HUMIRA Litigation With Alvotech | ABBV | https://www.nasdaq.com/articles/abbvie-resolves-all-u.s.-humira-litigation-with-alvotech | nan | nan | (RTTNews) - AbbVie (ABBV) said that it has resolved all U.S. HUMIRA (adalimumab) litigation with Alvotech.
As per the terms of the resolution, AbbVie will grant Alvotech a non-exclusive license to its HUMIRA-related patents in the United States, which will begin on July 1, 2023.
AbbVie will make no payments of any form to Alvotech, and Alvotech will pay royalties to AbbVie for licensing its HUMIRA patents and acknowledges the validity and enforceability of the licensed patents.
Alvotech noted that the settlement fully resolves all pending U.S. disputes between the companies related to AVT02, including the United States International Trade Commission (ITC) case brought forth in December 2021, thus removing any corresponding litigation-related barriers blocking Alvotech's high-concentration version of adalimumab from reaching U.S. patients.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that it has resolved all U.S. HUMIRA (adalimumab) litigation with Alvotech. As per the terms of the resolution, AbbVie will grant Alvotech a non-exclusive license to its HUMIRA-related patents in the United States, which will begin on July 1, 2023. AbbVie will make no payments of any form to Alvotech, and Alvotech will pay royalties to AbbVie for licensing its HUMIRA patents and acknowledges the validity and enforceability of the licensed patents. | (RTTNews) - AbbVie (ABBV) said that it has resolved all U.S. HUMIRA (adalimumab) litigation with Alvotech. As per the terms of the resolution, AbbVie will grant Alvotech a non-exclusive license to its HUMIRA-related patents in the United States, which will begin on July 1, 2023. AbbVie will make no payments of any form to Alvotech, and Alvotech will pay royalties to AbbVie for licensing its HUMIRA patents and acknowledges the validity and enforceability of the licensed patents. | AbbVie will make no payments of any form to Alvotech, and Alvotech will pay royalties to AbbVie for licensing its HUMIRA patents and acknowledges the validity and enforceability of the licensed patents. (RTTNews) - AbbVie (ABBV) said that it has resolved all U.S. HUMIRA (adalimumab) litigation with Alvotech. As per the terms of the resolution, AbbVie will grant Alvotech a non-exclusive license to its HUMIRA-related patents in the United States, which will begin on July 1, 2023. | (RTTNews) - AbbVie (ABBV) said that it has resolved all U.S. HUMIRA (adalimumab) litigation with Alvotech. As per the terms of the resolution, AbbVie will grant Alvotech a non-exclusive license to its HUMIRA-related patents in the United States, which will begin on July 1, 2023. AbbVie will make no payments of any form to Alvotech, and Alvotech will pay royalties to AbbVie for licensing its HUMIRA patents and acknowledges the validity and enforceability of the licensed patents. | 6944b4c4-e720-4eec-8e05-4fd1ed94fb2c |
23560.0 | 2022-03-08 00:00:00 UTC | AbbVie (ABBV) Outperforms Industry This Year So Far: What Next? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outperforms-industry-this-year-so-far%3A-what-next | nan | nan | AbbVie ABBV stock has risen 11.6% this year so far compared with a decrease of 3.1% for the industry.
Image Source: Zacks Investment Research
AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has already lost patent protection in Europe and is due to face biosimilar competition in the United States in 2023. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica, which it markets in partnership with J&J JNJ. Its newest immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib) position it well for long-term growth.
AbbVie's fourth-quarter results, announced last month, were mixed as it beat estimates for earnings while missing the same for sales. However, its sales rose 7.4% year over year driven by the immunology and aesthetics franchises. Its oncology franchise is also contributing to sales growth. Its financial outlook for 2022 was also quite encouraging.
Humira continues to witness strong demand trends in the United States despite new mechanisms of action and competition from indirect biosimilars. Currently approved for several indications, Humira sales have increased consistently, backed by robust demand trends.
Among AbbVie’s other immunology medicines, Skyrizi and Rinvoq demonstrated differentiated clinical profiles versus Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021. Both Skyrizi and Rinvoq were approved for active psoriatic arthritis in 2021/early 2022. Rinvoq was also approved for atopic dermatitis. With such new indications coming in the next couple of years, sales of these drugs could be higher and have the potential to replace Humira when generics are launched in 2023.
In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion.
AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025.
In its oncology franchise, the strong growth of Venclexta sales is making up for lower U.S. sales of J&J-partnered Imbruvica. U.S. sales of AbbVie/J&J’s Imbruvica are being hurt by lower new patient starts in CLL due to a slower-than-expected market recovery from the COVID-19 pandemic and increasing competition from newer therapies.
AbbVie markets Venclexta/Venclyxto in partnership with Roche RHHBY. AbbVie and Roche jointly commercialize Venclexta in the United States while AbbVie markets it outside the country.
Strong share performance across all approved indications is boosting sales of Venclexta/Venclyxto.
In 2022, Imbruvica global revenues are expected to be approximately $5.4 billion. The Imbruvica guidance assumes recovery of the CLL market, which is expected to be partially offset by share erosion from increased competition. Venclexta global sales are expected to be approximately $2.3 billion.
Robust demand for Botox Cosmetic and Juvederm is boosting sales of AbbVie’s aesthetics franchise, helped by a strong recovery from the pandemic. In 2022, AbbVie expects the global aesthetics franchise to generate global sales of approximately $5.9 billion including $2.6 billion for Botox Cosmetic and $1.7 billion from Juvederm.
Some of AbbVie’s newer medicines like Ubrelvy and Qulipta have started off well and sales are expected to pick up in 2022.
AbbVie also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Several data readouts are expected in 2022, which could be catalysts for the stock.
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the drug/biotech sector is Vertex Pharmaceuticals VRTX which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex Pharmaceuticals’ stock has risen 7.3% this year. Estimates for Vertex Pharmaceuticals’ 2022 earnings have gone up from $13.32 to $14.52 per share, while those for 2023 have increased from $14.10 to $15.31 per share over the past 60 days.
Vertex Pharmaceuticals’ earnings performance has been strong, with the company beating expectations in each of the last four quarters. Vertex Pharmaceuticals has a four-quarter earnings surprise of 10.01%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Roche Holding AG (RHHBY): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has already lost patent protection in Europe and is due to face biosimilar competition in the United States in 2023. Among AbbVie’s other immunology medicines, Skyrizi and Rinvoq demonstrated differentiated clinical profiles versus Humira and are already contributing meaningful revenues, including $4.6 billion in combined sales in 2021. | In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion. Robust demand for Botox Cosmetic and Juvederm is boosting sales of AbbVie’s aesthetics franchise, helped by a strong recovery from the pandemic. In 2022, AbbVie expects the global aesthetics franchise to generate global sales of approximately $5.9 billion including $2.6 billion for Botox Cosmetic and $1.7 billion from Juvederm. | In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion. AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $15 billion by 2025. In 2022, AbbVie expects the global aesthetics franchise to generate global sales of approximately $5.9 billion including $2.6 billion for Botox Cosmetic and $1.7 billion from Juvederm. | In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion. AbbVie ABBV stock has risen 11.6% this year so far compared with a decrease of 3.1% for the industry. Image Source: Zacks Investment Research AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. | d7f134fe-55b4-46c2-8af7-ae41a41b554b |
23561.0 | 2022-03-08 00:00:00 UTC | Top Analyst Reports for Microsoft, Amazon & NVIDIA | ABBV | https://www.nasdaq.com/articles/top-analyst-reports-for-microsoft-amazon-nvidia | nan | nan | Tuesday, March 8, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), Amazon.com, Inc. (AMZN) and NVIDIA Corporation (NVDA). 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 Microsoft have outperformed the Zacks Computer - Software industry over the past year (+19.3% vs. +11.6%), with the stock benefiting from strength in its Azure cloud platform amid accelerated global digital transformation as reflected by the second-quarter fiscal 2022 results. Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model. Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance.
The company is witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenues to grow in the mid-teens range, driven by strong demand for premium devices. However, stiff competition in the cloud space is likely to dent margins.
(You can read the full research report on Microsoft here >>>)
Shares of Amazon have outperformed the Zacks Internet – Commerce industry over the past two-year period (+52.7% vs. -25.9%) on the back of solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Further, strengthening relationship with third-party sellers is a positive. Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Also, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.
Further, robust Alexa skills and expanding smart home products portfolio are positives. Additionally, the company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. However, growing expenses associated with supply-chain constraints and labor supply shortages remain concerns.
(You can read the full research report on Amazon here >>>)
Shares of NVIDIA have outperformed the Zacks Semiconductor - General industry over the past year (+70.5% vs. +20.5%). The Zacks analyst believes that NVIDIA is benefiting from the coronavirus-induced work and learn-from-home wave. It is also benefiting from strong growth in GeForce desktop and notebook Graphic Processing Units, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon.
Additionally, collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. However, management expects COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.
(You can read the full research report on NVIDIA here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), HSBC Holdings plc (HSBC) and Visa Inc. (V).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)
Featured Reports
AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. It has several new drugs which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Rising Visitors Aid Hawaiian Electric (HE), COVID Issues Hit
Per the Zacks analyst, rising visitor arrivals in Hawaii driven by recovering economy have been boosting Hawaiian Electric. Yet COVID-19 induced supply chain disruption might hurt the stock
Chip Crunch to Hurt Tenneco (TEN) Amid Cost-Saving Efforts
The Zacks analyst remains cautious as the ongoing chip crunch is likely to dampen Tenneco's revenues despite the firm gaining from a structural cost-discipline strategy and capex reductions.
Workday (WDAY) Rides on Solid Demand, Subscriber Traction
Per the Zacks analyst, Workday is likely to benefit from the growing adoption of subscription-based software solutions with the gradual revival of business operations in the post-pandemic era.
Buyouts & Focus on Entry-Level Buyers Aid PulteGroup (PHM)
Per the Zacks analyst, PulteGroup continues to benefit from its land acquisition strategies that have resulted in higher revenues and profitability.
Business Restructuring Aids HSBC (HSBC), Weak Revenues a Woe
Per the Zacks analyst, HSBC's business restructuring efforts, with plans to expand in Asia, and focus on profitable core businesses will aid financials. Yet, muted revenue growth is a major concern.
Growing Top-line Aid Visa (V), Elevated Expenses Hurt
Per the Zacks analyst, its rising revenues driven by new and renewed agreements, accretive buyouts and expansion of offerings has led to significant growth.
New Upgrades
SM Energy (SM) Banks On High-Grade Austin Chalk Inventory
The Zacks analyst is impressed by SM Energy's high-quality inventory of the Austin Chalk play, which has been leading to encouraging results due to the additional wells drilled in the region.
Trinity (TRN) Backed by Railcar Demand, Dividends & Buybacks
The Zacks analyst is encouraged by Trinity's growth owing to increase in demand for railcars. The company's efforts to reward its shareholders through dividends and share buybacks are impressive.
Strategic Growth Efforts to Support Hancock Whitney (HWC)
Per the Zacks analyst, Hancock Whitney's investments in growth markets are expected to be accretive to earnings and bolster presence in the area. Solid loan balances position it well for the future.
New Downgrades
Forex Volatility, Rising Expenses Concern Reinsurance Group (RGA)
Per the Zacks analyst, increasing expenses due to higher claims, interest credited and operating costs continues to affect the top line. Forex fluctuation raises financial risk.
Freight & Supply-Chain Costs Hurt Burlington Stores (BURL)
Per the Zacks analyst, Burlington Stores is witnessing higher freight and supply-chain costs for a while now. These costs have been hurting its margins and overall profitability.
Overdependence on NanoKnife Impairs AngioDynamics (ANGO)
The Zacks analyst is worried about AngioDynamics' overdependence on NanoKnife, which is limited to the surgical ablation of soft tissue. Pricing pressure is an added issue.
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
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
HSBC Holdings plc (HSBC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (You can read the full research report on NVIDIA here >>>) Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), HSBC Holdings plc (HSBC) and Visa Inc. (V). Today's Must Read Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA) Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. AbbVie Inc. (ABBV): Free Stock Analysis Report | Today's Must Read Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA) Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. (You can read the full research report on NVIDIA here >>>) Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), HSBC Holdings plc (HSBC) and Visa Inc. (V). AbbVie Inc. (ABBV): Free Stock Analysis Report | Today's Must Read Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA) Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. (You can read the full research report on NVIDIA here >>>) Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), HSBC Holdings plc (HSBC) and Visa Inc. (V). AbbVie Inc. (ABBV): Free Stock Analysis Report | Today's Must Read Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA) Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. (You can read the full research report on NVIDIA here >>>) Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), HSBC Holdings plc (HSBC) and Visa Inc. (V). AbbVie Inc. (ABBV): Free Stock Analysis Report | 904187d6-5c61-41fc-9377-14bc097bda16 |
23562.0 | 2022-03-07 00:00:00 UTC | What's Next For Merck Stock After A 6% Fall In A Month? | ABBV | https://www.nasdaq.com/articles/whats-next-for-merck-stock-after-a-6-fall-in-a-month | nan | nan | The stock price of Merck (NYSE: MRK) has seen a fall of 6% over the last month, while it is down 1% year-to-date. This marks a better performance than the broader markets, with the S&P500 down 6% over the last month but down 10% so far this year. The decline in broader markets can be attributed to the geopolitical tensions with Russia and Ukraine and its impact on oil prices.
On the positive side, Merck’s Q4 results (announced last month) were comfortably above the street estimates aided by its Covid-19 pill sales, along with continued market share gains for its top-selling drug – Keytruda. Looking forward, the company has guided for a mid-to-high teens revenue growth in 2022. In our previous updates on Merck stock, we maintained our view that MRK stock is undervalued, and now this dip can be used as a buying opportunity. We estimate Merck’s Valuation to be around $100 per share, reflecting a 31% upside from its current levels of $76.
But what about the near term? Since MRK stock has seen a fall of 6% in a month, will it continue its downward trajectory, or is a rise imminent? Going by its historical performance, there is a higher chance of an increase in MRK stock over the next month. Out of 201 instances in the last ten years that MRK stock saw a twenty-one-day fall of 6% or more, 136 of them resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 136 out of 201, or about a 68% chance of a rise in MRK stock over the coming month. See our analysis on Merck Stock Chances of Rise for more details.
While MRK stock may see higher levels over the next month, seeing how its peers stack up is helpful. Check out Merck Peers to see how MRK stock compares against peers on metrics that matter. You can find more useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years’ data
After moving 0.5% or more over five days, the stock rose on 52% of the occasions in the next five days.
After moving -0.2% or more over ten days, the stock rose in the next ten days on 56% of the occasions
After moving -5.6% or more over a twenty-one-day period, the stock rose on 68% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in MRK stock over the next five days, ten days, and one month.
Merck (MRK) Stock Return (Recent) Comparison With Peers
Five-Day Return: LLY highest at 4.3%; PFE lowest at -3.7%
Ten-Day Return: LLY highest at 6.3%; PFE lowest at -8.1%
Twenty-One Days Return: BMY highest at 5.7%; PFE lowest at -15.8%
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MRK stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Medtronic vs. IDEXX Laboratories.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return 0% 0% 30%
S&P 500 Return -1% -10% 92%
Trefis MS Portfolio Return 0% -11% 252%
[1] Month-to-date and year-to-date as of 3/2/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The decline in broader markets can be attributed to the geopolitical tensions with Russia and Ukraine and its impact on oil prices. On the positive side, Merck’s Q4 results (announced last month) were comfortably above the street estimates aided by its Covid-19 pill sales, along with continued market share gains for its top-selling drug – Keytruda. This historical pattern reflects 136 out of 201, or about a 68% chance of a rise in MRK stock over the coming month. | Merck (MRK) Stock Return (Recent) Comparison With Peers Five-Day Return: LLY highest at 4.3%; PFE lowest at -3.7% Ten-Day Return: LLY highest at 6.3%; PFE lowest at -8.1% Twenty-One Days Return: BMY highest at 5.7%; PFE lowest at -15.8% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MRK stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] MRK Return 0% 0% 30% S&P 500 Return -1% -10% 92% Trefis MS Portfolio Return 0% -11% 252% [1] Month-to-date and year-to-date as of 3/2/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Out of 201 instances in the last ten years that MRK stock saw a twenty-one-day fall of 6% or more, 136 of them resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). Merck (MRK) Stock Return (Recent) Comparison With Peers Five-Day Return: LLY highest at 4.3%; PFE lowest at -3.7% Ten-Day Return: LLY highest at 6.3%; PFE lowest at -8.1% Twenty-One Days Return: BMY highest at 5.7%; PFE lowest at -15.8% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] MRK Return 0% 0% 30% S&P 500 Return -1% -10% 92% Trefis MS Portfolio Return 0% -11% 252% [1] Month-to-date and year-to-date as of 3/2/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While MRK stock may see higher levels over the next month, seeing how its peers stack up is helpful. This pattern suggests a higher chance of a rise in MRK stock over the next five days, ten days, and one month. Total [2] MRK Return 0% 0% 30% S&P 500 Return -1% -10% 92% Trefis MS Portfolio Return 0% -11% 252% [1] Month-to-date and year-to-date as of 3/2/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | b02dca53-c904-4a16-92f8-64782ec8826f |
23563.0 | 2022-03-06 00:00:00 UTC | You Could Make $48,840 in Annual Income by Buying These 10 Stocks | ABBV | https://www.nasdaq.com/articles/you-could-make-%2448840-in-annual-income-by-buying-these-10-stocks | nan | nan | Let first give you the cold, hard truth. It takes money to make money. You're not going to magically receive a significant income each year without having a hefty amount of cash to invest.
But the good news is that many Americans who have consistently saved and invested throughout their careers can retire with $1 million or more. And $1 million is enough to potentially generate quite a bit of money on a recurring basis. You could make $48,840 in annual income by buying these 10 stocks.
Image source: Getty Images.
Energy
Many energy stocks offer attractive dividends. There are four that I especially like.
Devon Energy (NYSE: DVN) boasts a market-leading dividend yield that's roughly six times higher than that of the S&P 500. The oil and gas producer's dividend has two components -- fixed and variable. The fixed dividend yield currently stands at 4.55%. Devon also uses up to 50% of its excess free cash flow to fund a variable dividend. The company expects its combined dividend yield will be around 8% in 2022.
Enterprise Products Partners (NYSE: EPD) doesn't trail far behind Devon. The midstream energy company pays a dividend that yields 7.55%. Enterprise also has a great dividend track record with 23 consecutive years of distribution increases.
Warren Buffett bought only seven stocks for Berkshire Hathaway in the fourth quarter of 2021. Chevron (NYSE: CVX) was one of them. The oil and gas giant's dividend yields 3.68%.
The energy sector doesn't only include companies focusing on fossil fuels. Brookfield Renewable Corporation (NYSE: BEPC) ranks as a leader in renewable energy with its hydroelectric, solar, and wind facilities. The stock is also a great pick for income investors with its yield of 3.41%.
Healthcare
You wouldn't want to tie up too much of your money in one sector. Fortunately, there are several other areas that are attractive for dividend seekers, notably including healthcare.
AbbVie (NYSE: ABBV) stands out as one of the top healthcare stocks for income investors. It's a Dividend King with 50 consecutive years of dividend increases. The big drugmaker's dividend yields 3.77%. And even with its top-selling drug, Humira, facing loss of U.S. exclusivity next year, AbbVie should be in great shape to keep growing its dividend.
Pfizer (NYSE: PFE) is another big pharmaceutical company with a strong dividend. Its dividend yields 3.35%. Pfizer is poised to generate massive cash flow over the next few years thanks to its COVID-19 vaccine Comirnaty and COVID-19 pill Paxlovid.
REITs
Real estate investment trusts (REITs) are favorites for income investors for a good reason. They must return at least 90% of taxable income to shareholders in the form of dividends.
Easterly Government Properties (NYSE: DEA) ranks as one of the safest REITs on the market. The company has arguably the most dependable tenant in the world -- the U.S. government. Easterly's dividend yield tops 5%.
Medical Properties Trust (NYSE: MPW) is a healthcare REIT that owns around 440 hospitals in nine countries. Its business is solid and generates enough cash for the company to pay a dividend that yields 5.72%.
Other
There are two other dividend stocks to buy that provide juicy dividends. You might not be familiar with the first one but almost certainly know the second one.
Brookfield Infrastructure Partners (NYSE: BIP) is sort of a sibling to Brookfield Renewable, with both companies sharing the same management company. As its name indicates, Brookfield Infrastructure owns infrastructure assets. Those assets include cell towers, data centers, ports, toll roads, utilities, and more. The company's dividend yields 3.58%.
Verizon Communications (NYSE: VZ), of course, is a telecommunications giant that's a household name. Its stock has rightfully deserved a wide following among income investors with a dividend yield of 4.73%.
Adding it all up
Now, let's look at how investing in these 10 stocks could make you an income of nearly $50,000 per year. The following table shows what each stock could generate in annual dividends with an initial investment of $100,000.
STOCK
DIVIDEND YIELD
ANNUAL INCOME
Devon Energy ~8% $8,000
Enterprise Products Partners 7.55% $7,550
Chevron 3.68% $3,680
Brookfield Renewable Corporation 3.41% $3,410
AbbVie 3.77% $3,770
Pfizer 3.35% $3,350
Easterly Government Properties 5.05% $5,050
Medical Properties Trust 5.72% $5,720
Brookfield Infrastructure Partners 3.58% $3,580
Verizon Communications 4.73% $4,730
Total: $48,840
Data source for dividend yields: Yahoo! Finance.
Even better, these stocks offer pretty good growth prospects. The energy sector should be especially strong in 2022. Brookfield Renewable, in particular, could deliver great returns for a long time to come with the increased adoption of renewable energy. AbbVie and Pfizer project solid growth throughout most of this decade. The other companies also have good growth opportunities.
It's wise to consult professionals when determining how to invest your retirement money to ensure you're properly diversified. However, this exercise shows that it's quite possible to make a significant income by buying solid dividend stocks.
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Keith Speights owns AbbVie, Berkshire Hathaway (B shares), Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Devon Energy, Enterprise Products Partners, and Pfizer. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Brookfield Renewable Corporation Inc. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Partners, Easterly Government Properties, Enterprise Products Partners, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And even with its top-selling drug, Humira, facing loss of U.S. exclusivity next year, AbbVie should be in great shape to keep growing its dividend. Devon Energy ~8% $8,000 Enterprise Products Partners 7.55% $7,550 Chevron 3.68% $3,680 Brookfield Renewable Corporation 3.41% $3,410 AbbVie 3.77% $3,770 Pfizer 3.35% $3,350 Easterly Government Properties 5.05% $5,050 Medical Properties Trust 5.72% $5,720 Brookfield Infrastructure Partners 3.58% $3,580 Verizon Communications 4.73% $4,730 Total: $48,840 Data source for dividend yields: Yahoo! AbbVie (NYSE: ABBV) stands out as one of the top healthcare stocks for income investors. | Devon Energy ~8% $8,000 Enterprise Products Partners 7.55% $7,550 Chevron 3.68% $3,680 Brookfield Renewable Corporation 3.41% $3,410 AbbVie 3.77% $3,770 Pfizer 3.35% $3,350 Easterly Government Properties 5.05% $5,050 Medical Properties Trust 5.72% $5,720 Brookfield Infrastructure Partners 3.58% $3,580 Verizon Communications 4.73% $4,730 Total: $48,840 Data source for dividend yields: Yahoo! See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie, Berkshire Hathaway (B shares), Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Devon Energy, Enterprise Products Partners, and Pfizer. AbbVie (NYSE: ABBV) stands out as one of the top healthcare stocks for income investors. | Devon Energy ~8% $8,000 Enterprise Products Partners 7.55% $7,550 Chevron 3.68% $3,680 Brookfield Renewable Corporation 3.41% $3,410 AbbVie 3.77% $3,770 Pfizer 3.35% $3,350 Easterly Government Properties 5.05% $5,050 Medical Properties Trust 5.72% $5,720 Brookfield Infrastructure Partners 3.58% $3,580 Verizon Communications 4.73% $4,730 Total: $48,840 Data source for dividend yields: Yahoo! See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie, Berkshire Hathaway (B shares), Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Devon Energy, Enterprise Products Partners, and Pfizer. AbbVie (NYSE: ABBV) stands out as one of the top healthcare stocks for income investors. | Devon Energy ~8% $8,000 Enterprise Products Partners 7.55% $7,550 Chevron 3.68% $3,680 Brookfield Renewable Corporation 3.41% $3,410 AbbVie 3.77% $3,770 Pfizer 3.35% $3,350 Easterly Government Properties 5.05% $5,050 Medical Properties Trust 5.72% $5,720 Brookfield Infrastructure Partners 3.58% $3,580 Verizon Communications 4.73% $4,730 Total: $48,840 Data source for dividend yields: Yahoo! AbbVie (NYSE: ABBV) stands out as one of the top healthcare stocks for income investors. And even with its top-selling drug, Humira, facing loss of U.S. exclusivity next year, AbbVie should be in great shape to keep growing its dividend. | 66b6fcd2-c463-4a8b-b91f-2e724f769c08 |
23564.0 | 2022-03-05 00:00:00 UTC | 4 Defensive Stocks To Watch As Russia-Ukraine War Intensifies | ABBV | https://www.nasdaq.com/articles/4-defensive-stocks-to-watch-as-russia-ukraine-war-intensifies | nan | nan | Do You Have These Defensive Stocks On Your March 2022 Watchlist?
Among the main concerns on investors’ minds now would be the ongoing war in Ukraine and upcoming interest rate hikes. With these two daunting factors to consider moving forward, defensive stocks could be in focus in the stock market now. Overall, markets have and continue to remain volatile as fighting between Ukraine and Russia enters a second week. On this front, Russian forces have reportedly seized a nuclear power plant in Ukraine. With all this in mind, it would make sense that investors are keen to go on the defensive now.
For those uninitiated, defensive stocks mainly consist of firms that operate in vital industries. The likes of which see constant demand for their offerings, regardless of economic cycles. Additionally, some would also look at companies that offer regular dividends as well. To highlight, notable examples now would be oil firms such as ConocoPhillips (NYSE: COP) and retailers like Target (NYSE: TGT). On one hand, ConocoPhillips is a prominent oil industry player that offers a 2.4% annual dividend and remains in focus amidst rising oil prices. On the other hand, Target has a 1.6% annual dividend and recently posted solid figures in its latest quarterly financial update. Safe to say, there is no shortage of exciting news in the defensive segments of the market. Could one of these defensive stocks be top picks in the stock market today?
Defensive Stocks To Watch Right Now
Costco Wholesale Corporation (NASDAQ: COST)
Algonquin Power & Utilities Corporation (NYSE: AQN)
AbbVie Inc. (NYSE: ABBV)
Energizer Holdings Inc. (NYSE: ENR)
Costco Wholesale
Costco would be a notable name in the defensive space to consider now. After all, the company mainly operates as a big-box retailer. In essence, this translates to a retail store that allows shoppers to purchase groceries in large amounts. This would prove to make Costco a go-to for plenty of consumers during the initial onslaught of the coronavirus pandemic.
Since it reported earnings after yesterday’s closing bell, investors could be taking a closer look at COST stock now. All in all, Costco beat consensus estimates across the board. It posted a total revenue of $51.9 billion alongside earnings of $2.94 per share. For reference, this is versus Wall Street forecasts of $51.47 billion and $2.74 respectively.
According to the retailer, consumer spending habits remain strong as pandemic-era goods continue to fly off shelves. At the same time, Costco notes that there is also growing demand for its high-margin offerings. Moreover, Costco is also looking at a comparable sales gain of 11.1% year-over-year. This is well above general estimates of an 8.74% rise. According to CFO Richard Galanti, the company continues to stay in stock while mitigating cost and price increases now. This would be despite global supply chain pressures. With all this in mind, would COST stock be worth watching in your books?
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Algonquin Power & Utilities
Algonquin Power & Utilities, or AQN for short, is a Canadian renewable energy and regulated utility conglomerate. For the most part, the company actively invests in hydroelectric, wind and solar power facilities, and utility businesses. Additionally, it does so through its three operating subsidiaries. The three being the Bermuda Electric Light Company, Liberty Power, and Liberty Utilities. Yesterday, the utility company yesterday reported its rather steady quarterly earnings.
Diving in, revenue for the quarter came in at $594.8 million, up by 21% year-over-year. Moving on, its adjusted net earnings were reported to be $136.3 million, a gain of 7% compared to a year ago. Other highlights include its agreement to acquire Sandhill Advanced Biofuels, a renewable natural gas development platform.
Notably, Sandhill specializes in anaerobic digestion projects located on dairy farms. AQN also provided its guidance for the year. Namely, it estimates adjusted earnings per share to be within the range of $0.72 to $0.77 for the fiscal year 2022. With that being said, would you invest in AQN stock?
AbbVie
Following that is leading biopharmaceutical company AbbVie. It primarilyfocuses on developing treatments for a wide array of therapeutic areas. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. Additionally, the company also offers aesthetics-based treatments via its Allergan Aesthetics portfolio. In the past year, ABBV stock has risen by over 40%. On Tuesday, the company announced that it finally completed its acquisition of Syndesi Therapeutics.
Evidently, this acquisition will help to expand AbbVie’s neuroscience portfolio as this gives the company access to Syndesi’s portfolio of novel modulators. Namely, its lead molecule SDI-118 is being evaluated for the potential treatment of neurodegenerative disorders such as Alzheimer’s disease and major depressive disorder.
CEO Jonathan Savidge says, “I am delighted with the closing of this deal. It has been a pleasure to partner with our investors to investigate the potential of SDI-118 in early clinical studies. Now, as part of AbbVie, the program is well-positioned to move into later stages of clinical development.” Given the potential of its lead molecule, is ABBV stock a buy?
[Read More] 3 Fertilizer Stocks To Watch In The Stock Market Today
Energizer
Energizer is one of the world’s largest manufacturers of primary batteries and portable lighting products. It is also a leading designer and marketer of automotive fragrance and appearance products. The company’s brands include Energizer and Eveready. For a sense of scale, Energizer has six operational facilities in the U.S. and one in Singapore for the markets in Asia and Oceania. Last month, the company reported its fiscal first-quarter financials.
Net sales came in at $846.3 million for the quarter thanks to strong demand and pricing actions. In addition, the company also said that it enjoyed increased distribution and improved fill rates. Besides, the company reported earnings per share of $0.83 for the quarter.
Furthermore, it reaffirmed its fiscal-year outlook for net sales and adjusted earnings per share. Despite the volatile operating environment, the company’s improved inventory planning and supply chain durability has enabled it to deliver one of its most important quarters yet. Considering all this, would you be adding ENR stock to your watchlist?
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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. | Now, as part of AbbVie, the program is well-positioned to move into later stages of clinical development.” Given the potential of its lead molecule, is ABBV stock a buy? Defensive Stocks To Watch Right Now Costco Wholesale Corporation (NASDAQ: COST) Algonquin Power & Utilities Corporation (NYSE: AQN) AbbVie Inc. (NYSE: ABBV) Energizer Holdings Inc. (NYSE: ENR) Costco Wholesale Costco would be a notable name in the defensive space to consider now. AbbVie Following that is leading biopharmaceutical company AbbVie. | Defensive Stocks To Watch Right Now Costco Wholesale Corporation (NASDAQ: COST) Algonquin Power & Utilities Corporation (NYSE: AQN) AbbVie Inc. (NYSE: ABBV) Energizer Holdings Inc. (NYSE: ENR) Costco Wholesale Costco would be a notable name in the defensive space to consider now. AbbVie Following that is leading biopharmaceutical company AbbVie. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. | Defensive Stocks To Watch Right Now Costco Wholesale Corporation (NASDAQ: COST) Algonquin Power & Utilities Corporation (NYSE: AQN) AbbVie Inc. (NYSE: ABBV) Energizer Holdings Inc. (NYSE: ENR) Costco Wholesale Costco would be a notable name in the defensive space to consider now. AbbVie Following that is leading biopharmaceutical company AbbVie. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. | Defensive Stocks To Watch Right Now Costco Wholesale Corporation (NASDAQ: COST) Algonquin Power & Utilities Corporation (NYSE: AQN) AbbVie Inc. (NYSE: ABBV) Energizer Holdings Inc. (NYSE: ENR) Costco Wholesale Costco would be a notable name in the defensive space to consider now. AbbVie Following that is leading biopharmaceutical company AbbVie. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. | 23b96bd5-81b0-4474-b521-eab86fda68e9 |
23565.0 | 2022-03-05 00:00:00 UTC | 1 Healthcare Stock That Could Fly Higher After a Strong Q4 | ABBV | https://www.nasdaq.com/articles/1-healthcare-stock-that-could-fly-higher-after-a-strong-q4 | nan | nan | The pharmaceutical business can be challenging for companies and investors as money is poured into developing drugs that may or may not achieve U.S. Food and Drug Administration (FDA) or international approval to market and sell.
Innoviva (NASDAQ: INVA) approaches investing in pharmaceuticals differently. It doesn't market or sell any of the drugs that generate the company's revenue -- and have helped its stock soar 108% from its pandemic low in March 2020. That run-up in stock price may just be the start of something even bigger for investors.
Image Source: Getty Images.
How it works
Innoviva provides funding to pharmaceutical companies in exchange for royalty payments based on sales. The money paid out helps the drugmakers progress with development, manufacturing, and marketing. Innoviva's portfolio of royalties is anchored by a partnership with GlaxoSmithKline along with a growing stable of healthcare investments in companies focusing on significant unmet medical needs.
The partnership with GSK is the primary revenue generator for Innoviva and is based on a portfolio of Ellipta inhalers offered globally across four brand names, each aimed at treating and preventing breathing issues brought on by respiratory conditions such as COPD and asthma.
As part of the initial partnership, GSK invested in Innoviva as well, owning approximately one-third of the company's outstanding shares. But in May 2021, that part of the partnership changed, benefiting both companies' future growth. GSK sold its 32 million shares of Innoviva back to Innoviva at a price of $12.29 per share. The sale allowed GSK to raise proceeds of $392 million to use toward future investments.
Fortunately for Innoviva, the timing of the stock transaction was just right. Its stock was on a rebound after a pandemic low and has since grown by 50% in less than a year, basically covering half of its expense to buy back the shares.
Potential for further royalty growth
Innoviva saw 18% and 19% increases in revenue during fourth-quarter and full-year 2021, respectively, amounting to $111 million for the quarter and $405 million for the year. This was led by royalties from Relvar/Breo Ellipta and Trelegy Ellipta. For the quarter, the company saw 3% global sales growth year over year for Relvar/Breo due to increased patient adherence. Meanwhile, Trelegy sales jumped 53%, bolstered by U.S. growth and extension into new markets.
Total respiratory sales were up 20% in Q4 for GSK, helped along by the increased sales of Trelegy -- a good sign for future royalties to Innoviva if sales growth continues to trend upward. Innoviva currently captures a 15% royalty payment on sales of Trelegy. Based on projections from market research firm Reports and Data, that upward trend could likely carry through 2027 as the respiratory inhaler market is projected to climb at a 6.8% compound annual rate to a market value of $52 billion.
Partly by keeping costs in check, the company increased operating income 23% for the quarter and 17% for the year, resulting in net income growth of 40% for the year to $2.87 per share. That helped the company finish out 2021 with over $200 million in cash, which it is already putting to use for future expansion.
Investment in Armata
Indeed, Innoviva has no intentions of relying solely on the royalties from one primary partnership. After an initial investment of $25 million in Armata Pharmaceuticals in 2020, Innoviva has added to that by investing $49 million more in Armata as of February. When the latter investment closes, Innoviva will hold 70% of Armata's outstanding stock.
Armata is a clinical-stage biotech company focused on therapeutics to meet clinical needs for anti-infection treatments in which resistance to current antibiotics has been seen. Its pipeline includes phase 1/2 studies in treatments for respiratory infections related to cystic fibrosis and pneumonia and treatments to fight bacterial infections in the bloodstream and infections in prosthetic joints.
This year, treatments for cystic fibrosis have been in the spotlight after the University of Toronto's Donnelly Center for Cellular and Biomolecular Research came out with positive news related to the potential for predicting various patient symptoms and treatment responses. New developments and research around this data could lead to life-changing treatments, including those from Armata that are still in clinical studies.
A challenge facing Innoviva is stiff competition in the cystic fibrosis market. Vertex Pharmaceuticals owns about a 97% market share, and AbbVie has active phase 2 clinical trials for its own treatment, so moving in on these rivals will not be easy. But with the market expected to grow to $14 billion by 2027, it does leave room for Armata and Innoviva to generate revenue if and when products become commercially available. How soon that might be is another question. To go from Phase 1/2 clinical trials to an FDA approval -- if approval is granted -- could take another three to seven years.
Other investments in the works
In the meantime, Innoviva is looking to diversify its investments, offering to buy the remaining 49% of shares of Entasis, which would give it all remaining shares it doesn't currently own. Entasis is focused on bacterial infections. It is coming off of positive results in phase 3 studies for a potentially life-saving treatment against infections that occur in the bloodstream, urinary tract, and lungs.
Entasis is targeting a mid-2022 new drug application submission to the FDA for approval, which could take place in 2023. As a 51% shareholder in Entasis -- and on the back of royalties from GSK products -- Innoviva's revenue growth could benefit, making its stock worthy for long-term investors to consider.
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Jeff Little has no position in any of the stocks mentioned. The Motley Fool owns and recommends Vertex Pharmaceuticals. The Motley Fool recommends GlaxoSmithKline. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Vertex Pharmaceuticals owns about a 97% market share, and AbbVie has active phase 2 clinical trials for its own treatment, so moving in on these rivals will not be easy. Innoviva's portfolio of royalties is anchored by a partnership with GlaxoSmithKline along with a growing stable of healthcare investments in companies focusing on significant unmet medical needs. The partnership with GSK is the primary revenue generator for Innoviva and is based on a portfolio of Ellipta inhalers offered globally across four brand names, each aimed at treating and preventing breathing issues brought on by respiratory conditions such as COPD and asthma. | Vertex Pharmaceuticals owns about a 97% market share, and AbbVie has active phase 2 clinical trials for its own treatment, so moving in on these rivals will not be easy. The partnership with GSK is the primary revenue generator for Innoviva and is based on a portfolio of Ellipta inhalers offered globally across four brand names, each aimed at treating and preventing breathing issues brought on by respiratory conditions such as COPD and asthma. Its pipeline includes phase 1/2 studies in treatments for respiratory infections related to cystic fibrosis and pneumonia and treatments to fight bacterial infections in the bloodstream and infections in prosthetic joints. | Vertex Pharmaceuticals owns about a 97% market share, and AbbVie has active phase 2 clinical trials for its own treatment, so moving in on these rivals will not be easy. Total respiratory sales were up 20% in Q4 for GSK, helped along by the increased sales of Trelegy -- a good sign for future royalties to Innoviva if sales growth continues to trend upward. After an initial investment of $25 million in Armata Pharmaceuticals in 2020, Innoviva has added to that by investing $49 million more in Armata as of February. | Vertex Pharmaceuticals owns about a 97% market share, and AbbVie has active phase 2 clinical trials for its own treatment, so moving in on these rivals will not be easy. As part of the initial partnership, GSK invested in Innoviva as well, owning approximately one-third of the company's outstanding shares. Total respiratory sales were up 20% in Q4 for GSK, helped along by the increased sales of Trelegy -- a good sign for future royalties to Innoviva if sales growth continues to trend upward. | 2df3f426-e4b4-46a9-ae19-75f56ccb1fe0 |
23566.0 | 2022-03-04 00:00:00 UTC | AbbVie (ABBV) Up 6.9% Since Last Earnings Report: Can It Continue? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-up-6.9-since-last-earnings-report%3A-can-it-continue | nan | nan | It has been about a month since the last earnings report for AbbVie (ABBV). Shares have added about 6.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AbbVie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Q4 Earnings Surpass Estimates, Sales Miss
AbbVie reported earnings of $3.31 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.29 and exceeding the guided range of $3.24 to $3.28 per share. Earnings rose 13.4% year over year.
The company’s revenues of $14.89 billion slightly missed the Zacks Consensus Estimate of $15.03 billion. Sales rose 7.4% year over year on a reported basis and 7.5% on an operational basis driven by the immunology and aesthetics franchises.
Quarter in Details
In the immunology franchise, Humira sales rose 3.5%, both on a reported and operational basis to $5.3 billion as higher U.S. sales were offset by a decline in international markets.
Sales in the United States rose 6% to $4.55 billion, driven by market growth across all indications. However, Humira sales in the ex-U.S. markets were down 9.1% on a reported basis and 8.8% on an operational basis to $781 million. International sales were severely impacted by the launch of several direct biosimilar drugs in Europe and other international markets.
New immunology drug, Skyrizi registered sales of $895 million compared with $796 million in the previous quarter, reflecting continued market share gains. Skyrizi commands approximately 20% share of the total prescriptions in the U.S. psoriasis biological market, surpassing Humira. AbbVie also enjoys leading market share in several international geographies, including Japan.
New drug, Rinvoq registered sales of $517 million, compared with $453 million in the previous quarter. AbbVie commands a total market share of more than 5.5% in total prescriptions in RA indication in the United States and 5% in international markets.
In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, international Humira revenues of $2.6 billion at current exchange rates, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 4.6% (4.7% on an operational basis) to $1.87 billion in the quarter, driven by the strong growth of Venclexta sales, partially offset by lower U.S. sales of Imbruvica.
Fourth-quarter net revenues from Imbruvica were $1.39 billion, down 2.7% year over year. U.S. sales of Imbruvica grossed $1.11 billion, down 4.3% from the year-ago figure. U.S. sales of Imbruvica are being hurt by lower new patient starts in CLL due to a slower-than-expected market recovery from COVID-19 pandemic and increasing competition from newer therapies. AbbVie’s share of profit from international sales of the Imbruvica rose 4.6% to $271 million.
Venclexta generated revenues of $488 million in the reported quarter, reflecting 34% year-over-year growth on an operational basis, reflecting strong share performance across all approved indications.
In 2022, Imbruvica global revenues are expected to be approximately $5.4 billion. The Imbruvica guidance assumes recovery of the CLL market, which is expected to be partially offset by share erosion from increased competition. Venclexta global sales are expected to be approximately $2.3 billion.
AbbVie’s aesthetics portfolio sales were up 23.3% and 22.8% on a reported and operational basis, respectively, to $1.41 billion on the back of robust demand for Botox Cosmetic and Juvederm helped by a strong recovery from the pandemic. In the Aesthetics franchise, sales of Botox Cosmetics rose 26.6% on an operational basis to $626 million while Juvederm’s sales were up 29.8% operationally to $432 million.
In 2021, AbbVie expects the global aesthetics franchise to generate global sales of approximately $5.9 billion including $2.6 billion for Botox Cosmetic and $1.7 billion from Juvederm.
In neuroscience, Botox Therapeutic sales rose 18.1% to $671 million. Sales of Vraylar were up 21.8% to $489 million. Duodopa sales declined 0.5% to $128 million. AbbVie’s newly launched oral migraine drug, Ubrelvy, generated $183 million in revenues, compared with $162 million in the third quarter of 2021 due to continued strong new patient starts and a rapidly expanding CGRP market. Ubrelvy’s sales are expected to be robust in 2022. On the conference call, management said that the Qulipta launch is going well and the medicine has captured nearly 20% of the new-to-brand share in the preventative CGRP market.
AbbVie expects global neuroscience sales of $6.9 billion, including Botox Therapeutic sales of $2.7 billion, Vraylar sales of $2.2 billion, Ubrelvy sales of $800 million and Qulipta sales of $200 million.
In Eye Care, Restasis, increased 5.9% year over year to $364 million on an operational basis.
AbbVie expects expect global eye care sales of $2.9 billion, including $700 million from Restasis, assuming that there is no generic competition in the first half of the year.
In Women’s Health, Lo Loestrin’s sales of $128 million declined 10.1% on a comparable operational basis. Orilissa/Oriahnn recorded sales of $39 million, up 4.6% year over year.
Among other key drugs. Mavyret declined 10.1% operationally to $427 million on an operational basis as treated patient volumes remained suppressed compared to the pre-COVID level.
Costs Rise
Adjusted gross margin was 83.6% in the quarter. Adjusted SG&A expenses increased 7.1% to $3.31 billion while adjusted R&D expenses were $1.8 billion in the fourth quarter, rising 2.7% year over year. Adjusted operating margin represented 49.3% of sales, up 240 basis points year over year.
2021 Results
AbbVie reported revenues of $56.2 billion in 2021, up 22.7% year over year. The company’s adjusted earnings for 2021 were $12.70 per share, up 20.3% from the year-ago period.
2022 Guidance
AbbVie issued its financial guidance for 2022. The company expects adjusted EPS to be in the range of $14.00-$14.20, suggesting year-over-year growth of 11.0% at the midpoint.
Net revenues are expected to be $60 billion in 2022. Foreign exchange is expected to have a 0.8% unfavorable impact on sales growth in 2022.
In 2022, adjusted gross margin is expected to be approximately 84% of sales. R&D costs are expected to be approximately $6.8 billion while SG&A costs will be approximately $12.7 billion. Adjusted operating margin is expected to be 51.5% of sales.
On the call, the company said that following the U.S. Humira loss of exclusivity event in 2023, it expects its overall business to return to growth in 2024 and deliver high single-digit growth from 2025 to the end of the decade.
First-Quarter 2022 Outlook
In the first quarter of 2022, earnings are expected between $3.10 and $3.14 per share. AbbVie expects adjusted revenues of approximately $13.5 billion in the first quarter. The revenue guidance assumes immunology sales of $6.2 billion, oncology/hematology revenues of $1.7 billion, aesthetic sales of $1.3 billion, neuroscience revenues of $1.5 billion and eye care sales of $900 million. Adjusted operating margin is expected to be 51% of sales.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, AbbVie has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, AbbVie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie’s aesthetics portfolio sales were up 23.3% and 22.8% on a reported and operational basis, respectively, to $1.41 billion on the back of robust demand for Botox Cosmetic and Juvederm helped by a strong recovery from the pandemic. It has been about a month since the last earnings report for AbbVie (ABBV). Will the recent positive trend continue leading up to its next earnings release, or is AbbVie due for a pullback? | AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales rose 4.6% (4.7% on an operational basis) to $1.87 billion in the quarter, driven by the strong growth of Venclexta sales, partially offset by lower U.S. sales of Imbruvica. AbbVie expects global neuroscience sales of $6.9 billion, including Botox Therapeutic sales of $2.7 billion, Vraylar sales of $2.2 billion, Ubrelvy sales of $800 million and Qulipta sales of $200 million. It has been about a month since the last earnings report for AbbVie (ABBV). | In 2022, AbbVie expects its immunology sales to grow in double digits, including U.S. Humira growth of 8%, international Humira revenues of $2.6 billion at current exchange rates, Skyrizi global sales of $4.4 billion and Rinvoq global sales of $2.7 billion. AbbVie expects global neuroscience sales of $6.9 billion, including Botox Therapeutic sales of $2.7 billion, Vraylar sales of $2.2 billion, Ubrelvy sales of $800 million and Qulipta sales of $200 million. It has been about a month since the last earnings report for AbbVie (ABBV). | AbbVie expects global neuroscience sales of $6.9 billion, including Botox Therapeutic sales of $2.7 billion, Vraylar sales of $2.2 billion, Ubrelvy sales of $800 million and Qulipta sales of $200 million. It has been about a month since the last earnings report for AbbVie (ABBV). Will the recent positive trend continue leading up to its next earnings release, or is AbbVie due for a pullback? | 6f668a70-3739-4553-a13a-ca8ef63afd14 |
23567.0 | 2022-03-04 00:00:00 UTC | 1 Stock Warren Buffett Is Selling That Income Investors Should Consider Buying | ABBV | https://www.nasdaq.com/articles/1-stock-warren-buffett-is-selling-that-income-investors-should-consider-buying | nan | nan | Warren Buffett appears to be selling more stocks than he's buying these days. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) recently revealed its equity holdings for the fourth quarter of 2021 in a regulatory filing. Buffett and his investment managers sold 10 stocks while buying seven stocks.
The legendary investor undoubtedly had good reasons for all of Berkshire's transactions. But that doesn't mean that every investor should blindly follow his lead. Here's one stock that Buffett is selling that income investors should instead consider buying.
Image source: Getty Images.
A lot to like
Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. The sell-off accelerated in the fourth quarter of 2021 with a 79% reduction in shares owned, compared to the previous quarter.
However, there's a lot to like about AbbVie for income investors. The company offers a dividend that currently yields nearly 3.8%. By comparison, the average dividend yield of the S&P 500 is only 1.3%.
AbbVie's dividend is also pretty much as dependable as they come. The company is a Dividend King, with 50 consecutive years of dividend increases (including its time as part of Abbott Labs). Since spinning off from Abbott in 2013, AbbVie has raised its dividend by more than 250%.
The stock has blossomed into a big winner, as well. Over the past 12 months, AbbVie's shares soared nearly 40%. During the same period, the S&P 500 rose roughly 14%.
Despite this impressive gain, AbbVie remains attractively valued. Its shares trade at only 10.6 times expected earnings. The stock looks like a downright bargain, compared to the S&P 500's forward earnings multiple of 18.6.
One fly in the ointment
With so much to like about AbbVie, you might wonder why Buffett isn't buying the stock hand over fist. We don't know exactly what the Oracle of Omaha thinks about AbbVie. However, there's one fly in the ointment with the stock that could be on his mind.
AbbVie's autoimmune disease drug Humira faces the loss of exclusivity in the U.S. beginning in 2023. To call Humira a blockbuster doesn't go far enough. The drug generated a whopping $20.7 billion in sales last year, accounting for nearly 37% of the company's total revenue.
Is gloom and despair on the way for the big drugmaker? Not at all. Humira's sales will no doubt drop significantly after biosimilar rivals enter the U.S. market. However, the drug could still generate billions of dollars annually for years to come.
More importantly, AbbVie's broader product lineup should enable the company to quickly return to solid growth. In particular, the company has a couple of newer autoimmune disease drugs, Rinvoq and Skyrizi, and it expects them to deliver at least $15 billion of combined sales in 2025.
Different strokes
The old adage "different strokes for different folks" definitely applies to investing. All investors don't share the same goals.
Warren Buffett clearly isn't an income investor, either on a personal level or in his role managing Berkshire Hathaway. Neither he nor Berkshire need to rely on dividend income. But many investors do.
AbbVie obviously isn't a stock that's high on Buffett's list right now, based on the steep reduction in Berkshire's stake. However, with its juicy dividend and strong dividend track record, AbbVie should be high on the list of income investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A lot to like Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. More importantly, AbbVie's broader product lineup should enable the company to quickly return to solid growth. However, there's a lot to like about AbbVie for income investors. | See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie and Berkshire Hathaway (B shares). A lot to like Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. However, there's a lot to like about AbbVie for income investors. | * 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 January 20, 2022 Keith Speights owns AbbVie and Berkshire Hathaway (B shares). A lot to like Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. | * 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 January 20, 2022 Keith Speights owns AbbVie and Berkshire Hathaway (B shares). A lot to like Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. | 52307f9c-571b-4e15-9a74-d3e158bfd87d |
23568.0 | 2022-03-03 00:00:00 UTC | Is This Dividend King a Buy for 2022 and Beyond? | ABBV | https://www.nasdaq.com/articles/is-this-dividend-king-a-buy-for-2022-and-beyond | nan | nan | High inflation rates, looming interest rate hikes, and most recently Russia's invasion of Ukraine have all led to a return of market volatility in 2022. For context, the S&P 500 has fallen 9% year to date.
One company that has nevertheless managed to do well lately is pharma stock AbbVie (NYSE: ABBV), whose shares are up 11% year to date. This raises the following questions: Has AbbVie's rally been overdone? Or is there still room for the Dividend King to run higher? Let's dive into AbbVie's fundamentals and valuation to address these questions.
Image source: Getty Images.
AbbVie's revenue and earnings keep moving higher
AbbVie delivered healthy revenue and earnings growth in 2021, reporting $56.1 billion in sales last year, which represents a 22.6% growth rate against 2020. So what led to the company's robust results?
AbbVie's solid portfolio of existing drugs led to its impressive results for the year. While the mega-blockbuster drug Humira was able to grow its total revenue by 4.3% year over year to $20.7 billion in 2021, the real growth drivers continued to be the company's two other immunology drugs: Skyrizi and Rinvoq.
Skyrizi's total net sales soared some 85% year over year to $2.9 billion last year. Despite plaque psoriasis as its only indication during the year, the drug was able to ramp up its sales. That's because Skyrizi's share of the U.S. psoriasis biological market grew to 20%, which is more than Humira's market share for the indication, according to Chief Commercial Officer Jeff Stewart during AbbVie's recent earnings call.
Ahead of Humira's U.S. patent expiration set for 2023, AbbVie will need to add more indications to its next-gen immunology portfolio. Fortunately, the U.S. Food and Drug Administration (FDA) recently approved Skyrizi to treat adult patients with psoriatic arthritis. This indication could be worth just over $1 billion, which will make a good dent in replacing my estimate of a 50% or $9 billion drop-off in U.S. Humira revenue that will occur in 2023.
Rinvoq more than doubled its total net sales to $1.6 billion in 2021. This was the result of its 5.5% U.S. market share in rheumatoid arthritis and almost 5% market share in major international markets.
What really bodes well for Rinvoq is that the company has already received two additional FDA approvals in recent months. Rinvoq's FDA approval in January for moderate-to-severe eczema could generate $1.6 billion in peak annual sales. In addition, the FDA approval last December for active psoriatic arthritis could chip in another $900 million.
And with AbbVie expecting an FDA approval this month for Rinvoq to treat ulcerative colitis and an FDA approval for Skyrizi to treat Crohn's disease this month, the future looks bright for these two drugs. That's why AbbVie anticipates the combined peak sales of Skyrizi and Rinvoq will eventually exceed Humira's peak sales.
AbbVie's significant revenue growth also allowed its non-GAAP (adjusted) diluted earnings per share (EPS) to surge 20.3% higher year over year to $12.70 in 2021.
Thanks to the company's existing drug portfolio and its pipeline of several dozen indications, analysts expect AbbVie will generate 4% annual earnings growth over its 2021 earnings base. This includes a temporary drop in earnings expected in 2023 due to Humira's U.S. patent expiration.
Dividend growth should continue
Another reason that AbbVie seems to be a buy is its safe, growing dividend. AbbVie's dividend payout ratio of 40.9% in 2021 leaves the company the room necessary to continue growing its payout. That's because the company retains plenty of capital to invest in acquisitions to diversify its revenue streams and repay its debt.
This explains why AbbVie's board of directors was confident enough to raise its dividend by 8.5% last October. AbbVie's strong dividend growth and 3.8% dividend yield are an attractive proposition for income investors.
The stock still looks fairly valued
Although AbbVie is trading less than 1% off of its all-time high, the stock still appears to be sensibly valued. That's because its trailing 12-month dividend yield of 3.6% is just above its median dividend yield of 3.5%. What's more, AbbVie's price-to-earnings (P/E) ratio of 10.6 for this year is well below the S&P 500's 19.8 P/E ratio. This is arguably an enticing valuation to pay for a stock of AbbVie's quality, which is why I think the stock is a buy for income investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One company that has nevertheless managed to do well lately is pharma stock AbbVie (NYSE: ABBV), whose shares are up 11% year to date. This raises the following questions: Has AbbVie's rally been overdone? Let's dive into AbbVie's fundamentals and valuation to address these questions. | AbbVie's revenue and earnings keep moving higher AbbVie delivered healthy revenue and earnings growth in 2021, reporting $56.1 billion in sales last year, which represents a 22.6% growth rate against 2020. Thanks to the company's existing drug portfolio and its pipeline of several dozen indications, analysts expect AbbVie will generate 4% annual earnings growth over its 2021 earnings base. One company that has nevertheless managed to do well lately is pharma stock AbbVie (NYSE: ABBV), whose shares are up 11% year to date. | AbbVie's revenue and earnings keep moving higher AbbVie delivered healthy revenue and earnings growth in 2021, reporting $56.1 billion in sales last year, which represents a 22.6% growth rate against 2020. And with AbbVie expecting an FDA approval this month for Rinvoq to treat ulcerative colitis and an FDA approval for Skyrizi to treat Crohn's disease this month, the future looks bright for these two drugs. One company that has nevertheless managed to do well lately is pharma stock AbbVie (NYSE: ABBV), whose shares are up 11% year to date. | One company that has nevertheless managed to do well lately is pharma stock AbbVie (NYSE: ABBV), whose shares are up 11% year to date. This raises the following questions: Has AbbVie's rally been overdone? Let's dive into AbbVie's fundamentals and valuation to address these questions. | 72e92167-d2ff-450d-9ff0-98afd27e8113 |
23569.0 | 2022-03-03 00:00:00 UTC | Viatris Just Snagged a Major FDA Approval | ABBV | https://www.nasdaq.com/articles/viatris-just-snagged-a-major-fda-approval | nan | nan | In early February, the U.S. Food and Drug Administration (FDA) gave the nod to Viatris' (NASDAQ: VTRS) Restasis, a generic version of AbbVie's (NYSE: ABBV) dry eye disease eyedrop treatment.
Since Viatris launched the drug in the U.S. immediately after the FDA approval, let's dig into what it could mean for patients and how much a boost the news could be for the pharma stock.
Image source: Getty Images.
A cheaper treatment option with equal efficacy
Dry eye disease is a condition characterized by either a lack of tear production or tears not working correctly that can lead to eye redness, a stinging or burning sensation in the eyes, watery eyes, and sensitivity to light. The condition has the potential to cause permanent damage to the eyes if left untreated.
Between 16 million and 49 million Americans are estimated to have dry eye disease, which is 5% to 15% of the overall population.
Fortunately, there are plenty of eyedrop treatments available to treat the condition. For example, AbbVie's Restasis was approved by the FDA in 2003, which made it the first treatment option available to patients with the disease. Restasis has been a very effective treatment option for countless dry eye patients, which helps explain how AbbVie's drug generated $1.3 billion in sales in 2021 globally, with $1.23 billion coming from the U.S. alone.
But the downside to branded Restasis comes down to the cost. Until the FDA approved Viatris' generic version of Restasis, AbbVie's branded Restasis came with an annual list price of $7,000. Admittedly, approximately 80% of patients pay less than $35 a month out of pocket for their Restasis prescription due to insurance coverage and savings cards.
While there isn't any information available on the cost of generic Restasis yet, generics are much cheaper than branded drugs. Studies have found that when a generic drug is on the market, it's an average of 39% cheaper than the branded drug. The savings also increase as more generic drugs make their way to the market to compete against the branded drug and each other. This could have significant appeal to the 20% of patients paying more than $35 a month out of pocket for branded Restasis.
And because generic drugs go through the same scrutiny at the FDA as branded drugs, patients can be assured that the former are as safe and effective as the latter-- at a lesser cost too.
Viatris will see a slight revenue boost
The FDA's approval of Viatris' generic Restasis looks like it could offer meaningful savings for some patients. But what will it mean for Viatris?
My best guess is that Viatris' generic drug will be able to siphon off 25% of Restasis' $1.23 billion U.S. sales volumes, which comes out to about $300 million net annual sales reduction for AbbVie's Restasis. Since Viatris' generic drug will likely be about 40% cheaper, this would be a $180 million yearly sales boost for Viatris at AbbVie's expense. And generic Restasis could also be prescribed to new patients, which could bring that sales figure even higher.
Why a 25% reduction in branded Restasis U.S. sales? I'm assuming that while only 20% of the Restasis patient pool pays more than $35 a month, they account for a higher dollar volume of Restasis' U.S sales since they pay more than other patients. And since Viatris' generic option would be cheaper for those patients and offer the same benefits, switching from branded Restasis would probably make sense for the vast majority of them.
Given that Street analysts are forecasting $17.9 billion in revenue for Viatris this year, $180 million in additional annual sales would be a 1% sales boost for the company.
The underappreciated stock has a deep pipeline
The approval of Viatris' generic Restasis will only provide a minor increase in sales. But the company has several biosimilar drug candidates for blockbuster drugs that were recently submitted to the FDA for review. These include Sanofi (NASDAQ: SNY) and Regeneron's (NASDAQ: REGN) blockbuster retinal disease drug Eylea, Novartis' (NYSE: NVS) rapid-acting insulin NovoLog, and Roche's (OTC: RHHBY) cancer drug Avastin.
Despite Viatris' strong pipeline, which should allow for modest revenue and earnings growth in the years ahead, the value stock still looks relatively cheap. For instance, Viatris trades at a forward price-to-earnings (P/E) ratio of just 2.9. This is a fraction of the S&P 500's 12-month forward P/E ratio of 19.8, which supports the case that Viatris is an underpriced stock.
And while investors wait for Viatris to be recognized by the market with an increased valuation multiple, they can collect a market-beating 4.36% dividend yield.
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Kody Kester owns AbbVie and Viatris Inc. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early February, the U.S. Food and Drug Administration (FDA) gave the nod to Viatris' (NASDAQ: VTRS) Restasis, a generic version of AbbVie's (NYSE: ABBV) dry eye disease eyedrop treatment. For example, AbbVie's Restasis was approved by the FDA in 2003, which made it the first treatment option available to patients with the disease. Restasis has been a very effective treatment option for countless dry eye patients, which helps explain how AbbVie's drug generated $1.3 billion in sales in 2021 globally, with $1.23 billion coming from the U.S. alone. | In early February, the U.S. Food and Drug Administration (FDA) gave the nod to Viatris' (NASDAQ: VTRS) Restasis, a generic version of AbbVie's (NYSE: ABBV) dry eye disease eyedrop treatment. Until the FDA approved Viatris' generic version of Restasis, AbbVie's branded Restasis came with an annual list price of $7,000. For example, AbbVie's Restasis was approved by the FDA in 2003, which made it the first treatment option available to patients with the disease. | In early February, the U.S. Food and Drug Administration (FDA) gave the nod to Viatris' (NASDAQ: VTRS) Restasis, a generic version of AbbVie's (NYSE: ABBV) dry eye disease eyedrop treatment. My best guess is that Viatris' generic drug will be able to siphon off 25% of Restasis' $1.23 billion U.S. sales volumes, which comes out to about $300 million net annual sales reduction for AbbVie's Restasis. Since Viatris' generic drug will likely be about 40% cheaper, this would be a $180 million yearly sales boost for Viatris at AbbVie's expense. | Since Viatris' generic drug will likely be about 40% cheaper, this would be a $180 million yearly sales boost for Viatris at AbbVie's expense. In early February, the U.S. Food and Drug Administration (FDA) gave the nod to Viatris' (NASDAQ: VTRS) Restasis, a generic version of AbbVie's (NYSE: ABBV) dry eye disease eyedrop treatment. For example, AbbVie's Restasis was approved by the FDA in 2003, which made it the first treatment option available to patients with the disease. | 4b00348b-9cc3-4d6e-8db6-15dd58d98dad |
23570.0 | 2022-03-02 00:00:00 UTC | 2 Fantastic Dividend Stocks for Retirees | ABBV | https://www.nasdaq.com/articles/2-fantastic-dividend-stocks-for-retirees | nan | nan | Many retirees face the challenge of how to bring in regular income beyond their Social Security benefits. One way to make sure the bill are paid (or in some cases, the beach house mortgage is covered) is to invest in companies that pay dividends.
AbbVie (NYSE: ABBV) and Kimberly-Clark (NYSE: KMB) are two income stocks that investors nearing retirement may want to consider buying in the pursuit of stress-free Golden Years. AbbVie and Kimberly Clark have been increasing dividends for 50 consecutive years, earning them the status of Dividend Kings. Let's take a look at both.
Image source: Getty Images.
1. AbbVie: A 134% stock price gain adds to its benefit
AbbVie was spun off from Abbott Laboratories in 2013 and evolved into the research-based pharmaceutical business it is today. Its stock has risen 326% dating back to January 2013. That's an average of 32.6% per year for 10 years, which towers over the S&P 500's average return of 13.9% over that same time period.
The stock carries a current dividend yield of 3.94%, which is at the high end and above the average dividend yield for healthcare companies of 2.28%.
AbbVie pays out its dividends quarterly, resulting in a current total annual dividend of $5.64 per share. To elucidate that number, a $10,000 investment in AbbVie in 2013 would have bought you 293 shares. Today, that position would be worth almost $42,000, and the dividends paid in 2021 alone would have been $1,520 -- roughly $127 per month before taxes. On average, AbbVie has increased its dividend by 11% per year going back to 2015.
The company's guidance for the midpoint (GAAP diluted) EPS in fiscal 2022 is $9.36 -- reflecting a 45% increase over 2021, driven by anticipated sales growth across its product pipeline. But its leading drug Humira -- which treats arthritis, Crohn's disease, and other diseases -- faces growing competition and is projected to decline by $8.4 billion in sales in 2022, and by nearly 45% in 2023 from its 2021 totals due to patent expirations.
Helping offset the anticipated decline in Humira sales is a projected $15 billion in combined 2025 sales for its Rinvoq and Skyrizi, which would be a huge leap over the 2021 combined sales of $4.6 billion.
Assets from the 2020 Allergan acquisition are also cushioning the erosion of Humira, including Botox, Vraylar, Ubrelvy, and Juvederm. These performed well in 2021 and should keep growing in 2022 with each reaching sales of over $1 billion. 2022 guidance is pushing nearly $6 billion for aesthetics, driven by Botox Cosmetic and Juvederm which are expected to make up 73% of business unit sales.
Efficiencies from the deal should also help, to the tune of an anticipated $2.5 billion cost synergy. Expenses attributed to SG&A and R&D are both expected to rise by 9% this year but that's compared to an otherwise 24% increase that would have happened without Allergan.
Thanks to a strong pipeline, a strategic acquisition, healthy dividends, and a management team optimizing operating margin, AbbVie could provide retirees with an investment opportunity to pull in the additional income they seek throughout their golden years.
2. Kimberly-Clark: A buy-the-dip opportunity
Kimberly-Clark is being crowned a Dividend King as of this year. The company boasts the top one or two personal care brands in over 80 countries including Cottonelle, Depend, Huggies, Kleenex, and Scott. Although inflation and supply disruption can lead to higher pricing, these products can withstand market downturns.
The stock price has been volatile, but it has grown by 59% since 2013 -- the year of AbbVie's spin off. But over the past five years, the company's share price has fluctuated and is currently $131 per share -- the same level as five years ago.
Though price appreciation trails AbbVie, Kimberly-Clark pays an annual dividend of $4.64 at a yield of 3.52%, compared to a 2.25% average for consumer goods stocks in the S&P.
The company also keeps pace with AbbVie in payout ratio, paying out over 85% of total earnings to shareholders in dividends. To put that number in perspective, only 12 other companies in the top 100 high-dividend stocks list offer a payout ratio that high.
In January, Kimberly-Clark's fourth-quarter earnings beat estimates, and sales were up year over year. But the updated outlook calls for a 2022 net sales increase of 1% to 2%, while consensus estimates are looking for over 3%.
The company approved a 1.8% dividend increase for this year which will take effect in April based on investors of record on March 4. For investors looking for faster dividend payout, now might be a good time to jump in. But if you're looking for the same long-term dividend at a potentially less expensive price, there's a good chance the stock will dip if Q1 results in April fail to meet expectations.
Should you invest in both now?
If I had to choose between one or the other right now, I'd go with AbbVie, based on its growth trajectory, stock price history, and higher annual dividend payout -- considering the per-share stock price of AbbVie is only 10% higher than Kimberly-Clark. But both of these Dividend Kings make a strong case for long-term investors looking to generate consistent income during retirement to fund their lifestyle, healthcare costs or even for dividend reinvestment.
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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. | Thanks to a strong pipeline, a strategic acquisition, healthy dividends, and a management team optimizing operating margin, AbbVie could provide retirees with an investment opportunity to pull in the additional income they seek throughout their golden years. AbbVie (NYSE: ABBV) and Kimberly-Clark (NYSE: KMB) are two income stocks that investors nearing retirement may want to consider buying in the pursuit of stress-free Golden Years. AbbVie and Kimberly Clark have been increasing dividends for 50 consecutive years, earning them the status of Dividend Kings. | Though price appreciation trails AbbVie, Kimberly-Clark pays an annual dividend of $4.64 at a yield of 3.52%, compared to a 2.25% average for consumer goods stocks in the S&P. If I had to choose between one or the other right now, I'd go with AbbVie, based on its growth trajectory, stock price history, and higher annual dividend payout -- considering the per-share stock price of AbbVie is only 10% higher than Kimberly-Clark. AbbVie (NYSE: ABBV) and Kimberly-Clark (NYSE: KMB) are two income stocks that investors nearing retirement may want to consider buying in the pursuit of stress-free Golden Years. | AbbVie and Kimberly Clark have been increasing dividends for 50 consecutive years, earning them the status of Dividend Kings. Though price appreciation trails AbbVie, Kimberly-Clark pays an annual dividend of $4.64 at a yield of 3.52%, compared to a 2.25% average for consumer goods stocks in the S&P. If I had to choose between one or the other right now, I'd go with AbbVie, based on its growth trajectory, stock price history, and higher annual dividend payout -- considering the per-share stock price of AbbVie is only 10% higher than Kimberly-Clark. | On average, AbbVie has increased its dividend by 11% per year going back to 2015. AbbVie (NYSE: ABBV) and Kimberly-Clark (NYSE: KMB) are two income stocks that investors nearing retirement may want to consider buying in the pursuit of stress-free Golden Years. AbbVie and Kimberly Clark have been increasing dividends for 50 consecutive years, earning them the status of Dividend Kings. | 755dd9c9-1a2d-44db-a20f-212dee19c383 |
23571.0 | 2022-03-02 00:00:00 UTC | Consumer Spending, E-Commerce, and the Business of Lodging | ABBV | https://www.nasdaq.com/articles/consumer-spending-e-commerce-and-the-business-of-lodging | nan | nan | In this week's episode of Motley Fool Money, Motley Fool analyst Olivia Zitkus and Motley Fool contributor Keith Speights, along with host Chris Hill, discuss a new wave of biosimilar drugs and the challenges (and opportunities for investors) that they present. Also, Motley Fool analyst Bill Mann discusses:
Retail sales growing nearly 4% in January.
Shopify's (NYSE: SHOP) strong growth in 2021 being followed by an expectation for slightly less growth in 2022.
Why shares of Shopify will never look cheap. The company's new partnership with JD.com (NASDAQ: JD).
Airbnb's (NASDAQ: ABNB) record revenue last year.
Hotel stocks hitting new all-time highs.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Feb. 16, 2022.
Chris Hill: If you're looking for one more light at the end of the pandemic tunnel, this is the show for you. But before money starts now. I'm Chris Hill, joined by Motley Fool Senior Analyst Bill Mann. Thanks for being here.
Bill Mann: Hey Chris, how're you today?
Chris Hill: I'm doing all right. I want to get to Shopify, I want to get to Airbnb. But, let's start with the big macro. Retail sales grew nearly four percent in January. So I guess for all the hand-wringing over inflation, people appear to still be buying stuff.
Bill Mann: Yeah. When you take out cars, which is a big thing to take out, it was a 3.3 percent gain in retail. Those cash registers are really, really wringing. Now, it's important to keep in mind that this number is not inflation-adjusted. We're buying maybe less stuff, but we're spending more for it. Home furnishings were up a lot. Motor vehicles, and parts were up a lot. The only thing that was really down, which makes some sense to me, was food and beverage, like going out to restaurants. I don't know if you've heard, but where I am, Omicron was a big thing in December and January.
Chris Hill: Yes.
Bill Mann: Yes, it was hot here. [LAUGHTER] Not that surprising, but a really surprising overall spending number from fellow retailers.
Chris Hill: You have to assume that the food, and beverage number is going to go up as mandates for masks get lifted in major cities as they're starting to. Do the home furnishing numbers surprise you? It surprised me only because I feel like there was a lot of spending on home furnishings in the first year of the pandemic. So the fact that we got this popping January, I don't know. I guess it speaks to maybe more people moving, and more people just saying, I'm ready for a new sofa.
Bill Mann: Yes, I can try and sound smart about the number that I wouldn't have predicted. But, at least partially that has to do with the fact that there is pent-up demand in the space. I mean, if we recall, we've had all sorts of supply chain issues and one area that's been hit really hard is both the home builders, things like PVC and Truck Ross's and things like that have been unavailable. But then, also the home furnishing segment as well has seen a huge amount of push-back, and delays. When I saw that number, I thought, of course, that actually makes sense to me. That, that would still be well above what it was a year ago because there is a coiled spring still that comes in the form of the delays, and the supply chain issues that have impacted so many parts of our economy.
Chris Hill: Shopify wrapped up its fiscal year with 57 percent growth, which is impressive. Then Shopify said growth for this year is going to be slower, and investors did not like that at all.
Bill Mann: No, they were not pleased about that. I mean, as evidenced by the pretty rapid drop in the stock, it was down 17 percent when I checked earlier today. Look, it was a good quarter for Shopify. Shopify has a beautiful slide. Shopify now accounts for more than 10 percent of all e-commerce in the United States of America, 10 percent. So it's going to be really hard for them to keep growing at 50 percent plus, given that they are such a large component of the market. Again, this is a company that is now up about 170 percent over where it was from the depths of the pandemic, from a share price perspective. Shopify is one of these companies that we have to remember. The market is really struggling trying to figure out how much this company is worth. How good is what Shopify is doing in terms of bringing money down the road? It's still trading at 30 and 40 times sales, which is a historically enormous number. It was a great number for Shopify. It has to keep continue growing. I really don't think that people should have been surprised that they're prognostication for 2022 is lower. The thing that I believe to be true about Shopify is that it has a long growth ramp, and that's going to pay off over time.
Chris Hill: Is this one of those stocks that is absolutely no matter what the price is, never going to look cheap? Because on a valuation basis, it seems like one of those businesses that is just always going to look expensive.
Bill Mann: Yeah, I think that's the case. I mean, when you've got 41 percent on a massive number, 41 percent revenue growth, that's a company that I think that you could extrapolate out 41 percent growth for a really long period of time, but it will break whatever spreadsheets that you have. It's hard to put a value on what these top-flight gross companies are. Unfortunately, part of the game of holding a company like Shopify is just being used to the fact that, occasionally, some of the moves in the stock are not going to make sense at all.
Chris Hill: I'm wondering if because it's never going to look cheap. If you think about investors as being an addressable market, I guess you could say that's about a lot of different businesses. Like there's some businesses just because of what they do, there are people who would say, I don't support gambling, so I'm never going to own a casino, stocks, or something like that. But, I'm wondering if the addressable market for Shopify as a stock is constrained because there are always going to be people who want to see a cheaper stock. There are always going to be financial advisors telling people you don't want to buy that, it's such an expensive stock.
Bill Mann: That's a beautiful Amazon in 2003. I mean, that's exactly what was being talked about. It's always a little disingenuous, Chris, to pull Amazon out of your back pocket because Amazon was a special situation, and it will probably never happen exactly like that again. But, that is exactly the conversations that were happening around Amazon about 10,000 percent ago in terms of growth. Shopify has a $100 billion-plus market cap company, does not have the growth ramp in front of it in terms of share price that Amazon had at the time. But, that doesn't mean that a company that will continue to grow. I mean, 41 percent growth on the base that they had, that's astounding and they've just opened up a deal with JD.com. Shopify now has access to 550 million Chinese consumers.
Chris Hill: You say that like it's a big number.
Bill Mann: Yeah.
Bill Mann: True. Whenever you talked about China, all those numbers, they sound like cheat codes. You put this in, and just suddenly you've got 63 extra lives or whatever. Five-hundred-and-fifty million people I'm told is a lot and it's a market that they've barely tapped until now. There's plenty of growth for Shopify, but I can just simply guarantee as a stock, that is now down by 60 percent over the last three months, this share price is going to continue to visit a lot of different places over time. It's just part of the game you're signing up for when you own a company like Shopify.
Chris Hill: Last thing and then we'll move on, because I think that there are always going to be people who will lump JD.com, and Shopify in the same big bucket of, "Well, these are e-commerce companies." What is Shopify do that JD doesn't do that makes JD.com say we want to partner up with you?
Bill Mann: I think it's the access. They don't do that different, but Shopify has a massive stable of merchants that are already on their platform. Now, for JD.com, they could say, should we try and set up our own platform and trying to track them? Or can we just simply take what we have, which is an unbelievable infrastructure in China, and offer to split the rewards with the Shopify? What they don't have is simply that critical mass, and they're getting there quick, and it makes perfect sense. I expect huge things from that partnership going forward.
Chris Hill: Airbnb wrapped up the fourth quarter by reporting record revenue for all of 2021 and they said they expect bookings in the first quarter, to exceed pre-pandemic levels for the first time. I get that this is overall a down day in the market so maybe what we're seeing in terms of Airbnb's rise in this share price today, be a little bit muted. This wasn't a perfect quarter, but holy cow, this is a really good quarter.
Bill Mann: It was a holy cow quarter. Exactly. What do you suppose the opposite of pouring one out is? Remember back in March of 2020, we were pouring one out for Airbnb. It was the company that was maybe most impacted by the immediate shutdown at the beginning of the pandemic. Now they've had their best Q4 in history in terms of revenues in income and they've done so really without the benefit of Asia. Asia is still basically locked tight. It's the area that still most affected by Omicron, but then also by the policies in place that are much more restrictive than we see here in the US and in Europe. Super low cancellation rates, they had longer stays. I think you're seeing really for Airbnb, and this is a company that I have wrongly been skeptical of, but the fact that they are now getting much more, 50 percent longer stays than they had a year ago. The way in which these properties are being used is very different than before the pandemic. I think that's a trend that you have to assume is going to continue.
Chris Hill: When you go even further in terms of their longer stays, stays of four weeks or longer, made up almost a quarter of their bookings in this most recent report. It's amazing to me. You made the point about where they were in March of 2020. There were a lot of companies, pretty much every company had to figure out on the fly, what are we going to do? In the case of Airbnb, part of what they decided to do involved laying off some staff, really pulling back on their marketing. As they look to grow from here, I do wonder if in particular, the marketing spend is a leverage they're going to be, not necessarily reluctant to pull. They just put up these results. I guess I would hate to be trying to make the case that, they really need to spend a lot more on marketing. It's one of those adjustments that the business made because they had to make it. Now that they've made it, and seen what they can achieve without spending that money. I bet that they're going to be, maybe a little rightfully stingy with that in the future.
Bill Mann: Perhaps one of the things that I'm not sure that many people have really talked about that much was that one of the things that has grown really quickly for them, which is their nights and experiences segment. They basically took the fact that they have the knowledge of where people were going, and they knew from the types of establishments that they were staying in, what types of experiences that they could serve them and in so doing, they have crushed Tripadvisor, for example. Without even thinking about it, they've taken the data that they had in place, where you going, what type of property you are you staying in? How long are you going to stay there? They're matching that up with experiences. That's not even marketing. That's basic processing of artificial intelligence, of being able to make guesses based on really unbelievably deep set of features of data, that they already have.
Chris Hill: It's concierge service, as we used to think about it back in the day. But as you said, it's powered by AI and it's probably one of the more underrated parts of their business. Do you make anything of the fact that Marriott, Hilton, and Hyatt shares of all three are hitting all-time heights today. I don't own shares of any of those companies, but I look at that, I look at what Airbnb is doing. It seems like every day we're getting another announcement of an opening up. Disney coming out and saying, I think it's in their Orlando property, that masks are going to be optional now.
Bill Mann: As we stay down south, "Y'all come" [laughs].
Chris Hill: Again, I don't own shares of those three. But, I look at that and I feel more optimistic about how the world can be opening up again.
Bill Mann: Okay. Chris, if you had to guess, and you'd probably guessed the answer based on the premise of the question. Which stock has outperformed from March first 2020 Marriott or Zoom?
Chris Hill: Marriott?
Bill Mann: Marriott has outperformed.
Chris Hill: I remember talking with Ron Gross at some point in March of 2020. Marriott was one of the companies that we talked about. I can't remember if Ron said this on the show or if this was just in our discussion afterwards. But basically he said, "This company, when I look at it from top to bottom, when I think about the strength of the brand, their rewards for all that sort of thing. This seems like an unbelievable screaming value, at where it is trading right now, and because I'm an idiot, I did not buy shares".
Bill Mann: [laughs] All goes to show that, when Ron Gross speaks, you should definitely pay attention.
Chris Hill: Bill Mann, great talking to you. Thanks for bringing me here.
Bill Mann: Thanks Chris.
Chris Hill: Competition comes in different forms. A business like Airbnb has competitors like hotel chains. But for a pharmaceutical business, competition isn't just other pharmaceutical companies, it's also generic drug makers who are ready to move once a drug's patent protection ends. For more on a new wave of biosimilar drugs entering the market. Here's Olivia Zitkus.
Olivia Zitkus: Hi, Fools. I'm on with Keith Speights, the healthcare analyst here at the Motley Fool. Keith, thanks for coming on with me.
Keith Speights: Great to meet with you again, Olivia.
Olivia Zitkus: Today I want to talk about an important, and another radar component of the competitive landscape in pharma and biotech, biosimilars. The easiest way to start exploring the current pertinence of biosimes, as they're known, is with the story of an impending patent cliff. AbbVie's biologic Humira, a medicine approved to treat symptoms of various inflammatory conditions is the top drug in the industry by sales. Its 2021 revenue reached $20.7 billion. In 2023, the drug faces an important patent cliff in the United States, where the vast majority of its sales come from. Now under a patent settlement, pharma company Amgen must wait until January 31st, 2023 to launch its biosimilar AMDVITA in the US. It's already been released abroad. Now Pfizer's definition of a biosimilar product is a biologic product that is approved based on demonstrating that it is highly similar to an already FDA approved biologic known as a reference product. Biosimilars have no clinically meaningful differences in terms of safety and effectiveness from the reference product. They have different regulatory pathways than normal drugs that we talked about. In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. Now, Keith, if I am an AbbVie investor, I am panicking, the best-selling drug in the world is about to lose its patent protection and other biosimilars are coming onto the market in less than a year. Is Humira going to be completely swallowed up by these competitors, and how much does the on-slot of these biosimes really matter to AbbVie?
Keith Speights: Well, first, I can understand the temptation to panic, but I'll say that I'm personally an AbbVie shareholder and I'm not panicking at all. I don't think other investors need to either. But for one thing, AbbVie's valuation already reflects the coming sales decline for Humira and sales for Humira will decline for sure. The stock currently trades at around 10 times expected earnings. That's cheaper than most other pharma stocks. It looks like an absolute bargain compared to the S&P 500 which trades at a forward earnings multiple of over 20 right now. The other thing, Olivia, is that AbbVie has been preparing for this for years even before its spinoff from Abbott Labs back in 2013, Abbott and AbbVie knew that the day would come when Humira would face biosimilar competition, the company has been getting ready for this day.
It's made strategic acquisitions along the way, notably, including the buyout of Allergan in 2020, and that help make it less dependent on Humira. Also the company has built up a really strong pipeline. Abbvie successors to Humira are two drugs, Rinvoq and Skyrizi. These two drugs are expected to together make $15 billion in sales in 2025. That will go a long way toward offsetting the declining sales for Humira. Also, don't expect Humira sales to just evaporate overnight. For example, the drug made $6.3 billion in international sales in 2018, and it began to face biosimilars in Europe at the end of that year. But in 2021, Humira's international sales totaled $3.4 billion. That's still a lot of money. Sure, sales fell nearly 50 percent, but if Humira experiences a similar result in the US, they can still make more than $8 billion per year in the US market. That's a lot of money. The bottom line is that AbbVie will definitely feel some pain from biosimilar competition in the US market for Humira, but the company should be in good shape to weather this storm.
Olivia Zitkus: If you're an investor, that might call me for a brief moment before thinking to yourself, biosimilars clearly post some risk to drugs already on the market. Should I also be worried about generics? Let's take a step back, Keith. Can you briefly explain the difference between generics and biosimilars and talk about the problems that generics might create for our reference product?
Keith Speights: Sure. Biosimilars and generics are alike. They're intended to offer less expensive versions, I'll put versions in quotes, of brand drugs. Biosimilars are similar to biologic drugs or those drugs that are made from living organisms, for example, antibodies. Generics are chemically identical to their original reference products. Biosimilars and generics can only enter the market when the patents for their reference products expire or the makers of the original products reach an agreement with makers of biosimilars or generics for an alternative launch day. But now to your question about whether investors shouldn't worry about generics, the answer is a definite maybe. Generic competition can present a big problem for a company that hasn't adequately prepared for steep loss in revenue. In the past, we've seen companies such as Pfizer go through what are called patent cliffs where multiple blockbuster drugs lose patent exclusivity over a short period of time. When drug makers don't have other new products in position to offset the revenue declines from these losses of exclusivity, their stocks can fall quite a bit.
Olivia Zitkus: It sounds like pipeline preparation is definitely key to surviving the loss of a patent or a patent cliff. Now, Amgen, Boehringer Ingelheim, Viatris, et cetera, are all coming for AbbVie in 2023 with their biosimilars to Humira. It seems to me like producing biosimilars could be a really lucrative business. Are there any companies focusing closely on biosimilars that you think could be worthwhile Foolish investments?
Keith Speights: Yeah, Olivia, I think that one of the companies you mentioned is worthy of consideration by Foolish investors and that company is Viatris. Viatris was formed in 2020 by the merger of Pfizer's Upjohn unit with Mylan. The company focuses on marketing biosimilars, generics, and also older brand drugs such as Lipitor, Lyrica, and Viagra. I recently wrote that Viatris is my favorite value stock right now. I wrote that for several reasons. This stock trades at only four times expected earnings and one times trailing 12-months sales. That is dirt cheap. But Viatris has performed well so far this year, even as the overall market has declined. The company called 2021 a trough year, but it expects to deliver stronger growth going forward. As you mentioned, the launch of its biosimilar to Humira in 2023 is on the way. That should help quite a bit. Viatris also expects to soon launch a biosimilar to another blockbuster drug, an eye disease drug called Eylea pending regulatory approval and that should help boost its sales as well. Then finally, income investors should really like Viatris. The company has a dividend yield of around 3.1 percent. This is a combination of value and dividend that I think a lot of Foolish investors would like.
Keith Speights: I think that's a great pick as well, Keith. Thanks so much for talking Humira, generics, biosimes with me and sorting all of that out for our Fools. This has been a lot of fun.
Chris Hill: That's all for today, we'll be coming up tomorrow. Jason Moser and Matt Frankel have a deep dive on one of the most disruptive financial companies of this century. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourself stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bill Mann owns JD.com, Shopify, Walt Disney, and Zoom Video Communications. Chris Hill owns Airbnb, Inc., Amazon, Shopify, and Walt Disney. Keith Speights owns AbbVie, Amazon, Pfizer, Viatris Inc., and Walt Disney. Olivia Zitkus owns Airbnb, Inc., Pfizer, and Walt Disney. The Motley Fool owns and recommends Airbnb, Inc., Amazon, JD.com, Shopify, TripAdvisor, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Hyatt Hotels, Marriott International, and Viatris Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, short January 2023 $1,160 calls on Shopify, and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. The bottom line is that AbbVie will definitely feel some pain from biosimilar competition in the US market for Humira, but the company should be in good shape to weather this storm. AbbVie's biologic Humira, a medicine approved to treat symptoms of various inflammatory conditions is the top drug in the industry by sales. | AbbVie's biologic Humira, a medicine approved to treat symptoms of various inflammatory conditions is the top drug in the industry by sales. In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. Now, Keith, if I am an AbbVie investor, I am panicking, the best-selling drug in the world is about to lose its patent protection and other biosimilars are coming onto the market in less than a year. | AbbVie's biologic Humira, a medicine approved to treat symptoms of various inflammatory conditions is the top drug in the industry by sales. In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. Now, Keith, if I am an AbbVie investor, I am panicking, the best-selling drug in the world is about to lose its patent protection and other biosimilars are coming onto the market in less than a year. | AbbVie's biologic Humira, a medicine approved to treat symptoms of various inflammatory conditions is the top drug in the industry by sales. In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. Now, Keith, if I am an AbbVie investor, I am panicking, the best-selling drug in the world is about to lose its patent protection and other biosimilars are coming onto the market in less than a year. | d5bf5826-74a1-4996-b092-5d0e04f3ae57 |
23572.0 | 2022-03-02 00:00:00 UTC | Harpoon Therapeutics: HPN217 Receives FDA Fast Track Designation | ABBV | https://www.nasdaq.com/articles/harpoon-therapeutics%3A-hpn217-receives-fda-fast-track-designation | nan | nan | (RTTNews) - Harpoon Therapeutics, Inc. (HARP) said FDA has granted Fast Track designation to HPN217, a BCMA-targeting TriTAC, for the treatment of patients with relapsed, refractory multiple myeloma who have received at least four lines of therapy.
Julie Eastland, President and CEO, Harpoon Therapeutics, said: "We are focused on selecting an initial dose to study in the expansion phase of the ongoing phase 1/2 clinical trial in the first half of this year as we progress HPN217 forward as an innovative new treatment option for these patients."
Shares of Harpoon Therapeutics were up 2% in pre-market trade on Wednesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Harpoon Therapeutics, Inc. (HARP) said FDA has granted Fast Track designation to HPN217, a BCMA-targeting TriTAC, for the treatment of patients with relapsed, refractory multiple myeloma who have received at least four lines of therapy. Julie Eastland, President and CEO, Harpoon Therapeutics, said: "We are focused on selecting an initial dose to study in the expansion phase of the ongoing phase 1/2 clinical trial in the first half of this year as we progress HPN217 forward as an innovative new treatment option for these patients." Shares of Harpoon Therapeutics were up 2% in pre-market trade on Wednesday. | (RTTNews) - Harpoon Therapeutics, Inc. (HARP) said FDA has granted Fast Track designation to HPN217, a BCMA-targeting TriTAC, for the treatment of patients with relapsed, refractory multiple myeloma who have received at least four lines of therapy. Julie Eastland, President and CEO, Harpoon Therapeutics, said: "We are focused on selecting an initial dose to study in the expansion phase of the ongoing phase 1/2 clinical trial in the first half of this year as we progress HPN217 forward as an innovative new treatment option for these patients." Shares of Harpoon Therapeutics were up 2% in pre-market trade on Wednesday. | (RTTNews) - Harpoon Therapeutics, Inc. (HARP) said FDA has granted Fast Track designation to HPN217, a BCMA-targeting TriTAC, for the treatment of patients with relapsed, refractory multiple myeloma who have received at least four lines of therapy. Julie Eastland, President and CEO, Harpoon Therapeutics, said: "We are focused on selecting an initial dose to study in the expansion phase of the ongoing phase 1/2 clinical trial in the first half of this year as we progress HPN217 forward as an innovative new treatment option for these patients." The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Harpoon Therapeutics, Inc. (HARP) said FDA has granted Fast Track designation to HPN217, a BCMA-targeting TriTAC, for the treatment of patients with relapsed, refractory multiple myeloma who have received at least four lines of therapy. Julie Eastland, President and CEO, Harpoon Therapeutics, said: "We are focused on selecting an initial dose to study in the expansion phase of the ongoing phase 1/2 clinical trial in the first half of this year as we progress HPN217 forward as an innovative new treatment option for these patients." Shares of Harpoon Therapeutics were up 2% in pre-market trade on Wednesday. | c48b6b52-7cb2-45d1-ba18-7624c9859a24 |
23573.0 | 2022-03-02 00:00:00 UTC | Has the Market Correction Made AbbVie Stock Cheap? | ABBV | https://www.nasdaq.com/articles/has-the-market-correction-made-abbvie-stock-cheap | nan | nan | With the stock market down about 8% so far this year -- and briefly entering correction territory last week -- investors are on the lookout for shares of quality companies that have dropped into bargain territory. AbbVie's (NYSE: ABBV) stock, however, has been moving up rather than down so far in 2022. Is it a buy?
Before approaching the question of AbbVie's valuation directly, let's look at where the company plans to go over the next few years, as well as its recent performance.
Image source: Getty Images.
A look at the numbers
For AbbVie, business is proceeding as planned. In the fourth quarter of last year, it made $14.8 billion in global net revenue, which was 7.4% more than the total from Q4 of 2020. Thanks to sales of its many medicines, its quarterly revenue and net income have risen steadily over the last five years, and its dividend payment has more than doubled.
ABBV Revenue (Quarterly) data by YCharts.
It has dozens of late-stage programs, many seeking to expand the indications of its already commercialized medicines. In late February, one of these medicines, Vraylar, concluded a phase 3 trial investigating an expanded indication for major depressive disorder (MDD). Now, regulators will need to weigh in on whether the drug can be used for MDD in addition to its existing indications for schizophrenia and bipolar disorder.
If the indication is approved, it could mean as much as another $4 billion in annual revenue, according to management. The drug is expected to make $2.2 billion this year, so the approval would bring a significant increase. But the extra billions wouldn't make a huge impact on AbbVie's total revenue, as its trailing-12-month sales were in excess of $56.2 billion.
Management continues to expect the company's rate of revenue growth to take a hit after losing exclusivity protection in early 2023 for one of its biggest earners, arthritis drug Humira. In Q4 of 2021, Humira brought in $5.3 billion globally, so losing market share to generics might be more devastating than the benefit of expansion of drugs like Vraylar.
Nonetheless, management is confident that working to expand the indications of its medicines Skyrizi and Rinvoq, which target the same markets as Humira, will lead to sales growth by 2025.
During the Feb. 2 conference call with analysts, CEO Richard Gonzalez said that "following the U.S. Humira [loss of exclusivity] event in 2023, we expect to quickly return to growth in 2024 and deliver a high single-digit growth from 2025 to the end of the decade.
Early sales data indicate that this can happen, but there's still a lot of time between now and then. The uncertainty over whether AbbVie can actually pull off this transition away from Humira might well be a factor in keeping investors from buying the stock.
Are the shares worth it?
Now that I've addressed AbbVie's present and its potential future, it's time to consider whether shares are worth the price the market is asking for them.
The first thing to recognize about its valuation is that AbbVie's shares have gained 9% so far this year while the broader stock market has fallen by 8%.
AbbVie's shares are trading with a trailing-12-month price-to-earnings (P/E) ratio of 22.3. That's a touch lower than the pharmaceutical industry's average P/E of 25.8, but it's nothing to write home about.
Other valuation metrics like price-to-free-cash-flow (FCF) don't make things look significantly cheaper. AbbVie's price-to-FCF multiple is 11.1, whereas the industry's average is just over 16.
So AbbVie's shares do look slightly undervalued compared to others in the industry, though that seems to have nothing to do with the market correction. If I had to pick one reason, it'd be the expectation that Humira's revenue will tank in 2023, which management has a plan to address.
Pairing this with catalysts from expanding the market for other medicines, it's possible that investors who buy the stock now could be sitting on some decent gains in a few years.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's (NYSE: ABBV) stock, however, has been moving up rather than down so far in 2022. Before approaching the question of AbbVie's valuation directly, let's look at where the company plans to go over the next few years, as well as its recent performance. A look at the numbers For AbbVie, business is proceeding as planned. | ABBV Revenue (Quarterly) data by YCharts. AbbVie's (NYSE: ABBV) stock, however, has been moving up rather than down so far in 2022. Before approaching the question of AbbVie's valuation directly, let's look at where the company plans to go over the next few years, as well as its recent performance. | The first thing to recognize about its valuation is that AbbVie's shares have gained 9% so far this year while the broader stock market has fallen by 8%. AbbVie's (NYSE: ABBV) stock, however, has been moving up rather than down so far in 2022. Before approaching the question of AbbVie's valuation directly, let's look at where the company plans to go over the next few years, as well as its recent performance. | So AbbVie's shares do look slightly undervalued compared to others in the industry, though that seems to have nothing to do with the market correction. AbbVie's (NYSE: ABBV) stock, however, has been moving up rather than down so far in 2022. Before approaching the question of AbbVie's valuation directly, let's look at where the company plans to go over the next few years, as well as its recent performance. | ffe41053-ec54-4d7c-9804-8fde0ea1b5fe |
23574.0 | 2022-03-01 00:00:00 UTC | U.S. lawmakers seek answers on 'troubling' drug price increases | ABBV | https://www.nasdaq.com/articles/u.s.-lawmakers-seek-answers-on-troubling-drug-price-increases | nan | nan | By Diane Bartz
WASHINGTON, March 1 (Reuters) - Senators Elizabeth Warren and Amy Klobuchar and 11 other U.S. lawmakers pressed the president of the biggest pharmaceutical industry trade group Tuesday about what they said were "troubling price increases for brand name drugs" in January.
A letter to Stephen Ubl, president of the Pharmaceutical Research and Manufacturers of America (PhRMA), was signed by 12 Democrats as well as Senator Bernie Sanders, an independent. It asks PhRMA to explain the source of the price increases, and asks for information about research costs and revenue from the medicines.
"The large, across-the-board price increases of popular, brand name prescription drugs appear to be an example of pharmaceutical companies taking advantage of their abusive market power to expand already large profits," the lawmakers wrote.
A spokesperson for PhRMA, Brian Newell, said drug prices rose just 1.3% last year and that the letter put a "myopic focus" on drugmakers that fails to take into account others involved in high U.S. healthcare costs.
"This letter ignores abusive insurance practices that force patients to pay the full cost of medicines while at the same time middlemen pocket record rebates and discounts from drugmakers," Newell said in a statement.
The lawmakers, who included Representative Katie Porter, cited two studies: one by Dr. Stephen Schondelmeyer of the University of Minnesota and another by the Johns Hopkins Drug Access and Affordability Initiative, which focused on 20 prescription medicines that the Medicare Part D program spends the most on.
Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices.
The Johns Hopkins study found higher prices for 16 of the top 20 Medicare Part D drugs in January.
Among the widely used drugs in the Medicare program cited in the letter were Novo Nordisk's NOVOb.CO Victoza 2-Pak for type 2 diabetes, which had a price increase of 4.8% to $709.74.
Novo Nordisk spokesman Michael Bachner in a statement said that the company "committed in 2016 to keep annual list price increases below 10% and we have kept true to that commitment."
Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. The price of Pfizer's PFE.N breast cancer drug Ibrance rose 6.9%, while the price of blood clot preventer Eliquis, sold by Bristol Myers Squibb BMY.N and Pfizer increased 6%, the letter said.
Representatives for other drugmakers did not comment.
(Reporting by Diane Bartz; Editing by Bill Berkrot)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. By Diane Bartz WASHINGTON, March 1 (Reuters) - Senators Elizabeth Warren and Amy Klobuchar and 11 other U.S. lawmakers pressed the president of the biggest pharmaceutical industry trade group Tuesday about what they said were "troubling price increases for brand name drugs" in January. A spokesperson for PhRMA, Brian Newell, said drug prices rose just 1.3% last year and that the letter put a "myopic focus" on drugmakers that fails to take into account others involved in high U.S. healthcare costs. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices. The Johns Hopkins study found higher prices for 16 of the top 20 Medicare Part D drugs in January. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. By Diane Bartz WASHINGTON, March 1 (Reuters) - Senators Elizabeth Warren and Amy Klobuchar and 11 other U.S. lawmakers pressed the president of the biggest pharmaceutical industry trade group Tuesday about what they said were "troubling price increases for brand name drugs" in January. Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. By Diane Bartz WASHINGTON, March 1 (Reuters) - Senators Elizabeth Warren and Amy Klobuchar and 11 other U.S. lawmakers pressed the president of the biggest pharmaceutical industry trade group Tuesday about what they said were "troubling price increases for brand name drugs" in January. The lawmakers, who included Representative Katie Porter, cited two studies: one by Dr. Stephen Schondelmeyer of the University of Minnesota and another by the Johns Hopkins Drug Access and Affordability Initiative, which focused on 20 prescription medicines that the Medicare Part D program spends the most on. | 96a16fee-e293-47ca-95b0-d7353d728f82 |
23575.0 | 2022-03-01 00:00:00 UTC | Warren, 12 other U.S. lawmakers press drugs lobby group on price increases | ABBV | https://www.nasdaq.com/articles/warren-12-other-u.s.-lawmakers-press-drugs-lobby-group-on-price-increases | nan | nan | By Diane Bartz
WASHINGTON, March 1 (Reuters) - Senators Elizabeth Warren and Amy Klobuchar and 11 other U.S. lawmakers pressed the president of the biggest pharmaceutical industry trade group on Tuesday about what they said were "troubling price increases for brand name drugs" in January.
A letter to Stephen Ubl, president of the Pharmaceutical Research and Manufacturers of America (PhRMA) was signed by 12 Democrats as well as Senator Bernie Sanders, an independent. It asks PhRMA to explain the source of the price increases, and asks for information about research costs and revenue from the medicines.
"The large, across-the-board price increases of popular, brand name prescription drugs appear to be an example of pharmaceutical companies taking advantage of their abusive market power to expand already large profits," the lawmakers wrote.
The lawmakers, who included Representative Katie Porter, cited two studies: one by Dr. Stephen Schondelmeyer of the University of Minnesota and another by the Johns Hopkins Drug Access and Affordability Initiative, which focused on 20 prescription medicines that the Medicare Part D program spends the most on.
Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices.
The Johns Hopkins study found higher prices for 16 of the top 20 Medicare Part D drugs in January, with more than half of them showing price increases of at least 5%.
Among the widely used drugs in the Medicare program cited in the letter were Novo Nordisk's NOVOb.CO Victoza 2-Pak for type 2 diabetes, which the report said had a price increase of 32.8% to $899.91 for a two-month supply.
Novo Nordisk spokesman Michael Bachner said that the Victoza 2-pak price rose to $709.74 in January, a 4.8% increase. He also sent a statement which said that the company "committed in 2016 to keep annual list price increases below 10% and we have kept true to that commitment."
Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. The price of Pfizer's PFE.N breast cancer drug Ibrance rose 6.9%, while the price of blood clot preventer Eliquis, sold by Bristol Myers Squibb BMY.N and Pfizer increased 6%, the letter said.
Representatives for PhRMA and other drugmakers did not immediately respond to requests for comment.
(Reporting by Diane Bartz; Editing by Bill Berkrot)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. By Diane Bartz WASHINGTON, March 1 (Reuters) - Senators Elizabeth Warren and Amy Klobuchar and 11 other U.S. lawmakers pressed the president of the biggest pharmaceutical industry trade group on Tuesday about what they said were "troubling price increases for brand name drugs" in January. The lawmakers, who included Representative Katie Porter, cited two studies: one by Dr. Stephen Schondelmeyer of the University of Minnesota and another by the Johns Hopkins Drug Access and Affordability Initiative, which focused on 20 prescription medicines that the Medicare Part D program spends the most on. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices. The Johns Hopkins study found higher prices for 16 of the top 20 Medicare Part D drugs in January, with more than half of them showing price increases of at least 5%. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices. The Johns Hopkins study found higher prices for 16 of the top 20 Medicare Part D drugs in January, with more than half of them showing price increases of at least 5%. | Other drugs cited included AbbVie's ABBV.N big-selling rheumatoid arthritis treatment Humira Pen and leukemia drug Imbruvica, which saw their prices go up 7.4%. The lawmakers, who included Representative Katie Porter, cited two studies: one by Dr. Stephen Schondelmeyer of the University of Minnesota and another by the Johns Hopkins Drug Access and Affordability Initiative, which focused on 20 prescription medicines that the Medicare Part D program spends the most on. Schondelmeyer's study found that drugmakers increased prices for 72% of the 100 top-selling drugs in early 2022, with 26% of brand name drugs showing higher prices. | 8bed4f75-307c-45bc-ae6c-13dd2df3e177 |
23576.0 | 2022-02-28 00:00:00 UTC | Reata's (RETA) Q4 Earnings Miss Mark, Revenues Decline Y/Y | ABBV | https://www.nasdaq.com/articles/reatas-reta-q4-earnings-miss-mark-revenues-decline-y-y | nan | nan | Reata Pharmaceuticals, Inc. RETA reported fourth-quarter 2021 loss of $2.35 per share, wider than the Zacks Consensus Estimate of a loss of $2.31.
However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.59 per share, also wider than the loss of $1.25 per share recorded in the year-ago period.
Total revenues, comprising collaboration revenues, were $0.9 million compared with $3.2 million in the year-ago quarter. Revenues were almost in line with the Zacks Consensus Estimate of $1 million.
Shares of Reata have plunged 79.4% in the past year compared with the industry’s decrease of 37.7%.
Image Source: Zacks Investment Research
Full-Year Results
For full-year 2021, Reata generated total revenues of $11.5 million compared with $9 million recorded in 2020.
For 2021, the company reported a loss of $8.19 per share compared with net loss of $7.35 per share in 2020. Adjusted loss came in at $5.34 per share compared with net loss of $4.70 per share in 2020.
Quarter in Detail
Adjusted research and development expenses rose 8.6% year over year to $35.5 million.
Adjusted general and administrative expenses were $21.4 million, up 74% from the year-ago period.
The company had cash and cash equivalents of $590.3 million as of Dec 31, 2021, compared with $713.2 million as of Sep 30, 2021. The company expects its cash resources to fund operations through 2024-end, which was earlier expected through mid-2024.
Pipeline Update
Reata has developed its lead pipeline candidates — bardoxolone methyl (bardoxolone) and omaveloxolone — for rare forms of chronic kidney disease (“CKD”) and neurological diseases, respectively. Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019.
The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, if they were owned by AbbVie.
On Feb 25, the FDA issued a Complete Response Letter (“CRL”) to the new drug application (“NDA”) for bardoxolone for the treatment of patients with CKD caused by Alport syndrome. The CRL indicated that the regulatory body cannot approve the NDA in its present form.
Reata continues to work with the FDA to decide the next step forward for bardoxolone.
In December 2021, an FDA advisory committee voted against approval of the bardoxolone NDA, stating that clinical data provided with the NDA does not support the effectiveness of the candidate in slowing the progression of CKD.
The CRL from the FDA is expected to further delay the approval for bardoxolone in the United States.
Reata is also developing bardoxolone for treating autosomal dominant polycystic kidney disease (“ADPKD”) in a late-stage study. The company has recently filed a protocol amendment and requested a Type A meeting with the FDA to discuss the ADPKD development program.
Reata is developing its other lead pipeline candidate, omaveloxolone, as a potential treatment for Friedreich’s ataxia (“FA”).
In January 2022, the company initiated a rolling submission of an NDA seeking approval for omaveloxolone for the treatment of patients with FA. The company expects to complete the submission of the NDA by the end of first quarter of 2022.
Reata Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Reata Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Reata Pharmaceuticals, Inc. Quote
Zacks Rank & Stocks to Consider
Reata currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Dynavax Technologies Corporation DVAX and Kaleido Biosciences, Inc. KLDO, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dynavax’s earnings estimates have been revised 10.3% upward for 2022 over the past 60 days. The stock has rallied 40.3% in the past year.
Earnings of Dynavax have surpassed estimates in each of the trailing four quarters.
Kaleido Biosciences’ loss per share estimates have narrowed 11.3% for 2022 over the past 60 days.
Earnings of Kaleido Biosciences have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, if they were owned by AbbVie. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, if they were owned by AbbVie. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, if they were owned by AbbVie. | Reata had reacquired the development, manufacturing and commercialization rights for omaveloxolone and bardoxolone from AbbVie ABBV in 2019. The company also reacquired ex-U.S. rights to bardoxolone, omaveloxolone and its proprietary Nrf2 product platform from AbbVie during the same time. With this move, Reata is likely to record total sales following potential launches instead of royalties, if they were owned by AbbVie. | d1c3f301-bd9a-4fcf-95c3-25c8341f8270 |
23577.0 | 2022-02-28 00:00:00 UTC | The 2 Best ETFs for Dividends | ABBV | https://www.nasdaq.com/articles/the-2-best-etfs-for-dividends | nan | nan | During a market like we have experienced over the past few months when the major benchmarks are posting negative year-to-date returns, dividend income becomes even more important for many investors. That extra income can either be reinvested back in stocks or an exchange-traded fund, at a cheaper price if the investment is down, or kept as a source of income. Either option is good, depending on the investor. Many investors, particularly those in retirement, like to have that extra dividend income.
Two of the best ETFs on the market right now for dividend income are the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) and the Invesco S&P Ultra Dividend Revenue ETF (NYSEMKT: RDIV).
Image source: Getty Images.
SPDR Portfolio S&P 500 High Dividend ETF
The SPDR Portfolio S&P 500 High Dividend ETF generates one of the highest yields on the market along with a high annual payout. This great dividend-producing ETF tracks the S&P 500 High Dividend Index, which consists of the 80 stocks in the index with the highest dividend yields based on the latest dividends. Also, it is equal-weighted, with all of the holdings roughly the same size.
The three largest holdings currently are Organon, AbbVie, and Valero Energy. Financials (17%), Utilities (17%), Real Estate (13%), and Energy (13%) are the sectors that are most represented.
The ETF, currently trading at $43 per share, has a dividend yield of 4.05%, which is well higher than most other dividend ETFs and higher than the 1.38% median dividend on the S&P 500. Over the past year, it paid out dividends totaling $1.56 per share. If you owned 100 shares of this ETF, you would have $156 in income.
There are a few other benefits with this ETF, particularly in these times. Because it is focused on dividends, it includes a lot of stable, long established companies, many of which are in sectors that do well in rising interest rate environments. It also includes a lot of value stocks, which have been outperforming growth over the past year. And because it is equal-weighted, its returns will be less volatile than a typical S&P 500 market-weighted ETF.
As a result, this ETF is up 2% year to date as of Feb. 25. Over the past year through Jan.31, it is up 32%, and it has a 10.3% annualized return since inception in 2015. Finally, with an expense ratio of 0.07%, it is one of the cheapest ETFs on the market.
Invesco S&P Ultra Dividend Revenue ETF
The Invesco S&P Ultra Dividend Revenue ETF takes a unique approach to generating dividend income for investors. It starts with the S&P 900 -- which includes the S&P 500 large-cap index and the S&P 400 mid-cap index. From each, it excludes stocks that donʻt pay dividends as well as those that don't have positive revenue gains over the prior 12 months. From that pool, the fund includes the top 60 stocks with the highest dividend yields, and it is weighted by those with the highest revenue over the trailing four quarters.
It should come as no surprise that the index is heavily weighted with value stocks right now. Large-cap value represents 33.7%, mid-cap value represents 43%, and small-cap value accounts for 17.4% of the portfolio. The largest holdings are Marathon Petroleum, Cardinal Health, and Southern Company.
This ETF trades at about $42 per share and pays out a yield of 3.43%. Last year it paid out $1.39 per share on an annual basis, which comes to $139 per year in dividend income for those who own 100 shares.
Because of its construction and revenue-weighting, it is built to perform well in various market cycles. This year it is basically flat as of Feb. 25, and over the past year it is up 29.7% as of Jan. 31. Since inception in 2013, it has posted an annualized return of 11.5%. Its expense ratio is a bit higher than the other ETF noted here at 0.39%.
The nice thing about both of these ETFs, aside from the fact that they are built to generate high dividend income, is that they are solid diversifiers in a portfolio, providing positive returns when other investments are down.
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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 three largest holdings currently are Organon, AbbVie, and Valero Energy. During a market like we have experienced over the past few months when the major benchmarks are posting negative year-to-date returns, dividend income becomes even more important for many investors. Because it is focused on dividends, it includes a lot of stable, long established companies, many of which are in sectors that do well in rising interest rate environments. | The three largest holdings currently are Organon, AbbVie, and Valero Energy. Two of the best ETFs on the market right now for dividend income are the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) and the Invesco S&P Ultra Dividend Revenue ETF (NYSEMKT: RDIV). SPDR Portfolio S&P 500 High Dividend ETF The SPDR Portfolio S&P 500 High Dividend ETF generates one of the highest yields on the market along with a high annual payout. | The three largest holdings currently are Organon, AbbVie, and Valero Energy. Two of the best ETFs on the market right now for dividend income are the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) and the Invesco S&P Ultra Dividend Revenue ETF (NYSEMKT: RDIV). SPDR Portfolio S&P 500 High Dividend ETF The SPDR Portfolio S&P 500 High Dividend ETF generates one of the highest yields on the market along with a high annual payout. | The three largest holdings currently are Organon, AbbVie, and Valero Energy. Many investors, particularly those in retirement, like to have that extra dividend income. It also includes a lot of value stocks, which have been outperforming growth over the past year. | 8682264b-a265-453e-a0df-8418c9b7bae9 |
23578.0 | 2022-02-27 00:00:00 UTC | Investing in Pharma Stocks? Avoid Doing These 3 Things | ABBV | https://www.nasdaq.com/articles/investing-in-pharma-stocks-avoid-doing-these-3-things | nan | nan | Pharmaceutical stocks can be great tools for building wealth, provided that you understand how and why to use them -- and how not to. Like all investments, it's entirely possible to get burned by pharma stocks, so you'll want to minimize the risks.
To help you on your journey, here are three of the biggest mistakes that new pharma investors are prone to making. The road to mastery is long, but if you do your best to avoid these pitfalls, your pharma portfolio will be in much better shape over the years.
Image source: Getty Images.
1. Disregarding the exclusivity expiration date for key medicines
When a pharmaceutical company gets a new drug approved for sale by a regulatory body, it's in a race against time to recoup development costs and turn a profit before competitors are legally allowed to copy the drug and sell their own cheaper generic version.
Investors who aren't aware of looming exclusivity expirations invest in pharma stocks at their own peril. You wouldn't want to invest in a business that's already losing revenue from one of its top moneymakers, quickly.
For most drugs developed in the U.S., exclusivity protections last for five years, and patent protections can last for 20 years. Not all drugs have patent protections, but exclusivity protections are the norm.
In a nutshell, that means five years after a medicine hits the market, there's a solid chance that the drugmaker's revenue from it will start to fall as generic competitors enter. For example, one of the biggest questions for investors in AbbVie (NYSE: ABBV) is whether it'll be able to successfully navigate falling revenue from its blockbuster drug Humira once its exclusivity protections expire next year.
The larger the company, the less the expiration of any individual drug's protections will impact the stock. Still, the amount of annual revenue from a product matters the most, so be sure to check a company's latest earnings report to see how much an upcoming exclusivity protection expiration will ding the top line.
2. Ignoring the valuation
As with all stocks, it's perilous to ignore the valuation of pharma companies. After all, you check the price tag before you buy something to see if it's a deal worth taking, and pharma stocks should be no different.
What's an acceptable deal for you depends on your own preferences, but take care to recognize that an overly inexpensive stock should be a red flag, just like an overly expensive one would be. If you see that the price-to-earnings multiple of AbbVie is around half that of its similarly sized competitors like Eli Lilly, try to figure out why the market is valuing it that way.
With AbbVie, the answer almost certainly relates to its looming expiring exclusivity for one of its biggest-earning medicines, so the cheap valuation is a signal that the market is expecting lower future earnings. If you buy the shares and the market is correct, you might be disappointed by languid growth. Worse yet, if you buy an overpriced stock and an economic event causes investors to flee to grounded valuations, you could be looking at substantial losses.
However, you don't need to obsess over valuations, especially not when your investing thesis for a business is strong. A stock that's on the expensive side might be that way because of anticipated fast growth that pans out. Alternatively, shares that are priced cheaply might be the result of the market judging a stock's growth potential incorrectly.
You're more likely to avoid investor's regret if you factor valuation analysis into your research process.
3. Selling too soon
Perhaps the largest mistake that new investors make when purchasing pharma stocks is selling them too soon.
The drug development cycle takes quite a while to bear fruit, with the median successful project lasting around 7.2 years from the preclinical stage through the terminal regulatory approval for commercialization. Therefore, future revenue growth needs to be planned for far ahead of time. And because only 13.8% of medicines make it through the clinical trials process, increasing income over time is far from guaranteed.
This is why many companies develop many different medicines in parallel. As a result, major players tend to have at least a couple of programs that are scheduled to launch each year. When certain programs fail, it causes an immediate and negative impact on the share price. But once approved, medicines often take a year or more from their launch to see widespread adoption, and peak sales can sometimes occur only several years after launch.
So the positive impacts on shareholder value are partially registered over time, which is one of the reasons it's so important to keep holding even when there's been a setback with an important program.
In other words, if you buy a pharma stock only to hold it for a year before selling, you probably didn't get much of the benefit of the slow march of the development process. Especially when a drug stock pays a dividend, holding it for at least three years is highly recommended. And if you commit to a multi-year holding period, you'll be better prepared to stomach the inevitable downward volatility.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, one of the biggest questions for investors in AbbVie (NYSE: ABBV) is whether it'll be able to successfully navigate falling revenue from its blockbuster drug Humira once its exclusivity protections expire next year. If you see that the price-to-earnings multiple of AbbVie is around half that of its similarly sized competitors like Eli Lilly, try to figure out why the market is valuing it that way. With AbbVie, the answer almost certainly relates to its looming expiring exclusivity for one of its biggest-earning medicines, so the cheap valuation is a signal that the market is expecting lower future earnings. | For example, one of the biggest questions for investors in AbbVie (NYSE: ABBV) is whether it'll be able to successfully navigate falling revenue from its blockbuster drug Humira once its exclusivity protections expire next year. If you see that the price-to-earnings multiple of AbbVie is around half that of its similarly sized competitors like Eli Lilly, try to figure out why the market is valuing it that way. With AbbVie, the answer almost certainly relates to its looming expiring exclusivity for one of its biggest-earning medicines, so the cheap valuation is a signal that the market is expecting lower future earnings. | For example, one of the biggest questions for investors in AbbVie (NYSE: ABBV) is whether it'll be able to successfully navigate falling revenue from its blockbuster drug Humira once its exclusivity protections expire next year. If you see that the price-to-earnings multiple of AbbVie is around half that of its similarly sized competitors like Eli Lilly, try to figure out why the market is valuing it that way. With AbbVie, the answer almost certainly relates to its looming expiring exclusivity for one of its biggest-earning medicines, so the cheap valuation is a signal that the market is expecting lower future earnings. | For example, one of the biggest questions for investors in AbbVie (NYSE: ABBV) is whether it'll be able to successfully navigate falling revenue from its blockbuster drug Humira once its exclusivity protections expire next year. If you see that the price-to-earnings multiple of AbbVie is around half that of its similarly sized competitors like Eli Lilly, try to figure out why the market is valuing it that way. With AbbVie, the answer almost certainly relates to its looming expiring exclusivity for one of its biggest-earning medicines, so the cheap valuation is a signal that the market is expecting lower future earnings. | 7503aa61-6cc9-48b8-afe8-132bbcb7e9bd |
23579.0 | 2022-02-27 00:00:00 UTC | If You Invested $25,000 in AbbVie In 2013, This Is How Much You Would Have Today | ABBV | https://www.nasdaq.com/articles/if-you-invested-%2425000-in-abbvie-in-2013-this-is-how-much-you-would-have-today | nan | nan | AbbVie (NYSE: ABBV) is one of the top healthcare companies in the world, with a market cap of $256 billion. That's a higher valuation than Abbott Laboratories' $209 billion which AbbVie spun off from in 2013.
The stock has been a major performer for shareholders. But just how much would you have made if you'd invested $25,000 in AbbVie when it first began trading?
Image source: Getty Images.
Today, your shares would be worth more than $100,000
The stock debuted on Jan. 2, 2013, as a spin-off from Abbott Labs, and it was priced at $35. If you'd invested $25,000 into the company then, that would have secured you about 714 shares of the healthcare business.
Currently, the stock trades at around $145, putting the value of those shares at roughly $103,530, a return of 314% -- not including the dividends the company paid over that time.
AbbVie's dividend payout is 3.8%, which is well above the S&P 500 average of 1.3%. And the company has also been increasing its dividends, growing them from $0.40 in 2013 to $1.41 today, for an increase of 253%. For income investors, that gives them an extra incentive to hold on to the stock for the long haul, getting more for their original investment.
When including the dividend payments, AbbVie's stock, since trading publicly, has soundly outperformed not just the S&P 500 but Abbott Laboratories.
ABBV Total Return Level data by YCharts
Why has the stock done so well?
Beyond being attractive for its dividend, AbbVie has also been a growth machine. In just four years, its revenue of $28.2 billion in 2017 has soared to $56.2 billion this past year. And its net income has increased by 117% during that time, from $5.3 billion to $11.5 billion. The business is consistently profitable, earning a 20% profit margin over the past 12 months.
Back in 2017, the company had 11 key drugs contributing to its revenue, with rheumatoid arthritis medication Humira leading the way at $18.4 billion, accounting for 65% of all net sales. Today, AbbVie has more than 20 drugs itemized on its earnings report as being key contributors. Humira's sales of $20.7 billion will likely decline in the future as it faces losses in exclusivity, but the business isn't as dependent on it -- just 37% of its revenue comes from that drug. AbbVie closed on a $63 billion acquisition of Botox-maker Allergan in 2020 that has given it a whole new segment focused on aesthetics, and that makes the company even more diversified.
Is it still a buy today?
Today, AbbVie's stock trades at a forward price-to-earnings multiple of 10, which is still relatively modest when compared to other notable healthcare companies, including Abbott Laboratories and Eli Lilly, which trade at 24 and 28 times their future earnings, respectively.
There's considerable value here from an investor's standpoint, as AbbVie can be a great source of recurring income with its juicy dividend yield and the business is well-positioned as doctors and hospitals resume their usual operations.
Although there are concerns about the loss of revenue from Humira as it begins to lose exclusivity next year, AbbVie's business looks to be in solid shape and a diverse portfolio of drugs will help it keep growing for many years to come, continuing to reward investors who hold on.
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*Stock Advisor returns as of January 20, 2022
David Jagielski 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. | There's considerable value here from an investor's standpoint, as AbbVie can be a great source of recurring income with its juicy dividend yield and the business is well-positioned as doctors and hospitals resume their usual operations. AbbVie (NYSE: ABBV) is one of the top healthcare companies in the world, with a market cap of $256 billion. That's a higher valuation than Abbott Laboratories' $209 billion which AbbVie spun off from in 2013. | That's a higher valuation than Abbott Laboratories' $209 billion which AbbVie spun off from in 2013. Today, AbbVie's stock trades at a forward price-to-earnings multiple of 10, which is still relatively modest when compared to other notable healthcare companies, including Abbott Laboratories and Eli Lilly, which trade at 24 and 28 times their future earnings, respectively. AbbVie (NYSE: ABBV) is one of the top healthcare companies in the world, with a market cap of $256 billion. | Today, AbbVie's stock trades at a forward price-to-earnings multiple of 10, which is still relatively modest when compared to other notable healthcare companies, including Abbott Laboratories and Eli Lilly, which trade at 24 and 28 times their future earnings, respectively. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. AbbVie (NYSE: ABBV) is one of the top healthcare companies in the world, with a market cap of $256 billion. | AbbVie (NYSE: ABBV) is one of the top healthcare companies in the world, with a market cap of $256 billion. That's a higher valuation than Abbott Laboratories' $209 billion which AbbVie spun off from in 2013. But just how much would you have made if you'd invested $25,000 in AbbVie when it first began trading? | 3d8b08cb-1e76-4d71-9cad-847e0c9206b8 |
23580.0 | 2022-02-27 00:00:00 UTC | These 5 Stocks Will Make Me More Than $3,000 in Passive Income This Year | ABBV | https://www.nasdaq.com/articles/these-5-stocks-will-make-me-more-than-%243000-in-passive-income-this-year | nan | nan | Easy money. It might seem like an elusive dream. However, investors actually have plenty of opportunities to make money without expending a lot of effort.
Dividend stocks especially stand out as an easy way to generate recurring income. And you don't have to give up on opportunities for growth with some dividend stocks. I can personally attest to this. These five stocks have solid long-term growth prospects and will make me over $3,000 in passive income this year.
Image source: Getty Images.
1. AbbVie
I own 117 shares of AbbVie (NYSE: ABBV). The big drugmaker currently pays a dividend that totals $5.42 on an annualized basis. That means that my stake in AbbVie should make me a little over $634 in income in 2022.
Am I worried that AbbVie's top-selling drug, Humira, faces the loss of exclusivity in the U.S. next year? Not at all. Humira's sales will sink but won't evaporate. AbbVie has other drugs in its lineup that should enable the company to quickly return to growth.
2. Brookfield Infrastructure
This one is a little complicated. Brookfield Infrastructure Partners (NYSE: BIP) (BIP) and Brookfield Infrastructure Corporation (NYSE: BIPC) (BIPC) share the same underlying business. I initially bought BIP a few years ago but received shares of BIPC when it was created to attract investors who wanted to avoid the tax hassles associated with limited partnerships.
My portfolio now includes 259 shares of BIP and 26 shares of BIPC. Both stocks pay a dividend of $2.16 on an annualized basis. Together, they should provide nearly $616 in income for me this year.
Brookfield Infrastructure owns infrastructure assets across the world, including cell towers, data centers, railroads, ports, toll roads, and more. These businesses generate steady and dependable cash flow for funding those dividends. And there are plenty of growth opportunities with infrastructure globally as well.
3. Devon Energy
Devon Energy (NYSE: DVN) offers a fixed-plus-variable dividend that the company expects will yield around 8% this year. Based on this estimate, my 260 shares of the energy stock should make me in the ballpark of $1,140 in dividend income in 2022.
Could the variable portion of Devon's dividend be lower than anticipated? Maybe, but I doubt it. The company uses up to 50% of its excess free cash flow for its variable dividend. With the current market dynamics in the oil and gas industry, Devon should boost its free cash flow by at least 70% this year.
4. Innovative Industrial Properties
I expect to receive another $318 in dividends from my 53 shares of Innovative Industrial Properties (NYSE: IIPR) in 2022. That amount could be even higher, considering that the cannabis-focused real estate investment trust (REIT) frequently increases its dividend. In just the past three years, IIP's dividend payout has more than tripled.
This is a stock that's also likely to deliver solid gains. IIP makes its money by buying properties from cannabis operators then leasing the properties back to the operators. The more properties it has, the more revenue IIP makes. The company added 31 properties since Oct. 1, 2021, increasing the total properties in its portfolio by nearly 42%.
5. Pfizer
Pfizer (NYSE: PFE) plans to pay quarterly dividends that will total $1.60 this year. My 216 shares of the big pharmaceutical company should make me nearly $346 in dividend income.
I think the prospects that Pfizer's share price will move higher this year also look pretty good. The stock currently trades at only 7.5 times expected earnings. Pfizer's official guidance is for total revenue of around $100 billion in 2022. But the company appears to be really lowballing its outlook for the sales of COVID-19 pill Paxlovid. My hunch is that the drug will make a lot more than $22 billion -- and provide some nice catalysts for Pfizer with its quarterly updates this year.
Adding it up
Combined, these five stocks should give me passive income of around $3,050 in 2022. In case you were wondering, my combined annual yield tops 4.5%.
I didn't buy these stocks solely because of their dividends. I think the companies have solid long-term growth prospects as well. But to make over $3,000 this year without doing anything -- that's easy money.
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Keith Speights owns AbbVie, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Devon Energy, Innovative Industrial Properties, and Pfizer. The Motley Fool owns and recommends Innovative Industrial Properties. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, and Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie I own 117 shares of AbbVie (NYSE: ABBV). That means that my stake in AbbVie should make me a little over $634 in income in 2022. Am I worried that AbbVie's top-selling drug, Humira, faces the loss of exclusivity in the U.S. next year? | See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Devon Energy, Innovative Industrial Properties, and Pfizer. AbbVie I own 117 shares of AbbVie (NYSE: ABBV). That means that my stake in AbbVie should make me a little over $634 in income in 2022. | See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Devon Energy, Innovative Industrial Properties, and Pfizer. AbbVie I own 117 shares of AbbVie (NYSE: ABBV). That means that my stake in AbbVie should make me a little over $634 in income in 2022. | See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Devon Energy, Innovative Industrial Properties, and Pfizer. AbbVie I own 117 shares of AbbVie (NYSE: ABBV). That means that my stake in AbbVie should make me a little over $634 in income in 2022. | 52d408c3-46dc-4d31-a74e-3cf54fdbf500 |
23581.0 | 2022-02-26 00:00:00 UTC | 3 Pharma Stocks That Retired Investors Should Love | ABBV | https://www.nasdaq.com/articles/3-pharma-stocks-that-retired-investors-should-love | nan | nan | I loathe broccoli. But my family loves it. Different people have different preferences when it comes to food. It's a similar story with investing. Some stocks that appeal to younger investors won't appeal to retired investors -- and vice versa.
We asked three Motley Fool contributors to weigh in on pharmaceutical stocks that they think retired investors should love. Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK).
Image source: Getty Images.
Checking off all the boxes
Keith Speights (AbbVie): What do retired investors want from a stock? Attractive dividends are high on the list for most people. Retirees also don't want the stock to lose a lot of its valuation. Therefore, the underlying business must be strong. And the valuation shouldn't be exorbitant. I think that AbbVie checks off all these boxes.
The company's dividend currently yields close to 3.9%. You can expect the dividend to grow in the future. AbbVie is a Dividend Aristocrat that has increased its dividend by over 250% since its spin-off from Abbott Labs in 2013.
Some might wonder how strong AbbVie's business is now, though. Humira, the company's top-selling product, loses U.S. exclusivity next year. Anticipated sales declines for the autoimmune disease drug will certainly hurt AbbVie.
However, the company expects to quickly return to growth after a temporary lull. AbbVie especially looks for tremendous momentum from Humira's two successors, Rinvoq and Skyrizi.
As for valuation, AbbVie is one of the cheapest pharma stocks around. Its shares trade at only a little over 10 times expected earnings. The effect of Humira's coming U.S. loss of exclusivity is already baked into AbbVie's share price.
Slow and steady wins the race
Prosper Junior Bakiny (Gilead Sciences): Retired investors often look for undervalued blue-chip companies with stable business and high dividend yields. Biotech giant Gilead Sciences fits that description pretty well. Although the company has faced headwinds in the past couple of years, lifesaving medicines will always be in high demand. Gilead Sciences has a long and impressive history of developing novel drugs.
The company is one of the leaders in the market for HIV medicines. Gilead Sciences' Biktarvy remains the top prescribed HIV drug in the U.S., with a 42% share of the market. Biktarvy's market share grew by 5% in 2021. Descovy controls a 45% share of the HIV pre-exposure prophylaxis (PrEP) market in the U.S.
Gilead's HIV portfolio has struggled with patient starts because of the COVID-19 pandemic, but it has helped keep the biotech's revenue and earnings afloat. What's more, the company is hoping to add new products to this lineup soon. Most notably, Gilead awaits regulatory approval for a potential six-month, long-acting HIV regimen called lenacapavir. This treatment could easily reach blockbuster status.
If approved later this year, lenacapavir will become the first HIV therapy administered every six months. Investors can expect it to pull serious market share away from competitors. The drug should help Gilead Sciences decrease its exposure to Veklury, a leading COVID-19 therapy that has been highly successful since the early days of the pandemic. It isn't clear how much longer Veklury will significantly contribute to Gilead's top line.
Gilead Sciences should be just fine over the long run thanks to lenacapavir and its loaded pipeline. The company currently offers a dividend yield of 4.7%, well above the S&P 500's average of 1.3%. And with a forward price-to-earnings ratio of just 9.2, compared to the industry's average of 10.9, Gilead Sciences looks attractively valued.
A dividend stock you can buy and forget
David Jagielski (GlaxoSmithKline): Retirees probably don't want to be taking on too much risk in their latter years. After all, it can take a long time for the markets to recover from a crash. And that's why if you're retired, you might love a stable healthcare stock like GlaxoSmithKline.
The drugmaker is an attractive option for a couple of reasons. The first is its dividend yield of more than 5%. An initial investment of $25,000 could provide $1,250 in dividend income each year.
Another reason to like GlaxoSmithKline is its consistency. The company's profit margin is normally above 10%. Glaxo continues to look for ways to grow, with its pipeline featuring more than 60 vaccines and medicines.
Although the company plans to spin off its consumer health business this year, it still projects that core biopharma operations will grow at a rate between 5% and 7%. GlaxoSmithKline's focus on a variety of therapeutic areas, including infectious diseases, HIV, oncology, and immunology, make this a stable business to invest in that has plenty of opportunities for long-term growth on the horizon.
GlaxoSmithKline stock's performance has lagged well behind the S&P 500 over the past five years. However, it offers relatively low volatility. The stock is also cheap, with a forward price-to-earnings multiple of 13.
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*Stock Advisor returns as of January 20, 2022
David Jagielski has no position in any of the stocks mentioned. Keith Speights owns AbbVie. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Gilead Sciences and GlaxoSmithKline. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK). Checking off all the boxes Keith Speights (AbbVie): What do retired investors want from a stock? I think that AbbVie checks off all these boxes. | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK). Checking off all the boxes Keith Speights (AbbVie): What do retired investors want from a stock? I think that AbbVie checks off all these boxes. | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK). Checking off all the boxes Keith Speights (AbbVie): What do retired investors want from a stock? I think that AbbVie checks off all these boxes. | Some might wonder how strong AbbVie's business is now, though. Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK). Checking off all the boxes Keith Speights (AbbVie): What do retired investors want from a stock? | 637c9eab-1819-4b9d-8b66-0df5d2533644 |
23582.0 | 2022-02-25 00:00:00 UTC | Noteworthy Friday Option Activity: MMM, CI, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-mmm-ci-abbv | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in 3M Co (Symbol: MMM), where a total volume of 30,918 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 78% of MMM's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $180 strike call option expiring April 14, 2022, with 10,172 contracts trading so far today, representing approximately 1.0 million underlying shares of MMM. Below is a chart showing MMM's trailing twelve month trading history, with the $180 strike highlighted in orange:
Cigna Corp (Symbol: CI) saw options trading volume of 12,033 contracts, representing approximately 1.2 million underlying shares or approximately 65% of CI's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $240 strike put option expiring March 18, 2022, with 8,501 contracts trading so far today, representing approximately 850,100 underlying shares of CI. Below is a chart showing CI's trailing twelve month trading history, with the $240 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 54,873 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 63.2% of ABBV's average daily trading volume over the past month, of 8.7 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,838 contracts trading so far today, representing approximately 883,800 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $145 strike highlighted in orange:
For the various different available expirations for MMM options, CI options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,838 contracts trading so far today, representing approximately 883,800 underlying shares of ABBV. Below is a chart showing CI's trailing twelve month trading history, with the $240 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 54,873 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 63.2% of ABBV's average daily trading volume over the past month, of 8.7 million shares. | Below is a chart showing CI's trailing twelve month trading history, with the $240 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 54,873 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 63.2% of ABBV's average daily trading volume over the past month, of 8.7 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,838 contracts trading so far today, representing approximately 883,800 underlying shares of ABBV. | Below is a chart showing CI's trailing twelve month trading history, with the $240 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 54,873 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 63.2% of ABBV's average daily trading volume over the past month, of 8.7 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,838 contracts trading so far today, representing approximately 883,800 underlying shares of ABBV. | Below is a chart showing CI's trailing twelve month trading history, with the $240 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 54,873 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 63.2% of ABBV's average daily trading volume over the past month, of 8.7 million shares. Particularly high volume was seen for the $145 strike call option expiring March 18, 2022, with 8,838 contracts trading so far today, representing approximately 883,800 underlying shares of ABBV. | 6869eee0-26c4-4f03-a593-1dcefee26a0f |
23583.0 | 2022-02-24 00:00:00 UTC | ABBV: Phase 3 Study Confirms Upadacitinib Improved Clinical & Endoscopic Outcomes In Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbv%3A-phase-3-study-confirms-upadacitinib-improved-clinical-endoscopic-outcomes-in-crohns | nan | nan | (RTTNews) - AbbVie (ABBV) said that the second phase 3 induction study confirmed Upadacitinib (RINVOQ) improved clinical and endoscopic outcomes in patients with moderate to severe Crohn's disease.
In U-EXCEL, the second of two Phase 3 induction studies, a significantly higher proportion of patients with moderate to severe Crohn's disease treated with upadacitinib (45 mg once daily for induction) achieved both primary endpoints of clinical remission and endoscopic response, compared to placebo at week 12, the company said in a statement.
In this study, upadacitinib also met most key secondary endpoints, consistent with findings from the first Phase 3 induction study, U-EXCEED.
The study showed that a significantly higher proportion of upadacitinib-treated patients achieved steroid-free clinical remission at week 12 compared to placebo.
The company noted that the safety results were consistent with the known profile of upadacitinib, with no new safety risks observed.
Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that the second phase 3 induction study confirmed Upadacitinib (RINVOQ) improved clinical and endoscopic outcomes in patients with moderate to severe Crohn's disease. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. In U-EXCEL, the second of two Phase 3 induction studies, a significantly higher proportion of patients with moderate to severe Crohn's disease treated with upadacitinib (45 mg once daily for induction) achieved both primary endpoints of clinical remission and endoscopic response, compared to placebo at week 12, the company said in a statement. | (RTTNews) - AbbVie (ABBV) said that the second phase 3 induction study confirmed Upadacitinib (RINVOQ) improved clinical and endoscopic outcomes in patients with moderate to severe Crohn's disease. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. In U-EXCEL, the second of two Phase 3 induction studies, a significantly higher proportion of patients with moderate to severe Crohn's disease treated with upadacitinib (45 mg once daily for induction) achieved both primary endpoints of clinical remission and endoscopic response, compared to placebo at week 12, the company said in a statement. | (RTTNews) - AbbVie (ABBV) said that the second phase 3 induction study confirmed Upadacitinib (RINVOQ) improved clinical and endoscopic outcomes in patients with moderate to severe Crohn's disease. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. In U-EXCEL, the second of two Phase 3 induction studies, a significantly higher proportion of patients with moderate to severe Crohn's disease treated with upadacitinib (45 mg once daily for induction) achieved both primary endpoints of clinical remission and endoscopic response, compared to placebo at week 12, the company said in a statement. | (RTTNews) - AbbVie (ABBV) said that the second phase 3 induction study confirmed Upadacitinib (RINVOQ) improved clinical and endoscopic outcomes in patients with moderate to severe Crohn's disease. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. In U-EXCEL, the second of two Phase 3 induction studies, a significantly higher proportion of patients with moderate to severe Crohn's disease treated with upadacitinib (45 mg once daily for induction) achieved both primary endpoints of clinical remission and endoscopic response, compared to placebo at week 12, the company said in a statement. | 71b85237-7407-4fbb-8215-64d1773a7a3a |
23584.0 | 2022-02-23 00:00:00 UTC | 7 High-Yield Blue-Chip Stocks Suitable for Any Retiree | ABBV | https://www.nasdaq.com/articles/7-high-yield-blue-chip-stocks-suitable-for-any-retiree | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors seeking safety, value, and income are running out of choices. The mounting volatility in the stock market is hurting the stock’s safety. Stock markets are assessing January’s 7.5% consumer price index. This is raising volatility and creating the illusion of low safety. Fortunately, stock price gyrations create better prices for investors who buy the dip, especially with blue-chip stocks.
Values improve when a share price falls. Companies with a proven history of positive cash flow will pay dividends. High-yield blue-chip stocks are very attractive, especially in higher interest rate environments. The U.S. Federal Reserve projected its interest rate tightening schedule for 2022. At each hike, investors will feel pressured to chase high-yielding stocks. This approach could prove damaging for a portfolio. Instead, investors should choose companies that have a strong balance sheet, consistent cash flow, and manageable debt. Today, I present seven companies that are suitable for any retiree. The firms range from information technology, pharmaceuticals, and consumer goods.
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Here are seven picks for blue-chip stocks that will give any conservative investor a healthy level of diversification:
AbbVie (NYSE:ABBV)
BP p.l.c. (NYSE:BP)
Cigna Corporation (NYSE:CI)
IBM (NYSE:IBM)
PepsiCo (NASDAQ:PEP)
Prudential Financial (NYSE:PRU)
W.P. Carey (NYSE:WPC)
Quality and value scores
In the table to the right, the selected firms have varying quality scores. For all but PepsiCo, the value score is at least 70/100 or higher, according to Stockrover research.
Unlike technology stock selections, those companies do not trade off low value (and high price) for high-quality. They all have a good balance of the two metrics.
Blue-Chip Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com
In the fourth quarter (Q4) for 2021, AbbVie posted diluted earnings per share (EPS) of $2.26, up by 100% year-over-year (YOY). Net revenue grew by 7.4% to $14.89 billion. The drug firm issued an EPS guidance range of $9.26 to $9.46.
AbbVie benefited from Skyrizi net revenue rising by an incredible 70.5% YOY. Rinvoq net revenue grew by 84.4% YOY to $517 million. Impruvica net revenue fell by 2.7% YOY to $1.39 billion. From its Allergan acquisition, Botox Therapeutic global net revenue grew by 18.3% YOY to $671 million.
AbbVie’s solid quarter and impressive guidance are becoming a regular occurrence. This sets the company up well in adjusting for the loss of exclusivity for Humira.
Investors who took a risk and bought ABBV stock years ago when it dipped in the $70 range are being rewarded today. Retirees may buy a small position to start. Even though the stock is unlikely to dip, investors may build a position over time.
AbbVie still has to prove its worth in the long-run. Rinvoq and Skyrizi sales need to sustain their revenue growth momentum. When that happens, shareholders do not need to worry about the patent expiry of its blockbuster Humira drug.
BP p.l.c. (BP)
Source: JuliusKielaitis / Shutterstock.com
In the energy sector, BP p.l.c., an oil company based in the United Kingdom, is underperforming. American oil integrated firms are performing better.
In Q4, BP posted revenue growing by 73.1% YOY to $52.24 billion. For the year, it generated a surplus cash flow of $6.1 billion. For Q1 2022, the firm expects flat refining margins. Upstream production will fall sequentially due to a base decline and higher maintenance.
By 2022, BP will spend up to $15 billion in capital expenditures.
At first glance, the high costs might deter retirees from investing in BP. Fortunately, BP’s fundamentals are catching up to higher oil prices. Management never forecasted oil in the $90 – $100 per barrel range. If the energy shortage continues, oil prices will not fall in 2022.
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BP reduced its debt from $51 billion to $30.6 billion in Q4 2021. It is taking advantage of the strong energy prices to improve its balance sheet. S&P Global Ratings upgraded BP’s outlook from negative to stable. BP may accelerate shareholder returns by buying back shares aggressively.
Blue-Chip Stocks: Cigna Corporation (CI)
Source: Piotr Swat / Shutterstock
In the managed healthcare and insurance sector, Cigna is a suitable choice. In the last decade, Cigna has a track record of average annual adjusted EPS growth of 15%. This is greater than its 10% to 13% target.
Last year, Cigna returned over $9 billion in capital to shareholders. It paid $1.3 billion worth of dividends and bought back $7.7 billion in shares. Business is thriving. For example, its Evernorth segment’s adjusted earnings grew by 8% over 2020. This greatly exceeded its 4% to 6% growth rate target.
Investors could buy Teledoc (NYSE:TDOC) for virtual care growth. But Cigna is a better alternative. It is promoting preventative care by targeting the use of virtual care through its MDLIVE subsidiary. Margins will expand as Cigna increases access to such services. This will also lead to lower operating costs. Customers will benefit by lowering their medical costs in the long-term.
Cigna ended Q4 2021 with healthy $7.2 billion of cash flow from operations. In 2022, it will have at least $8.25 billion in cash flow from operations. This is due to strong capital efficiency from the business.
IBM (IBM)
Source: JHVEPhoto / Shutterstock.com
IBM’s separation of Kyndryl will remove a distraction for management. While Q4 2021 results are on the light side, its prospects may improve.
IBM posted non-generally accepted accounting principles (GAAP) EPS of $3.35 per share. Revenue is up by 6.5% YOY to $16.7 billion. Consulting revenue is up 13% YOY and software revenue is up by 8% YOY. Including Kyndryl results, these are two areas of strength. The technology giant has a major segment — Infrastructure — that has the potential to report accelerating growth.
Infrastructure revenue growth is unchanged from last year. Still, clients will take advantage of an extended hybrid cloud environment. This will result in future accelerated growth.
Hybrid cloud revenue topped $6.2 billion, up by 16% YOY. IBM expanded its partnership with EY Global in 2020. The pair is helping organizations leverage the hybrid cloud, artificial intelligence, and automation capabilities. Customers will transform human resource operations. This momentum suggests that revenue in this segment will increase in the year ahead.
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Information Technology (IT) spending may slow in the post-pandemic scenario. Still, IBM did not experience a negative impact from the near-term cycle. Even if the economy slows, clients cannot cut IT spending.
Blue-Chip Stocks: PepsiCo (PEP)
Source: FotograFFF / Shutterstock
On Feb. 10, 2022, beverage supplier Pepsi posted revenue of $25.25 billion, up by 12.4% YOY. Non-GAAP EPS was $1.53. Retirees will not want to miss the dividend hike. Pepsi raised its dividend by 7% to an annualized $4.60, up from $4.30 a share.
The company also announced a new stock buyback. It will buy up to $10 billion of PEP stock through Feb. 28, 2026. Pepsi’s organic sales growth of 6% re-affirms the company’s strong branding and operational excellence. For example, its categories are healthy for 2022. It expects a strong convenient foods and beverages demand. Its investments in the last three years in brands are resonating with customers.
Pepsi is achieving market share gains across many developing markets in the snack and drink market. As a big firm in those two categories, income investors will be rewarded with continuously growing dividends.
Investors will grow to love the stock and the brand. Its expansion beyond the Pepsi drink paid off. In good times, Pepsi’s business expands. And in bad times, PEP stock still rises.
Prudential Financial (PRU)
Source: JHVEPhoto / Shutterstock.com
After posting Q4 2021 results, Prudential also announced a dividend increase of 4%. It will pay $1.20 a share quarterly.
Prudential is executing a plan to reposition the business. It will achieve $750 million in cost savings, balanced with a conservative deployment of capital. It pivoted the business in high-growth areas, reducing its market sensitivity. It achieved this by divesting Prudential of Korea, Prudential of Taiwan, and removing its full-service retirement business.
In Q4, earnings from the U.S. business still grew despite higher expenses. It also faced less favorable underwriting driven by the Covid-19 pandemic. As the pandemic becomes an endemic, Prudential’s overall business growth will accelerate.
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Prudential’s Head of U.S. Businesses, Andrew Sullivan, said that the company is progressing with de-risking its annuities business. In addition, it wrote down its Assurance IQ business. This is a young and innovative company that aligns with Prudential’s strategy. For example, it will help the company expand its addressable market by reaching a wider customer base that the industry underserved up until now.
Blue-Chip Stocks: W.P. Carey (WPC)
Source: Shutterstock
In the real estate investment trust (REIT) segment, W.P. Carey posted revenue growing by 22% YOY to $374.88 million. For 2022, it issued an adjusted funds from operations (AFFO) range of between $5.18 and $5.30 per share.
Income investors will like WPC’s quarterly dividend increase to $1.055 a share.
WPC is confident that investment volumes will rise this year. It closed around $166 million in investments so far this year. It has a large pipeline of capital investment projects coming up that will total $450 million in investment volume.
AFFO will rise steadily because of contractual rent growth between 2.5% and 3%. The cost of debt may rise in a higher consumer price index environment. Still, it has a few leases that it will not renew at the end of the year. This will allow W.P. Carey to redevelop properties. It may also wind up with assets through vacant sales.
Investors may wait for the company to update its capitalization rate assumptions. WPC stock will likely trade in a narrow range as investors collect a healthy dividend.
On the date of publication, Chris Lau held a LONG position in BP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns.
The post 7 High-Yield Blue-Chip Stocks Suitable for Any Retiree 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. | Investors who took a risk and bought ABBV stock years ago when it dipped in the $70 range are being rewarded today. 7 Sin Stocks to Buy if the Economy Slows Down Here are seven picks for blue-chip stocks that will give any conservative investor a healthy level of diversification: AbbVie (NYSE:ABBV) BP p.l.c. Blue-Chip Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In the fourth quarter (Q4) for 2021, AbbVie posted diluted earnings per share (EPS) of $2.26, up by 100% year-over-year (YOY). | Blue-Chip Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In the fourth quarter (Q4) for 2021, AbbVie posted diluted earnings per share (EPS) of $2.26, up by 100% year-over-year (YOY). 7 Sin Stocks to Buy if the Economy Slows Down Here are seven picks for blue-chip stocks that will give any conservative investor a healthy level of diversification: AbbVie (NYSE:ABBV) BP p.l.c. AbbVie benefited from Skyrizi net revenue rising by an incredible 70.5% YOY. | 7 Sin Stocks to Buy if the Economy Slows Down Here are seven picks for blue-chip stocks that will give any conservative investor a healthy level of diversification: AbbVie (NYSE:ABBV) BP p.l.c. Blue-Chip Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In the fourth quarter (Q4) for 2021, AbbVie posted diluted earnings per share (EPS) of $2.26, up by 100% year-over-year (YOY). AbbVie benefited from Skyrizi net revenue rising by an incredible 70.5% YOY. | 7 Sin Stocks to Buy if the Economy Slows Down Here are seven picks for blue-chip stocks that will give any conservative investor a healthy level of diversification: AbbVie (NYSE:ABBV) BP p.l.c. Blue-Chip Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com In the fourth quarter (Q4) for 2021, AbbVie posted diluted earnings per share (EPS) of $2.26, up by 100% year-over-year (YOY). AbbVie benefited from Skyrizi net revenue rising by an incredible 70.5% YOY. | 1696f37d-5745-4e33-aafd-8fe35660076e |
23585.0 | 2022-02-23 00:00:00 UTC | MGV, BRK.B, JNJ, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/mgv-brk.b-jnj-abbv%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Mega Cap Value ETF (Symbol: MGV) where we have detected an approximate $165.6 million dollar inflow -- that's a 3.4% increase week over week in outstanding units (from 46,760,539 to 48,360,539). Among the largest underlying components of MGV, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is off about 0.4%, Johnson & Johnson (Symbol: JNJ) is off about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.8%. For a complete list of holdings, visit the MGV Holdings page » The chart below shows the one year price performance of MGV, versus its 200 day moving average:
Looking at the chart above, MGV's low point in its 52 week range is $89.57 per share, with $109.73 as the 52 week high point — that compares with a last trade of $103.27. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of MGV, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is off about 0.4%, Johnson & Johnson (Symbol: JNJ) is off about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.8%. For a complete list of holdings, visit the MGV Holdings page » The chart below shows the one year price performance of MGV, versus its 200 day moving average: Looking at the chart above, MGV's low point in its 52 week range is $89.57 per share, with $109.73 as the 52 week high point — that compares with a last trade of $103.27. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of MGV, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is off about 0.4%, Johnson & Johnson (Symbol: JNJ) is off about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.8%. For a complete list of holdings, visit the MGV Holdings page » The chart below shows the one year price performance of MGV, versus its 200 day moving average: Looking at the chart above, MGV's low point in its 52 week range is $89.57 per share, with $109.73 as the 52 week high point — that compares with a last trade of $103.27. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of MGV, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is off about 0.4%, Johnson & Johnson (Symbol: JNJ) is off about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Mega Cap Value ETF (Symbol: MGV) where we have detected an approximate $165.6 million dollar inflow -- that's a 3.4% increase week over week in outstanding units (from 46,760,539 to 48,360,539). For a complete list of holdings, visit the MGV Holdings page » The chart below shows the one year price performance of MGV, versus its 200 day moving average: Looking at the chart above, MGV's low point in its 52 week range is $89.57 per share, with $109.73 as the 52 week high point — that compares with a last trade of $103.27. | Among the largest underlying components of MGV, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is off about 0.4%, Johnson & Johnson (Symbol: JNJ) is off about 0.1%, and AbbVie Inc (Symbol: ABBV) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Mega Cap Value ETF (Symbol: MGV) where we have detected an approximate $165.6 million dollar inflow -- that's a 3.4% increase week over week in outstanding units (from 46,760,539 to 48,360,539). For a complete list of holdings, visit the MGV Holdings page » The chart below shows the one year price performance of MGV, versus its 200 day moving average: Looking at the chart above, MGV's low point in its 52 week range is $89.57 per share, with $109.73 as the 52 week high point — that compares with a last trade of $103.27. | 196bb2dd-3d91-4d5d-85d8-41599cc6fd00 |
23586.0 | 2022-02-22 00:00:00 UTC | Want to Get Richer? 5 Best Stocks to Buy Now and Hold Forever | ABBV | https://www.nasdaq.com/articles/want-to-get-richer-5-best-stocks-to-buy-now-and-hold-forever | nan | nan | Creating wealth in the stock market can be as simple as owning pieces of the world's most powerful corporations and letting them compound for decades. But you can't pick just any stock; most won't cut it over the long-term.
Sometimes if it's broken, don't fix it. Some companies have been compounding for decades, and are still going strong today. If you're looking to put your hard-earned money into stocks that you can sleep well at night owning and that will still keep growing your wealth, listen up. Here are five winners to consider.
Image Source: Getty Images.
1. Berkshire Hathaway
Investing in holding company Berkshire Hathaway (NYSE: BRK.B) means trusting your money with investing legends like Charlie Munger and Warren Buffett, who still run the ship there to this day. The company's built an extensive portfolio of private businesses, including Geico, Duracell, and Fruit of the Loom, and has stakes in public companies like Apple, Coca-Cola, and American Express.
BRK.B Book Value (Quarterly) data by YCharts
Berkshire has for decades steadily grown its book value (which is the total value of the company's assets minus its obligations such as debt) and the price of its shares has followed. Over time, the stock has generated immense wealth for investors, returning more than 20% returns per year from 1964 to 2018. With more than $144 billion in cash and short-term investments on the company's balance sheet, Warren Buffett will be ready for Berkshire's next Apple-like opportunity.
2. Sherwin-Williams
Paint and coatings manufacturer Sherwin-Williams (NYSE: SHW) sells more than one-in-four cans of paint in North America. Its products sell under various brand names in retail stores and its name-brand store network. Whether you're a homeowner remodeling or slapping an annual coat of stain on a deck, or a contractor with commercial projects, you're buying Sherwin-Williams' products over and over again.
Sherwin-Williams makes nearly $0.17 of free cash flow on every dollar in revenue and sends a lot of it back to shareholders through dividends. Moreover, the company is a Dividend Aristocrat with 43 consecutive annual payout increases, and the stock's returned more than 85,000% over its lifetime. The business has grown revenue an average of 9% yearly over the past decade, so there seems to be growth left in this proven compounder.
3. Home Depot
Homeowners are undoubtedly familiar with Home Depot (NYSE: HD), where they've probably spent weekends buying appliances, tools, or garden plants for countless home projects. The company's brand power, large store footprint, and product selection have helped it grow in the face of competition from e-commerce companies like Amazon. Revenue's increased an average of 7% over the past decade.
The stock's been a longtime winner, minting millionaires who made even small investments in its IPO and held over the decades. But Home Depot's success story might not be over yet. The company's trailing 12-month revenue is $147 billion, and Bank of America estimates the home improvement market's total value at $767 billion with room to grow to more than $1 trillion in time. Home Depot should have growth opportunities to take market share and benefit from increased home-improvement spending moving forward.
4. Abbott Laboratories
Healthcare is an evergreen industry; there's a constant need to keep people healthy and cure the world's many diseases. Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. The company retooled itself over the past decade after spinning off most of its pharmaceutical business as AbbVie in 2013.
Its 2016 acquisitions of St. Jude Medical for $25 billion and Alere for $5.8 billion positioned Abbott to focus on medical devices for cardiovascular applications, diabetes, and diagnostics. The company's revenue has been flat over the past decade, but has grown 11% annually on average over the past five years, so it looks like Abbott's moves to generate growth are working. Abbott also has a storied dividend history -- it's a Dividend King, offering a 1.6% dividend yield for those looking for some income from their investments.
5. Microsoft
Technology conglomerate Microsoft (NASDAQ: MSFT) touches virtually every corner of the tech world, including PC operating systems, enterprise software, gaming hardware, and software, and is one of the three major public cloud platforms. It's grown into one of the world's largest companies over the years as well -- as of today, its market cap is $2.1 trillion.
Microsoft continues to thrive despite its size; revenue growth has averaged 14.5% annually over the past five years. Azure, the company's cloud platform, could drive growth for Microsoft moving forward. It grew 46% in Microsoft's most recent quarter, which ended December 31. According to Research & Markets, there's a secular shift from on-premise servers to public cloud platforms, and the global cloud industry could approach $1 trillion in value by 2027.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends Amazon, Apple, Berkshire Hathaway (B shares), Home Depot, and Microsoft. The Motley Fool recommends Sherwin-Williams and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company retooled itself over the past decade after spinning off most of its pharmaceutical business as AbbVie in 2013. Creating wealth in the stock market can be as simple as owning pieces of the world's most powerful corporations and letting them compound for decades. Whether you're a homeowner remodeling or slapping an annual coat of stain on a deck, or a contractor with commercial projects, you're buying Sherwin-Williams' products over and over again. | The company retooled itself over the past decade after spinning off most of its pharmaceutical business as AbbVie in 2013. Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. The Motley Fool owns and recommends Amazon, Apple, Berkshire Hathaway (B shares), Home Depot, and Microsoft. | The company retooled itself over the past decade after spinning off most of its pharmaceutical business as AbbVie in 2013. Berkshire Hathaway Investing in holding company Berkshire Hathaway (NYSE: BRK.B) means trusting your money with investing legends like Charlie Munger and Warren Buffett, who still run the ship there to this day. The company's revenue has been flat over the past decade, but has grown 11% annually on average over the past five years, so it looks like Abbott's moves to generate growth are working. | The company retooled itself over the past decade after spinning off most of its pharmaceutical business as AbbVie in 2013. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys. | 6a217e00-728b-4a94-bc3c-4656ff6ff767 |
23587.0 | 2022-02-22 00:00:00 UTC | Viatris (VTRS) to Report Q4 Earnings: What's in the Cards? | ABBV | https://www.nasdaq.com/articles/viatris-vtrs-to-report-q4-earnings%3A-whats-in-the-cards | nan | nan | Viatris VTRS, a global healthcare company, is scheduled to report fourth-quarter 2021 results on Feb 28.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in each of the trailing four quarters, the average surprise being 14.3%. In the last reported quarter, the company exceeded expectations by 15.12%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Factors to Consider
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, JANZ (Japan, Australia, and New Zealand) and Greater China.
Net sales from Developed markets were up 23% in the previous quarter, driven by the addition of the Upjohn business. This trend is likely to have continued in the to-be-reported quarter.
Sales from Emerging Markets were up 68% in the previous quarter and are likely to have increased in the to-be-reported quarter, driven by net sales from the Upjohn business and new product sales.
Sales from JANZ grew 79% in the previous quarter. The fourth quarter is likely to have seen a sequential increase.
Sales from Greater China markets have also likely witnessed growth owing to the Upjohn business. Sales in the previous quarter came in at $566.8 million. The fourth quarter is likely to have seen sequential growth.
Brands performed better than management expectations in the previous quarter, driven by products such as Lipitor, Influvac, Viagra, and EpiPen. A similar or better performance might have been witnessed by the company in the to-be-reported quarter. Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expectations in the previous quarter, driven primarily by COVID-19 related products. This trend is likely to have continued in the fourth quarter too.
In November, Viatris and Biocon Biologics Ltd. announced that Semglee (insulin glargine-yfgn) injection, the first interchangeable biosimilar product, was launched in the United States.
In the complex generics and biosimilars franchise, growth in biosimilars was offset by anticipated competition in select complex generics products. A similar trend is likely to have prevailed in the quarter.
In 2020, Viatris announced a widespread global restructuring program to achieve synergies. Last quarter, management stated that it is on track to realize approximately $500 million of cost synergies in 2021 and achieve at least $1 billion of cost synergies by 2023. Further updates on the same are expected on the call.
Other Updates
Earlier in the month, Viatris announced that its subsidiary, Mylan Pharmaceuticals Inc., has received approval from the FDA for its abbreviated new drug application (ANDA) for cyclosporine ophthalmic emulsion 0.05%, the first generic version of Restasis, developed by Allergan, an AbbVie ABBV company. Viatris indicated that Mylan Pharmaceuticals plans to launch the drug immediately.
AbbVie recorded $1.2 billion as revenues from Restasis sales for 2021.
Share Price Performance
Viatris’ stock has lost 3.3% in the year so far compared with the industry’s decline of 58.9%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Viatris is +2.19%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are a few other stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Vir Biotechnology VIR has an Earnings ESP of +32.05% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings per share estimates of Vir Biotechnology for 2022 have increased $6.52. VIR topped earnings estimates in two of the last four quarters and missed the mark on the other two occasions, delivering a surprise of 13%, on average.
Emergent Biosolutions EBS has an Earnings ESP of +18.40% and a Zacks Rank #3.
Earnings per share estimates of EBS for 2022 have increased to $3.12 from $3.09 in the past seven days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Vir Biotechnology, Inc. (VIR): Free Stock Analysis Report
Viatris Inc. (VTRS): 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. | Other Updates Earlier in the month, Viatris announced that its subsidiary, Mylan Pharmaceuticals Inc., has received approval from the FDA for its abbreviated new drug application (ANDA) for cyclosporine ophthalmic emulsion 0.05%, the first generic version of Restasis, developed by Allergan, an AbbVie ABBV company. AbbVie recorded $1.2 billion as revenues from Restasis sales for 2021. AbbVie Inc. (ABBV): Free Stock Analysis Report | AbbVie Inc. (ABBV): Free Stock Analysis Report Other Updates Earlier in the month, Viatris announced that its subsidiary, Mylan Pharmaceuticals Inc., has received approval from the FDA for its abbreviated new drug application (ANDA) for cyclosporine ophthalmic emulsion 0.05%, the first generic version of Restasis, developed by Allergan, an AbbVie ABBV company. AbbVie recorded $1.2 billion as revenues from Restasis sales for 2021. | Other Updates Earlier in the month, Viatris announced that its subsidiary, Mylan Pharmaceuticals Inc., has received approval from the FDA for its abbreviated new drug application (ANDA) for cyclosporine ophthalmic emulsion 0.05%, the first generic version of Restasis, developed by Allergan, an AbbVie ABBV company. AbbVie recorded $1.2 billion as revenues from Restasis sales for 2021. AbbVie Inc. (ABBV): Free Stock Analysis Report | Other Updates Earlier in the month, Viatris announced that its subsidiary, Mylan Pharmaceuticals Inc., has received approval from the FDA for its abbreviated new drug application (ANDA) for cyclosporine ophthalmic emulsion 0.05%, the first generic version of Restasis, developed by Allergan, an AbbVie ABBV company. AbbVie recorded $1.2 billion as revenues from Restasis sales for 2021. AbbVie Inc. (ABBV): Free Stock Analysis Report | d55499dd-afd5-4601-9c40-b21ff3278872 |
23588.0 | 2022-02-21 00:00:00 UTC | AbbVie Is a Top Pick in an Uncertain Market | ABBV | https://www.nasdaq.com/articles/abbvie-is-a-top-pick-in-an-uncertain-market | nan | nan | A host of macroeconomic issues have rattled the stock market and the economy so far in 2022. Major U.S. indices are down for the year. Some, like the Nasdaq, are down more than 10% year to date amid volatile trading.
AbbVie (NYSE: ABBV), on the other hand, has been on a tear, gaining over 20% in the last six months, and over 6% year to date. Investors recognize that AbbVie can be a rock-solid dividend stalwart in their portfolios during uncertain times.
Why AbbVie in the current market?
Inflation reached 7.5% in January, the highest rate in 40 years. Americans are paying higher prices, and the current inflation rate is unsustainable. The Federal Reserve will soon act with interest-rate increases and other hawkish policies. As if this weren't headache enough, it now appears that Russia is likely to take military action in Ukraine and draw significant international sanctions. Because Russia exports so much energy, one likely result would be a stark rise in gasoline prices.
As prices continue to rise, consumers will become more price-conscious and often forgo luxury items while focusing on the necessities. Investors will also look for a safe haven in areas like consumer staples, utilities, defense stocks, and pharmaceutical companies like AbbVie.
Having patent-protected products allows AbbVie tremendous pricing power in the marketplace; having essential products and pricing power makes the company highly inflation-resistant. This is why AbbVie stock has made substantial gains in the current market while many other sectors have suffered.
Image source: Getty Images.
Solidifying the future
AbbVie may be best-known for Humira, a medication that treats moderate to severe Crohn's disease and has been highly successful. The drug is a blockbuster that has made billions upon billions of dollars for AbbVie; Humira pulled in $5.33 billion in global sales in the last quarter alone. The problem for AbbVie is that biosimilars are now available in Europe and are coming to the U.S in 2023. Thanks to the biosimilars, European Humira sales have already retreated significantly, and sales in the U.S. will undoubtedly drop in 2023 and thereafter.
Management at AbbVie is charged with finding new product lines to maintain its success, and it has done just that. In May 2020, AbbVie announced it had completed the acquisition of Allergan. This massive deal brought the Botox and Vraylar franchises, among other products, to AbbVie. In 2021, sales of these two products alone reached $4.2 billion for the year. AbbVie has also developed Skyrizi and Rinvoq, which treat plaque psoriasis and rheumatoid arthritis, respectively. When it released full-year 2021 earnings, AbbVie reaffirmed its guidance that total sales for these two drugs will reach $15 billion combined by 2025.
AbbVie has consistently reduced its reliance upon Humira while increasing overall revenue. As the chart below shows, AbbVie's total quarterly revenue has grown from $8.6 billion in the first quarter of 2020 to nearly $14.9 billion in the fourth quarter of 2021:
Data source: AbbVie. Chart by author.
Meanwhile, the company's reliance on Humira has shrunk from 55% to 36% over this time. This clearly illustrates that AbbVie can continue to prosper without leaning so much on Humira.
A solid and growing dividend
AbbVie's stock dividend is also a significant attraction, currently standing at $1.41 quarterly or $5.64 annually. Since AbbVie's inception in 2013, the dividend has increased each year. The dividend yield, currently 3.87%, is still attractive despite the stock's recent increase in price.
Dividends are a terrific way to navigate through rough waters in the market; even if the market dips, you can count on the income each quarter until the market recovers. You can also reinvest the dividends and take advantage of compounding gains.
In 2021, the company produced $22.8 billion in cash flow from operating activities and paid out $9.3 billion in dividends. What's more, AbbVie's dividend payout ratio is well under 50%, making its dividend quite safe, as shown below:
ABBV Cash Dividend Payout Ratio data by YCharts.
While the overall market remains uncertain, AbbVie is making all the right moves to give shareholders a safe place to invest their hard-earned money and earn a consistent and rising return. AbbVie's stock has seen significant gains recently, and the stock will likely continue to reward long-term investors into the future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors will also look for a safe haven in areas like consumer staples, utilities, defense stocks, and pharmaceutical companies like AbbVie. Solidifying the future AbbVie may be best-known for Humira, a medication that treats moderate to severe Crohn's disease and has been highly successful. While the overall market remains uncertain, AbbVie is making all the right moves to give shareholders a safe place to invest their hard-earned money and earn a consistent and rising return. | As the chart below shows, AbbVie's total quarterly revenue has grown from $8.6 billion in the first quarter of 2020 to nearly $14.9 billion in the fourth quarter of 2021: Data source: AbbVie. A solid and growing dividend AbbVie's stock dividend is also a significant attraction, currently standing at $1.41 quarterly or $5.64 annually. What's more, AbbVie's dividend payout ratio is well under 50%, making its dividend quite safe, as shown below: ABBV Cash Dividend Payout Ratio data by YCharts. | As the chart below shows, AbbVie's total quarterly revenue has grown from $8.6 billion in the first quarter of 2020 to nearly $14.9 billion in the fourth quarter of 2021: Data source: AbbVie. A solid and growing dividend AbbVie's stock dividend is also a significant attraction, currently standing at $1.41 quarterly or $5.64 annually. AbbVie's stock has seen significant gains recently, and the stock will likely continue to reward long-term investors into the future. | Since AbbVie's inception in 2013, the dividend has increased each year. AbbVie's stock has seen significant gains recently, and the stock will likely continue to reward long-term investors into the future. AbbVie (NYSE: ABBV), on the other hand, has been on a tear, gaining over 20% in the last six months, and over 6% year to date. | 337f3754-342e-4189-b9d8-b5a03fba6f79 |
23589.0 | 2022-02-21 00:00:00 UTC | Here's How Much You Can Retire With by Investing Just $2,827 Every Year | ABBV | https://www.nasdaq.com/articles/heres-how-much-you-can-retire-with-by-investing-just-%242827-every-year | nan | nan | The average refund for the 2020 tax year was $2,827. While many people treat those refunds as windfalls to be spent on splurges such as vacations or large purchases, paying down debt -- particularly high-interest rate debt -- is a better option. But if you don't have any high-interest rate debt (and you do have sufficient money set aside in an emergency fund), the smartest option for putting your tax refund to good use may be investing it.
Below, I'll look at how much your annual investments of $2,827 could grow over the long term, using a growth stock like Pfizer (NYSE: PFE) as an example.
Image source: Getty Images.
The power of compound growth
Investing $2,827 each year into stock would mean that over the course of 20 years, you'd contribute more than $56,000. And if you were to do so for 30 years, then that amount would total more than $84,000. But it's thanks to compound growth that you could generate much more from your contributions.
And a growth stock like Pfizer is a great option in this example of where to invest. Over the past 10 years, the healthcare stock has generated total returns (including dividends) of approximately 260%, which equates to a compound annual growth rate of 13.67%. If you achieved that rate of return on your portfolio and kept adding the same amount to it each year, here's how it would grow in value.
Chart by author.
In the above chart, the assumption is that you're reinvesting your dividends back into the stock, allowing those payouts to compound over the years as well. (At current share prices, Pfizer's yield is 3.2% -- well above the S&P 500's average yield of 1.3%.)
The key variable to consider, however, is time. The more years that you can contribute, and the longer you can let your assets' growth compound, the greater your potential gains will be. In this hypothetical scenario, for example, in year 20, your portfolio value would be worth around $280,000. But hold on for another 10 years -- and continue to invest steadily -- and it would be worth well over $1 million.
Picking the right investment is key
All the money you invest won't matter if you pick bad stocks that don't increase in value over time. The reason I chose Pfizer for this example is that it has continually been a top business in the healthcare industry, with profit margins that are usually well over 10% -- and sometimes more than 20%.
PFE Profit Margin data by YCharts.
Such strong and profitable businesses are relatively safe investments. Moreover, Pfizer's operations are global, and the company estimates that its treatments reached 1.4 billion patients this past year -- more than one out of every six people on the planet.
Although its COVID-19 vaccine and its oral COVID-19 treatment will give its top line a significant boost this year, to the tune of $54 billion in revenue, Pfizer has been innovating for years, which should give investors confidence about its long-term future.
When in doubt, buy an ETF
If you're not convinced about Pfizer -- or you just don't want to put all your money into one stock -- an exchange-traded fund can also be an excellent option for long-term investors. The Health Care Select Sector SPDR Fund (NYSEMKT: XLV), for instance, holds many healthcare stocks (including Pfizer). Top industry performers such as UnitedHealth Group, Johnson & Johnson, and AbbVie, along with Pfizer, each compose more than 5% of the fund's weight. It contains more than 60 different stocks across the pharmaceutical, healthcare equipment, healthcare services, life sciences, and biotech segments.
And over the past decade, it has (before factoring in fees), provided investors with even better returns than Pfizer, and it has also outperformed the S&P 500:
PFE Total Return Level data by YCharts.
Over the past year, however, Pfizer's 48% return handily outperformed both the S&P 500 (up 13%) and the Health Care Select Sector SPDR ETF (up 11%).
Regardless of which option you choose, if you can invest $2,827 (or whatever amount you can afford) each year for a few decades, you'll thank yourself when it's time to retire. The longer you can stick to making regular and recurring investments, the better off you'll be.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top industry performers such as UnitedHealth Group, Johnson & Johnson, and AbbVie, along with Pfizer, each compose more than 5% of the fund's weight. But if you don't have any high-interest rate debt (and you do have sufficient money set aside in an emergency fund), the smartest option for putting your tax refund to good use may be investing it. Over the past 10 years, the healthcare stock has generated total returns (including dividends) of approximately 260%, which equates to a compound annual growth rate of 13.67%. | Top industry performers such as UnitedHealth Group, Johnson & Johnson, and AbbVie, along with Pfizer, each compose more than 5% of the fund's weight. Over the past 10 years, the healthcare stock has generated total returns (including dividends) of approximately 260%, which equates to a compound annual growth rate of 13.67%. The Health Care Select Sector SPDR Fund (NYSEMKT: XLV), for instance, holds many healthcare stocks (including Pfizer). | Top industry performers such as UnitedHealth Group, Johnson & Johnson, and AbbVie, along with Pfizer, each compose more than 5% of the fund's weight. The power of compound growth Investing $2,827 each year into stock would mean that over the course of 20 years, you'd contribute more than $56,000. Over the past 10 years, the healthcare stock has generated total returns (including dividends) of approximately 260%, which equates to a compound annual growth rate of 13.67%. | Top industry performers such as UnitedHealth Group, Johnson & Johnson, and AbbVie, along with Pfizer, each compose more than 5% of the fund's weight. The power of compound growth Investing $2,827 each year into stock would mean that over the course of 20 years, you'd contribute more than $56,000. Over the past 10 years, the healthcare stock has generated total returns (including dividends) of approximately 260%, which equates to a compound annual growth rate of 13.67%. | 7567efbd-26a2-42b6-9f31-3a221a78b81d |
23590.0 | 2022-02-20 00:00:00 UTC | Investing $20,000 in These 5 Stocks Could Give You $6,000 in Annual Income | ABBV | https://www.nasdaq.com/articles/investing-%2420000-in-these-5-stocks-could-give-you-%246000-in-annual-income | nan | nan | Make your money work for you. That's good advice for any investor. But it's great advice for income-seeking investors.
Dividend stocks provide an excellent way to put your money to work -- especially with certain stocks. Investing $20,000 in each of these five stocks could give you roughly $6,000 in annual income.
Image source: Getty Images.
1. AbbVie
Juicy dividends and reliability. AbbVie (NYSE: ABBV) offers them both. The big pharma company's dividend currently yields 3.9%. A $20,000 investment would generate around $780 in annual income. AbbVie is also a Dividend Aristocrat with a long streak of annual dividend increases.
Don't worry about the impending loss of patent exclusivity in the U.S. for AbbVie's top-selling drug Humira next year. The company should be in a great position to quickly offset any revenue declines thanks to a strong product lineup.
2. Devon Energy
Devon Energy (NYSE: DVN) offers a twist with its dividend. The oil and gas producer pays a fixed dividend plus a variable dividend that's based on its excess free cash flow. Devon projects a dividend yield in the ballpark of 8%. That's enough to give you $1,600 in annual income with an initial $20,000 investment.
But can you count on Devon's dividend in 2022 since part of it is variable? I think so. CEO Rick Muncrief stated in the recent fourth-quarter conference call that the company is in a strong position to grow its free cash flow by more than 70% this year. With the current market dynamics in play for the oil and gas industry, that goal seems quite attainable.
3. Enterprise Products Partners
This strength for oil and gas markets should also work to Enterprise Products Partners' (NYSE: EPD) advantage. It's a leading midstream energy company that operates pipelines for transporting and storing crude oil, natural gas, natural gas liquids, and petrochemicals.
An investment of $20,000 would provide $1,550 in annual income based on Enterprise's current dividend yield of 7.75%. The actual total could be even higher. Enterprise Products Partners has increased its dividend distribution for 23 consecutive years. Look for this impressive streak to continue in 2022.
4. Medical Properties Trust
You can add at least another $1,080 in yearly income by investing $20,000 in Medical Properties Trust (NYSE: MPW). The dividend yield for the healthcare-focused real estate investment trust (REIT) currently stands at 5.42%.
Some healthcare REITs have seen their dividend payouts decrease in recent years. MPT, though, boasts nine consecutive years of dividend growth. With its solid portfolio of 440 hospital facilities and 2022 shaping up to be another good year, the chances for another dividend hike appear to be pretty high.
5. Verizon Communications
The annual income from the previous four stocks adds up to at least $5,010. Verizon Communications (NYSE: VZ) offers a dividend yield of 4.8%. Buying $20,000 of the telecom stock would add another $960 in income and bring the total to $5,970. Even nominal dividend increases from a couple of these five stocks should bump your yearly income to more than $6,000.
There are also other reasons to buy Verizon stock. In particular, the increased availability of 5G networks across the U.S. should serve as a tremendous tailwind. Look for Verizon to make inroads into the home internet market as a result. The stock is also cheap, with shares trading at only 9.8 times expected earnings.
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Keith Speights owns AbbVie, Devon Energy, and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. 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. | Don't worry about the impending loss of patent exclusivity in the U.S. for AbbVie's top-selling drug Humira next year. AbbVie Juicy dividends and reliability. AbbVie (NYSE: ABBV) offers them both. | AbbVie Juicy dividends and reliability. AbbVie (NYSE: ABBV) offers them both. AbbVie is also a Dividend Aristocrat with a long streak of annual dividend increases. | AbbVie is also a Dividend Aristocrat with a long streak of annual dividend increases. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie, Devon Energy, and Enterprise Products Partners. AbbVie Juicy dividends and reliability. | AbbVie is also a Dividend Aristocrat with a long streak of annual dividend increases. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! AbbVie Juicy dividends and reliability. | f5e52eaf-f5cc-4f12-8728-22ab86ce3a03 |
23591.0 | 2022-02-19 00:00:00 UTC | This Number Is a Big Green Flag for AbbVie Stock | ABBV | https://www.nasdaq.com/articles/this-number-is-a-big-green-flag-for-abbvie-stock | nan | nan | Investors might be numb to the common reminder that "past performance is no guarantee of future returns," but that doesn't stop companies like AbbVie (NYSE: ABBV) from working hard to replicate their prior successes. With the end of patent exclusivity looming for its rock star drug, Humira, the pharma juggernaut is scrambling to line up heirs to its revenue throne.
For the moment, the lack of a clear heir apparent to Humira makes Abbvie a riskier investment than some of its peers whose top lines aren't quite as dependent on a single program. But where there's danger, there's opportunity. And there's one specific number in AbbVie's latest earnings report that hints at the likelihood that it will be successful in replacing the lost sales from its fading star.
Image source: Getty Images.
Humira's fall remains nigh, but it's less important than before
In case you're not familiar with AbbVie's present conundrum, here's a quick recap.
Humira, a biologic drug that treats a number of conditions including psoriatic arthritis, Crohn's disease, and ulcerative colitis, is approaching the end of its patent protection period in the U.S. In 2023, it'll lose its exclusivity protections, at which point biosimilars (the large-molecule drug equivalent to generics) will start eating into sales of the branded original. Indeed, many of its protections have already expired abroad, and its international sales are already plummeting.
That's a massive problem for AbbVie, as Humira accounted for a whopping $20.7 billion of the company's trailing 12-month revenue of $56.2 billion. Worldwide, sales of Humira grew by 3.5% to $5.33 billion in the fourth quarter. Most of that sum was from U.S.-based sales as international sales were only $781 million and falling sharply from quarter to quarter. But, the fact that sales are still advancing shows that there's just a bit more time for the company to continue cashing in before the loss of patent protection starts to smash its top line.
Finding new sources of revenue to replace the sales it's going to lose is of paramount importance for Abbvie, which is why the company has been developing a pair of drugs, Rinvoq and Skyrizi, which between them can treat all of the same conditions as Humira. How those two therapies perform on the sales front over time will determine whether AbbVie investors face a brutal contraction in share value as a result of falling revenue, or whether they'll be rewarded for holding onto their shares through this period of uncertainty.
AbbVie's fourth-quarter earnings report included one number that hints that the odds are tilted toward the latter possibility.
Skyrizi is starting to support the top line with gusto
In the fourth quarter of 2021, international sales of Humira fell by 9.1% to $781 million. In the same period, international revenue from Skyrizi grew to $134 million whereas Rinvoq brought in $135 million.
Despite Humira's steep international revenue drop, growth from the combination of Skyrizi and Rinvoq led the international segment of AbbVie's immunology portfolio to gain 0.5% in Q4. So management's plan to push Rinvoq and Skyrizi as replacements for Humira's share of the revenue pie appears to be gaining some early traction based on the pair's international sales outgrowing the top line impact of Humira's decline in the international segment -- which is a big green flag.
There will need to be a lot more where that growth came from over the next few years to call the scheme a success, however. Management remains firm in its guidance that the combination of the two drugs will produce $15 billion in annual revenue in 2025. That's quite a hill to climb in just three years, considering that the pair only brought in $4.6 billion in 2021 against Humira's $17.3 billion in U.S. net revenue alone.
This could be the buy signal the market has been waiting for
Thankfully for investors, AbbVie is constantly making headway in the right direction. It recently submitted a trio of regulatory filings seeking to expand the prescribing indications for Rinvoq, and it also submitted a similar filing for Skyrizi.
And it will have three more such applications in the works, provided that all the late-stage clinical trials it has underway for the two drugs conclude successfully. In total, during 2022 alone, these two drugs could get regulatory approval for as many as six additional indications, each of which would drive higher revenue.
Of course, it also has a smorgasbord of other medicines on the market and candidates in late-stage development. Though few of the treatments in the pipeline have the same individual potential as Humira revealed, it's entirely feasible that as a group they will have the ability to power the company's revenue to still greater heights even as Humira's sales recede.
Given AbbVie's R&D track record, that possibility is an investment thesis that's worth acting on.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors might be numb to the common reminder that "past performance is no guarantee of future returns," but that doesn't stop companies like AbbVie (NYSE: ABBV) from working hard to replicate their prior successes. Finding new sources of revenue to replace the sales it's going to lose is of paramount importance for Abbvie, which is why the company has been developing a pair of drugs, Rinvoq and Skyrizi, which between them can treat all of the same conditions as Humira. For the moment, the lack of a clear heir apparent to Humira makes Abbvie a riskier investment than some of its peers whose top lines aren't quite as dependent on a single program. | Despite Humira's steep international revenue drop, growth from the combination of Skyrizi and Rinvoq led the international segment of AbbVie's immunology portfolio to gain 0.5% in Q4. Investors might be numb to the common reminder that "past performance is no guarantee of future returns," but that doesn't stop companies like AbbVie (NYSE: ABBV) from working hard to replicate their prior successes. For the moment, the lack of a clear heir apparent to Humira makes Abbvie a riskier investment than some of its peers whose top lines aren't quite as dependent on a single program. | Finding new sources of revenue to replace the sales it's going to lose is of paramount importance for Abbvie, which is why the company has been developing a pair of drugs, Rinvoq and Skyrizi, which between them can treat all of the same conditions as Humira. Despite Humira's steep international revenue drop, growth from the combination of Skyrizi and Rinvoq led the international segment of AbbVie's immunology portfolio to gain 0.5% in Q4. Investors might be numb to the common reminder that "past performance is no guarantee of future returns," but that doesn't stop companies like AbbVie (NYSE: ABBV) from working hard to replicate their prior successes. | Finding new sources of revenue to replace the sales it's going to lose is of paramount importance for Abbvie, which is why the company has been developing a pair of drugs, Rinvoq and Skyrizi, which between them can treat all of the same conditions as Humira. Despite Humira's steep international revenue drop, growth from the combination of Skyrizi and Rinvoq led the international segment of AbbVie's immunology portfolio to gain 0.5% in Q4. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | b14b6ac8-ffdf-4862-8a71-31cf6e073192 |
23592.0 | 2022-02-18 00:00:00 UTC | 7 Value Stocks to Buy in This Pricey Market | ABBV | https://www.nasdaq.com/articles/7-value-stocks-to-buy-in-this-pricey-market | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Value stocks are always in fashion. But after nearly 18 months where investors could find growth in usual and unusual places, value stocks got crowded out. This time, they said, was different.
It wasn’t and it isn’t. If the recent market selloff has taught investors anything it’s that fundamentals matter. And fundamentals are where value stocks thrive. You can ask 10 investors and get 10 different definitions of what defines a value stock. But all investors agree that value stocks are stocks that are undervalued by whatever measure they use.
That’s where things get tough. Even though some stocks have dropped in value by 20% or more, many are still overvalued by traditional metrics. But if you know what you’re looking for you can still find value stocks in many sectors.
7 High-Yielding Dividend Stocks to Mix Risk with Income
The following are seven stocks that are undervalued. Like most value stocks, these are mature companies many of which pay dividends:
Target (NYSE:TGT)
Dick’s Sporting Goods (NYSE:DKS)
AbbVie (NYSE:ABBV)
Ford (NYSE:F)
Rent-A-Center (NASDAQ:RCII)
Winnebago (NYSE:WGO)
Darden Restaurants (NYSE:DRI)
Value Stocks: Target (TGT)
Source: jejim / Shutterstock.com
The economy received a bit of good news when the U.S. Census Bureau delivered their Advanced Monthly Sales Report that showed retail sales increased 3.8% in January over the seasonally adjusted December number. Now Target investors will see if that’s enough to reverse the downward trend that has put TGT stock down 22% since mid-November.
Retail stocks were in a bit of a Santa Claus rally that got reversed with disappointing December data. But this better-than-expected news may allow investors to focus on Target’s fundamental strength. One of the categories that showed significant month-over-month growth was “non-store sales.” This includes digital sales and Target was already well-positioned for omnichannel sales prior to the pandemic.
Target has a price-to-earnings ratio of 15.21x, which suggests a fair valuation. However, its price-to-earnings-to-growth ratio (which compensates the P/E ratio for growth) suggest TGT stock is undervalued. Combined with growing revenue and earnings, along with a safe dividend, Target stock is looking like a good value stock.
Dick’s Sporting Goods (DKG)
Source: George Sheldon via Shutterstock
Dick’s Sporting Goods is another company that is likely to benefit from the boost in retail sales. The company was a strong stock during the pandemic as people bought exercise equipment and apparel to work out at home. The trend continued in 2021 as youth sports reopened.
As trends go, Americans are likely to continue prioritizing their health and fitness. This sets up well for Dick’s which has improved its digital footprint that now includes a youth sports app (where was that 10 year ago?).
And after falling 25.8% in mid-November, DKG stock appears to have found a level of support. The stock has a price-to-earnings ratio of 8.42x, which is below the industry average. And Dick’s is a financially healthy company that pays a sustainable dividend that is line with its peers.
7 Stocks Under $10 to Buy Before They Double
Analysts give DKS stock an upside of 20% with a price target of $130.89. However, in January, the company got favorable upgrades, including price targets that are higher than the consensus.
Value Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
As value stocks go, there aren’t many that fit the description better than AbbVie. In late August, ABBV stock gave up most of its 2021 gains. But when the flight to value hit in November, investors moved back into AbbVie in a big way.
So with ABBV stock up 36% since mid-September is there any growth left? The consensus opinion of analysts suggests no. However, after delivering a mixed earnings report (the company beat on earnings but missed on revenue), JPMorgan boosted its price target for AbbVie to $180, which would be a gain of nearly 25%.
However the report wasn’t really bad at all. AbbVie showed strong margins that allowed it to beat on the bottom line by 3 cents. Furthermore, the company issued guidance for earnings growth that will be above the consensus opinion of analysts for 2022.
Even with less growth, many investors buy AbbVie for the reliable dividend. The company is part of the elite Dividend Aristocrat club having increased its dividend for the last 50 years.
Ford (F)
Source: D K Grove / Shutterstock.com
By most fundamental metrics such as P/E ratio and PEG ratio Ford is slightly undervalued compared to its peers. F stock currently has a 10% upside, which is most likely being kept down over concerns about the company’s earnings which did not meet analysts’ expectations. However, investors seem willing to give CEO Jim Farley the benefit of the doubt as he executes his cost-cutting initiatives.
Ford stock didn’t get swept up in the electric vehicle (EV) mania of early 2021. However, since the air has come out of that bubble, investors are taking another look at Ford. And they like what they see on the EV front.
7 Stocks to Buy After Sentiment Slipped to Lows
Specifically, as a legacy auto manufacturer, Ford is likely to be able to deliver on its pledge to electrify its fleet. It’s already seeing good sales on its Mustang Mach-E and the company had to stop pre-orders for the company’s F-150 Lightning. That’s always a nice problem to have.
Value Stocks: Rent-A-Center (RCII)
Source: David Tonelson/Shutterstock.com
If you’re of a certain age, then inflation is giving you that déjà vu feeling, If you lean into that groove, you can see why Rent-A-Center is having a resurgence. When inflation gets high, as it was in the late 1970s and early 1980s, items like furniture and electronics become out of the reach of middle to low-income households.
Personal finance professionals may hate the business model, but the pay-as-you-go model is a practical way for many consumers to furnish homes and apartments. And that’s not the only catalyst. Many Americans have decided to move to other areas and that may also mean temporarily furnishing their new homes until they settle in.
RCII stock has been falling since mid-August despite the company delivering two solid earnings reports. Investors may be concerned about the slowing pace of growth. But with inflation likely to stick around, Rent-A-Center looks like a bargain near its 52-week low. This is particularly true because the company pays out a dividend that, on a yield basis, is significantly better than the average of S&P 500 companies.
Winnebago (WGO)
Source: Tupungato / Shutterstock.com
Recreational vehicle (RV) manufacturers were big winners during the pandemic. As Americans looked for safe and socially distant ways to travel, a home on wheels looked very appealing. Companies such as Winnebago had back orders to fill and continue to do so.
At some point, you might expect demand to regress back to historic levels. And the company’s revenue and earnings projections are expected to be lower in the next five years than they have been in the past five years. However, for now, WGO stock has room to run. The company’s P/E ratio of 7.13x is lower than the industry average of 9.92x.
7 Stocks Under $10 to Buy Before They Double
Winnebago has been trading in a defined, albeit fairly wide range, since summer 2021. That being said, the stock is trading at the low end of that range and analysts have a $91.57 price target for the stock, which represents 35% upside. That should help investors compensate for a dividend that is reliable, but not among the highest in the industry.
Value Stocks: Darden Restaurants (DRI)
Source: Sundry Photography / Shutterstock.com
Last on our list of value stocks is Darden Restaurants. The Wall Street Journal recently reported on a recent Kastle analysis of industry statistics that showed restaurants were nearly three-quarters as full as before the pandemic. Darden has been one of the largest beneficiaries, but like the recovery, the 24% gain in DRI stock has been marked by peaks and valleys.
While the company’s P/E ratio puts it a little on the expensive side, that should be offset by the company’s strong growth in earnings and revenue, which is likely to continue as mask mandates and vaccine requirements continue to be dropped.
Plus, after cutting its dividend sharply at the onset of the pandemic, the company has now raised the dividend by 25% over its pre-pandemic level. That’s a pretty tasty reward for shareholders even though analysts only give DRI stock a 13% upside from its current level.
On the date of publication, Chris Markoch 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 Markoch is a freelance financial copywriter who has been covering the market for eight years. He has been writing for InvestorPlace since 2019.
The post 7 Value Stocks to Buy in This Pricey Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Like most value stocks, these are mature companies many of which pay dividends: Target (NYSE:TGT) Dick’s Sporting Goods (NYSE:DKS) AbbVie (NYSE:ABBV) Ford (NYSE:F) Rent-A-Center (NASDAQ:RCII) Winnebago (NYSE:WGO) Darden Restaurants (NYSE:DRI) Value Stocks: Target (TGT) Source: jejim / Shutterstock.com The economy received a bit of good news when the U.S. Census Bureau delivered their Advanced Monthly Sales Report that showed retail sales increased 3.8% in January over the seasonally adjusted December number. Value Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As value stocks go, there aren’t many that fit the description better than AbbVie. In late August, ABBV stock gave up most of its 2021 gains. | Like most value stocks, these are mature companies many of which pay dividends: Target (NYSE:TGT) Dick’s Sporting Goods (NYSE:DKS) AbbVie (NYSE:ABBV) Ford (NYSE:F) Rent-A-Center (NASDAQ:RCII) Winnebago (NYSE:WGO) Darden Restaurants (NYSE:DRI) Value Stocks: Target (TGT) Source: jejim / Shutterstock.com The economy received a bit of good news when the U.S. Census Bureau delivered their Advanced Monthly Sales Report that showed retail sales increased 3.8% in January over the seasonally adjusted December number. However, after delivering a mixed earnings report (the company beat on earnings but missed on revenue), JPMorgan boosted its price target for AbbVie to $180, which would be a gain of nearly 25%. Value Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As value stocks go, there aren’t many that fit the description better than AbbVie. | Like most value stocks, these are mature companies many of which pay dividends: Target (NYSE:TGT) Dick’s Sporting Goods (NYSE:DKS) AbbVie (NYSE:ABBV) Ford (NYSE:F) Rent-A-Center (NASDAQ:RCII) Winnebago (NYSE:WGO) Darden Restaurants (NYSE:DRI) Value Stocks: Target (TGT) Source: jejim / Shutterstock.com The economy received a bit of good news when the U.S. Census Bureau delivered their Advanced Monthly Sales Report that showed retail sales increased 3.8% in January over the seasonally adjusted December number. Value Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com As value stocks go, there aren’t many that fit the description better than AbbVie. In late August, ABBV stock gave up most of its 2021 gains. | However, after delivering a mixed earnings report (the company beat on earnings but missed on revenue), JPMorgan boosted its price target for AbbVie to $180, which would be a gain of nearly 25%. Even with less growth, many investors buy AbbVie for the reliable dividend. Like most value stocks, these are mature companies many of which pay dividends: Target (NYSE:TGT) Dick’s Sporting Goods (NYSE:DKS) AbbVie (NYSE:ABBV) Ford (NYSE:F) Rent-A-Center (NASDAQ:RCII) Winnebago (NYSE:WGO) Darden Restaurants (NYSE:DRI) Value Stocks: Target (TGT) Source: jejim / Shutterstock.com The economy received a bit of good news when the U.S. Census Bureau delivered their Advanced Monthly Sales Report that showed retail sales increased 3.8% in January over the seasonally adjusted December number. | 1b5e3c3c-86eb-42bb-9757-192f1026d8fc |
23593.0 | 2022-02-18 00:00:00 UTC | Ironwood (IRWD) Q4 Earnings Miss, Linzess Volume Grows | ABBV | https://www.nasdaq.com/articles/ironwood-irwd-q4-earnings-miss-linzess-volume-grows | nan | nan | Ironwood Pharmaceuticals, Inc. IRWD reported fourth-quarter 2021 adjusted earnings of 27 cents per share, missing the Zacks Consensus Estimate of 31 cents. The company had reported adjusted earnings of 36 cents per share in the year-ago quarter.
Total revenues of $117.1 million beat the Zacks Consensus Estimate of $109.6 million. Revenues were almost flat year over year.
Shares of Ironwood were down 3.6% on Feb 17, following lower-than-expected earnings result. However, the company’s shares have gained 13.9% in the past year against the industry’s decrease of 31.8%.
Image Source: Zacks Investment Research
Quarter in Detail
As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess — generated net sales of almost $278.6 million in the United States, flat year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. Prescription volume growth was driven by strong demand for Linzess, partially offset by lower net price of the drug and inventory channel fluctuations.
Ironwood's share of net profits from the sales of Linzess in the United States (included in collaborative revenues) was $113.7 million in the fourth quarter, up 2.7% year over year.
Per data provided by IQVIA, the prescription volume for Linzess capsules in the fourth quarter increased about 10% year over year.
The company recorded $3.4 million in royalties and other revenues compared with $6 million in the year-ago period.
We note that Ironwood has agreements with two partners — Astellas Pharma and AstraZeneca AZN — related to the development and commercialization of Linzess in Japan and China, respectively. Ironwood records royalties on sales of Linzess from Astellas and AstraZeneca in their respective territories.
Selling, general and administrative expenses were down 15.9% year over year to $28.6 million during the fourth quarter. Research & development expenses nearly doubled year over year to $31.9 million. The R&D expenses included a payment of 19.5 million related to collaboration and license option agreement with COUR Pharmaceutical for adding a new candidate to its pipeline.
Full-Year Results
Ironwood reported revenues of $413.8 billion, up 6.2% year over year. Sales were primarily driven by its share of the net profits of $400.4 million from the sales of Linzess in the United States. The drug’s total sales were $1 billion for the full year.
The company’s adjusted earnings for 2021 were $1.16 per share, up 46.8% from the year-ago period as margins improved with an efficient capital allocation strategy.
2022 Guidance
Ironwood maintained its previously issued guidance for 2022 The company expects Linzess sales as well as total revenue growth in 2022. The company expects its total revenues to be between $420 million and $430 million.It expects U.S. sales of Linzess to grow in low single-digit percentage points.
The company expects adjusted EBITDA to be more than $250 million for the year.
Pipeline Update
Ironwood initiated two early-stage studies recently to evaluate two pipeline candidates — IW-3300 and CNP-104 — for treating visceral pain conditions and primary biliary cholangitis, respectively.
In November, Ironwood signed an option agreement with privately-held COUR Pharmaceuticals Development Company to gain an exclusive license to COUR Pharmaceuticals’ products containing CNP-104 Particle.
Ironwood Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Ironwood Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Ironwood Pharmaceuticals, Inc. Quote
Zacks Rank
Currently, Ironwood carries a Zacks Rank #3 (Hold).
Collegium Pharmaceutical COLL is a better-ranked drug stock, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings per share estimates for Collegium have narrowed from $3.52 to $5.86 for 2022 in the past 30 days. Collegium’s shares have gained 15.2% so far this year. Collegium has a four-quarter average negative earnings surprise of 22.76%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess — generated net sales of almost $278.6 million in the United States, flat year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess — generated net sales of almost $278.6 million in the United States, flat year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess — generated net sales of almost $278.6 million in the United States, flat year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | Image Source: Zacks Investment Research Quarter in Detail As reported by partner AbbVie ABBV, Ironwood’s sole marketed product — Linzess — generated net sales of almost $278.6 million in the United States, flat year over year. Ironwood and AbbVie equally share Linzess’ brand collaboration profits or losses. AbbVie Inc. (ABBV): Free Stock Analysis Report | 12ab41b3-4efe-4ec4-ad40-5fed91275f41 |
23594.0 | 2022-02-18 00:00:00 UTC | Zacks Value Trader Highlights: Mastercard, Visa, Chevron and AbbVie | ABBV | https://www.nasdaq.com/articles/zacks-value-trader-highlights%3A-mastercard-visa-chevron-and-abbvie | nan | nan | For Immediate Release
Chicago, IL – February 18, 2022 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1869333/whos-really-making-the-berkshire-hathaway-stock-trades
Who's Really Making the Berkshire Hathaway Stock Trades?
Welcome to Episode #269 of the Value Investor Podcast.
(0:30) - What To Learn From The Berkshire Hathaways 13F Filing
(4:45) - Who Is Buying and What Are They Buying?
(16:30) - Big Takeaways From The 13F Filing: ATVI, CVX, MA, V, ABBV, RH
Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
This week, it’s time to look at what trades Berkshire Hathaway made in the fourth quarter of 2021.
The 13-F filing is out.
Remember, the 13-Fs are filed with the SEC 45 days after the end of the quarter. They describe the trades the big hedge fund and money managers made in the prior quarter.
We often look at what trades Berkshire Hathaway is doing in its stock portfolio. Many value investors like to follow Warren Buffett’s trades, even if they don’t own Berkshire Hathaway, and buy what he is buying. After all, he is one of the greatest living investors.
But Berkshire Hathaway now has three portfolio managers. There is Warren Buffett and his two lieutenants, Ted Weschler and Todd Combs.
How do we know who is making each of the trades?
Is Activision Blizzard a Buffett Stock?
It’s becoming more obvious who is doing what.
Take Activision Blizzard (ATVI). Berkshire added it in the fourth quarter for the first time. It bought nearly a billion dollars of Activision Blizzard. That was a small position for the portfolio.
Does anyone think Buffett is buying Activision Blizzard for the portfolio? He has long been a technology avoider. It’s a gaming company.
We don’t know, as Buffett often doesn’t say who is buying what positions, but it’s unlikely it was Buffett buying Activision Blizzard for the portfolio.
What about with some of the other fourth quarter trades?
Is it Buffett or Others Making These Trades?
1. Mastercard MA
Berkshire Hathaway bought Mastercard in the first quarter of 2011. Mastercard was the type of company that Buffett loves, a financial with good cash flows and a moat.
It seems likely that Mastercard was bought by Buffett. Ted Weschler wasn’t even working at Berkshire yet. He started in 2012.
In the fourth quarter of 2021, Berkshire sold a small portion of Mastercard. In the last 10 years, it has had a massive run with the shares up over 1000%.
Was this Buffett buying and selling Mastercard?
2. Visa V
Berkshire also bought Visa in 2011, but bought it in the third quarter. Like Mastercard, Visa fits the Buffett investing profile.
And Visa turned out to be another winner, as the stock has gained over 800% since the third quarter of 2011.
In the fourth quarter, Berkshire also sold a small portion of Visa.
Did Buffett sell Visa in the fourth quarter to lock in some profit?
3. Chevron CVX
Chevron was first added to the Berkshire Hathaway portfolio in the fourth quarter of 2020. It had a $4 billion stake.
But surprisingly, Berkshire sold half the shares just a quarter later. Chevron shares had rallied, so Berkshire did make some nice profit.
Berkshire kept selling. It sold shares of Chevron again in the second quarter of 2021.
It didn’t make any changes in Q3, but in the fourth quarter, Berkshire changed course and bought more shares, pushing the value of the position back to $4.5 billion.
Buying, selling, selling, and then buying again.
Does this kind of trading pattern in Chevron match what Buffett has said over the last 70 years about investing?
4. AbbVie ABBV
AbbVie was added to the Berkshire portfolio in the third quarter of 2020. AbbVie seemed like a Buffett-like stock.
It was dirt-cheap in 2020, with a forward P/E under 10. AbbVie also paid a juicy dividend, yielding over 4%.
Berkshire bought a small position which was 0.79% of the portfolio.
One quarter later, Berkshire bought more, pushing it up to 1% of the portfolio.
But starting in the first quarter of 2021, Berkshire began selling. It sold AbbVie in Q1, Q2, Q3 and finally, even in Q4 of 2021.
AbbVie’s position in the portfolio was down to just 0.12%.
Does this trading follow Buffett’s historic pattern of stock buying?
What Else Do You Need to Know About Berkshire Hathaway’s Q4 Trading?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in her personal portfolio.]
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Chevron Corporation (CVX): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
Visa Inc. (V): 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. | (16:30) - Big Takeaways From The 13F Filing: ATVI, CVX, MA, V, ABBV, RH Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie ABBV AbbVie was added to the Berkshire portfolio in the third quarter of 2020. AbbVie seemed like a Buffett-like stock. | (16:30) - Big Takeaways From The 13F Filing: ATVI, CVX, MA, V, ABBV, RH Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie Inc. (ABBV): Free Stock Analysis Report AbbVie ABBV AbbVie was added to the Berkshire portfolio in the third quarter of 2020. | (16:30) - Big Takeaways From The 13F Filing: ATVI, CVX, MA, V, ABBV, RH Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie ABBV AbbVie was added to the Berkshire portfolio in the third quarter of 2020. AbbVie seemed like a Buffett-like stock. | (16:30) - Big Takeaways From The 13F Filing: ATVI, CVX, MA, V, ABBV, RH Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. AbbVie ABBV AbbVie was added to the Berkshire portfolio in the third quarter of 2020. AbbVie seemed like a Buffett-like stock. | 74511431-0647-4b57-b912-7ba1ba3e92d6 |
23595.0 | 2022-02-18 00:00:00 UTC | AbbVie Snags FDA Approval for Another Indication. Will It Become Another Blockbuster? | ABBV | https://www.nasdaq.com/articles/abbvie-snags-fda-approval-for-another-indication.-will-it-become-another-blockbuster | nan | nan | AbbVie (NYSE: ABBV) has taken an important step toward replacing the revenue decline that will result from Humira's patent protection expiration in the U.S. next year.
That step is approval from the U.S. Food and Drug Administration (FDA) to use AbbVie's Skyrizi to treat patients with active psoriatic arthritis, a disease that impacts around 1.5 million Americans.
Let's dive into the phase 3 clinical trial results for Skyrizi and the U.S. psoriatic arthritis market to get a feel for how valuable this approval could be for AbbVie.
Image source: Getty Images.
A potent treatment option
Psoriatic arthritis is a type of inflammatory arthritis that occurs when the immune system attacks healthy tissue. This can cause joint pain, stiff joints, and fatigue. If psoriatic arthritis is left untreated for long enough, the condition can result in irreversible joint damage.
One treatment option that could now make a difference in the lives of countless psoriatic arthritis patients is Skyrizi, which works by controlling the release of interleukin-23 (IL-23) proteins, a different method than other drugs on the market.
AbbVie conducted two phase 3 clinical trials with patients who weren't able to achieve meaningful improvement or were unable to tolerate biologic therapies or non-biologic disease-modifying anti-rheumatic drugs. Tumor necrosis factor (TNF) inhibitors like AbbVie's blockbuster Humira are often the first-line therapy for psoriatic arthritis patients. While this drug class is highly effective in treating patients, it doesn't work for everyone. In fact, 19% of patients on TNF inhibitors don't greatly benefit from taking them. Those patients could benefit from Skyrizi.
Up to 57% of patients taking Skyrizi experienced at least a 20% improvement in their tender/swollen joint count and pain scale at week 24. This was statistically superior to the 34% of patients receiving placebo who experienced similar levels of improvement.
The maximum rate of serious adverse events in patients taking Skyrizi across both clinical trials was just 4%, which was lower than the placebo rate of 5.5%. This demonstrates Skyrizi to be safe and effective.
Since Skyrizi will mostly be prescribed to patients who didn't experience improvement on TNF inhibitors, I think the drug's biggest strength is its safety profile. Unlike Janus kinase (JAK) inhibitors like Pfizer's (NYSE: PFE) Xeljanz and Eli Lilly's (NYSE: LLY) Olumiant, which come with increased risk of heart attack, cancer, and blood clots, Skyrizi hasn't been found to elevate the risks of these events. That should allow Skyrizi to be prescribed ahead of JAK inhibitors, which will lead to greater market share.
A legitimate blockbuster candidate
Sykrizi looks like it will be a game-changer for many psoriatic arthritis patients. But how much of a growth catalyst could the indication be for AbbVie?
The Johns Hopkins Arthritis Center estimates that psoriatic arthritis impacts around 1.5 million Americans. If you consider that 19% of psoriatic arthritis patients don't benefit from TNF inhibitors, that would put approximately 285,000 patients in a group that need alternative treatments.
Due to Skyrizi's exceptional safety profile and efficacy, my guess is that the drug can seize 10% of the market or about 28,500 psoriatic arthritis patients in a base-case scenario. Skyrizi has an annual list price of $73,000. Negotiations with health insurance companies and drug assistance programs for eligible patients mean that the net price will be significantly cheaper than the list price. I estimate the annual net price could be $40,000 per patient. Below is a range of market shares using that $40,000 that demonstrates the blockbuster potential of the drug.
MARKET SHARE ANNUAL NET PRICE/PATIENT ANNUAL REVENUE
8% $40,000 $900 million
10% $40,000 $1.1 billion
12% $40,000 $1.4 billion
My estimate of 10% market share at $40,000 annual cost would lead to over $1.1 billion in annual sales potential for Skyrizi. Against the $60.3 billion in sales analysts expect for AbbVie this year, this would be a 1.9% bump in total revenue. For Skyrizi, $1.1 billion in additional sales would be a nearly 40% boost over the $2.9 billion in revenue that the drug generated last year.
Skyrizi's psoriatic arthritis indication could be a slight growth catalyst for AbbVie as a whole. But it will be a huge boost for the the drug since it is Skyrizi's second approved indication.
AbbVie is a great income stock
Aside from Skyrizi, AbbVie has dozens of drug indications that are in different stages of development. AbbVie's next-generation immunology drugs Skyrizi and Rinvoq each have indications for Crohn's Disease and ulcerative colitis that are either in phase 3 clinical trials or that have already been submitted to regulatory authorities.
Approval could add up to billions of dollars in annual sales and could be approved this year or next year. Thanks to recent regulatory approvals and more that are expected to come, AbbVie believes that Skyrizi and Rinvoq will generate more than $15 billion in combined sales by 2025. This would be more than triple the $4.59 billion in combined sales that the two drugs produced last year. Factoring in a 50%, or nearly $9 billion, decline in Humira's U.S. sales by 2025 from biosimilar drug competition starting next year, Skyrizi and Rinvoq should be enough to replace the revenue loss from Humira. Analysts are expecting 4% annual earnings growth over last year in the next five years.
AbbVie's 41% dividend payout ratio last year and decent growth prospects should lead to strong dividend growth in the future and investors can get AbbVie's 4% dividend yield at a current price-to-earnings ratio of 10. This makes AbbVie a stock to consider buying right now.
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Kody Kester owns AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That step is approval from the U.S. Food and Drug Administration (FDA) to use AbbVie's Skyrizi to treat patients with active psoriatic arthritis, a disease that impacts around 1.5 million Americans. AbbVie conducted two phase 3 clinical trials with patients who weren't able to achieve meaningful improvement or were unable to tolerate biologic therapies or non-biologic disease-modifying anti-rheumatic drugs. AbbVie's next-generation immunology drugs Skyrizi and Rinvoq each have indications for Crohn's Disease and ulcerative colitis that are either in phase 3 clinical trials or that have already been submitted to regulatory authorities. | That step is approval from the U.S. Food and Drug Administration (FDA) to use AbbVie's Skyrizi to treat patients with active psoriatic arthritis, a disease that impacts around 1.5 million Americans. Let's dive into the phase 3 clinical trial results for Skyrizi and the U.S. psoriatic arthritis market to get a feel for how valuable this approval could be for AbbVie. AbbVie (NYSE: ABBV) has taken an important step toward replacing the revenue decline that will result from Humira's patent protection expiration in the U.S. next year. | That step is approval from the U.S. Food and Drug Administration (FDA) to use AbbVie's Skyrizi to treat patients with active psoriatic arthritis, a disease that impacts around 1.5 million Americans. AbbVie is a great income stock Aside from Skyrizi, AbbVie has dozens of drug indications that are in different stages of development. AbbVie (NYSE: ABBV) has taken an important step toward replacing the revenue decline that will result from Humira's patent protection expiration in the U.S. next year. | Let's dive into the phase 3 clinical trial results for Skyrizi and the U.S. psoriatic arthritis market to get a feel for how valuable this approval could be for AbbVie. AbbVie (NYSE: ABBV) has taken an important step toward replacing the revenue decline that will result from Humira's patent protection expiration in the U.S. next year. That step is approval from the U.S. Food and Drug Administration (FDA) to use AbbVie's Skyrizi to treat patients with active psoriatic arthritis, a disease that impacts around 1.5 million Americans. | cc649c57-1136-458b-bb84-328b4424cc19 |
23596.0 | 2022-02-17 00:00:00 UTC | Daily Dividend Report: HUM,CSCO,WCN,SWK,ABBV | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-humcscowcnswkabbv | nan | nan | Humana announced today that its Board of Directors has declared a cash dividend to stockholders of $0.7875 per share payable on April 29, 2022 to stockholders of record as of the close of business on March 31, 2022. The dividend of $0.7875 per share reflects an increase of 12.5 percent from the previous per share dividend of $0.70.
Cisco has declared a quarterly dividend of $0.38 per common share, a 1-cent increase or up 3% over the previous quarter's dividend, to be paid on April 27, 2022 to all stockholders of record as of the close of business on April 6, 2022. Cisco's board of directors has also approved a $15 billion increase to the authorization of the stock repurchase program.
Waste Connections today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.23 U.S. per common share of the Company. The regular quarterly cash dividend will be paid on March 16, 2022 to shareholders of record at the close of business on March 2, 2022.
Stanley Black & Decker announced today that its Board of Directors approved a regular first quarter cash dividend of $0.79 per common share. This extends the company's record for the longest consecutive annual and quarterly dividend payments among industrial companies listed on the New York Stock Exchange. The dividend is payable on Tuesday, March 22, 2022 to shareholders of record as of the close of business on Tuesday, March 8, 2022.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. The cash dividend is payable May 16, 2022 to stockholders of record at the close of business on April 15, 2022. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
VIDEO: Daily Dividend Report: HUM,CSCO,WCN,SWK,ABBV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.41 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | 33969e05-b603-4819-9458-156dc4ad507f |
23597.0 | 2022-02-16 00:00:00 UTC | Abbvie Inc Shares Climb 0.3% Past Previous 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-climb-0.3-past-previous-52-week-high-market-mover | nan | nan | Abbvie Inc (ABBV) shares closed 0.3% higher than its previous 52 week high, giving the company a market cap of $255B. The stock is currently up 8.0% year-to-date, up 45.1% over the past 12 months, and up 195.6% over the past five years. This week, the Dow Jones Industrial Average fell 1.2%, and the S&P 500 fell 1.1%.
Trading Activity
Trading volume this week was 10.8% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -293.5%
The company's stock price performance over the past 12 months beats the peer average by 404.0%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 4.3% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed 0.3% higher than its previous 52 week high, giving the company a market cap of $255B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.4. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -293.5% The company's stock price performance over the past 12 months beats the peer average by 404.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 4.3% higher than the average peer. | Abbvie Inc (ABBV) shares closed 0.3% higher than its previous 52 week high, giving the company a market cap of $255B. This week, the Dow Jones Industrial Average fell 1.2%, and the S&P 500 fell 1.1%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -293.5% The company's stock price performance over the past 12 months beats the peer average by 404.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 4.3% higher than the average peer. | Abbvie Inc (ABBV) shares closed 0.3% higher than its previous 52 week high, giving the company a market cap of $255B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -293.5% The company's stock price performance over the past 12 months beats the peer average by 404.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 4.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed 0.3% higher than its previous 52 week high, giving the company a market cap of $255B. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -293.5% The company's stock price performance over the past 12 months beats the peer average by 404.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 4.3% higher than the average peer. | 27c77435-ab80-4a28-9c9a-d017e2fb3d52 |
23598.0 | 2022-02-16 00:00:00 UTC | 2 Warren Buffett Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-and-hold-forever | nan | nan | Warren Buffett, CEO of multinational conglomerate Berkshire Hathaway, is widely regarded as one of the greatest investors of our time. That means we can all learn a lot from his buy-and-hold approach to investing and perhaps even get some much-needed inspiration from his stock picks.
Buffett oversees his company's investment portfolio, and two stocks in there that are most definitely worth buying and holding onto today are drugmaker AbbVie (NYSE: ABBV) and tech giant Apple (NASDAQ: AAPL). Here's why.
ABBV Total Return Level data by YCharts
1. AbbVie
Pharmaceutical companies have the advantage of offering products that are always in demand. AbbVie's portfolio includes immunology drugs Humira, Skyrizi, and Rinvoq; cancer medicines Imbruvica and Venclexta; and schizophrenia treatment Vraylar.
In 2021, AbbVie's net revenue came in at $56.1 billion, 10.5% higher than the year-ago period. That's a solid top-line performance for a pharma giant. The drugmaker's adjusted earnings per share for the year increased 20.3% to $12.70. Note that AbbVie's Humira made up almost 37% of the company's total revenue last year.
That is a problem since the healthcare company will lose patent exclusivity for this medicine in the U.S. next year. Humira's loss of patent exclusivity in Europe back in 2018 significantly harmed its international revenue.
Image source: Getty Images.
Still, the company is prepared to deal with the inevitable revenue losses Humira will experience in the U.S. in the coming years. Skyrizi and Rinvoq are well on their way to earning approvals across most of Humira's indications, and they already have significant wins under their belt. In 2021, Sales of Rinvoq more than doubled to $1.7 billion while revenue from Skyrizi increased by 85% to $2.9 billion.
Skyrizi and Rinvoq seem well-equipped to fill the gaping hole that Humira will leave, but the company can count on its other products as well, including its Botox franchise. Many of the company's products boast patents that won't expire anytime soon. Plus, AbbVie has a pipeline with dozens of ongoing programs. Expect new approvals and label expansions to add to the company's revenue base routinely.
AbbVie's solid business helps support its excellent dividend track record. The company is part of the exclusive club of Dividend Kings, or companies that have raised their payouts for at least 50 consecutive years. And with an above-average yield of 3.74% and a conservative payout ratio of 42%, AbbVie looks more than able to sustain further dividend increases ahead.
That's just one more reason to purchase shares of this pharma giant. Overall, AbbVie looks like a solid company to hold on to through thick and thin.
2. Apple
Apple's iPhone has been immensely successful since it was introduced in 2007. The company remains a leader in this industry with a 22% share of the smartphone market in the fourth quarter of 2021. During its fiscal year 2021 (ended Sept. 25), Apple generated $192 billion in sales from its iPhone segment, 39.3% higher than the previous fiscal year.
Could Apple lose its dominance in the smartphone market? It wouldn't be the first time something like that happens. Apple itself played an instrumental role in the decline of BlackBerry's once-booming smartphone business starting in the late 2000s. Could other companies permanently dethrone Apple?
Image source: Getty Images.
Given how popular and powerful the company's brand has become, it is hard to imagine Apple no longer being one of the most prominent players in this field, at least for the foreseeable future. More importantly, though, Apple has leveraged its strong brand name and robust cash flow generation to invest in and grow its services business.
The company's services segment offers customers a range of products, including Apple Music, Apple TV+, Apple Pay, iCloud, and more. The great thing about this business is that it offers much juicier margins than the sale of hardware products such as the iPhone, tablets, and laptops. In other words, as Apple's services revenue grows -- and as it captures a larger share of the company's total revenue -- that will work wonders for the company's bottom line.
iPhone sales will likely remain strong for many more years, especially as Apple makes headway into various international markets. But the company's future is increasingly tied to its services segment, and that's something that should excite investors. Even with a $2.8 trillion market cap, Apple still has considerable room to grow. No wonder it is one of the largest holdings in Buffett's portfolio.
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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. | Buffett oversees his company's investment portfolio, and two stocks in there that are most definitely worth buying and holding onto today are drugmaker AbbVie (NYSE: ABBV) and tech giant Apple (NASDAQ: AAPL). AbbVie's portfolio includes immunology drugs Humira, Skyrizi, and Rinvoq; cancer medicines Imbruvica and Venclexta; and schizophrenia treatment Vraylar. ABBV Total Return Level data by YCharts 1. | Buffett oversees his company's investment portfolio, and two stocks in there that are most definitely worth buying and holding onto today are drugmaker AbbVie (NYSE: ABBV) and tech giant Apple (NASDAQ: AAPL). ABBV Total Return Level data by YCharts 1. AbbVie Pharmaceutical companies have the advantage of offering products that are always in demand. | Buffett oversees his company's investment portfolio, and two stocks in there that are most definitely worth buying and holding onto today are drugmaker AbbVie (NYSE: ABBV) and tech giant Apple (NASDAQ: AAPL). ABBV Total Return Level data by YCharts 1. AbbVie Pharmaceutical companies have the advantage of offering products that are always in demand. | Buffett oversees his company's investment portfolio, and two stocks in there that are most definitely worth buying and holding onto today are drugmaker AbbVie (NYSE: ABBV) and tech giant Apple (NASDAQ: AAPL). ABBV Total Return Level data by YCharts 1. AbbVie Pharmaceutical companies have the advantage of offering products that are always in demand. | 7667b492-487b-4a87-a982-426ab75cc39e |
23599.0 | 2022-02-16 00:00:00 UTC | Why Abbvie Might Be Poised for a Return to Profitability | ABBV | https://www.nasdaq.com/articles/why-abbvie-might-be-poised-for-a-return-to-profitability | nan | nan | In this clip from "The Pharma & Biotech Show" on Motley Fool Live, recorded on Feb. 2, Motley Fool contributors Keith Speights and Brian Orelli assess the pharma giant's projection that it'll return to growth quickly in the second half of the decade.
{% sfr %}
Keith Speights: Here's the statement that really jumped out to me, Brian. I'm going to read this, "AbbVie (NYSE: ABBV) confirmed prior revenue guidance of greater than $15 billion in combined Skyrizi and Rinvoq risk-adjusted sales in 2025. AbbVie expects each asset to deliver risk-adjusted sales of greater than $7.5 billion in 2025."
Brian Orelli: It's not $20 billion, but it's a nice chunk of change.
Speights: You know what's especially striking about that? AbbVie is sticking with its projection even though the FDA has slapped down on JAK inhibitors, so Rinvoq's impacted by that.
Orelli: It's a little surprising.
Speights: They could be wrong. [laughs]
Orelli: In cancer, if you were the last line of defense, you have pretty low sales because a lot of people are going to die on the first, second, third line of treatment. But people with Rheumatoid Arthritis or Atopic Dermatitis, all of those autoinflammatory diseases that they're treating, those people aren't going to die of those diseases. They're more likely to work through each one of the drugs, and as they fail on one drug, they are going to try a new drug. Maybe that's the idea here. Some are just going to get helped by the one drug and they're going to stay on it possibly forever, for the rest of their life. But, some people are going to fail that drug and then they are going to move, so maybe that's what they're planning on expecting to get is the tail end. Even if they are the last line of defense, there's still a lot of patients who still need that treatment, and so their doctors are going to try that versus putting them on nothing.
Speights: I was noticing, even though Humira faces intense bio-similar competition internationally, the drug still pulled in nearly $3.4 billion in international markets last year. AbbVie is still making a lot of money internationally from Humira. I would expect that, even when it starts facing bio-similars in the U.S. market next year, these sales aren't going to evaporate. As Skyrizi and Rinvoq pick up steam, Humira starts declining. If AbbVie's correct and it's two newer autoimmune disease drugs break in over $15 billion by 2025, and Humira goes on a steady decline over the next few years in the U.S. market, I think AbbVie could be right that they return to growth pretty quickly in the second half of this decade.
Orelli: I think we will have to decide. I think a lot is going to be determined outside of their control. It's going to be determined by the number of Humira bio-similars that get approved. I think there's a lot of companies going after the bio-similar for Humira because it's such a large market. Therefore, once you get to a certain number of companies, now they have to start lowering, at least in the generic market. I don't think we've really experienced this idea in the U.S. bio-similar market, but in the generic market, which is small molecule, copycat drugs. If you have one or two manufacturers, they tend to price a lot higher and a lot closer to the branded price because there's no competition among them and they're only really competing against the branded drug where when you get into the five, six, seven number of generic makers, now the drugs get really cheap. So cheap that oftentimes the cash price of a drug is actually cheaper than the co-pay because your pharmacy can buy it so cheaply. The pharmacy can buy it so because there's so many other companies making the drug that they have to price it cheaply to be competitive. I think a lot of this is going to depend on how many of the companies get bio-similar approvals. That's going to determine how quickly that Humira-branded drug declines.
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Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I'm going to read this, "AbbVie (NYSE: ABBV) confirmed prior revenue guidance of greater than $15 billion in combined Skyrizi and Rinvoq risk-adjusted sales in 2025. AbbVie expects each asset to deliver risk-adjusted sales of greater than $7.5 billion in 2025." AbbVie is sticking with its projection even though the FDA has slapped down on JAK inhibitors, so Rinvoq's impacted by that. | I'm going to read this, "AbbVie (NYSE: ABBV) confirmed prior revenue guidance of greater than $15 billion in combined Skyrizi and Rinvoq risk-adjusted sales in 2025. AbbVie expects each asset to deliver risk-adjusted sales of greater than $7.5 billion in 2025." AbbVie is sticking with its projection even though the FDA has slapped down on JAK inhibitors, so Rinvoq's impacted by that. | If AbbVie's correct and it's two newer autoimmune disease drugs break in over $15 billion by 2025, and Humira goes on a steady decline over the next few years in the U.S. market, I think AbbVie could be right that they return to growth pretty quickly in the second half of this decade. I'm going to read this, "AbbVie (NYSE: ABBV) confirmed prior revenue guidance of greater than $15 billion in combined Skyrizi and Rinvoq risk-adjusted sales in 2025. AbbVie expects each asset to deliver risk-adjusted sales of greater than $7.5 billion in 2025." | If AbbVie's correct and it's two newer autoimmune disease drugs break in over $15 billion by 2025, and Humira goes on a steady decline over the next few years in the U.S. market, I think AbbVie could be right that they return to growth pretty quickly in the second half of this decade. I'm going to read this, "AbbVie (NYSE: ABBV) confirmed prior revenue guidance of greater than $15 billion in combined Skyrizi and Rinvoq risk-adjusted sales in 2025. AbbVie expects each asset to deliver risk-adjusted sales of greater than $7.5 billion in 2025." | b8a00874-f6d6-4531-bdd1-2e8dc3a04c9a |
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