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24100.0 | 2021-05-01 00:00:00 UTC | Better Buy for 2021: AbbVie or Merck? | ABBV | https://www.nasdaq.com/articles/better-buy-for-2021%3A-abbvie-or-merck-2021-05-01 | nan | nan | AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) currently boast the No. 1 and No. 2 best-selling drugs on the market. AbbVie's Humira, which is used to treat Crohn's disease, just grossed $20 billion in sales in 2020, while Merck's No. 2, Keytruda, did $14.38 billion in sales. With patent cliffs looming for both drugs in the next several years, which company is the better buy?
Image source: Getty Images.
The case for AbbVie
In 2013, AbbVie was spun off by its parent company, Abbott Labs, in a decision to separate two fundamentally different businesses. AbbVie's darling drug, Humira, which was launched back in 2003, would go on to dominate the sales of prescription drugs to the present day. But there have been growing fears from investors over the last few years relating to AbbVie's dependence on Humira as a huge share of its revenue.
However, there is cause for optimism. In 2019, AbbVie acquired Allergan for $63 billion in one of the biggest deals in the industry next to Bristol Myers Squibb's acquisition of Celgene for $74 billion and Takeda Pharmaceuticals' acquisition of Shire for $62 billion. AbbVie's move diversified its revenue with new consumer products like Botox, which brought in $1.3 billion for the company in 2020. AbbVie has also launched Skyrizi (a drug to treat plaque psoriasis) and Rinvoq (rheumatoid arthritis), which reaped a combined $2.3 billion just 12 months after they launched. The business segments acquired from Allergan also brought in $8.93 billion in revenue, which represented almost 20% of AbbVie's net revenue for 2020.
AbbVie just released earnings for Q1 2021. Net revenue for the quarter increased 50% year over year to $13.01 billion, compared to analysts' estimate of $12.78 billion. We also saw the company's aesthetics portfolio revenue increase 35% to $1.14 billion, this was fueled by the near 50% surge in global botox cosmetic net revenues in the quarter compared to last year.
We were really able to see AbbVie's diversification, as the strength in the company's aesthetics business helped offset the mounting pressure on its flagship drug Humira. The immunologic saw an over 8% slide in revenue internationally, due to competition from other drugs, including Biogen's Imraldi in Europe.
Humira's looming patent expiration in 2023 has left investors cautious about whether to initiate big positions in the company. Some might consider these fears overblown, as AbbVie has been using this time to bring these new drugs to market and build a patent wall around its other blockbuster drug, Imbruvica. The company has filed for around 165 patents and so far has had 88 approved. All these patents have given AbbVie another nine years of patent protection for a total of 29 years of commercial sales without any competition. Currently, Imbruvica generates almost $5.3 billion a year for the company, and these patent protections will no doubt allow for many billions more.
Even with all the bad news priced in, I believe the company is undervalued. AbbVie's current forward price-to-earnings (P/E) ratio of about 9 is below its high of 10.4 in the fourth quarter of 2020. The stock looks attractive at these levels. With an almost 5% dividend yield, with a possible margin of safety, it could hit more than $128 if it simply reverted to its usual market valuation.
The case for Merck
Merck, meanwhile, commands the second-biggest drug by sales on the market: Keytruda. Keytruda is an immunology drug that fights many different types of cancer, has been a key driver for Merck's business growth over the last few years.
Many predict that by 2023, Keytruda will hold the No. 1 place in drugs sold by revenue. This is mostly due to the speculation about AbbVie's Humira losing patent exclusivity and therefore not selling as much when generics come into the picture. However, for Merck, that problem will not arise until well into the future, because Keytruda is not expected to lose patent exclusivity until 2028.
Merck also reported earnings this week, which included sales of Keytruda. We saw strong sales of the cancer-fighting drug help fuel its first-quarter earnings. Sales of the drug for the quarter jumped 19% year over year to $3.9 billion. Merck is so far on track to possibly do nearly $16 billion in sales for 2021, a 11% increase from 2020. By 2026, long-term analysts expect Keytruda to do $24.32 billion annually in sales. This is also a significant increase from what sales-leader Humira did in 2020, at just $19.83 billion. By 2026, Humira will be off-patent for a few years, and this will give Keytruda the room to dominate the majority of sales in the cancer-treatment space. There is always a factor of concentration risk to have most sales in just one drug, but Merck is also making strides in diversifying its revenue streams.
Along with Keytruda, there are a lot of products in Merck's pipeline to be very optimistic about. Sales of Bridion (an anesthetic), which is one of Merck's newer drugs, grew by 6% to $1.2 billion. We also saw Merck's Animal Health unit grow sales by 7% to $4.7 billion in 2020.
Merck also currently trades at a very cheap valuation compared to where it has normally traded over the past few years. Shares just last year traded at a future P/E of 13.5, and the current future price-to-earnings ratio sits at just under 11.3. We are looking at around a $80 share price and an 8% upside if the stock reverts to its usual market valuation.
What's the better buy?
Both these pharmaceutical giants are wonderful companies, and both will no doubt deliver great shareholder returns in the long run. However, when it comes to safety and reliability in investment over the next few years, I might have to go with Merck.
When comparing pharmaceutical companies, drug patent cliff risks must be taken into account. In this case, AbbVie's biggest drug, Humira, faces imminent risk from loss of exclusivity. Though I laid out how AbbVie has been diversifying to mitigate a huge loss in revenue, the impending loss exclusivity on its biggest drug is still large enough to cause me to turn to Merck as a buy today. Simply put, Merck is expecting more annual sales from Keytruda than Humira ever earned, and that should fuel a run in share price and future dividend increases.
Merck currently offers a 3.53% dividend yield, a bit below AbbVie's 5%. But looking at the comparison from a valuation perspective, I believe the opportunity in further share price upside for Merck is much greater than that for AbbVie. It has an opportunity to expand earnings at a much faster rate over the next 5 to 10 years, with Keytruda emerging in the spotlight.
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Anirudh Shankar owns shares of AbbVie, Bristol Myers Squibb, and Merck & Co. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Biogen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We were really able to see AbbVie's diversification, as the strength in the company's aesthetics business helped offset the mounting pressure on its flagship drug Humira. AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) currently boast the No. AbbVie's Humira, which is used to treat Crohn's disease, just grossed $20 billion in sales in 2020, while Merck's No. | AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) currently boast the No. AbbVie's Humira, which is used to treat Crohn's disease, just grossed $20 billion in sales in 2020, while Merck's No. The case for AbbVie In 2013, AbbVie was spun off by its parent company, Abbott Labs, in a decision to separate two fundamentally different businesses. | AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) currently boast the No. AbbVie's Humira, which is used to treat Crohn's disease, just grossed $20 billion in sales in 2020, while Merck's No. The case for AbbVie In 2013, AbbVie was spun off by its parent company, Abbott Labs, in a decision to separate two fundamentally different businesses. | AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) currently boast the No. AbbVie's Humira, which is used to treat Crohn's disease, just grossed $20 billion in sales in 2020, while Merck's No. The case for AbbVie In 2013, AbbVie was spun off by its parent company, Abbott Labs, in a decision to separate two fundamentally different businesses. | ac206e58-6e73-4d82-a310-2e3874649191 |
24101.0 | 2021-04-30 00:00:00 UTC | 7 Value Stocks You Want In Your Life | ABBV | https://www.nasdaq.com/articles/7-value-stocks-you-want-in-your-life-2021-04-30 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Theoretically, we really should have seen a renaissance in value stocks during the impact of the novel coronavirus pandemic. With an unprecedented crisis rippling throughout the international community, the global equity markets initially tumbled on the mass spread of the disease. If anyone wanted to go contrarian, they should have done so on the companies that now presented excellent value.
Instead, risk-on money poured into growth names like a thunderstorm. Indeed, much of the enthusiasm was understandable. For instance, tech firms that specialized in contactless services — digital documentation and teleconferencing come to mind — performed extraordinarily well. At the same time, you’d figure that value stocks should also get some love.
No, they might not carry the sexiness that growth plays do. However, many, if not most, value stocks are tied to stable, relevant industries. Quite a few pay dividends, which add to their appeal. In other words, these are organizations that simply got caught in a downdraft through no fault of their own. Therefore, it’s plausible that they can make a comeback down the line.
Another reason to consider value stocks is that their growth counterparts tend to peter out when their catalysts fade. I think that’s the number one risk for equity units that received extreme bullishness. Usually, such bullish cycles also tend to correct substantially. So, investors should consider value stocks to diversify their exposure to these crazy markets.
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Of course, just because you go with value stocks over growth names doesn’t necessarily mean that they’re guaranteed to move higher in the years ahead. This is the capital markets we’re talking about and anything can change. On this list, I’ve included a mix of companies with different risk-reward profiles, proving that value doesn’t always have to be so square.
Nintendo (OTCMKTS:NTDOY)
NRG Energy (NYSE:NRG)
AbbVie (NYSE:ABBV)
Altria Group (NYSE:MO)
The Geo Group (NYSE:GEO)
Sunoco (NYSE:SUN)
Anheuser Busch (NYSE:BUD)
Value Stocks to Buy: Nintendo (NTDOY)
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Source: ESOlex / Shutterstock.com
Though the current talking point centers on electric vehicles, in my view, video games also deserve consideration for a renaissance. During the advent of this sector, many people considered it to be child’s play. As a former nerd — well, maybe that hasn’t changed — I can attest to many of the stereotypes of avid gamers.
But the Covid-19 crisis also sparked a mini-renaissance in this sector. According to a Nielsen survey, 55% of Americans played video games to wile away the hours during the initial phase of lockdowns. An early 2021 TheVerge.com article argues that this habit is here to stay. That benefits Nintendo, one of the rare gaming-related value stocks.
While other video game companies skyrocketed off the pandemic’s unexpected catalyst, NTDOY stock still offers a great value proposition. Currently, its forward price-earnings ratio is 18.5, whereas the interactive media industry — of which Nintendo is a part — has a median forward price-to-earnings (P/E) ratio of 29.
Also, NTDOY stock is down 11% for the year, which contrasts with other gaming rivals. It might not get the love because of its underlying family friendly orientation. But in my view, this is a positive, making NTDOY one of the best value stocks to consider.
NRG Energy (NRG)
Source: Casimiro PT / Shutterstock.com
In late 2020, shares of NRG Energy looked poised to go gangbusters and they pretty much did. As I’m sure you’ve heard by now, NRG Energy is one of the biggest power generators and retailers in Texas. Unfortunately, a terrible winter storm devastated the Lone Star State and affected regions are still picking up the pieces.
According to the Houston Chronicle, NRG stated that “it lost an estimated $750 million from February’s winter storm that knocked out generators and electricity across the state.” To be fair, this is one of the trickier value stocks in that the underlying company isn’t totally faultless. This was a disaster that culminated with many fail points being checked off one after the other.
In hindsight, both public and private elements should have cooperated to bolster energy infrastructures in case stuff like this happened. I mean, there was recent precedent, with rolling blackouts in California. Still, this was mostly an Act of God and NRG stock got caught out.
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However, this does make the company one of the undervalued stocks in the energy space, with a forward P/E ratio of 13.5 times, whereas the industry median is 19.5 times.
Value Stocks to Buy: AbbVie (ABBV)
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Source: Piotr Swat / Shutterstock.com
When the coronavirus first became an unwanted guest in the U.S., it was a matter of time before the SARS-CoV-2 virus spread everywhere. Frankly, it was a shame because initially, the Former President Donald Trump’s administration had the right response: keep people out, including infected Americans. As the Washington Post stated, the former president was not told Covid-19 sickened Americans would be flown home from a Diamond Princess cruise ship.
In my opinion, this represented total failure of governance and respect for the chain of command. And with Trump not displaying the best performance under pressure, the American outbreak became an inevitability. Cynically, this benefitted biotechnology firms developing vaccines and treatments. But AbbVie? Not so much since the company didn’t make as aggressive of a pivot to Covid-19 like its peers.
However, now that coronavirus cases are fading in the U.S., ABBV stock has become one of the more intriguing value stocks to consider. In large part, I say this because of its Botox business. You see, when people are quarantining, there’s not much emphasis on looking good.
Once the pandemic fades, superficiality will be back on the bandwagon. Therefore, ABBV stock makes sense on the fundamentals shifting favorably toward its underlying business.
Altria Group (MO)
Source: defotoberg / Shutterstock.com
As one of the undervalued stocks in the vice industry, Altria Group may not be for everyone’s sensibilities. Also, MO stock is rather risky. Over the trailing five years, shares have lost 24% of market value. Much of that is due to declining smoking rates. According to the Centers for Disease Control and Prevention, the percentage of those who quit increased from 50.8% in 2005 to 59% in 2016. The FDA is also planning a ban on flavored cigarettes and cigars.
Still, the CDC points out that nearly 38 million Americans smoked cigarettes either everyday or some days in 2016. With the pandemic, this figure may have accelerated. Sure, you hear stories about people quitting because of the pandemic. But the crisis also incentivizes the dangerous habit due to increased stress.
Another cynical factor that might aid MO stock is the war against vaping. On the surface, vaping seems like a less-offensive alternative to “analog” cigarettes. But the “Preventing Online Sales of E-Cigarettes to Children (PACT) Act has forced many companies to discontinue U.S. online sales and even cease operations altogether,” according to TobaccoReporter.com.
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If this trend continues, it could spark a rise in traditional cigarette smoking, which makes Altria an interesting though controversial name to consider.
Value Stocks to Buy: The Geo Group (GEO)
Source: JosephRouse / Shutterstock.com
On the surface, The Geo Group’s specialty, adult rehabilitation, doesn’t sound controversial at all. Until you realize that the company is really talking about private prisons. Naturally, GEO is one of the ugliest value stocks available. Nevertheless, the underlying business of GEO stock has a long series of pros and cons.
Of course, there’s something unsavory about investors benefitting off the misery of others. People are in prison to pay their debt to society. It’s not necessarily an avenue from which to extract profit. So why have GEO stock at all?
The answer is that government is rarely the best solution, whether we’re talking about advancing capitalistic enterprises or for doling out punitive measures. Turns out, private prisons, because they’re private, can do the job more effectively, potentially leading to lower recidivism.
While that might sound like a benefit to taxpayers, you should know that various research papers provide conflicting analyses. Therefore, if you are a conscientious investor, you may want to dig a little deeper before considering GEO as one of your value stocks.
Sunoco (SUN)
Source: Gergely Zsolnai/Shutterstock.com
Technically, Sunoco isn’t exactly what you think about when you discuss value stocks. Indeed, Sunoco’s P/E ratio is 21 times, which is notably higher than the median 16-times ratio seen in the oil and gas industry. But, as a countering statistic, the forward P/E ratio of SUN stock is 9.5 times, which is lower than the industry median 34-times ratio.
So, what to do about Sunoco? Personally, I view the company as undervalued relative to its fundamentals. According to its website, Sunoco is one of the largest fuel distribution providers in the U.S. Obviously, that wasn’t the most helpful sector to ply your trade in during the initial onslaught of the Covid-19 crisis. But with cases fading, the narrative for SUN stock has conversely improved significantly.
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As well, general reticence toward getting a Covid-19 vaccine may help the fuel distribution industry. These folks may not want to get vaccinated, but they might not want to take unnecessary risks either. Therefore, if they travel, they might do so by road, not by air.
Value Stocks to Buy: Anheuser Busch (BUD)
Source: legacy1995 / Shutterstock.com
Admittedly, Anheuser Busch is a disappointment. It may very well be one of the most disappointing value stocks in the market. You’d think that with the company controlling some very popular beer brands that BUD stock would perform much better than it has (not including the “small numbers comparison” resulting from the initial Covid impact).
Much of this has to do with changing demographics and consumer habits. Generally speaking, there’s a shift among millennials and Generation Z to hard cider rather than beer. Also, it doesn’t help that young people drink less alcohol than prior generations. Naturally, this had Anheuser Busch scrambling for answers.
Now, this might be a stretch, but brewing economic factors may tilt the needle more favorably for BUD stock. According to Statista.com, U.S. household debt hit a new high. Largely, the culprit was mortgages. Thanks to a ridiculous housing market where people bid up available homes to the moon, individuals participating in the craze just don’t have as much disposable income available.
This may create an environment where beggars can’t be choosers. You want to get buzzed? Forget your apple cider — it’s Bud Light for you (yuck!).
On the date of publication, Josh Enomoto held a long position in MO stock.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Value Stocks You Want In Your Life 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. | Nintendo (OTCMKTS:NTDOY) NRG Energy (NYSE:NRG) AbbVie (NYSE:ABBV) Altria Group (NYSE:MO) The Geo Group (NYSE:GEO) Sunoco (NYSE:SUN) Anheuser Busch (NYSE:BUD) Value Stocks to Buy: Nintendo (NTDOY) NTDOY) sits in front of a bright pink background." Value Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When the coronavirus first became an unwanted guest in the U.S., it was a matter of time before the SARS-CoV-2 virus spread everywhere. But AbbVie? | Nintendo (OTCMKTS:NTDOY) NRG Energy (NYSE:NRG) AbbVie (NYSE:ABBV) Altria Group (NYSE:MO) The Geo Group (NYSE:GEO) Sunoco (NYSE:SUN) Anheuser Busch (NYSE:BUD) Value Stocks to Buy: Nintendo (NTDOY) NTDOY) sits in front of a bright pink background." Value Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When the coronavirus first became an unwanted guest in the U.S., it was a matter of time before the SARS-CoV-2 virus spread everywhere. But AbbVie? | Nintendo (OTCMKTS:NTDOY) NRG Energy (NYSE:NRG) AbbVie (NYSE:ABBV) Altria Group (NYSE:MO) The Geo Group (NYSE:GEO) Sunoco (NYSE:SUN) Anheuser Busch (NYSE:BUD) Value Stocks to Buy: Nintendo (NTDOY) NTDOY) sits in front of a bright pink background." Value Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When the coronavirus first became an unwanted guest in the U.S., it was a matter of time before the SARS-CoV-2 virus spread everywhere. But AbbVie? | Therefore, ABBV stock makes sense on the fundamentals shifting favorably toward its underlying business. Nintendo (OTCMKTS:NTDOY) NRG Energy (NYSE:NRG) AbbVie (NYSE:ABBV) Altria Group (NYSE:MO) The Geo Group (NYSE:GEO) Sunoco (NYSE:SUN) Anheuser Busch (NYSE:BUD) Value Stocks to Buy: Nintendo (NTDOY) NTDOY) sits in front of a bright pink background." Value Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When the coronavirus first became an unwanted guest in the U.S., it was a matter of time before the SARS-CoV-2 virus spread everywhere. | 369fcf03-3e8d-46b3-ad7c-50fc2dd7c08b |
24102.0 | 2021-04-30 00:00:00 UTC | AbbVie Rises on Q1 Beats, Raised EPS Guidance | ABBV | https://www.nasdaq.com/articles/abbvie-rises-on-q1-beats-raised-eps-guidance-2021-04-30 | nan | nan | AbbVie (NYSE: ABBV) stock was defying gravity on Friday, rising on the back of an encouraging first-quarter earnings report published this morning.
For the quarter, the veteran pharmaceutical company booked non-GAAP (adjusted) net revenue of just over $12.94 billion, a robust 50% over the Q1 2020 result. Net profit also saw a double-digit rise, increasing by 18% to $3.55 billion. On a non-GAAP per-share basis, AbbVie netted $2.95, up from the year-ago figure of $2.42.
Image source: Getty Images.
Both line items comfortably exceeded the average analyst estimates. Prognosticators were modeling $12.76 on the top line and $2.83 per share for adjusted net profit.
AbbVie enjoyed increased sales in both its overall therapeutic categories and with individual drugs. Its leading product, Humira, saw a 3.5% uptick to just under $4.9 billion for the quarter. Meanwhile, the company's aesthetic drugs saw a sharp increase of almost 35% during the period, contributing more than $1.1 billion to revenue.
CEO Richard Gonzalez waxed enthusiastic about the immediate future. In the earnings release, AbbVie quoted him as saying that "Our new products are delivering impressive performance and we are on the cusp of potential commercial approvals for more than a dozen new products or indications over the next two years – including five expected approvals in 2021."
Putting its money where its mouth is, the company raised its profitability guidance for this year. It now expects it will post an adjusted per-share net profit of $12.37 to $12.57 for the year, up from its previous range of $12.32 to $12.52.
This was a fine quarter for AbbVie; given its strong pipeline, the company is poised for more growth. The stock was up 0.6% in late afternoon trading Friday in contrast to the 0.7% decline of the S&P 500 index.
10 stocks we like better than AbbVie
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Eric Volkman 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 (NYSE: ABBV) stock was defying gravity on Friday, rising on the back of an encouraging first-quarter earnings report published this morning. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! On a non-GAAP per-share basis, AbbVie netted $2.95, up from the year-ago figure of $2.42. | AbbVie (NYSE: ABBV) stock was defying gravity on Friday, rising on the back of an encouraging first-quarter earnings report published this morning. On a non-GAAP per-share basis, AbbVie netted $2.95, up from the year-ago figure of $2.42. AbbVie enjoyed increased sales in both its overall therapeutic categories and with individual drugs. | 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie (NYSE: ABBV) stock was defying gravity on Friday, rising on the back of an encouraging first-quarter earnings report published this morning. On a non-GAAP per-share basis, AbbVie netted $2.95, up from the year-ago figure of $2.42. | AbbVie (NYSE: ABBV) stock was defying gravity on Friday, rising on the back of an encouraging first-quarter earnings report published this morning. On a non-GAAP per-share basis, AbbVie netted $2.95, up from the year-ago figure of $2.42. AbbVie enjoyed increased sales in both its overall therapeutic categories and with individual drugs. | d257e452-b143-4e92-ba2b-d8ee7d077084 |
24103.0 | 2021-04-30 00:00:00 UTC | US STOCKS-Wall Street ends lower, weighed down by Apple | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-weighed-down-by-apple-2021-04-30-0 | nan | nan | By Noel Randewich and Shivani Kumaresan
April 30 (Reuters) - Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports.
A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.O each gave back gains following upbeat quarterly reports this week.
Amazon.com Inc AMZN.Oended down 0.1% after it posted record profit late on Thursday and signaled that consumers would keep spending in a growing U.S. economy. Amazon had been up over 2% earlier in the session.
Twitter Inc TWTR.N plunged 15% after it offered a tepid revenue forecast for the second quarter, saying user growth could slow as the boost seen during the pandemic fizzles.
While megacap favorites posted largely strong earnings in the first quarter, their shares have struggled to maintain the upward trajectory that many had coming into reporting season.
"There is a sense that maybe next quarter is as good as it's going to get, and we're going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida.
Seven of the 11 major S&P 500 sector indexes fell, with technology .SPLRCT and materials .SPLRCM down more than 1%, and energy .SPNY falling almost 3%.
Of the 303 companies in the S&P 500 that have reported so far, 87% have topped analysts' earnings estimates, with Refinitiv IBES data now predicting a 46% jump in profit growth.
Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government.
The Dow Jones Industrial Average .DJI fell 0.54% to end at 33,875.31 points, while the S&P 500 .SPX lost 0.72% to 4,181.21.
The Nasdaq Composite .IXIC dropped 0.85%, to 13,962.68.
Despite Friday's weakness, the Nasdaq completed its sixth consecutive month of gains, rising 5.4% in April. The Dow added 2.7% in April while the S&P 500 rose 5.2%, both gaining for a third month in a row.
For the week, the S&P 500 was about flat, the Dow lost 0.5% and the Nasdaq shed 0.4%.
Chevron Corp CVX.N dropped 3.6% after its first-quarter profit fell 29%, hit by weaker refining margins and production losses.
AbbVie Inc ABBV.N rose 0.5% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States.
Declining issues outnumbered advancing ones on the NYSE by a 2.13-to-1 ratio; on Nasdaq, a 2.13-to-1 ratio favored decliners.
The S&P 500 posted 52 new 52-week highs and no new lows; the Nasdaq Composite recorded 84 new highs and 45 new lows.
Volume on U.S. exchanges was 10.3 billion shares, compared with the 9.8 billion full-session average over the last 20 trading days.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Marguerita Choy)
((noel.randewich@tr.com; (415) 677 2542, Twitter: @randewich;))
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.N rose 0.5% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government. | AbbVie Inc ABBV.N rose 0.5% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.O each gave back gains following upbeat quarterly reports this week. | AbbVie Inc ABBV.N rose 0.5% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.O each gave back gains following upbeat quarterly reports this week. | AbbVie Inc ABBV.N rose 0.5% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. For the week, the S&P 500 was about flat, the Dow lost 0.5% and the Nasdaq shed 0.4%. | 262adcec-99ff-4d1e-b0fc-2cf341d10cfa |
24104.0 | 2021-04-30 00:00:00 UTC | US STOCKS-Wall Street ends lower, weighed down by Apple | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-weighed-down-by-apple-2021-04-30 | nan | nan | By Noel Randewich and Shivani Kumaresan
April 30 (Reuters) - Wall Street ended lower on Friday, with Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports.
A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.Oeach gave back gains following upbeat quarterly reports this week.
Amazon.com Inc AMZN.O was almost unchanged after it posted record profit late on Thursday and signaled that consumers would keep spending in a growing U.S. economy. Amazon had been up over 2% earlier in the session.
Twitter Inc TWTR.Nplunged after it offered a tepid revenue forecast for the second quarter, saying user growth could slow as the boost seen during the pandemic fizzles.
While megacap favorites posted largely strong earnings in the first quarter, their shares have struggled to maintain the upward trajectory that many had coming into reporting season.
"There is a sense that maybe next quarter is as good as it's going to get, and we're going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida.
Most of the 11 major S&P 500 sector indexes fell, with technology .SPLRCT, materials .SPLRCMand energy .SPNY among the deepest decliners.
Of the 303 companies in the S&P 500 that have reported so far, 87% have topped analysts' earnings estimates, with Refinitiv IBES data now predicting a 46% jump in profit growth.
Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government.
Despite Friday's weakness, the Nasdaq .IXIC completed its sixth consecutive month of gains. The Dow Jones Industrial Average .DJIhas now shown monthly gains for the past three months.
Unofficially, the Dow Jones Industrial Average .DJI fell 0.53% to end at 33,879 points, while the S&P 500 .SPX lost 0.72% to 4,181.21.
The Nasdaq Composite .IXIC dropped 0.85%, to 13,962.68.
Chevron Corp CVX.N dropped after its first-quarter profit fell 29%, hit by weaker refining margins and production losses.
AbbVie Inc ABBV.Nrose after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Marguerita Choy)
((noel.randewich@tr.com; (415) 677 2542, Twitter: @randewich;))
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.Nrose after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. While megacap favorites posted largely strong earnings in the first quarter, their shares have struggled to maintain the upward trajectory that many had coming into reporting season. | AbbVie Inc ABBV.Nrose after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. The Dow Jones Industrial Average .DJIhas now shown monthly gains for the past three months. | AbbVie Inc ABBV.Nrose after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. "There is a sense that maybe next quarter is as good as it's going to get, and we're going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida. | AbbVie Inc ABBV.Nrose after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street ended lower on Friday, with Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. Amazon.com Inc AMZN.O was almost unchanged after it posted record profit late on Thursday and signaled that consumers would keep spending in a growing U.S. economy. | cc602288-b47c-4f40-9967-14ac1215f54d |
24105.0 | 2021-04-30 00:00:00 UTC | US STOCKS-Apple and Alphabet pull Wall Street lower | ABBV | https://www.nasdaq.com/articles/us-stocks-apple-and-alphabet-pull-wall-street-lower-2021-04-30 | nan | nan | By Noel Randewich and Shivani Kumaresan
April 30 (Reuters) - Wall Street dropped on Friday, with Apple, Alphabet and other tech-related companies dipping despite recent strong quarterly earnings reports.
A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.O each fell more than 1%, giving back gains following upbeat quarterly reports this week.
Amazon.com Inc AMZN.O rose 0.4% after it posted record profit late on Thursday and signaled that consumers would keep spending in a growing U.S. economy. Amazon had been up over 2% earlier in the session.
Twitter Inc TWTR.N plunged 14% after it offered a tepid revenue forecast for the second quarter, saying user growth could slow as the boost seen during the pandemic fizzles.
While megacap favorites posted largely strong earnings in the first quarter, their shares have struggled to maintain the upward trajectory that many had coming into reporting season.
"There is a sense that maybe next quarter is as good as it's going to get, and we're going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida.
Most of the 11 major S&P 500 sector indexes were lower, with technology .SPLRCT and materials .SPLRCM down more than 1%, while energy .SPNY dropped 2.2%.
Of the 303 companies in the S&P 500 that have reported so far, 87.1% have topped analysts' earnings estimates, with Refinitiv IBES data now predicting a 46.3% jump in profit growth.
Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government.
Despite Friday's weakness, the Nasdaq .IXIC is set for six consecutive months of gains, boosted by impressive results from big technology companies. The Dow Jones Industrial Average .DJI is on course to end in the positive territory for three months in a row.
The Dow Jones Industrial Average .DJI was down 0.59% at 33,859.8 points, while the S&P 500 .SPX lost 0.72% to 4,180.97.
The Nasdaq Composite .IXIC dropped 0.85% to 13,963.28.
Chevron Corp CVX.N shed more than 3% after its first-quarter profit fell 29%, hit by weaker refining margins and production losses.
AbbVie Inc ABBV.N rose 0.6% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Marguerita Choy)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc ABBV.N rose 0.6% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street dropped on Friday, with Apple, Alphabet and other tech-related companies dipping despite recent strong quarterly earnings reports. A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.O each fell more than 1%, giving back gains following upbeat quarterly reports this week. | AbbVie Inc ABBV.N rose 0.6% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street dropped on Friday, with Apple, Alphabet and other tech-related companies dipping despite recent strong quarterly earnings reports. Despite Friday's weakness, the Nasdaq .IXIC is set for six consecutive months of gains, boosted by impressive results from big technology companies. | AbbVie Inc ABBV.N rose 0.6% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street dropped on Friday, with Apple, Alphabet and other tech-related companies dipping despite recent strong quarterly earnings reports. "There is a sense that maybe next quarter is as good as it's going to get, and we're going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida. | AbbVie Inc ABBV.N rose 0.6% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Noel Randewich and Shivani Kumaresan April 30 (Reuters) - Wall Street dropped on Friday, with Apple, Alphabet and other tech-related companies dipping despite recent strong quarterly earnings reports. A day after the S&P 500 closed at a record high, Apple AAPL.O, Google-parent Alphabet GOOGL.O and Facebook FB.O each fell more than 1%, giving back gains following upbeat quarterly reports this week. | 048f964e-9a44-4fc1-b58a-7fd419f7228c |
24106.0 | 2021-04-30 00:00:00 UTC | AbbVie (ABBV) Q1 2021 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q1-2021-earnings-call-transcript-2021-04-30 | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q1 2021 Earnings Call
Apr 30, 2021, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and thank you for standing by. Welcome to the AbbVie first-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations.
You may begin.
Liz Shea -- Vice President of Investor Relations
Good morning and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Michael Severino, vice chairman and president; Rob Michael, executive vice president and chief financial officer; and Jeff Stewart, executive vice president, commercial operations. Joining us for the Q&A portion of the call is Laura Schumacher, vice chairman, external affairs, chief legal officer, and corporate secretary. Before we get started, I remind you that some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.
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These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today which can be found on our website. Unless otherwise noted, our commentary on sales growth is on a comparable basis, which includes full current year and historical results for Allergan. For this comparison of underlying performance, all historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and exclude the divestitures of Zenpep and Viokace. References to operational growth further excludes the impact of exchange.
Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll discuss our first-quarter performance and outlook. And then Jeff, Mike, and Rob will review our business highlights, pipeline progress, and financial results in more detail.
We're off to an excellent start this year, delivering strong top and bottom-line first-quarter performance. We reported adjusted earnings per share of $2.95, exceeding the midpoint of our guidance by $0.14. Total adjusted net revenues of $12.9 billion, was up 5.2% on a comparable operational basis, nearly $250 million ahead of our expectations. These results include strong performance across each of our core therapeutic areas, including double-digit comparable operational revenue growth from immunology, neuroscience, and aesthetics, as well as high single-digit operational growth from hematological oncology.
Additionally, we continue to see robust sales from our key and newly launched products. Skyrizi and Rinvoq contributed nearly $900 million in combined revenues this quarter, more than double the sales versus the prior year as both products continue to ramp in their initial indications. Imbruvica and Venclexta delivered combined sales of approximately $1.7 billion, reflecting continued leadership in CLL and other hematological malignancies. Vraylar, which remains one of the fastest-growing medicines in psychiatry, delivered more than 20% comparable operational growth.
Ubrelvy, the leading oral CGRP for acute migraines, generated revenue growth of approximately 25% on a sequential basis. And within our leading aesthetics portfolio, which is performing well above pre-COVID levels, Botox Cosmetics and Juvederm are demonstrating robust performance. Both of these -- both of these brands grew more than 40% on a comparable operational basis. The integration of Allergan also continues to go very well.
As illustrated by our balanced results this quarter, we are clearly demonstrating that we have created a stronger and much more diverse company with the scale and flexibility to fully invest in the business for long-term growth. While the pandemic has categorically impacted our day-to-day lives, we are encouraged by the latest recovery trends. We see market growth and new patient activity increasing overall, especially in March. Although certain markets continue to remain below pre-COVID levels, including CLL and HCV, in particular.
We expect the increasing vaccinations globally will continue to support a full recovery across our therapeutic areas as we progress through the remainder of this year. Based on a robust performance this quarter and the continued strong outlook for our business, we are raising our full-year 2021 EPS guidance, and we now expect adjusted earnings per share between $12.37 and $12.57, reflecting growth of more than 18% at the midpoint. I'm also extremely pleased with our R&D prospects, including the number and potential of the opportunities, especially within our late-stage pipeline. We're on the cusp of the potential commercial approval of more than a dozen new products or indications over the next two years, including five total expected approvals in 2021.
This includes atogepant, a novel oral CGRP for episodic migraines, adding to our already attractive migration portfolio. A new eyedrop for the treatment of presbyopia. As well as expanded indications for Rinvoq in psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis. And we expect more than a half a dozen new product or indication launches in 2022, including navitoclax for myelofibrosis, ABBV-951 for advanced Parkinson's disease, Skyrizi for psoriatic arthritis and Crohn's disease, Rinvoq for ulcerative colitis, Vraylar for major depressive disorder, and initial indications for Imbruvica and Venclexta.
With these collectively growth opportunities and the continued momentum of our underlying portfolio, our long-term outlook -- our long-term outlook remains very strong. In closing, our focus remains on strong commercial and operational execution, as well as pipeline advancement. I'm pleased with the financial results for the quarter and the overall pace of the recovery across our portfolio. We're off to another excellent start in 2021.
With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Thank you, Rick. We demonstrated strong and balanced growth across our therapeutic portfolio this quarter, a testament to our differentiated product profiles and commercial execution. Our immunology portfolio delivered global revenues of more than $5.7 billion, reflecting growth of nearly 12% on an operational basis. Humira sales were approximately $4.9 billion, up 2.6% on an operational basis with continued high single-digit growth in the U.S., offset by biosimilar competition across our international markets where the unfavorable impact was more moderate than expected in the quarter.
Our new immunology agents, Skyrizi and Rinvoq, are both demonstrating robust prescription growth well above all comparable launches. Skyrizi sales were $574 million, reflecting 34% in-play patient share, which includes new and switching patients. This is more than double the share capture of the next nearest biologic competitor. Skyrizi total prescriptions share in the U.S.
psoriasis biologic market is now approximately 15%, second only to Humira. Additionally, we recently received approval for a single-dose pre-filled pen for Skyrizi, which will reduce the number of injections per treatment. Skyrizi is now the only quarterly dosed psoriasis treatment available in an auto-injector, further improving the patient experience. Rinvoq sales were $303 million with strong in-play patient share of approximately 15% in the U.S.
RA market. Physician and patient feedback remain very positive on Rinvoq's level of efficacy, speed of response, and strong benefit-risk profile. Internationally, both of these new assets delivered strong double-digit sequential growth with ramping access in share. Skyrizi has now also achieved in-play patient share leadership in the EU5 psoriasis markets, exceeding Tremfya and Cosentyx, and at parity with Taltz.
As Mike will discuss momentarily, we are also making considerable progress to expand the uses of Skyrizi and Rinvoq in several immune-mediated diseases with half a dozen additional indication approvals expected later this year and in 2022. In hematologic oncology, sales were approximately $1.7 billion, up 7.3% on an operational basis. Imbruvica continues to perform well across multiple indications, including CLL, where it remains the clear market share leader across all lines of therapy. Imbruvica sales increased 2.9% on an operational basis this quarter with performance impacted by lower new patient starts within CLL where the market remains below pre-COVID levels.
Imbruvica growth was also unfavorably impacted by the COVID-relating stocking benefit that we saw in the first quarter of 2020. Venclexta sales were $405 million, up 24.5% on an operational basis, with increasing share in frontline CLL and continued strong performance in AML. In neuroscience, revenues were more than $1.2 billion, up 10.9% on a comparable operational basis. Vraylar once again delivered strong growth.
Sales of $346 million were up 21.2% on a comparable operational basis, reflecting a nearly 2.5% total prescription share of the U.S. atypical antipsychotic market. Within migraines, the launch of Ubrelvy is exceeding our expectations with $81 million of revenue in the quarter. Feedback from physicians has been very positive, highlighting Ubrelvy's efficacy, safety, convenient dosing profile, and overall commercial access.
Ubrelvy is the No. 1 branded acute treatment for migraines based on both new patient share and prescription growth. The oral CGRP therapies, including our leading Ubrelvy, now represent roughly 16% of new prescriptions in the large acute migraine market. We believe there is substantial room for long-term growth in this rapidly expanding segment based on unmet need and strong patient demand.
We also look forward to the expected commercial approval of atogepant, our oral CGRP for episodic migraine, later this year. Botox therapeutic, you're seeing a very nice recovery in chronic migraine, as well as its other indications, with total sales of $532 million, up 7% on a comparable operational basis. Lastly, in our other key therapeutic areas, we saw significant contribution from eye care, which had revenues of $817 million. Mavyret sales were $415 million, down 28.4% on an operational basis as treated patient volumes have remained below pre-COVID levels.
And we also saw double-digit comparable growth from Linzess, the leading branded prescription medicine in the U.S. for the treatment of adults with IBS-C or chronic idiopathic constipation. Overall, I'm extremely pleased with our execution across the therapeutic portfolio, including the progress we're making with recent new product launches. We remain on track to deliver a very strong revenue growth in 2021.
And with that, I'll turn the call over to Mike for additional comments on our R&D progress. Mike?
Mike Severino -- Vice Chairman and President
Thank you, Jeff. I'll start with immunology where we continue to make good progress with Rinvoq and Skyrizi in new disease areas, as well as in our early and mid-stage immunology programs. We recently reported positive top-line results from the second induction study for Rinvoq in ulcerative colitis. Similar to results from the first induction study, in this phase 3 trial, Rinvoq demonstrated a very strong impact on disease activity as measured by clinical remission, clinical response, and endoscopic improvement.
The 45-milligram induction dose was well-tolerated, and the safety profile was consistent with previous Rinvoq studies. In these induction trials, we saw no DVT, PE, MACE events, or malignancies in the Rinvoq groups. And the rates of serious adverse events were numerically lower than placebo. We believe these induction data compare very favorably to other UC treatments on the market or in development.
And based on the data generated to date, Rinvoq has the potential to become one of the most highly effective therapies for patients with moderate to severe ulcerative colitis. We expect to see results from the UC maintenance study this summer, with regulatory submissions anticipated in the second half of the year. The Rinvoq program in Crohn's disease is also progressing very well, and we expect to see induction data from the first of two phase 3 trials in the fourth quarter, followed by induction data from a second phase 3 trial and maintenance data in the first half of 2022. We're also nearing completion of our pivotal program for Skyrizi in Crohn's disease.
Earlier this year, we reported positive results from the two Crohn's induction studies, and we expect to see maintenance data this summer. Our regulatory submissions for Skyrizi in Crohn's disease remain on track for the second half of 2021. Following completion of our registrational program for Skyrizi in psoriatic arthritis, we recently submitted our regulatory applications in the U.S. and Europe, with approval decisions expected in the first half of 2022.
We're very pleased with the level of activity we saw with Skyrizi on both joint disease and skin clearance in our phase 3 program and look forward to providing this new treatment to patients suffering from psoriatic arthritis. Our regulatory submissions are currently under review for Rinvoq in three new indications in the U.S., ankylosing spondylitis, psoriatic arthritis, and atopic dermatitis. As we previously announced, the FDA recently extended the review periods for Rinvoq in psoriatic arthritis and atopic dermatitis following a request for an updated assessment of the benefit-risk profile for Rinvoq in these indications. In response to the FDA request, we provided updated data from across Rinvoq programs in RA, psoriatic arthritis, and atopic dermatitis.
Based on the review extensions, we now expect approval decisions for psoriatic arthritis in June and for atopic dermatitis in July. The regulatory action date for Rinvoq in ankylosing spondylitis is unchanged and remains on track for June. We remain confident in the benefit-risk profile of Rinvoq across all indications and we'll work with the FDA to bring Rinvoq to market in these new disease areas. Earlier this year, we received European approval for Rinvoq in psoriatic arthritis and AS.
Our European regulatory application for Rinvoq in atopic dermatitis is under review and we remain on track for a CHMP opinion this summer, with an approval decision anticipated in the third quarter. We also recently saw results from a four-week phase 1b study, evaluating our novel small molecule, RoR gamma T, inverse agonist ABBV-157 in patients with psoriasis. By targeting RoR gamma T with an inverse agonist rather than an antagonist, we believe we can more effectively inhibit IL-17 production, thus resulting in a greater impact on skin inflammation. In our phase 1b study, 157 showed promising activity as an oral psoriasis agent, and we plan to move the asset forward to a larger phase 2b dose-ranging study in the second half of this year.
Moving now to our oncology portfolio. We continue to make very good progress with our late-stage programs for Imbruvica, Venclexta, and Venetoclax, as well as with our early stage oncology assets. We remain on track for several key regulatory submissions, data presentations, and phase transitions this year. At the upcoming ASCO and EHA meetings, we will be presenting more than 40 abstracts, including results from the Imbruvica plus Venclexta captivate trial fixed-duration cohort in treatment-naive CLL patients.
The Imbruvica-Venclexta combination is an important element of our hemo strategy to provide a differentiated fixed-duration treatment that offers deeper levels of response. Data from our Imbruvica-Venclexta combination studies will support regulatory submissions in frontline CLL later this year. We will also be presenting four-year follow-up data from Venclexta's CLL14 trial in frontline CLL, as well as updated efficacy and safety data from a phase 1b study evaluating Venclexta plus azacitidine in treatment-naive high-risk MDS patients. We expect this MDS study to complete in the second half of this year.
And if positive, it could support a submission in the first half of 2022 to seek accelerated approval. In the area of solid tumors, at the recent AACR meeting, we presented phase 2 results for Teliso-V in non-squamous non-small cell lung cancer. In this study, Teliso-V demonstrated a promising response rate in heavily pre-treated patients, particularly in patients with highly expressed c-Met where we saw a 54% objective response rate. c-Met is an attractive target across multiple tumor types, particularly in non-small cell lung cancer where approximately 30% of patients have to overexpress c-Met.
Approaches in this area have historically focused on small molecule kinase inhibitors, an anti-c-Met antibodies, both of which have shown only limited efficacy in this patient population that has not been sufficient for approval. In contrast, our c-Met antibody-drug conjugate is a novel approach that we believe will have broader applicability and will provide enhanced efficacy compared to previous approaches. We recently began the second stage of our phase 2 study, which has the potential to support accelerated approval in second-line plus metastatic non-squamous non-small cell lung cancer. We also plan to evaluate Teliso-V in the frontline setting including in combination with other agents as well as in other c-Met positive tumor types.
We also have a next-generation c-Met ADC program that will be entering the clinic later this year. Our new c-Met ADC, ABBV-400, utilizes a topoisomerase inhibitor payload, which we believe will provide greater anti-tumor efficacy against both amplified Met and overexpressed c-Met subtypes. Thus, providing deeper responses with broader applicability than other anti-c-Met targeting agents. In neuroscience.
We recently presented data from several key programs at the American Academy of Neurology Annual Meeting. A total of 33 abstracts were presented including data from the phase 3 advanced study in episodic migraines prevention, showing that atogepant has the potential to be a highly effective safe and well-tolerated all treatment option with a rapid onset of action. The FDA recently accepted our NDA for atogepant for the prevention of episodic migraines and an approval decision is expected in September of this year. We also presented results from an open-label phase 3 study evaluating Ubrelvy in pre-menstrual migraines, which showed that Ubrelvy has potential as a safe and efficacious treatment for migraine attacks that occurred during or near menstruation.
Menstrual-related migraine attacks can be more difficult to treat because they are often longer in duration, more severe, and often resistant to treatment. And we presented data from a phase 1 study demonstrating that ABBV-951 subcutaneous infusions maintain an equivalent libido exposure to do over in advanced Parkinson's patients. Results from the pivotal program for ABBV-951 are expected this summer with the regulatory submissions anticipated in the second half of this year. We also remain on track for readouts in the fourth quarter from two phase 3 studies for Vraylar in adjunctive major depressive disorder.
And if successful, we would anticipate regulatory submissions in the first half of 2022. In eye care, we submitted our regulatory application in the U.S. for AGN-190584 for the treatment of symptoms associated with presbyopia. 584 is a once-daily eye drop being developed to help address symptoms that are often corrected through reading glasses.
This new technology represents a complementary product to reading glasses and would be a convenient on-demand solution for patients with mild to moderate presbyopia. An approval decision is expected in the fourth quarter of this year. And in aesthetics, we are investing to accelerate key next-generation toxins and filler programs. By combining the aesthetic team's deep expertise with AbbVie's breadth and scale of resources, we'll be able to bring novel products to market significantly faster.
Looking across our portfolio, we've identified a number of programs to accelerate including our short-acting and long-acting toxins as well as our next-generation biostimulatory triple elastin and collagen and fillers. Acceleration of these programs is expected to drive significant long-term growth for the aesthetics franchise. So in summary, we continue to make significant progress with our pipeline to start the year and we look forward to many more data readouts, regulatory submissions, and approvals throughout the remainder of 2021. With that, I'll turn the call over to Rob for additional comments on our first-quarter performance and financial outlook.
Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Thank you, Mike. Starting with first-quarter results. We reported adjusted earnings per share of $2.95, up 21.9% compared to the prior year and above our guidance midpoint. Total adjusted net revenues were $12.9 billion, up 5.2% on a comparable operational basis, excluding a 1.1% favorable impact from foreign exchange.
The adjusted operating margin ratio was 51% of sales, an improvement of 120 basis points versus the prior year. This includes an adjusted gross margin of 83.9% of sales, adjusted R&D investment of 11.6% of sales, and adjusted SG&A expense of 21.2% and sales. Net interest expense was $622 million, and the adjusted tax rate was 12.3%. As Rick previously mentioned, we are raising our full-year adjusted earnings per share guidance to between $12.37 and $12.57, reflecting growth of 18.1% at the midpoint.
Excluded from this guidance is $5.10 of known intangible memorization and specified items. This guidance now contemplates full-year revenue growth of 9.8% on a comparable operational basis. At current rates, we continue to expect foreign exchange to have a 1% favorable impact on full-year comparable sales growth. This implies a full-year revenue forecast of approximately $55.9 billion.
Included in this guidance are the following updated full-year assumptions. We now expect international Humira revenue of approximately $3.1 billion. And we now expect Botox cosmetic sales of approximately $1.9 billion. All other full-year assumptions remain unchanged.
As we look ahead to the second quarter, we anticipate net revenue approaching $13.6 billion. At current rates, we expect foreign exchange to have a 1.6% favorable impact on comparable sales growth. We expect adjusted earnings per share between $3.05 and $3.09, excluding approximately $1.78 of known intangible amortization and specified items. Finally, we continue to make great progress on our Allergan transaction commitments.
We realize over $360 million expense synergies in the first quarter and are on track to deliver synergies of approximately $1.7 billion in 2021 and greater than $2 billion in 2022. We have already paid down $10.4 billion of combined company debt. We continue to expect cumulative debt pay down of $17 billion by the end of 2021 with further deleveraging through 2023. This will bring our net leverage ratio to 2.4 times by the end of 2021 and approximately two times by the end of 2022.
In closing, we are off to an excellent start to the year with strong performance across the portfolio and financial results ahead of our expectations. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President of Investor Relations
Thanks, Rob. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question, please.
Questions & Answers:
Operator
Our first question comes from Chris Schott of J.P. Morgan. Your line is open.
Chris Schott -- J.P. Morgan -- Analyst
Great. Thanks so much for the questions. The first one for me was on Rinvoq and dose. As we think about FDA, I guess, balancing the lowest effective dose versus incremental efficacy and safety risks.
I guess what would the impact of only having a 15-milligram versus a 15-milligram and 30-milligram approval have on your view on the atopic dermatitis opportunity, which I think you talked about is about $2 billion sales potential previously? And my second question was just a little bit more color on the aesthetic dynamics. I guess is there anything we're seeing with the results, which seem very, very strong here. Is there any catch-up-type event as the world reopens that we're seeing with these results or is -- or are these kind of sustainable underlying trends that are kind of coming in above expectations of that business? Just trying to get a sense of just how to think about that progressing as we go through the rest of the year. Thanks so much.
Mike Severino -- Vice Chairman and President
Thanks, Chris. This is Mike, I'll take the first question and then Rick will take the second question that you asked. With respect to Rinvoq, we feel very confident in the benefit-risk profile across indications and across the doses that we've studied. Having said, that both the 15-milligram and 30-milligram doses have performed very well, both from an efficacy and a safety perspective.
And so if you look at the efficacy results that we drove with 15 in atopic dermatitis, we drove high levels of response, very rapid response, and had a very prominent impact on itch, which is one of the most bothersome symptoms, with 15 as well as with 30. And with the 15-milligram dose, for example, we start seeing a statistically significant and clinically significant reduction in itch after only two days, which is really quite remarkable in this disease. And again, that's really one of the most bothersome symptoms to patients. So we think we could be successful with either dose, to answer your question specifically.
But we also remain confident in the benefit-risk in both doses.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Chris, this is Rick. I'll cover the aesthetics one for you as Mike said. I think if you look at the underlying performance of the aesthetics business in particular the market growth in the U.S. and in China, it's driving the fundamental growth that we see through the business.
Certainly, there is some impact still from COVID. So we're seeing some impact there but I think the majority of it is when we took over Allergan, we made a decision to really invest in promotion at a much higher level than they were investing in a prior. And they had an approach that was more of an episodic investment approach where we have basically made a decision that will fund across the entire year at a relatively significant level to drive demand because the data clearly supports that you can grow this market. And I think the best comparisons are starting to look at what it looks like versus 2019 because you obviously have COVID impact in 2020.
But you take, for example, Botox, Botox versus 2019 -- cosmetic Botox versus 2019 is up about 27%. The market is growing very robustly. Some of that is probably COVID driven, it's the U.S. numbers I'm describing right now.
Some of that is probably COVID driven but I wouldn't say a lot of it at this point is COVID driven in the U.S. China continues to grow very well. In fact, I could say China is back to the level of growth and we have expanded the sales force in China once about four or five months ago. We're in the process now of going through the second expansion in China.
I would expect that China will continue to drive significant growth going forward. The one area that still is being impacted in a fairly significant way from COVID is the European market. We still see it starting -- we see it's starting to emerge in areas like the U.K. but there are other areas in Europe that are still on lockdown.
I would expect that Europe and Brazil as well will hopefully start to see some recovery as we get into the second half of this year and they can start to contribute, which would add additional growth to the overall business. But I would tell you, I'm very pleased with the decisions we've made around driving more promotion and I'm pleased with the execution of this team. This team has done extremely well in executing and driving the kind of share position that we want and the growth that we want. But I think it is sustainable going forward.
Liz Shea -- Vice President of Investor Relations
Thanks, Rick. Operator, next question, please.
Operator
Yes, our next question comes from Geoffrey Porges with SVB Leerink. Your line is open.
Geoffrey Porges -- SVB Leerink -- Analyst
Thank you very much. I appreciate it. A couple of questions. First, Rick, something we don't talk about a lot is the neuroscience portfolio and you've started reporting it combined.
I know there are four products in there but adding them up the long-term guidance you provided previously was about $8.3 billion, I think, and you already annualize it close to six. So could you give us a sense of how much upside that portfolio has given the trends that you're seeing? And then, sort of unrelated question. I hate to hop on the JAK question but obviously, there's a lot coming to us from what this impact might be. So if you were confined to the 15-milligram dose, not because of any signal but because of the regulators' view of the safety of the class, how much impact will that have on the $8 billion long-term guidance? And do you have other levers that you could pull to fill whatever shortfall that would cause? Thanks.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
On the neuroscience portfolio, it is an area that we're very excited about. So maybe Jeff and I are tag team here. But I think when you look at the two major growth franchises there being the migrating franchise and the antipsychotic franchise with Vraylar, both of those, we think, have significant opportunities to continue to grow. I mean, you're obviously seeing Ubrelvy now perform extremely well in the marketplace.
I'll give you a little more color on that. And Vraylar is continuing to perform very well as well. I think if we are able to achieve one positive study on MDD, I think that will give us significant growth going forward. So this is a franchise that we're excited about.
I think it will be a meaningful franchise for us over the long term, It's an area where we continue to look at assets that we could potentially add to it. And I think it'll be a nice growth driver for us. Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. I think just to reiterate, as I mentioned in my comments, you know, the oral CGRP market is moving very nicely it's hit -- I mentioned 16% for the quarter but now in the weeklies, it's 17% or above on just the penetration of that segment. And so we see a lot of runway in that segment over our long-range planning. Certainly, the availability of another oral CGRP, in this case for episodic migraine, allows us to compete in a much larger segment beyond the acute.
And to Rick's point, remember, we have the big anchor asset with Botox therapeutic in migraine on the back end for chronic migraines. And we have plans in place to expand that upstream also into episodic migraines. And this is actually in some ways non-overlapping because we have a big injector base for Botox and then we can have the neurologist and primary care base for atogepant. And so when you look basically really across the waterfront, you know, leading acute agent, oral -- very, very potent an active oral agent in the middle with episodic and then on the back end with Botox, it's a very nice portfolio for us that will drive growth.
And as Rick mentioned, you know, we are encouraged on the potential for adjunctive MDD. And that segment itself, when we do the market analysis, is about as large, the adjunctive MDD segment, as bipolar depression. And so this basically has the opportunity for us to really double the potential penetration over our long-range plan. So we're very encouraged over this set of assets.
Rob Michael -- Executive Vice President and Chief Financial Officer
And Jeff, this is Ron. I would just add if you take the pieces we've given in terms of long-term guidance, for Vraylar we've talked about approaching $4 billion with the currently approved indications for migraines. Both Ubrelvy and atogepant, we've talked about key potential greater than a billion for each of those assets. And then we have Duopa plus, we've 951 in the pipeline that I think can drive significant growth in addition to our early stage pipeline neuroscience.
So I do see that as a therapeutic area that will drive long-term growth for the company going forward.
Geoffrey Porges -- SVB Leerink -- Analyst
Great, thanks. And then to JAK?
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
You know on the JAK, we've obviously evaluated carefully the positioning of the product. I think if we look at where we are today, we're more confident in the high dose that has a good risk-benefit profile. But I would tell you it wouldn't change our guidance going forward. The assumptions that we have made in areas like atopic dermatitis we believe we can get to those assumptions without the high dose.
That doesn't mean that we don't want a high dose. But at the end of the day, I believe we can -- we will maintain the guidance that we have based on that.
Jeff Stewart -- Executive Vice President, Commercial Operations
The other thing that I would point out is that we've had additional data on the upadacitinib Rinvoq across a number of areas since that guidance including IBD. So we've had the UC data that have come largely since that guidance and those have exceeded our expectations. And so we remain confident overall in the performance of Rinvoq.
Geoffrey Porges -- SVB Leerink -- Analyst
Great. Thanks, Jeff.
Liz Shea -- Vice President of Investor Relations
Thanks, Jeffrey. Operator, next question, please.
Operator
Thank you. Our next question comes from Andrew Baum with Citi. Your line is open.Many thanks. A couple of questions, please.
There's not much bipartisan agreements and the U.S. have a drug price reform. But there seems to be a lot when it comes to antitrust in relation to the pharmaceutical industry. So, perhaps Rick could comment following last night's House Committee on the judiciary where there was lots of pointed talk from both sides focusing firstly on patent tickets, second on having a presumption of anticompetitive behavior in terms of assessments of large scale, in particular M&A, meaning that would impact future business development for the industry.
So, -- so, that's the first question. And then the second question, rather more positive. In terms of the JAK, when I look at consensus, the forecasts for Rinvoq are about $6 billion. When you look at the size of the opportunity in RA alone, let alone psoriatic arthritis, atopic dermatitis, UC, and the other indications you have.
Is it conceivable to you short of this drug effectively or the class being heavily limited or pulled from the market that -- that $6 billion looks like an incredibly conservative estimates for what this drug could do.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Andrew, this is -- this is Rick. I mean, I'll obviously comment maybe on your point of view around the antitrust discussions. You know, clearly, I have accepted the invitation to be able to testify to the committee on May 18. You know, we certainly feel absolutely comfortable and confident and the way we operate in this market as a highly competitive market where Humira competes.
And certainly, as we look at the patents that were issued for Humira, they went through a rigorous process in order to be issued. They represent true innovation to the product. They were challenged by competitors just like every competitor has a right to challenge a patent if they don't believe it's valid or appropriate, and those patents were challenged, and the vast majority of those patents survived that challenge. And what I'd say is when we look at our behavior in this market, I think our -- our behavior was absolutely pro-competitive.
We had patents that went all the way out to 2034 in that portfolio. And yet, we chose to license every single biosimilar player in 2023, literally 11 years before the last patent would have expired. So, I feel highly confident in the position that -- that we have taken in this marketplace, that we have operated totally appropriately. And then on your next question on Rinvoq, I'm sorry, I was thinking about the first one.
So, can you repeat your question?
Andrew Baum -- Citi -- Analyst
I -- I will. I mean, I -- you -- just finishing on the first. So, you referenced your future test to be -- and I guess it was more general love than just AbbVie-centric, how it would impact BD, and the ability to -- the ability of the industry to operate if pricing can't get resolved. But moving on to the second question.
So, my question was whether consensus forecast for Rinvoq look unrealistically conservative given the scale of the opportunities and given in RA alone, looking at the size of that market, it's a progressive disease that you don't actually need atopic dermatitis to get in excess of where consensus currently takes forecasts, which are when we look, about $6 billion.
Rob Michael -- Executive Vice President and Chief Financial Officer
Andrew, this is Rob. I'll start and then I'll hand it over to Jeff. I think we agree with you. We do think consensus is conservative.
We've given the 2025 guidance of $8 billion for and we would expect it to grow beyond to 2025. When I look at the current consensus, obviously as you quoted, it's a little bit -- just a little bit above $6 billion from the numbers I'm looking at. And I look at the growth beyond '25, it's nowhere near what we're expecting. So, we feel very good about the opportunity there.
I think what we've covered with you in December still holds as we've broken out the contribution by indication. We still feel very good about that, but we would agree that the consensus is very conservative right now.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. Thanks, Rob. This is Jeff, and agree, it's -- these are spectacular assets with incredibly dynamic markets. So, we see across the rheumatology markets, the atopic derm market, we see the IBD market which with both assets we think is under-appreciated.
I mean, even expansions in second and third lines as new assets come in that are really breakthrough assets with higher levels of efficacy. And so, we clearly believe that consensus is conservative here. And just a comment on atopic derm, this is -- this is an explosive market. I mean, it is -- it is significantly underdeveloped in terms of -- in terms of the penetration, though it's going to grow substantially.
And even if you look at conservative assumptions on where we source business, you know, the growth of the second line, that's not to say that we're not going to be very competitive in the frontline. It's a very, very attractive space. And again, I think the -- the performance that we've seen -- in the clinical performance that we've seen right now primarily on the induction trials for Skyrizi and Rinvoq. Skyrizi in Crohn's, Rinvoq in UC is very, very encouraging.
And so, we see that cascading over our long-range plans as well. So, we are very, very bullish. Agree that consensus is conservative.
Andrew Baum -- Citi -- Analyst
Many thanks.
Liz Shea -- Vice President of Investor Relations
Thank you, Andrew. Operator, next question, please.
Operator
Yes. Our next question comes from Vamil Divan with Mizuho Securities. Your line is open.
Vamil Divan -- Mizuho Securities -- Analyst
Great. Thanks so much for taking my questions. And I got a couple if I could on the migraine inside. So, first on Ubrelvy, you mentioned it looks like the class is doing very well in -- in gaining share.
It also looks like over the last few weeks or so, you've been gaining a little share within the class relative to Neurotech. So, I'm just wondering if you can sort of share your perspective on what you're seeing is driving that. Some of us thought it might be due to pricing and access, but based on our calculation, it looks like your gross to net is actually lower than what it is from the biohaven side. So, any perspective would be helpful.
And then on atogepant maybe just a little more if you could talk to your go-to-market strategy assuming approval in September, especially again given Neurotech will likely have an indication for both treatment and prevention. So, how do you see, you know, kind of coming in with two separate drugs, you know, could be two copays to -- it's just a difference or a message relative to what you're seeing your drugs are. Just any perspective on how, you know, could be with that would be helpful as well. Thank you.
Jeff Stewart -- Executive Vice President, Commercial Operations
OK. Perfect. It's -- it's Jeff and -- and in terms of the acute market, as I mentioned, the -- the penetration of the overall segment is increasing very, very nicely as I highlighted. If you look at the mix between Ubrelvy and Neurotech, we have gained a little bit over the last few weeks.
But it's -- it's very close. I mean, we typically run it 51%, 52%, 53% of the new-prescription basis. I think you are quite perceptive over the value creation that's taking place there and I clearly don't have full insight into the biohaven fall-through. But we've been quite disciplined.
You know, we have over 90% commercial access, so we're quite comfortable where we are from an overall access perspective. And our team remains quite disciplined in terms of making sure that we both drive the right type of volume with our positioning, but also the right type of profitability over time. So, we're encouraged with our continued momentum with Ubrelvy. In terms of atogepant, I think what's quite -- quite impressive about our program there is just the sheer level of efficacy that we have.
And I think this is very important in terms of sometimes the narrative over simple or easy versus look, how do you think about the best drug for episodic prevention, particularly when you choose an oral. So, we are at the very, very high end of the migraine freedom or the days of migraine control with this new asset. And we think that, frankly, you need to take care of the migraine and atogepant will be very well-positioned to do that. We also think that we'll have nice synergies.
Obviously, we have a fairly significant salesforce that is promoting Ubrelvy to both the neurologists and the high-prescribing general practitioners, and it will fit in very well as we put atogepant into that sales suite. So, we're set up well we think for our go-to-market.
Vamil Divan -- Mizuho Securities -- Analyst
OK. Thank you very much.
Liz Shea -- Vice President of Investor Relations
Thanks, Vamil. Thanks, Vamil. Operator, next question, please.
Operator
Our next question comes from Tim Anderson with Wolfe Research. Your line is open.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. A couple of questions, please. I haven't heard really any drug company this reporting season talk about future potential austerity measures in ex-U.S. geographies.
Meaning, you know, broad-based price cuts following from the impact of COVID. So, as a company, as one of the few companies that's given detailed long-term financial guidance, I'm guessing you have been thinking about this and I'm wondering how you are currently viewing this in terms of its likelihood of occurring and what the magnitude could be and what the timing might be. And then the second question is just on early stage pipeline asset. Your TNF steroid antibody-drug conjugate, I believe you have in-house probably a fair amount of data that the markets haven't seen yet.
I'm wondering when we might see additional human data and what your current level of enthusiasm is toward that platform.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So, Tim, this is Rick. I'll cover the -- ex-U.S. austerity measures. I mean, certainly, if we go back to 2008, we saw that kind of an impact.
So, as we were building out our long-range plan, we have made some sets of assumptions around that. I would expect that we will see some pressure outside the U.S. going forward over the next couple of years. It's certainly manageable within the -- within the expectations that we have built for the business going forward.
Certainly, based on that level of experience that we've seen historically, it's manageable. So, it is something that we have contemplated, and I would frankly expect to see some level of pressure going forward.
Mike Severino -- Vice Chairman and President
So this is Mike, I'll take the second question. With respect to the TNF steroid conjugate program, we're obviously advancing ABBV-154. We have a large phase 2b RA study that will start this quarter, and then we're starting studies in additional immune-mediated conditions as well over the course of the year. With respect to publication of the -- of the data from 3373, which is the closely related compound from the same platform that we top-line results some time ago, I think you can expect to see more detailed data over the course of the summer.
Liz Shea -- Vice President of Investor Relations
Thanks, Tim. Operator, next question, please.
Operator
Thank you. Our next question comes from Steve Scala with Cowen. Your line is open.
Steve Scala -- Cowen and Company -- Analyst
Many thanks. First, on Rinvoq. I'm curious what additional safety data has FDA been provided that it did not have previously, and has all of it been previously presented? And if not, what was the conclusion of what now has been submitted? So that's the first question. And secondly, regarding Imbruvica, to what extent can AbbVie tease out COVID impact on new patient starts versus competition from new frontline agents? Thank you.
Mike Severino -- Vice Chairman and President
So, this is Mike. I'll take the first question and then Rick will handle the second. With respect to Rinvoq, the additional safety data that we presented to the FDA or provided to the FDA are essentially a roll-forward of the analysis that we did at the time of the NDA submission. Obviously, our database continues to grow, we accumulate patient years' experience.
And so, there weren't fundamentally new analyses, but we did an updated assessment with the additional data that have accrued in the time between submission and when we submitted those responses. And what I would say is the data that we reviewed have not changed our impression of benefit-risk in any way. I think they're very consistent with all of the data that have been publicly presented. Obviously, since they represent data that were current up to the time that we submitted just a few weeks ago, not all of these data have been presented in the public domain.
But I would say that our response is very consistent with what we have described publicly in the past.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And then your -- on your second question, this is Rick. We get data on new patient starts. So, we have relatively, I think, accurate data. It's offset by a couple of months.
I'll have Jeff maybe talk about it a little more in detail. So, we know any CLL patient when they start regardless of therapy, we can measure that. And obviously, we can measure again what type of therapy they start on. So, I think the level of data integrity that we operate with -- from a market standpoint here is pretty good.
It's offset by a few months and maybe Jeff speaks to the time offset that -- that it has.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. So, Steve, it's Jeff. So, it -- we can -- we have pretty good visibility to what -- what's happening from the share perspective versus the market-start perspective. I'll give you some flavor.
With regard to Calquence, you know, we can -- we can see the impact of the approvals in the front and second-line CLL, and it's largely consistent with what our expectations were. So, they're ramping in a similar fashion to what we saw in the MCL or NHL. So, we know that there's some impact on an -- on Imbruvica there. The largest impact has been unfortunately into the market and unfortunately, I mean, for the patients.
So, I'll give you a little bit of the numbers. So, typically, the CLL market, which is the largest driver, it grows sort of at a population level like 2% every year. If you look at the impact from COVID, we can see almost three different ways. We can see a wave where the new patient starts in the market were down in the high teens in the first part, OK? Then it started to claw back a little bit into the single digits down and then it got hit again into the -- into the teens in the August period, and we saw it down again in early January about 18%.
So, we can see what's happening, and as I mentioned in my remark -- remarks, the biggest -- the biggest impact here has been on continued market suppression due to COVID.
Rob Michael -- Executive Vice President and Chief Financial Officer
And, Steve, this is Rob. I would just remind you also in the first quarter that we had the stocking impact from COVID last year. So, if you -- if you adjust for that's about a four-point impact on Imbruvica's growth year over year due to the prior-year comp with the stocking impact.
Steve Scala -- Cowen and Company -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Steve. Operator, next question, please.
Operator
Yes. Thank you. Our next question comes from David Risinger with Morgan Stanley. Your line is open.
David Risinger -- Morgan Stanley -- Analyst
Yes. Thanks very much and congrats on the -- on the results and updates. I have two questions. First, just to follow on on that comment, could you just help us understand a little bit more about why Imbruvica is such an outlier in the cancer market? Why the pandemic is hitting Imbruvica very hard, whereas the pandemic is not hitting other cancer agents so hard? And then second, with respect to aesthetics, it's obviously booming and it is validating your acquisition of Allergan.
But I think that you updated guidance for the year for Botox cosmetic to $1.9 billion and that implies flat sequential sales from the $477 million that you booked in the first quarter. So, if you could explain that, please. Thank you.
Mike Severino -- Vice Chairman and President
So, this is Mike. I'll -- I'll take the first question and then others will comment on -- on your second question. With respect to why Imbruvica is being hit harder than other anticancer agents in the pandemic, I think it has to do with the underlying rate of progression of CLL. So, CLL, while it is a very significant limiter of long-term function and survival, in the short term, there's a sense that therapy can be delayed if necessary because the rate of progression is relatively slower than other forms of cancer, for example.
Certainly, much slower than AML, another indication that we are very active in the -- in the HemOnc space. And so, I think in the -- in the setting of the pandemic, that's why you are seeing more deferrals for start of therapy and -- and in some cases, longer time to switch of therapy which would explain why Imbruvica dynamics are different than other anticancer agents that treat other diseases.
Rob Michael -- Executive Vice President and Chief Financial Officer
And, David, this is Rob. On your question regarding Botox cosmetic, so we did see in the first quarter, if you just look at toxins market growth, it's over 30% in the first quarter. There is some impact from pent-up demand as you come out of the pandemic. But we feel very good about the long -- the forecast we put forward.
We actually took it up $100 million to essentially pass through to be in the quarter. I'd say your math on flat sequential, I think it's up a little bit. But really if you consider that we did have some level of pent-up demand come through in the quarter, you got to back that out to understand the underlying demand dynamics.
David Risinger -- Morgan Stanley -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, David. Operator, next question, please.
Operator
Yes. The next question comes from Ronny Gal with Bernstein. Your line is open.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Hi, everybody. Congratulations on a very nice quarter and thank you for fitting me in. Two questions if I may. First, there was a data presented from Richter about negative symptoms improvement using Vraylar.
I was wondering, what is your take on the data in terms of your ability to use it in the United States? Is it something you are considering doing a trial on, could this potentially be added to the label, and so forth? And second, I wasn't -- the -- the growth in Botox neurology is really impressive. It seems relatively odd that there is such a big jump in the middle of a wave of the epidemic in January forward for a -- a physician-administered product. Can you just give us a flavor of what the underlying trends there.? There are just a lot more success that you're having in pushing first patients who failed azathioprine to -- into Botox. How should we think about this?
Mike Severino -- Vice Chairman and President
So, this is Mike. I'll take the first question and then others are coming on your second question. With respect to negative symptoms and the treatment of those negative symptoms in schizophrenia, it's a very challenging area, it's a very important area because they're responsible for much of the -- the long-term loss of function in patients who suffer from schizophrenia. It has been a very difficult area to approach in general, and we believe Vraylar has a good profile there and has a good overall impact on the disease, a very strong overall impact in the disease.
But it's also one that's been very challenging from a labeling perspective in the U.S. It's been a very difficult claim to get in the U.S. So it's not clear that there is a specific path to negative symptoms in the label. But I do think the overall profile of Vraylar in schizophrenia, both with respect to symptom control and benefit-risk are viewed, you know, very positively by treating physicians.
And I think the overall benefits are well understood by treating physicians. And I think that is reflected in Vraylar's overall strong performance.
Jeff Stewart -- Executive Vice President, Commercial Operations
Ron, it's Jeff. And with regard to Botox, it's insightful because we are seeing some robust activity, particularly in migraine. And I think there's a couple of reasons for that. You know, one, Rick highlighted the sales force dynamics in China.
We've definitely focused our sales team, you know, on the -- on the migraine component. And the other thing that's taken place is a little bit, I think, of an investment approach. We have more consistent consumer investment since we had the integration than previously, the legacy Allergan. So I think the combination of the consumer investment, new ways where if patients access a injector or neurologist, they can get a sample of Botox right at their first -- first appointment rather than wait for many months.
There are various commercial reasons we think that give us a lot of encouragement on the therapeutic Botox performance, again, specifically and particularly in migraine.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Ronny. Operator, next question, please.
Operator
Our next question comes from Terence Flynn with Goldman Sachs. Your line is open.
Terence Flynn -- Goldman Sachs -- Analyst
Great. Thanks for taking the question. Maybe two for me. I recognize there's still a lot of unknowns here, but how are you thinking about the potential headwind from any changes to corporate tax rates and -- and GILTI? And then given the progress you outlined on debt paydown, you'll be back to about a two times leverage ratio you mentioned.
How are you thinking about capital allocation into the end of this year and into 2022? What types of assets are you focused on for BD and M&A? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So, this is Rick. I'll cover the tax. I mean, as you said, it's certainly early in the process, and we, obviously, know what's being proposed, but we don't necessarily know where we will end up. I think one of the important things that -- that we need to continue to think through is if we go back to -- one, you know, one of the reasons why back in 2017 tax reform was passed was to make sure that two things happen: one, that U.S.-based companies were competitive for their foreign competitors; and two, it encouraged companies like ours to invest in the United States.
And I can certainly talk about the AbbVie example. I mean, I think it's pretty compelling when you sit back and look at, you know, we were able to go out and acquire an Irish company, redomicile it back to the United States. You know, AbbVie today has 24,000 jobs in the United States. We've also increased investments significantly in the U.S.
since tax reform -- you know, in the last three years, we've invested $1.5 billion. We committed that we'd do $2.5 billion over time, and we exceed that commitment. We added about 1,500 jobs over that period of time. So companies like ours, it clearly took the benefit of tax reform and that has allowed us to be able to be more competitive.
And certainly, in the acquisition of a company like Allergan, I think that was clearly demonstrated, but we also have invested much more aggressively in the U.S. So I think going forward, one of the things that's important for policymakers to balance is to make sure that we don't go back to where we were, and that is where U.S. companies aren't as competitive against their foreign competitors. The current proposal would make the U.S.
have the highest rate of all developed countries. I'm not sure that's the position you'd want to be in. So hopefully, as we go forward, there'll be a balance that's looked at in raising taxes. But also making companies maintain a competitive position and continue to be incented to invest in the U.S.
Rob Michael -- Executive Vice President and Chief Financial Officer
Terence, this is Rob. On your question regarding capital allocation. I'll start, and then Mike will add more color in terms of BD. We've said all along is we continue -- we will continue to delever through 2023.
So, you know, think about net leverage ratio getting to two times in '22. I think our balance sheet would be in very good shape, but we want to continue to pay down the debt through '23. During that period, we've allocated $2 billion of capital for business development. You've seen us do some very nice deals, whether you look at Genmab, I-Mab.
We've done a number of nice transactions in the space with that amount of capital, but I'll let Mike speak to future opportunities, as well.
Mike Severino -- Vice Chairman and President
In terms of areas in which we would expect to be active between now and the end of 2022, we'll continue to be active in oncology, both in hematological oncology and in solid tumors. That has been an area of focus for us, and I see that continuing as an area of focus. We would certainly like to add to the aesthetics franchise. We've talked about how we will invest and continue to drive that franchise and from a business development perspective.
I think there are a number of opportunities there that could present themselves in that time frame. And there are other areas that opportunistically we would certainly like to add to. I would point to neuroscience if we could find the right opportunities. And eye care as additional areas, where we could be investing.
Liz Shea -- Vice President of Investor Relations
Thanks, Terence. Operator, next question, please.
Operator
Yes. Our next question comes from Daniel Busby with RBC Capital Markets. Your line is open.
Daniel Busby -- RBC Capital Markets -- Analyst
Hi, good morning. I'd like to ask a follow-up on aesthetics in your high single-digit annual growth target for that business over the next decade. Broadly speaking, how much of that growth is dependent on bringing new products to market, such as long and short-acting toxins versus driving continued growth from the aesthetics portfolio that you have today? And second, as we near the one-year anniversary of your acquisition of Allergan, can you provide updated thoughts on your appetite for potential divestitures of non-core products or therapeutic areas now that you've had about a year to digest that transaction? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
This is Rick. I'll cover that and maybe Rob can -- can tag team along here. I mean if you look at our overall estimate of high single-digit growth on aesthetics, it's not heavily reliant on a -- on a large number of new products. There will be new products that come in.
They're probably closer toward the back end of the long-range plan. So they don't have a -- they don't have a significant impact on that overall growth rate. So I think we fundamentally believe that the market dynamics are such and the brands are competitive, highly competitive in this market. If we have the ability to grow the market and continue to maintain our share position in that market and that will allow us to be able to drive that level of growth or higher.
Rob Michael -- Executive Vice President and Chief Financial Officer
Yeah, this is Rob. I would just add that if you look at the aesthetics business, I mean, we'll see significant growth, not just from toxins and fillers, but also in body contouring. So as we think about the potential for that leg of the stool, you know, we think we've got really three key drivers of growth within aesthetics that will help us get to that high single-digit, long-term expectation. And again, as Rick mentioned, we're not counting on significant contribution on the pipeline, although we will continue to drive innovation, particularly with the toxins and fillers.
And of course, as you've heard before, it's important within body contouring to continue to drive innovation there as well. So we feel very good about that outlook and we're not counting on a ton from the pipeline there.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And then your second question, I would say, you know, even before the Allergan acquisition, we constantly looked at our portfolio and -- and determine whether or not there were areas of our business that we ultimately thought. We were interested in divesting. I'd say that -- that's a process that we go through on a fairly consistent basis to ensure that we're maximizing the value of the assets that we have within our portfolio. And so, you know, we will continue to do that.
And when we find opportunities where we think that's the right strategy, then we'll execute against that strategy.
Liz Shea -- Vice President of Investor Relations
Thanks, Daniel. Operator, next question, please.
Operator
Yes. Our next question comes from Gary Nachman with BMO Capital Markets. Your line is open.
Gary Nachman -- BMO Capital Markets -- Analyst
Thanks. A couple more for me on Rinvoq. Are you hearing anecdotally any physicians that may be switching patients from Xeljanz to Rinvoq in RA if there's a perceived safety benefit with Rinvoq as a more selective JAK? Are you able to take advantage of that at all? And then secondly, if Rinvoq gets approved for atopic derm, how will you look to build out your presence with dermatologists? Will you leverage your current footprint on the aesthetics side? Or will you have a completely different medical derm team? So just talk about how you go after that opportunity and how you're preparing for it given your clear level of excitement there? Thank you.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah, hi. It's Jeff, and I'll take both of those. So we are -- we're actually not hearing physicians, you know, from our intelligence, from our field teams actively thinking to switch patients from Xeljanz to Rinvoq. I mean that's a -- that's a big decision for a physician.
What we -- what we have heard is when we do some of our research and our ear to the ground, we clearly see that oral surveillance is perceived as a Xeljanz issue. So, typically, what will happen is you may see people take their foot off the gas on some new starts. But we don't -- we don't see or hear certainly any widespread news of active switching. So that's basically our intelligence on your first question.
In terms of your second question, we will not be using the aesthetic sales force. We will basically leverage our existing infrastructure that we have with some expansion we've taken place for Rinvoq and atopic dermatitis. I think, as you know, that in terms of our reputation among the medical derms is extremely strong. We have the No.
1 reputation because of the years of Humira in psoriasis, and psoriatic arthritis, and HS. And obviously, we have a very, very strong impression and launch from Skyrizi. So we basically designed a sales force that through our management, which has been connected to these derms for more than a decade. And existing reps with some new reps in there, we are building -- we have built a sales force that will work seamlessly with our Skyrizi teams to give a very nice offering to those dermatologists.
An important fact is that basically, the overlap of those dermatologists that drives basically the atopic derm market is about 90% between the atopic derm market and the psoriasis market. So we feel we're well-positioned in terms of how we set up our go-to-market approach with this segment.
Liz Shea -- Vice President of Investor Relations
Thanks, Gary. Operator, next question, please.
Operator
Yes. Our next question comes from Gregg Gilbert with Truist Securities. Your line is open.
Gregg Gilbert -- Truist Securities -- Analyst
Thank you. Mike, I was interested in your oral psoriasis commentary. Are you assuming that a new bar has been set by deucravacitinib in terms of efficacy versus Otezla? And is that something you're very mindful of as you consider your own programs? And secondly, for Rick, I realize AbbVie was born out of a company that had devices and pharma under one roof. But clearly, you've embraced in aesthetics, for example, that good franchise-building could involve drugs and devices or drugs that need to be delivered by device.
Does that apply, as you think ahead about ophthalmology or other areas when you consider long-term BD? Thank you.
Mike Severino -- Vice Chairman and President
So, this is Mike. I'll take the first question. With respect to oral psoriasis agents, we would want to come in from an efficacy perspective with something that -- that clearly exceeded the threshold that existed in the past with Otezla. And I think coming in, in a range that is Humira-like or better would be our goal.
I think if you look at, you know, BMS's TYK2, they sort of come in, you know, at that Humira-like efficacy. And so I think that is generally the range that we're talking about. I think when one talks about, you know, a direct comparison in terms of where a bar is set, we have to look not only at efficacy, but it's safety and it's the totality of the data. Obviously, it's extremely early for -- for our ROR gamma T agent, but we think it is a molecule because it impacts very well understood biology, with a good understanding of where to go from an efficacy perspective and a good understanding of safety that we can get in a range that's very competitive there.
So I think we'd be looking for that Humira-like efficacy or greater as something that we would like to use to enter the space within oral, obviously, coupled with a strong safety profile.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
On your second question, this is Rick. I mean, I think the way we approach the markets that we operate in, as we look for areas where there are significant unmet need, and then we ultimately try to come up with solutions for those needs. Sometimes it's drug only, in fact, I'd say, the majority of our historical experience as AbbVie has been it was a drug only. But as an example, 951 is a good example of where it's a combination product, right, a device, and a drug.
Certainly, as we look at ophthalmology, we have implantable devices that were part of the Allergan acquisition that are important therapeutic options that are available for physicians and patients. So I'd say we tend to go at it, and we're certainly not opposed to devices being part of it. If they can add to the ability to be able to provide for an advancement in standard of care. In aesthetics, as Rob indicated a moment ago, you know, we're looking at what is that big third leg on the stool, and we believe that is body.
And I would say, in the area of body, devices are going to play a much more critical role. And so that's an area where I think you'll see us embrace even device-only kinds of strategies because they provide the right solution for that particular improvement. So it's an area that we, historically, many of us know well because of our experience, as you pointed out, in our previous life. But I'd say also the teams and the organization itself tend to look for broad-based solutions that can meet the unmet need.
Gregg Gilbert -- Truist Securities -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Gregg. Operator, we have time for one final question.
Operator
Thank you. Our last question comes from Navin Jacob with UBS. Your line is open.
Navin Jacob -- UBS
Hi, thanks so much for squeezing me in here. A couple, if I may, if we have time. But just on Vraylar, you have the strong long-term guidance of $4 billion with just the existing indications. But the script trends, at least, seem to have slowed down, obviously, in part because neuro has been weak as an overall therapeutic area during the pandemic.
But just wondering -- and just given that the quarter itself was a little bit weaker, I think, versus expectations, can you talk about the broader neuro market is that weakness there because we do see strength with Ubrelvy and with Botox Therapeutics? So just wondering if there's something going on specifically with Vraylar? Has the bipolar depression opportunity been tapped out for some reason? And what can you -- what do you -- what can you admit to do to accelerate growth for Vraylar with the existing indications? That's number one. And number two, on Rinvoq, I think everyone understands the rates around DVT/PE and MACE. But if you could give a little bit more clarity on -- based on the updated data that you filed with the agency, what the rate of malignancy is across the indications, and whether that's any different between the strengths and how that compares to the background rate. Thank you so much.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah, hi, it's Jeff. I'll take the Vraylar comment. You know, the macro prescription market has been down a little bit versus historical trends. But we really think it's simply a timing issue, and I'll give you some numbers that support that.
So before COVID hit right in the first quarter of last year, the new-to-brand or the NBRx for Vraylar was about 3,500 new-to-brand prescriptions a week. And what we saw is during COVID, that dropped down all the way to about 2,700. That was the midyear. And then it's consistently come back up.
So toward the end of March, we've started to hit or recover that pre-COVID historical rate. So progress is there. And ultimately, the way we see these markets functions, as you recover your NBRx momentum, the TRxs will start to come. So we're encouraged on the latest trends, but your point is right.
It has been a little bit soft on the market. And certainly, as a brand, Vraylar dropped because of COVID but is now really fully recovered. And so we should see continued recovery of the momentum there. So hopefully, that helps.
Mike Severino -- Vice Chairman and President
So, this is Mike. I'll take your second question. With respect to the rates of malignancies, excluding nonmelanoma skin cancer because that's the way these rates are typically reviewed. I recently described a rate across Rinvoq studies with roughly 10,000 patient-years experience of 0.8 events per 100 patient-years experience.
And that compared to an expected rate that was 0.9 or higher, depending on the estimates. So we'll call it in the range of about 0.9 events. So not different from that expected rate and without any difference between doses, so no evidence of a dose response. And nothing that we've seen in the recent work that we've done changes that -- that view in any way.
Liz Shea -- Vice President of Investor Relations
Thanks, Navin. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 78 minutes
Call participants:
Liz Shea -- Vice President of Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Commercial Operations
Mike Severino -- Vice Chairman and President
Rob Michael -- Executive Vice President and Chief Financial Officer
Chris Schott -- J.P. Morgan -- Analyst
Geoffrey Porges -- SVB Leerink -- Analyst
Andrew Baum -- Citi -- Analyst
Vamil Divan -- Mizuho Securities -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Steve Scala -- Cowen and Company -- Analyst
David Risinger -- Morgan Stanley -- Analyst
Ronny Gal -- Sanford C. Bernstein -- Analyst
Terence Flynn -- Goldman Sachs -- Analyst
Daniel Busby -- RBC Capital Markets -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Gregg Gilbert -- Truist Securities -- Analyst
Navin Jacob -- UBS
More ABBV analysis
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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) Q1 2021 Earnings Call Apr 30, 2021, 9:00 a.m. Welcome to the AbbVie first-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. | And we expect more than a half a dozen new product or indication launches in 2022, including navitoclax for myelofibrosis, ABBV-951 for advanced Parkinson's disease, Skyrizi for psoriatic arthritis and Crohn's disease, Rinvoq for ulcerative colitis, Vraylar for major depressive disorder, and initial indications for Imbruvica and Venclexta. Operator [Operator signoff] Duration: 78 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President and Chief Financial Officer Chris Schott -- J.P. Morgan -- Analyst Geoffrey Porges -- SVB Leerink -- Analyst Andrew Baum -- Citi -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Tim Anderson -- Wolfe Research -- Analyst Steve Scala -- Cowen and Company -- Analyst David Risinger -- Morgan Stanley -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Terence Flynn -- Goldman Sachs -- Analyst Daniel Busby -- RBC Capital Markets -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Gregg Gilbert -- Truist Securities -- Analyst Navin Jacob -- UBS More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2021 Earnings Call Apr 30, 2021, 9:00 a.m. | Operator [Operator signoff] Duration: 78 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President and Chief Financial Officer Chris Schott -- J.P. Morgan -- Analyst Geoffrey Porges -- SVB Leerink -- Analyst Andrew Baum -- Citi -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Tim Anderson -- Wolfe Research -- Analyst Steve Scala -- Cowen and Company -- Analyst David Risinger -- Morgan Stanley -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Terence Flynn -- Goldman Sachs -- Analyst Daniel Busby -- RBC Capital Markets -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Gregg Gilbert -- Truist Securities -- Analyst Navin Jacob -- UBS More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2021 Earnings Call Apr 30, 2021, 9:00 a.m. Welcome to the AbbVie first-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | Operator [Operator signoff] Duration: 78 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President and Chief Financial Officer Chris Schott -- J.P. Morgan -- Analyst Geoffrey Porges -- SVB Leerink -- Analyst Andrew Baum -- Citi -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Tim Anderson -- Wolfe Research -- Analyst Steve Scala -- Cowen and Company -- Analyst David Risinger -- Morgan Stanley -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Terence Flynn -- Goldman Sachs -- Analyst Daniel Busby -- RBC Capital Markets -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Gregg Gilbert -- Truist Securities -- Analyst Navin Jacob -- UBS More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q1 2021 Earnings Call Apr 30, 2021, 9:00 a.m. Welcome to the AbbVie first-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | 485ee8cf-15a1-4a85-8215-8efe3e03d03e |
24107.0 | 2021-04-30 00:00:00 UTC | Notable Friday Option Activity: BZH, AXP, ABBV | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-bzh-axp-abbv-2021-04-30 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Beazer Homes USA, Inc. (Symbol: BZH), where a total of 1,585 contracts have traded so far, representing approximately 158,500 underlying shares. That amounts to about 47.4% of BZH's average daily trading volume over the past month of 334,485 shares. Especially high volume was seen for the $22 strike call option expiring May 21, 2021, with 384 contracts trading so far today, representing approximately 38,400 underlying shares of BZH. Below is a chart showing BZH's trailing twelve month trading history, with the $22 strike highlighted in orange:
American Express Co. (Symbol: AXP) saw options trading volume of 13,403 contracts, representing approximately 1.3 million underlying shares or approximately 47.2% of AXP's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $150 strike put option expiring June 18, 2021, with 2,722 contracts trading so far today, representing approximately 272,200 underlying shares of AXP. Below is a chart showing AXP's trailing twelve month trading history, with the $150 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,408 contracts, representing approximately 2.8 million underlying shares or approximately 45.8% of ABBV's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $112 strike call option expiring April 30, 2021, with 3,836 contracts trading so far today, representing approximately 383,600 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $112 strike highlighted in orange:
For the various different available expirations for BZH options, AXP options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $112 strike call option expiring April 30, 2021, with 3,836 contracts trading so far today, representing approximately 383,600 underlying shares of ABBV. Below is a chart showing AXP's trailing twelve month trading history, with the $150 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,408 contracts, representing approximately 2.8 million underlying shares or approximately 45.8% of ABBV's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $112 strike highlighted in orange: For the various different available expirations for BZH options, AXP options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing AXP's trailing twelve month trading history, with the $150 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,408 contracts, representing approximately 2.8 million underlying shares or approximately 45.8% of ABBV's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $112 strike highlighted in orange: For the various different available expirations for BZH options, AXP options, or ABBV options, visit StockOptionsChannel.com. Especially high volume was seen for the $112 strike call option expiring April 30, 2021, with 3,836 contracts trading so far today, representing approximately 383,600 underlying shares of ABBV. | Below is a chart showing AXP's trailing twelve month trading history, with the $150 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,408 contracts, representing approximately 2.8 million underlying shares or approximately 45.8% of ABBV's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $112 strike call option expiring April 30, 2021, with 3,836 contracts trading so far today, representing approximately 383,600 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $112 strike highlighted in orange: For the various different available expirations for BZH options, AXP options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing AXP's trailing twelve month trading history, with the $150 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 28,408 contracts, representing approximately 2.8 million underlying shares or approximately 45.8% of ABBV's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $112 strike call option expiring April 30, 2021, with 3,836 contracts trading so far today, representing approximately 383,600 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $112 strike highlighted in orange: For the various different available expirations for BZH options, AXP options, or ABBV options, visit StockOptionsChannel.com. | f4209e65-05a3-416f-80f9-4c7690628396 |
24108.0 | 2021-04-30 00:00:00 UTC | Health Care Sector Update for 04/30/2021: AZN, MESO, ABBV, XLV, IBB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-04-30-2021%3A-azn-meso-abbv-xlv-ibb-2021-04-30 | nan | nan | Health care stocks were declining in Friday's premarket trading. The Health Care SPDR (XLV) was down 0.3% and the iShares NASDAQ Biotechnology Index (IBB) was 0.2% lower recently.
AstraZeneca (AZN) was climbing past 3% as it reported Q1 core earnings of $1.63 per share, up from $1.05 a year ago. The consensus of analysts polled by Capital IQ was $1.46.
Mesoblast (MESO) was over 5% higher after saying its drug remestemcel-L reduced mortality in COVID-19 patients under 65 years old with acute respiratory distress syndrome, or ARDS, in a US study.
AbbVie (ABBV) was up more than 1% as it posted Q1 adjusted earnings of $2.95 per share, up from $2.42 per share a year earlier. Analysts polled by Capital IQ projected adjusted EPS of $2.83.
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% as it posted Q1 adjusted earnings of $2.95 per share, up from $2.42 per share a year earlier. The Health Care SPDR (XLV) was down 0.3% and the iShares NASDAQ Biotechnology Index (IBB) was 0.2% lower recently. AstraZeneca (AZN) was climbing past 3% as it reported Q1 core earnings of $1.63 per share, up from $1.05 a year ago. | AbbVie (ABBV) was up more than 1% as it posted Q1 adjusted earnings of $2.95 per share, up from $2.42 per share a year earlier. The consensus of analysts polled by Capital IQ was $1.46. Analysts polled by Capital IQ projected adjusted EPS of $2.83. | AbbVie (ABBV) was up more than 1% as it posted Q1 adjusted earnings of $2.95 per share, up from $2.42 per share a year earlier. The Health Care SPDR (XLV) was down 0.3% and the iShares NASDAQ Biotechnology Index (IBB) was 0.2% lower recently. 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% as it posted Q1 adjusted earnings of $2.95 per share, up from $2.42 per share a year earlier. Health care stocks were declining in Friday's premarket trading. The Health Care SPDR (XLV) was down 0.3% and the iShares NASDAQ Biotechnology Index (IBB) was 0.2% lower recently. | 115022ad-a46a-4376-899d-7a75158309ba |
24109.0 | 2021-04-30 00:00:00 UTC | How AbbVie Beat Expectations Again in Q1 | ABBV | https://www.nasdaq.com/articles/how-abbvie-beat-expectations-again-in-q1-2021-04-30 | nan | nan | Few stocks offer the combination of growth, value, and income that AbbVie (NYSE: ABBV) does. However, investors have been concerned about just how long the drugmaker will be able to continue delivering solid growth.
AbbVie announced its first-quarter results before the market opened on Friday. And the growth streak continued. The big-pharma stock rose less than 1% in early trading today. Here are the highlights from AbbVie's first-quarter update.
Image source: Getty Images.
By the numbers
AbbVie reported revenue in the first quarter of $13 billion, a 51% year-over-year jump. This result beat the average analysts' revenue estimate of $12.76 billion.
The company announced first-quarter net income of $3.55 billion, or $1.99 per share, based on generally accepted accounting principles (GAAP). In the prior-year period, GAAP earnings totaled $3 billion, or $2.02 per share.
AbbVie recorded adjusted earnings of $2.95 per share, up 22% year over year. The consensus Wall Street estimate was for adjusted earnings of $2.83.
Behind the numbers
As has been the case since AbbVie began operations as an independent entity in 2013, Humira took center stage in the company's quarterly update. Global net revenue for the autoimmune-disease drug increased 3.5% year over year to $4.87 billion. International sales for Humira fell 8.3% to $960 million due to biosimilar competition. However, U.S. sales for the drug climbed 6.9% to nearly $3.91 billion.
AbbVie's newer autoimmune-disease drugs gained significant momentum in the quarter. Sales for Skyrizi totaled $574 million, with Rinvoq generating net revenue of $303 million.
Net revenue for blood-cancer drug Imbruvica rose 2.9% year over year to $1.27 billion. AbbVie recorded U.S. sales of $999 million plus $269 million for its share of profits on international sales of the drug by Johnson & Johnson. Its other blockbuster blood-cancer drug, Venclexta, raked in sales of $405 million, up 27.9% year over year.
Products brought into AbbVie's lineup through its acquisition of Allergan also made a solid contribution to the first-quarter top line. Global net revenue from Allergan's aesthetics products totaled $1.14 billion, a year-over-year jump of 34.9% on a comparable operational basis. (Since AbbVie's acquisition of Allergan didn't close until May 2020, this refers to what the growth would have been if the Allergan operations were part of AbbVie in the first quarter of 2020.) Neuroscience portfolio sales increased 10.9% on a comparable operational basis to $1.25 billion.
There were a couple of problem areas for AbbVie in the first quarter, though. Total net sales for Allergan's eye-care products fell 9.2% on a comparable operational basis to $817 million. The company's women's health portfolio generated total net revenue of $180 million, down 21.2% on a comparable operational basis.
Looking ahead
AbbVie raised its full-year 2021 earnings guidance. The company now projects GAAP earnings per share will be between $7.27 and $7.47, up from its previous forecast of a range of $6.69 to $6.89. Non-GAAP EPS is expected to be between $12.37 and $12.57, up from the previous guidance of $12.32 to $12.52.
The main thing for investors to watch is AbbVie's progress in picking up approvals for new products and additional indications for existing products. CEO Richard Gonzalez said, "Our new products are delivering impressive performance and we are on the cusp of potential commercial approvals for more than a dozen new products or indications over the next two years -- including five expected approvals in 2021."
However, two of those anticipated approvals won't happen as quickly as AbbVie would have preferred. The Food and Drug Administration pushed back the review period by three months for AbbVie's regulatory applications for Rinvoq in treating atopic dermatitis and psoriatic arthritis. A decision on the psoriatic arthritis indication is now expected late in the second quarter, with a decision on the atopic dermatitis indication on the way early in the third quarter.
All of AbbVie's pending FDA approvals are important. With Humira losing U.S. patent exclusivity in 2023, the company is counting on its pipeline to help drive growth in the future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Behind the numbers As has been the case since AbbVie began operations as an independent entity in 2013, Humira took center stage in the company's quarterly update. The Food and Drug Administration pushed back the review period by three months for AbbVie's regulatory applications for Rinvoq in treating atopic dermatitis and psoriatic arthritis. Few stocks offer the combination of growth, value, and income that AbbVie (NYSE: ABBV) does. | Few stocks offer the combination of growth, value, and income that AbbVie (NYSE: ABBV) does. AbbVie announced its first-quarter results before the market opened on Friday. Here are the highlights from AbbVie's first-quarter update. | AbbVie recorded adjusted earnings of $2.95 per share, up 22% year over year. AbbVie recorded U.S. sales of $999 million plus $269 million for its share of profits on international sales of the drug by Johnson & Johnson. (Since AbbVie's acquisition of Allergan didn't close until May 2020, this refers to what the growth would have been if the Allergan operations were part of AbbVie in the first quarter of 2020.) | AbbVie recorded adjusted earnings of $2.95 per share, up 22% year over year. Few stocks offer the combination of growth, value, and income that AbbVie (NYSE: ABBV) does. AbbVie announced its first-quarter results before the market opened on Friday. | 06f47c8d-e3f5-4752-aa24-763f4c83b765 |
24110.0 | 2021-04-30 00:00:00 UTC | AbbVie raises full-year profit forecast as Humira fuels quarterly sales | ABBV | https://www.nasdaq.com/articles/abbvie-raises-full-year-profit-forecast-as-humira-fuels-quarterly-sales-2021-04-30 | nan | nan | Adds profit estimates, background on Humira, Botox, and share movement
April 30 (Reuters) - AbbVie Inc ABBV.N on Friday beat estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States where it is yet to face competition from cut-price copies.
AbbVie's beat-and-raise quarter come after several rival drugmakers such as Eli Lilly LLY.N, Merck & Co Inc MRK.N and Bristol Myers Squibb BMY.N missed estimates for first-quarter earnings.
Sales for AbbVie's rheumatoid arthritis drug Humira in the first quarter rose 3.5% to $4.87 billion, beating expectations of $4.78 billion. Revenue, however, fell 8.3% in markets outside the United States due to rising competition, especially in Europe.
Shares of the North Chicago, Illinois-based company climbed 2.1% in premarket trading after AbbVie's revenue was also lifted by recovering demand for Botox, the blockbuster anti-wrinkle injection it gained through its $63 billion deal for Allergan.
Demand for the anti-wrinkle injection, which is administered by plastic surgeons and other specialists, had taken a hit last year as people avoided non-urgent medical procedures amid stay-at-home measures to slow the spread of the coronavirus.
Botox sales for cosmetic use surged 44.7% to $447 million.
Humira, which has been approved to treat rheumatoid arthritis, is expected to face competition from biosimilars in the United States after 2023.
Its position as the world's best-selling drug is expected to be taken over by Merck's MRK.N cancer drug, Keytruda, in 2023, according to projections by research firm GlobalData.
Total sales rose nearly 51% to $13.01 billion, ahead of estimates of $12.76 billion.
Net earnings attributable to AbbVie climbed 18% to $3.55 billion, or $1.99 per share.
Excluding items, AbbVie earned $2.95 per share, beating estimates of $2.83 per share.
AbbVie raised its full-year adjusted earnings forecast to between $12.37 and $12.57 per share from its prior estimate of $12.32 to $12.52.
(Reporting by Manas Mishra in Bengaluru; Editing by Sriraj Kalluvila and Sherry Jacob-Phillips)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manasmishra24; within U.S. +1 646 223 8780, outside U.S. +91 806749 2709;))
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 beat-and-raise quarter come after several rival drugmakers such as Eli Lilly LLY.N, Merck & Co Inc MRK.N and Bristol Myers Squibb BMY.N missed estimates for first-quarter earnings. Shares of the North Chicago, Illinois-based company climbed 2.1% in premarket trading after AbbVie's revenue was also lifted by recovering demand for Botox, the blockbuster anti-wrinkle injection it gained through its $63 billion deal for Allergan. Adds profit estimates, background on Humira, Botox, and share movement April 30 (Reuters) - AbbVie Inc ABBV.N on Friday beat estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States where it is yet to face competition from cut-price copies. | Adds profit estimates, background on Humira, Botox, and share movement April 30 (Reuters) - AbbVie Inc ABBV.N on Friday beat estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States where it is yet to face competition from cut-price copies. Sales for AbbVie's rheumatoid arthritis drug Humira in the first quarter rose 3.5% to $4.87 billion, beating expectations of $4.78 billion. Excluding items, AbbVie earned $2.95 per share, beating estimates of $2.83 per share. | Adds profit estimates, background on Humira, Botox, and share movement April 30 (Reuters) - AbbVie Inc ABBV.N on Friday beat estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States where it is yet to face competition from cut-price copies. Sales for AbbVie's rheumatoid arthritis drug Humira in the first quarter rose 3.5% to $4.87 billion, beating expectations of $4.78 billion. Shares of the North Chicago, Illinois-based company climbed 2.1% in premarket trading after AbbVie's revenue was also lifted by recovering demand for Botox, the blockbuster anti-wrinkle injection it gained through its $63 billion deal for Allergan. | Adds profit estimates, background on Humira, Botox, and share movement April 30 (Reuters) - AbbVie Inc ABBV.N on Friday beat estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States where it is yet to face competition from cut-price copies. Sales for AbbVie's rheumatoid arthritis drug Humira in the first quarter rose 3.5% to $4.87 billion, beating expectations of $4.78 billion. Net earnings attributable to AbbVie climbed 18% to $3.55 billion, or $1.99 per share. | 8ca90b25-d1cc-4902-8764-79ad8c70ff46 |
24111.0 | 2021-04-30 00:00:00 UTC | Increases to CEO Compensation Might Be Put On Hold For Now at AbbVie Inc. (NYSE:ABBV) | ABBV | https://www.nasdaq.com/articles/increases-to-ceo-compensation-might-be-put-on-hold-for-now-at-abbvie-inc.-nyse%3Aabbv-2021 | nan | nan | Performance at AbbVie Inc. (NYSE:ABBV) has been reasonably good and CEO Rick Gonzalez has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 07 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
How Does Total Compensation For Rick Gonzalez Compare With Other Companies In The Industry?
At the time of writing, our data shows that AbbVie Inc. has a market capitalization of US$196b, and reported total annual CEO compensation of US$24m for the year to December 2020. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.7m.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$16m. This suggests that Rick Gonzalez is paid more than the median for the industry. Moreover, Rick Gonzalez also holds US$64m worth of AbbVie stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component 2020 2019 Proportion (2020)
Salary US$1.7m US$1.7m 7%
Other US$22m US$20m 93%
Total Compensation US$24m US$22m 100%
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. AbbVie pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
NYSE:ABBV CEO Compensation April 30th 2021
A Look at AbbVie Inc.'s Growth Numbers
Over the last three years, AbbVie Inc. has shrunk its earnings per share by 6.2% per year. It achieved revenue growth of 38% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has AbbVie Inc. Been A Good Investment?
AbbVie Inc. has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
The overall company performance has been commendable, however there are still areas for improvement. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 5 warning signs for AbbVie that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Performance at AbbVie Inc. (NYSE:ABBV) has been reasonably good and CEO Rick Gonzalez has done a decent job of steering the company in the right direction. At the time of writing, our data shows that AbbVie Inc. has a market capitalization of US$196b, and reported total annual CEO compensation of US$24m for the year to December 2020. Moreover, Rick Gonzalez also holds US$64m worth of AbbVie stock directly under their own name, which reveals to us that they have a significant personal stake in the company. | Performance at AbbVie Inc. (NYSE:ABBV) has been reasonably good and CEO Rick Gonzalez has done a decent job of steering the company in the right direction. At the time of writing, our data shows that AbbVie Inc. has a market capitalization of US$196b, and reported total annual CEO compensation of US$24m for the year to December 2020. Moreover, Rick Gonzalez also holds US$64m worth of AbbVie stock directly under their own name, which reveals to us that they have a significant personal stake in the company. | Performance at AbbVie Inc. (NYSE:ABBV) has been reasonably good and CEO Rick Gonzalez has done a decent job of steering the company in the right direction. NYSE:ABBV CEO Compensation April 30th 2021 A Look at AbbVie Inc.'s Growth Numbers Over the last three years, AbbVie Inc. has shrunk its earnings per share by 6.2% per year. At the time of writing, our data shows that AbbVie Inc. has a market capitalization of US$196b, and reported total annual CEO compensation of US$24m for the year to December 2020. | AbbVie Inc. has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. Performance at AbbVie Inc. (NYSE:ABBV) has been reasonably good and CEO Rick Gonzalez has done a decent job of steering the company in the right direction. At the time of writing, our data shows that AbbVie Inc. has a market capitalization of US$196b, and reported total annual CEO compensation of US$24m for the year to December 2020. | fc00733f-01ea-4313-93e4-3b4a7a897103 |
24112.0 | 2021-04-30 00:00:00 UTC | 3 Warren Buffett Stocks Worth Buying Now | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-stocks-worth-buying-now-2021-04-30 | nan | nan | For some investors there's a certain thrill in finding your own stocks to buy. For other investors, punting this duty to a proven expert is not only smart, but a time-saver too. And if you're part of this latter group, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is as good of a place as any (if not better) to poach some picks. There's a reason Buffett's called the Oracle of Omaha, after all.
With this as the backdrop, here's a rundown of three current Buffett/Berkshire holdings that would be at home in almost any investors' portfolio.
Image source: Getty Images.
1. Verizon
It's one of Berkshire Hathaway's newest additions, but Verizon (NYSE: VZ) is one of those names Buffett could have added to the mix long ago. Not only is it a quality name within the wireless arena, but it's a cash-generating machine that passes along a nice chunk of its recurring quarterly profits to shareholders in the form of dividends. The company managed to produce per-share operating profits of $4.90 last year, up from 2019's $4.81 despite the pandemic headwind. That was more than enough to fund the full-year dividend of $2.48 per share and still leave plenty behind to reinvest in its own growth.
By the way, Verizon has upped its annualized dividend payment every year since 2007. That makes the current yield of 4.45% all the more attractive.
Moreover, while it superficially doesn't appear Verizon has a competitive advantage over rivals like AT&T and T-Mobile -- one of the factors Buffett considers before making an investment -- in reality this telecom giant isn't like other names in the wireless business. Whereas AT&T spent big bucks on a DIRECTV business it's now partially exiting and T-Mobile is cancelling its nascent alternative to streaming cable, Verizon has directed the bull of its capital expenditures on a fiberoptic network that's needed to support 5G wireless connections.
It appears to be paying off. Verizon swept RootMetrics' first-ever assessment of the nation's 5G networks, winning top honors for all seven criteria RootMetrics considered.
This superior technology will help the telecom name attract and retain wireless subscribers.
2. AbbVie
Those who know AbbVie (NYSE: ABBV) well may be surprised to learn it was another major addition to the Berkshire portfolio just late last year. The drugmaker's biggest moneymaker is Humira, accounting for nearly half of last year's top line of $45.8 billion. But the patent protection for the popular therapy for arthritis, Crohn's disease, and ulcerative colitis is already deteriorating, and its pivotal U.S. patent will expire in 2022. Biosimilar alternatives are expected to become widely available by 2023, posing a threat to a huge chunk of AbbVie's business.
There's more method to the madness than there seems to be on the surface, however.
While there's no drug that will single-handedly be able to replace Humira's annual revenue of $22 billion, AbbVie may be able to do it in the aggregate. That is to say, a combination of therapies in its pipeline or already approved might grow by $20 billion in the foreseeable future. The company believes combined sales of Rinvoq and Skyrizi could swell to $15 billion by 2025, up from their current combined annual sales of just a little over $2 billion now.
Vraylar's revenue could expand from its current annual figure of less than $1 billion to near $4 billion without being approved for any new uses. Sales of Ubrelvy, a migraine drug that's currently up for FDA approval, are expected to eclipse $1 billion at their peak.
The point is, there's life after Humira for AbbVie -- life that can maintain the stock's Dividend Aristocrat status. Buffett simply stepped in while the yield was above average.
3. The Bank of New York Mellon
Finally, The Bank of New York Mellon (NYSE: BK) is a Buffett pick that probably makes sense.
There's no denying the COVID-19 pandemic created a tough environment for banks. Mellon's 2020 top line slumped by 4%, and net income tumbled to the tune of 19%. First-quarter results released earlier this month were similarly lackluster, with sales and earnings both falling year over year.
Take a closer look at the numbers, however, and you'll find that fee revenue actually improved slightly last year and last quarter. The soft spots have been the bank's net interest revenue and issuer service fees. The former reflects an abnormally low interest rate environment, and the latter is linked to a depository receipt business that became complicated in the midst of the coronavirus pandemic. Meanwhile, profit-eating expenses were the result of increased spending on software and services. These are arguably smart investments in long-term growth, even if they created short-term pain.
Ultimately, though -- like Verizon and AbbVie -- Bank of New York Mellon's chief appeal to Berkshire Hathaway is its resilient business model and its subsequently resilient dividend. The current yield of 2.6% isn't exactly thrilling, but the company hasn't failed to pay a quarterly dividend since the late 90s. Mellon doesn't raise its payout every year either, but when it does, it does so in a big way. The current quarterly payout of $0.315 per share is more than twice the dividend of $0.13 per quarter from just a decade ago.
10 stocks we like better than Verizon Communications
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James Brumley owns shares of AT&T. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends T-Mobile US and Verizon Communications and recommends the following options: long January 2023 $200.0 calls on Berkshire Hathaway (B shares), short January 2023 $200.0 puts on Berkshire Hathaway (B shares), and short June 2021 $240.0 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 Those who know AbbVie (NYSE: ABBV) well may be surprised to learn it was another major addition to the Berkshire portfolio just late last year. Biosimilar alternatives are expected to become widely available by 2023, posing a threat to a huge chunk of AbbVie's business. While there's no drug that will single-handedly be able to replace Humira's annual revenue of $22 billion, AbbVie may be able to do it in the aggregate. | AbbVie Those who know AbbVie (NYSE: ABBV) well may be surprised to learn it was another major addition to the Berkshire portfolio just late last year. Biosimilar alternatives are expected to become widely available by 2023, posing a threat to a huge chunk of AbbVie's business. While there's no drug that will single-handedly be able to replace Humira's annual revenue of $22 billion, AbbVie may be able to do it in the aggregate. | Ultimately, though -- like Verizon and AbbVie -- Bank of New York Mellon's chief appeal to Berkshire Hathaway is its resilient business model and its subsequently resilient dividend. AbbVie Those who know AbbVie (NYSE: ABBV) well may be surprised to learn it was another major addition to the Berkshire portfolio just late last year. Biosimilar alternatives are expected to become widely available by 2023, posing a threat to a huge chunk of AbbVie's business. | AbbVie Those who know AbbVie (NYSE: ABBV) well may be surprised to learn it was another major addition to the Berkshire portfolio just late last year. Biosimilar alternatives are expected to become widely available by 2023, posing a threat to a huge chunk of AbbVie's business. While there's no drug that will single-handedly be able to replace Humira's annual revenue of $22 billion, AbbVie may be able to do it in the aggregate. | fe28ae6a-5bd1-4530-88f3-35a8ad6b0815 |
24113.0 | 2021-04-30 00:00:00 UTC | AbbVie Q1 adjusted earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q1-adjusted-earnings-beat-estimates-2021-04-30 | nan | nan | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV):
-Earnings: $3.55 billion in Q1 vs. $3.01 billion in the same period last year. -EPS: $1.99 in Q1 vs. $2.02 in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.27 billion or $2.95 per share for the period. -Analysts projected $2.83 per share -Revenue: $13.01 billion in Q1 vs. $8.62 billion in the same period last year.
-Guidance: Full year EPS guidance: $12.37 to $12.57
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $3.55 billion in Q1 vs. $3.01 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.27 billion or $2.95 per share for the period. -Guidance: Full year EPS guidance: $12.37 to $12.57 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $3.55 billion in Q1 vs. $3.01 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.27 billion or $2.95 per share for the period. -Analysts projected $2.83 per share -Revenue: $13.01 billion in Q1 vs. $8.62 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $3.55 billion in Q1 vs. $3.01 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.27 billion or $2.95 per share for the period. -Analysts projected $2.83 per share -Revenue: $13.01 billion in Q1 vs. $8.62 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $3.55 billion in Q1 vs. $3.01 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.27 billion or $2.95 per share for the period. -Guidance: Full year EPS guidance: $12.37 to $12.57 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | b54dd744-a558-4dcb-9ca6-7b8847e01a93 |
24114.0 | 2021-04-30 00:00:00 UTC | US STOCKS-Wall Street drifts lower; S&P 500 on track for third straight month of gains | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-drifts-lower-sp-500-on-track-for-third-straight-month-of-gains-2021 | nan | nan | By Shivani Kumaresan
April 30 (Reuters) - Wall Street's three main indexes fell on Friday as investors hit pause after a barrage of strong quarterly earnings and upbeat economic data put the benchmark S&P 500 index on track for a third straight month of gains following a record run.
The Nasdaq .IXIC is also positioned for six consecutive months of gains, boosted by a rally in shares of big technology companies following their impressive results this week. The Dow Jones Industrial Average .DJI is set to end in the positive territory for three months in a row.
"A lot of the earnings is already in, and so the market has entered a fatigue environment and investors are now going to assess the economic picture," said Peter Cardillo, chief market economist at Spartan Capital in New York.
Nine of the 11 major S&P 500 sectors were trading lower, with technology .SPLRCT and energy .SPNY leading declines.
Amazon.com Inc AMZN.O rose 1.6% after posting record profits and signaling that consumers would keep spending in a growing U.S. economy and converts to online shopping are not likely to leave.
Twitter Inc TWTR.N plunged 13.0% as it offered tepid revenue forecast for the second quarter, saying user growth could slow as the boost seen during the coronavirus pandemic fizzles.
Other high-flying stocks, including Facebook Inc FB.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Netflix Inc NFLX.O, fell between 0.2% and 0.9%.
Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government.
At 9:44 a.m. ET the Dow Jones Industrial Average .DJI was down 143.96 points, or 0.42%, at 33,916.40, the S&P 500 .SPX was down 20.75 points, or 0.49%, at 4,190.72 and the Nasdaq Composite .IXIC was down 70.11 points, or 0.50%, at 14,012.43.
Chevron Corp CVX.N shed 2.2% after its first-quarter profit fell 29%, hit by weaker refining margins and production losses.
AbbVie Inc ABBV.N rose 0.2% after beating estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States.
Declining issues outnumbered advancers for a 2.20-to-1 ratio on the NYSE and for a 2.05-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 23 new highs and 18 new lows.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc ABBV.N rose 0.2% after beating estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. The Nasdaq .IXIC is also positioned for six consecutive months of gains, boosted by a rally in shares of big technology companies following their impressive results this week. Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government. | AbbVie Inc ABBV.N rose 0.2% after beating estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Shivani Kumaresan April 30 (Reuters) - Wall Street's three main indexes fell on Friday as investors hit pause after a barrage of strong quarterly earnings and upbeat economic data put the benchmark S&P 500 index on track for a third straight month of gains following a record run. The Dow Jones Industrial Average .DJI is set to end in the positive territory for three months in a row. | AbbVie Inc ABBV.N rose 0.2% after beating estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Shivani Kumaresan April 30 (Reuters) - Wall Street's three main indexes fell on Friday as investors hit pause after a barrage of strong quarterly earnings and upbeat economic data put the benchmark S&P 500 index on track for a third straight month of gains following a record run. ET the Dow Jones Industrial Average .DJI was down 143.96 points, or 0.42%, at 33,916.40, the S&P 500 .SPX was down 20.75 points, or 0.49%, at 4,190.72 and the Nasdaq Composite .IXIC was down 70.11 points, or 0.50%, at 14,012.43. | AbbVie Inc ABBV.N rose 0.2% after beating estimates for quarterly revenue and profit and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States. By Shivani Kumaresan April 30 (Reuters) - Wall Street's three main indexes fell on Friday as investors hit pause after a barrage of strong quarterly earnings and upbeat economic data put the benchmark S&P 500 index on track for a third straight month of gains following a record run. The Dow Jones Industrial Average .DJI is set to end in the positive territory for three months in a row. | 4458048b-9817-4aa0-87d5-61f7d5ca6c64 |
24115.0 | 2021-04-29 00:00:00 UTC | Pre-Market Earnings Report for April 30, 2021 : XOM, CVX, ABBV, AZN, CHTR, ITW, CL, AON, JCI, LHX, LYB, PSX | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-april-30-2021-%3A-xom-cvx-abbv-azn-chtr-itw-cl-aon-jci-lhx | nan | nan | The following companies are expected to report earnings prior to market open on 04/30/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM) is reporting for the quarter ending March 31, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.59. This value represents a 11.32% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -11.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for XOM is 17.83 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX) is reporting for the quarter ending March 31, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.92. This value represents a 28.68% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CVX is 20.23 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV) is reporting for the quarter ending March 31, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.77. This value represents a 14.46% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.46%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.95 vs. an industry ratio of 14.20.
Astrazeneca PLC (AZN) is reporting for the quarter ending March 31, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.71. This value represents a 33.96% increase compared to the same quarter last year. AZN missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -4.08%. The "days to cover" for this stock exceeds 14 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AZN is 19.95 vs. an industry ratio of 14.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Charter Communications, Inc. (CHTR) is reporting for the quarter ending March 31, 2021. The cable tv company's consensus earnings per share forecast from the 15 analysts that follow the stock is $4.34. This value represents a 121.43% increase compared to the same quarter last year. CHTR missed the consensus earnings per share in the 1st calendar quarter of 2020 by -27.68%. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CHTR is 32.44 vs. an industry ratio of 27.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Illinois Tool Works Inc. (ITW) is reporting for the quarter ending March 31, 2021. The machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.88. This value represents a 6.21% increase compared to the same quarter last year. In the past year ITW has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 19.21%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ITW is 28.97 vs. an industry ratio of 33.90.
Colgate-Palmolive Company (CL) is reporting for the quarter ending March 31, 2021. The cleaning company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.80. This value represents a 6.67% increase compared to the same quarter last year. In the past year CL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CL is 24.16 vs. an industry ratio of 22.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON) is reporting for the quarter ending March 31, 2021. The insurance brokers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $4.04. This value represents a 9.78% increase compared to the same quarter last year. AON missed the consensus earnings per share in the 1st calendar quarter of 2020 by -0.54%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AON is 21.77 vs. an industry ratio of 25.20.
Johnson Controls International plc (JCI) is reporting for the quarter ending March 31, 2021. The protection safety company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.49. This value represents a 16.67% increase compared to the same quarter last year. In the past year JCI has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 7.5%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for JCI is 24.55 vs. an industry ratio of 196.50.
L3Harris Technologies, Inc. (LHX) is reporting for the quarter ending March 31, 2021. The aerospace and defense company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.92. This value represents a 4.29% increase compared to the same quarter last year. In the past year LHX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.28%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LHX is 15.89 vs. an industry ratio of 451.10.
LyondellBasell Industries NV (LYB) is reporting for the quarter ending March 31, 2021. The chemical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.65. This value represents a 74.34% increase compared to the same quarter last year. In the past year LYB has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 67.18%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LYB is 8.00 vs. an industry ratio of 24.00.
Phillips 66 (PSX) is reporting for the quarter ending March 31, 2021. The oil refining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-1.41. This value represents a 238.24% decrease compared to the same quarter last year. PSX missed the consensus earnings per share in the 4th calendar quarter of 2020 by -6.42%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PSX is 30.69 vs. an industry ratio of -4.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV) is reporting for the quarter ending March 31, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.95 vs. an industry ratio of 14.20. | AbbVie Inc. (ABBV) is reporting for the quarter ending March 31, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.95 vs. an industry ratio of 14.20. | AbbVie Inc. (ABBV) is reporting for the quarter ending March 31, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.95 vs. an industry ratio of 14.20. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV) is reporting for the quarter ending March 31, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.95 vs. an industry ratio of 14.20. | a3ddb4f6-f364-40bf-a346-29fd33dd3c51 |
24116.0 | 2021-04-29 00:00:00 UTC | June 11th Options Now Available For AbbVie | ABBV | https://www.nasdaq.com/articles/june-11th-options-now-available-for-abbvie-2021-04-29 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 11th contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of $1.46. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $108.54 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $111.06/share today.
Because the $110.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. 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 1.33% return on the cash commitment, or 11.27% 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 $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of $1.77. If an investor was to purchase shares of ABBV stock at the current price level of $111.06/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $115.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.14% if the stock gets called away at the June 11th 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 $115.00 strike highlighted in red:
Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.59% boost of extra return to the investor, or 13.53% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example above is 36%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $111.06) to be 25%. 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 $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 11th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 11th 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 $110.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of $1.77. Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 11th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 11th 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 $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the June 11th expiration. | 13cf8dcc-0725-44d0-a7af-2ce39096e21a |
24117.0 | 2021-04-29 00:00:00 UTC | 2 Undervalued Pharmaceutical Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/2-undervalued-pharmaceutical-stocks-to-buy-now-2021-04-29 | nan | nan | Some investors love their dividends. Lucky for them, there are a lot of great companies that can afford to pay their shareholders cash every quarter. Pharma giants AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) boast high and sustainable dividend yields that are great for investors who want to see those dividends hit their account every three months. As a bonus, both stocks are undervalued today, and I think their total returns could outperform the market over the next few years.
Image source: Getty Images.
Still off their highs
Both AbbVie and GlaxoSmithKline have been beaten down over the last 12 months, and are still trading off of their highs from before the COVID-19 crash in March 2020. Despite growing earnings and raising its dividend over the past few years, AbbVie is 9% below its 2018 high of $123. GlaxoSmithKline, on the other hand, has been trading with some volatility for the past 12 months. After missing the mark on a potential COVID-19 vaccine, the company's shares still trade about 50% below the highs set back in 1999.
As seasoned investors know, stock price doesn't tell the whole story. These companies' fundamentals look solid, and there haven't been any dividend reductions or huge drug patent cliffs encountered so far.
Growing dividends
AbbVie has rewarded shareholders tremendously over the past few years through dividend increases. Shareholders holding AbbVie stock for the last five years have seen a compound annual growth rate on their dividends of 18.09%. In October 2020, AbbVie increased the dividend by 10%. The company's payout ratio of 167% reflects how it leans on its cash stash (of about $8.5 billion per year) to continue rewarding shareholders. AbbVie's continued sales from drugs like best-selling Humira, Skyrizi, and Rinvoq, suggest that it could grow its dividend well into the future. AbbVie has increased its dividend by 225% since its spinoff from Abbott in 2013.
GlaxoSmithKline has grown its dividend over the last 10 years at a compound annual growth rate of just 0.39%. With the lost revenue from the soon spinoff of its consumer health segment, management has signaled a potential dividend cut in the future. Doing this will keep the payout ratio manageable (it's currently around 70%), as well as allow more cash be directed to rebuilding its pipeline of drugs.
Simple, safe investments
AbbVie currently markets the No. 1 best-selling drug in the world, Humira. The immunologic pulled in over $19.8 billion in 2020, and has been a massive part of the company's success over the last few years. AbbVie blew past analyst expectations for total revenue last year, posting 37.69% year-over-year growth in 2020. The pharmaceutical sector median for 2019 to 2020 revenue growth was just 4.69%. Considering this, I think the company is actually trading at a discount. AbbVie's current forward price-to-earnings (P/E) ratio of about 9 is below its high of 10.4 in late 2020.
GlaxoSmithKline has managed to separate itself from the pack in part by being a big player in the vaccine, HIV, and respiratory businesses. GSK's HIV segment brought in $6.5 billion last year. GlaxoSmithKline sells some other notable drugs like Advair, which combines two of its other asthma products, Flovent and Serevent. Respiratory is its biggest segment, pulling in over $9 billion in 2020.
Going forward, as the company spins off its consumer health business and turns to focus on research and development, earnings per share are expected to dip as the company temporarily loses sales. GlaxoSmithKline has also been trading at very cheap valuations compared to historical averages. Just in 2019, we saw the company trading between 15 and 20 times earnings. If we take a 15 P/E ratio and multiply it by 2020's earnings per share, we would get a stock price of around $47. This represents a 27% possible price appreciation, more than enough to beat the market if GlaxoSmithKline can make a run to old levels.
GlaxoSmithKline currently sports a 5.6% dividend yield while AbbVie offers a 4.4% yield. Compared to the SPDR S&P 500 ETF, which only yields 1.3%, these two companies more than excel in providing dividend income. Still off their all-time highs, these two companies can potentially deliver above-market returns in total stock price appreciation but can also outperform the indexes when delivering dividend income.
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Anirudh Shankar owns shares of AbbVie. 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. | AbbVie's continued sales from drugs like best-selling Humira, Skyrizi, and Rinvoq, suggest that it could grow its dividend well into the future. Pharma giants AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) boast high and sustainable dividend yields that are great for investors who want to see those dividends hit their account every three months. Still off their highs Both AbbVie and GlaxoSmithKline have been beaten down over the last 12 months, and are still trading off of their highs from before the COVID-19 crash in March 2020. | Pharma giants AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) boast high and sustainable dividend yields that are great for investors who want to see those dividends hit their account every three months. Growing dividends AbbVie has rewarded shareholders tremendously over the past few years through dividend increases. Still off their highs Both AbbVie and GlaxoSmithKline have been beaten down over the last 12 months, and are still trading off of their highs from before the COVID-19 crash in March 2020. | Pharma giants AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) boast high and sustainable dividend yields that are great for investors who want to see those dividends hit their account every three months. Growing dividends AbbVie has rewarded shareholders tremendously over the past few years through dividend increases. Shareholders holding AbbVie stock for the last five years have seen a compound annual growth rate on their dividends of 18.09%. | Despite growing earnings and raising its dividend over the past few years, AbbVie is 9% below its 2018 high of $123. Growing dividends AbbVie has rewarded shareholders tremendously over the past few years through dividend increases. Pharma giants AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) boast high and sustainable dividend yields that are great for investors who want to see those dividends hit their account every three months. | 126431ae-471f-40ca-8941-43ebd7b8771b |
24118.0 | 2021-04-28 00:00:00 UTC | Best Stocks To Invest In 2021? 4 Dividend Stocks To Watch | ABBV | https://www.nasdaq.com/articles/best-stocks-to-invest-in-2021-4-dividend-stocks-to-watch-2021-04-28 | nan | nan | Are These The Best Dividend Stocks To Buy Right Now?
If there’s one thing investors want in the stock market, it’s high yield dividend stocks that can produce a steady income stream that can sustain them throughout their life. When you think about dividend stocks, what comes to mind? Most likely, you’re thinking of some old, boring blue-chip stocks that barely move all year. As a result, it is not surprising that younger investors tend to stay away from these investments. Admittedly, these may be low-risk, low-return investments. But if you allocate a portion of your investments into top dividend stocks, you may be surprised at the calming effect that it brings to your portfolio.
When looking for the best dividend stocks, the yield isn’t everything. If you are an income investor in it for the long run, you know that steadily rising payouts are crucially important, too. After all, you wouldn’t want the target company to pay a 10% yield today and then say for example 2% in the following year. Therefore, if you manage to find a dividend stock with growing yields, it can be a valuable addition to your portfolio.
No doubt, investing in dividend stocks when growth stocks remain hot isn’t necessarily a wise thing to do. Especially when most attention is on Big Tech earnings this week. Yet, if you can find dividend stocks that can deliver above-average income and steady stock price appreciation, that may present a more attractive investment to some. Some of the bigger names out there with solid dividend yields are AT&T (NYSE: T) and Verizon Communications (NYSE: VZ). While some dividend stocks were hard hit by the coronavirus pandemic, others continue to rise. And they could continue rising higher. With that in mind, let’s focus on four dividend stocks that could manifest this growth.
Top Dividend Yield Stocks To Watch Now
Realty Income (NYSE: O)
AbbVie Inc. (NYSE: ABBV)
Chevron Corp. (NYSE: CVX)
Exxon Mobil Corp. (NYSE: XOM)
Realty Income
It’s one thing to get paid a dividend, but getting paid every month is even better, particularly if they have a high yield. Realty Income is one company that yields a dividend of 4.2% as of this writing. To those unfamiliar, Realty Income operates as a real estate investment trust (REIT). It leases its portfolio of thousands of commercial properties to notable clients globally. The company boasts some pretty big names under its belt, and that includes Home Depot (NYSE: HD), Walmart (NYSE: WMT), and FedEx (NYSE: FDX), all of whom have high credit ratings.
Source: TD Ameritrade TOS
The REIT has delivered more than 600 quarters of continuous dividend payouts and raised dividends for more than 90 consecutive quarters. Despite the devastating effect brought by the coronavirus pandemic, the company’s shares are up around 30% over the past 12 months and 13% year to date. Perhaps some of the clients may have faced financial headwinds because of the pandemic. But Realty Income continues to get paid. Considering most of its long-term leases and tenants are all major corporations with high credit ratings, it’s hard to go wrong with O stock in my opinion.
[Read More] 4 Consumer Discretionary Stocks To Watch Before May 2021
AbbVie Inc.
AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. With over 47,000 employees around the globe, it continues to come up with new approaches to address today’s health issues. The company has a broad portfolio of treatments in the field of oncology, immunology, and neuroscience to name a few. The company has recently announced its fourth-quarter profit and revenue that managed to beat expectations. And more importantly, the company pays you well to own its stock. Abbvie’s dividend yield stands at approximately 4.7%.
Source: TD Ameritrade TOS
That’s quite attractive for obvious reasons. But if the stock gains some momentum, that dividend will just be a big bonus to investors. However, there are a couple of issues that are holding the stock from skyrocketing. For one, the company’s top-selling drug Humira loses U.S. patent exclusivity in 2023. That means the company has to find an alternative drug to offset the anticipated sales decline. The delayed reviews of Rinvoq from FDA may deter some investors from diving right in. But the company remains confident about the prospects of FDA approval in treating atopic dermatitis and psoriatic arthritis. With all these in mind, do you have ABBV stock on your watchlist?
Read More
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Chevron
Chevron Corporation is one of the leading integrated oil and gas companies in the United States. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. After all, we are talking about a company with a history of 140 years. And more importantly, it has an attractive dividend yield of more than 5%. Sure, oil and gas stocks ain’t exactly the best investment in the stock market right now. But the company is keeping up with the times through its initiatives in hydrogen to support the green economy.
Source: TD Ameritrade TOS
Notably, its recent partnership with Toyota Motor Corporation (NYSE: TM) to explore the production and commercialization of hydrogen is getting investors all excited. Of course, commercializing the hydrogen economy is not something that could happen in the near term. Nevertheless, the company does have a few tricks up its sleeves. In early April, it announced a deal to supply Japan’s Hokkaido Gas Co., Ltd. with about a half-million tons of liquefied natural gas over a period of five years starting April 2022. With such exciting developments, is CVX stock a good dividend stock to buy now?
[Read More] Top 5 Things To Watch In The Stock Market This Week
Exxon Mobil
When looking for top dividend stocks, Exxon Mobil usually comes to mind. It is one of the largest oil and gas companies by market cap. For an oil giant with upstream and downstream services in the energy market, the recovery in oil prices has certainly helped with reassuring investors. XOM stock currently has a dividend yield of around 6%. It fits the bill as a long-time dividend distributor. Exxon proved its resilience by being one of the few O&G companies that did not suspend payout in 2020.
Source: TD Ameritrade TOS
Like most oil and gas companies, Exxon had a rough 2020 as well. But the oil market has started to stabilize and XOM stock has recovered some lost ground. The company initially had planned huge capital investments in 2019 but was majorly disrupted by the pandemic. Since then, Exxon has made significant adjustments to its planned capital spending in the next 5 years. Extra cash flow would go towards debt reduction and dividend payment. The company appears to be heading in the right direction. And this should give investors in XOM stock some peace of mind, especially those that stuck out during its steep price drop last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Dividend Yield Stocks To Watch Now Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Exxon Mobil Corp. (NYSE: XOM) Realty Income It’s one thing to get paid a dividend, but getting paid every month is even better, particularly if they have a high yield. [Read More] 4 Consumer Discretionary Stocks To Watch Before May 2021 AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. Abbvie’s dividend yield stands at approximately 4.7%. | Top Dividend Yield Stocks To Watch Now Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Exxon Mobil Corp. (NYSE: XOM) Realty Income It’s one thing to get paid a dividend, but getting paid every month is even better, particularly if they have a high yield. [Read More] 4 Consumer Discretionary Stocks To Watch Before May 2021 AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. Abbvie’s dividend yield stands at approximately 4.7%. | Top Dividend Yield Stocks To Watch Now Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Exxon Mobil Corp. (NYSE: XOM) Realty Income It’s one thing to get paid a dividend, but getting paid every month is even better, particularly if they have a high yield. [Read More] 4 Consumer Discretionary Stocks To Watch Before May 2021 AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. Abbvie’s dividend yield stands at approximately 4.7%. | Top Dividend Yield Stocks To Watch Now Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Exxon Mobil Corp. (NYSE: XOM) Realty Income It’s one thing to get paid a dividend, but getting paid every month is even better, particularly if they have a high yield. [Read More] 4 Consumer Discretionary Stocks To Watch Before May 2021 AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. Abbvie’s dividend yield stands at approximately 4.7%. | 17e1f147-045a-4541-9e1f-a3a9603297de |
24119.0 | 2021-04-28 00:00:00 UTC | Is AbbVie a Buy Before Its Earnings Report Friday? | ABBV | https://www.nasdaq.com/articles/is-abbvie-a-buy-before-its-earnings-report-friday-2021-04-28 | nan | nan | For savvy investors, trading stocks around the earnings cycle is a risky but common tactic. Especially for companies with highly reliable revenue, buying in before a major earnings report can often secure you a small bargain. In that vein, the pharma juggernaut AbbVie (NYSE: ABBV) reports its first-quarter earnings for 2021 on Friday, and investors will get new insights on how its pivot away from its blockbuster arthritis drug Humira is progressing.
But traders beware: The most likely scenario is that the stock barely budges. After all, AbbVie is a massive company, and the majority of its business will continue to perform in line with its long-running trends, with a few important exceptions. But for newer investors, understanding the business and making an informed decision on when to buy stock is important.
Image source: Getty Images.
Oncology and immunology sales probably keep booming
The strongest argument in favor of buying AbbVie before the earnings report is that revenue growth from its immunology drugs like Skyrizi and Rinvoq will be robust for the foreseeable future. Last year, net revenue for Skyrizi was $1.59 billion, and net revenue for Rinvoq was $731 million.
But management expects that revenue from the pair will only peak sometime in the early 2030s. In the medium term, Skyrizi and Rinvoq could net as much as $15 billion by 2025, which means that each earnings report between now and then will need to show tremendous growth if the company's own estimates are going to be met.
The report will also contain more precise timelines on when the next clinical data readouts will come out. And, if they're lucky, investors might get a sneak peek at a summary of some of the data. That would likely buoy the stock price, even if it's hard to imagine an effect beyond a percentage point or two.
How much longer can Humira be a cash cow?
Despite the prospect for good news stemming from hot sales in its immunology and oncology portfolios, the specter of ebbing Humira revenue still casts a long shadow over AbbVie. Biosimilar competition to Humira is in full force in markets outside the U.S., and over the course of 2020, international net revenue from the drug fell by 13.6%, reaching $3.72 billion. Investors should expect revenue from it to keep falling, and the only question is how fast. In 2023, exclusivity in the U.S. will end, further accelerating the loss of revenue.
The more rapidly that biosimilars eat Humira's market share, the less time AbbVie will have to bring its replacement programs online and preserve its overall revenue and earnings growth. So far, the company's efforts to get new indications approved for Humira have tempered the downward trend by creating small pockets of new growth, but the drug's peak revenue is firmly in the rearview mirror.
However, the market could still get spooked by a faster-than-expected contraction, which would harm shareholders who bought the stock right before the earnings report. On the other hand, if the rate of Humira revenue decay seems to be slowing down, it'll be seen as a positive sign.
Don't try to time the purchase
The takeaway message for potential buyers is that the upcoming earnings report isn't going to make or break the stock. Even if Humira revenue shrinks faster than expected or if the immunology and oncology portfolios outperform, the company's competitive positioning isn't going to change substantially.
And the general expectations about its shifting revenue base over the next few years will remain the same, which is far more important than the results of any given quarter. In other words, it probably won't make much of a difference whether someone buys AbbVie before or after the earnings report because any stock reaction will likely be small and temporary. It's a better strategy for investors who want to open a position in AbbVie today to buy and hold the stock for the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In that vein, the pharma juggernaut AbbVie (NYSE: ABBV) reports its first-quarter earnings for 2021 on Friday, and investors will get new insights on how its pivot away from its blockbuster arthritis drug Humira is progressing. Despite the prospect for good news stemming from hot sales in its immunology and oncology portfolios, the specter of ebbing Humira revenue still casts a long shadow over AbbVie. After all, AbbVie is a massive company, and the majority of its business will continue to perform in line with its long-running trends, with a few important exceptions. | Oncology and immunology sales probably keep booming The strongest argument in favor of buying AbbVie before the earnings report is that revenue growth from its immunology drugs like Skyrizi and Rinvoq will be robust for the foreseeable future. In that vein, the pharma juggernaut AbbVie (NYSE: ABBV) reports its first-quarter earnings for 2021 on Friday, and investors will get new insights on how its pivot away from its blockbuster arthritis drug Humira is progressing. After all, AbbVie is a massive company, and the majority of its business will continue to perform in line with its long-running trends, with a few important exceptions. | Oncology and immunology sales probably keep booming The strongest argument in favor of buying AbbVie before the earnings report is that revenue growth from its immunology drugs like Skyrizi and Rinvoq will be robust for the foreseeable future. The more rapidly that biosimilars eat Humira's market share, the less time AbbVie will have to bring its replacement programs online and preserve its overall revenue and earnings growth. In other words, it probably won't make much of a difference whether someone buys AbbVie before or after the earnings report because any stock reaction will likely be small and temporary. | * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! In that vein, the pharma juggernaut AbbVie (NYSE: ABBV) reports its first-quarter earnings for 2021 on Friday, and investors will get new insights on how its pivot away from its blockbuster arthritis drug Humira is progressing. After all, AbbVie is a massive company, and the majority of its business will continue to perform in line with its long-running trends, with a few important exceptions. | 853cb863-c5c4-4936-99a0-49d736dac36b |
24120.0 | 2021-04-28 00:00:00 UTC | 7 Pharmaceutical Stocks With Dividends in Hand | ABBV | https://www.nasdaq.com/articles/7-pharmaceutical-stocks-with-dividends-in-hand-2021-04-28 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
News of game-changing drugs, treatments and vaccines may dominate the headlines when it comes to pharmaceutical stocks. But, taking a gamble with high-risk, high-possible return biotech stocks isn’t the only way to approach this sector. There are less risky opportunities in this space.
Sure, they may not generate the triple-digit percentage gains we’ve seen in recent months. But, offering the potential of solid long-term returns, they make great buys for most investors. I’m talking about “big pharma” stocks.
What’s the main appeal? Reasonable valuations are one strength. Sure, growth isn’t off the charts with most of these names. But, their relatively low forward multiples make them appealing opportunities for more value-focused investors. But, the largest strength is in their dividend generating abilities.
Consumer products, telecom, and utilities stocks may make up the bulk of great dividend plays. But, big pharma is another prime hunting ground for investors focused on generating income from their portfolios. This sector includes many high-quality, well-capitalized companies, all offering dividend yields that are very appealing in today’s near-zero interest rate environment.
7 Stocks to Buy for May
So, which pharmaceutical stocks should be on your radar, if dividends are a top priority? Consider these seven compelling opportunities:
AbbVie (NYSE:ABBV)
Bristol-Myers Squibb (NYSE:BMY)
Gilead Sciences (NASDAQ:GILD)
GlaxoSmithKline (NYSE:GSK)
Johnson & Johnson (NYSE:JNJ)
Merck & Co. (NYSE:MRK)
Novartis (NYSE:NVS)
Pharmaceutical Stocks: AbbVie (ABBV)
Yielding 4.97%, ABBV stock is an intriguing opportunity based upon its dividend alone. But, its fat payout isn’t the only reason this stock may be of interest. Shares could also see a gradual boost thanks to continued earnings growth this year and the next.
The pharma company, formerly a component of Abbott Laboratories (NYSE:ABT), has long been dependent on the profits from its blockbuster drug, Humira. Even as recently as last year, the rheumatoid arthritis treatment made up $16.1 billion of its $45.8 billion in annual sales. But, the company has several other drugs in its portfolio that could make up the difference once Humira goes generic.
These include cancer treatment Imbruvica, with $5.3 billion in sales last year, and leukemia treatment Venclexta, which only generated $365 million in sales last year, but saw 46.2% sales growth. Put it all together, and the company has enough in play to give shares, holding steady at around $120 per share, a boost going forward.
This may not be a stock you will get rich on. But, if you’re looking for high yield, and the opportunity for solid appreciation, keep AbbVie on your watch list.
Bristol-Myers Squibb (BMY)
Source: Piotr Swat / Shutterstock.com
With a forward yield of 2.97%, Bristol-Myers Squibb isn’t the highest-yielding of the pharmaceutical stocks. But, with its single-digit price-to-earnings (P/E) ratio (8.8x), and a payout ratio of just 26.2%, consider this a value play that could see a boost if management decides to return more capital to shareholders.
Granted, with its dividend growth rate averaging 4.62% over the past five years, it’s so far not done much to boost the payout. Yet, with a $6.4 billion share buyback plan, there’s at least something on the table that could help give BMY stock a shot in the arm.
Bristol Myers-Squibb may not be making many headlines compared to other big pharma names. Especially the ones that brought novel coronavirus vaccines to market. But, as Truist’s Gregg Gilbert made the case earlier this month, Wall Street isn’t giving this company’s drug pipeline enough credit. Per the analyst, its drug development pipeline (made up of 150 programs in clinical trials) could be worth as much as $30 per share (the stock trades for around $66 per share).
7 Stocks to Buy for May
Based on analyst estimates, expect modest earnings growth (high single digits) for BMY stock in 2021 and 2022. Yet, with the buyback program, the ability to increase its dividend and, of course, the potential of multiple expansion, there’s much in play that could help send this stock, which has essentially traded sideways over the past year, toward $75 per share and beyond.
Pharmaceutical Stocks: Gilead Sciences (GILD)
Source: Sundry Photography / Shutterstock.com
Last summer, Gilead thought it had a hit on its hands with Covid-19 treatment Veklury. But, fast-forward to now, and this product is no longer helping to boost this pharma stock.
Yes, when released for emergency use, it generated around $900 million in sales between July and September 2020 alone. Yet, as it became clear demand for the drug would fall sharply short of expectations, investors bid down GILD stock, from around $80 per share to prices under $57 per share.
Since late last year, it’s slightly recovered. But, with Veklury’s success a one-and-done event, earnings are set to slightly slip over the next year. Investor interest in this play dropped like a stone. But, those buying in now may find it to be another appealing value play in the healthcare space.
Sporting a low forward P/E of 9.2x, it’s clear the disappointment from Veklury has been more than priced-in. Not only that, with its 4.3% dividend yield, you can get paid while you wait for investor interest to once again return to GILD stock. Possible gains may not be massive. But, if you’re looking for yield, with the potential for appreciation, consider this another one of the best pharmaceutical stocks out there to buy.
GlaxoSmithKline (GSK)
Source: Willy Barton / Shutterstock.com
For now, with its 5.62% yield, GSK stock is a great dividend play. But, this may not last for long. As one Seeking Alpha contributor recently pointed out, with the company’s spinoff of its customer products segment, it’s a definite we’ll see a dividend cut in 2022. Without its portfolio of cash-cow over-the-counter brands like Advil, Centrum, and Sensodyne, it’s not hard to see why.
So, with the specter of a dividend reduction, why buy this, either for its yield, or its ability to rise in value? Some, like the analyst referenced above, may have a more cautious take on GlaxoSmithKline going forward. But, sales side analysts at U.K. firm Liberum would counter that a major ramp-up in growth for this segment is just a few years away.
Strong prospects for growth among its oncology and vaccine offerings may help turbocharge earnings through the end of the decade. With investors so far not factoring this into today’s valuation, there may be a path for this stock, which after a year of lackluster returns, could deliver in the years to come.
7 Stocks to Buy for May
Buying now, ahead of the spinoff completion, gives you another opportunity as well: possible upside from said transaction unlocking shareholder value. GSK stock hasn’t set the world on fire for many years. Yet, if the aforementioned bullish forecast winds up true, it may be on the verge of making up for lost time.
Pharmaceutical Stocks: Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
JNJ stock sports a forward dividend yield of 2.6%. Again, not the highest among pharmaceutical stocks. But, still a high yield in today’s low-interest rate environment. Not only that, as a “dividend aristocrat,” with its dividend getting raised 58 years in a row, this remains one of the highest-quality names for investors looking for yield.
Most of the news around Johnson & Johnson lately has been about its Covid-19 vaccine. After reports of blood clotting among six women who took the vaccine, distribution of it was temporarily paused. Said pause has now been lifted. But, while it’s garnered the company the most attention in recent weeks, this isn’t a make-or-break factor for JNJ stock.
Sure, it could generate $3 billion in revenues in the U.S. alone, if the federal Government fully executes its agreement to buy 300 million doses. Yet, for a company with around $84 billion in annual sales, this amount is a relative drop in the bucket. In short, don’t expect its vaccine news (good or bad) to have a material impact on the stock.
Much like some of the other pharma names discussed in this gallery, the play with JNJ stock is a slow one. That is, don’t expect shares to experience jaw-dropping gains. But, over the long term, with gradual growth in its earnings, and a solid dividend with a long track record of increases, this venerable healthcare play will likely continue to produce solid returns for investors.
Merck & Co. (MRK)
Source: Atmosphere1 / Shutterstock.com
Merck is another major pharmaceutical stock offering an above-average yield. But, with shares trading around $80 per share since 2019, can investors buy this today and be confident it’ll get out of its slump, and start heading to higher price levels?
It’s possible. Sure, at around 12x forward earnings, MRK stock is cheap compared to the overall market. But, it’s in line with the valuations sported by many of its peers. Yet, with low double-digit earnings growth expected this year and the next, shares could see an upward movement if Wall Street decides this stock has been unfairly undervalued, and decides to reassess its valuation.
As InvestorPlace’s Tezcan Gecgil wrote April 2, the company has a leading portfolio of treatments. These include cancer treatment Keytruda (its best selling drug), HPV vaccine Gardasil, and anti-diabetes drug Januvia. It may have thrown in the towel in developing its own Covid-19 vaccine candidate.
7 Stocks to Buy for May
But, with its current offerings, plus the potential for the possible treatments in its pipeline, Merck could be set to continue to generate solid earnings growth, and increase its dividend payout (which has grown 6.72% per year on average over the past five years). Together, these could result in this stock – stuck in the mud for the past three years – generating solid gains again for investors.
Pharmaceutical Stocks: Novartis (NVS)
Source: Denis Linine / Shutterstock.com
Novartis is another high-yielding (3.62%) pharma play whose stock price hasn’t exactly moved much over the past few years. This is understandable, given the company’s modest earnings growth projections (around 6.3% between 2021 and 2022).
But, as InvestorPlace’s Alex Sirois wrote in March, the company may have two potential blockbuster drugs in its pipeline. These are multiple sclerosis treatment Kesimpta and cardiovascular treatment Leqvio. For Kesimpta, the company has already gotten the green light from European Union and UK regulators. The company has also obtained FDA approval as well. As Sirois broke it down, the situation for Leqvio is a bit more tricky: it’s getting rolled out in Europe.
Yet, its U.S. debut has been delayed by production headwinds. Even so, this may end up being a temporary setback. So, what’s the upshot here? Admittedly, the range in earnings growth estimates for 2021 and 2022 are a bit tight. The most optimistic sell-side projections call for earnings of $6.36 per share this year, and as much as $7.01 per share next year.
This may mean, even with the aforementioned drugs, neither one may not be a major game-changer for NVS stock. Yet, with its current payout likely safe, it may make a great opportunity for income investors. Future gains may not be massive. But, its modest earnings growth, coupled with the yield, could mean strong returns over the long run.
On the date of publication, Thomas Niel did not (either directly or indirectly) hold any positions in the securities mentioned in this article.
Thomas Niel, a contributor to InvestorPlace, has written single stock analysis since 2016.
The post 7 Pharmaceutical Stocks With Dividends in Hand 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. | Consider these seven compelling opportunities: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck & Co. (NYSE:MRK) Novartis (NYSE:NVS) Pharmaceutical Stocks: AbbVie (ABBV) Yielding 4.97%, ABBV stock is an intriguing opportunity based upon its dividend alone. But, if you’re looking for high yield, and the opportunity for solid appreciation, keep AbbVie on your watch list. But, as Truist’s Gregg Gilbert made the case earlier this month, Wall Street isn’t giving this company’s drug pipeline enough credit. | Consider these seven compelling opportunities: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck & Co. (NYSE:MRK) Novartis (NYSE:NVS) Pharmaceutical Stocks: AbbVie (ABBV) Yielding 4.97%, ABBV stock is an intriguing opportunity based upon its dividend alone. But, if you’re looking for high yield, and the opportunity for solid appreciation, keep AbbVie on your watch list. 7 Stocks to Buy for May Based on analyst estimates, expect modest earnings growth (high single digits) for BMY stock in 2021 and 2022. | Consider these seven compelling opportunities: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck & Co. (NYSE:MRK) Novartis (NYSE:NVS) Pharmaceutical Stocks: AbbVie (ABBV) Yielding 4.97%, ABBV stock is an intriguing opportunity based upon its dividend alone. But, if you’re looking for high yield, and the opportunity for solid appreciation, keep AbbVie on your watch list. InvestorPlace - Stock Market News, Stock Advice & Trading Tips News of game-changing drugs, treatments and vaccines may dominate the headlines when it comes to pharmaceutical stocks. | Consider these seven compelling opportunities: AbbVie (NYSE:ABBV) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) GlaxoSmithKline (NYSE:GSK) Johnson & Johnson (NYSE:JNJ) Merck & Co. (NYSE:MRK) Novartis (NYSE:NVS) Pharmaceutical Stocks: AbbVie (ABBV) Yielding 4.97%, ABBV stock is an intriguing opportunity based upon its dividend alone. But, if you’re looking for high yield, and the opportunity for solid appreciation, keep AbbVie on your watch list. InvestorPlace - Stock Market News, Stock Advice & Trading Tips News of game-changing drugs, treatments and vaccines may dominate the headlines when it comes to pharmaceutical stocks. | 24e85f8d-d480-4202-926e-7fe9b4a15a88 |
24121.0 | 2021-04-27 00:00:00 UTC | Does This First-in-Class Acquisition Make Amgen a Buy? | ABBV | https://www.nasdaq.com/articles/does-this-first-in-class-acquisition-make-amgen-a-buy-2021-04-27 | nan | nan | Amgen (NASDAQ: AMGN) recently agreed to acquire biotechnology start-up Rodeo Therapeutics in an all-cash deal. Amgen will buy all outstanding shares of Rodeo for a total of $55 million. However, Rodeo stakeholders will be able to receive up to an additional $666 million in cash if certain milestones are met. For investors, the key questions are: How good is this deal for Amgen, and should you consider buying the stock now?
Behind the deal
The California-based biotechnology giant made this purchase to expand its inflammation portfolio. It is Amgen's second acquisition of 2021 -- last month, it bought Five Prime Therapeutics for $1.9 billion. Through this deal, Amgen will get its hands on Rodeo's collection of assets targeting prostaglandins, a group of signaling molecules that play a role in tissue repair and regeneration. One drug that Amgen seems to have a lot of interest in is 15-prostaglandin dehydrogenase or 15-PDGH, which breaks down prostaglandins.
Image source: Getty Images.
Pumping up the pipeline
Rodeo has been focused on developing drugs and therapies that will aid in tissue regeneration and repair. It's an industry leader in the development of, and data collection on, prostaglandins and their various enzymes. Amgen will get access to an array of studies and clinical trials, giving it the potential to treat multiple illnesses related to inflammation using this 15-PGDH enzyme.
There has actually been quite a bit of interest in Rodeo Therapeutics' pipeline from multiple (unidentified) companies for some time now, but Amgen came out the winner. Following its founding in 2017, the small biotechnology start-up went through several funding rounds to support its work relating to tissue regeneration. In its 2017 series A funding round, players including AbbVie, Johnson & Johnson, and Eli Lilly invested a combined $5.9 million in it, reflecting their perception of its research's potential.
Amgen will look to integrate all of Rodeo's drugs and therapies into its inflammation portfolio, where it will work to create new drugs with the potential to repair and regenerate human tissue. In a statement, Amgen said that Rodeo's 15-PGDH will play a key role in its research into stem cell self-renewal, among other things. Given the extent of Rodeo's data collection from clinical trials, these treatments could come to market sooner rather than later.
Why you should consider buying now
Amgen's current lineup features a number of blockbusters, including newer drugs Otezla (psoriasis) and Prolia (osteoporosis). Otezla did almost $2.2 billion in sales in 2020, up from just $178 million in 2019, when it was launched. These drugs have massive long-term potential. Between those, its own pipeline candidates, and the drugs acquired from Rodeo and Five Prime, Amgen will have plenty of fuel to drive growth. And at its current share price, its dividend yields 2.74%, more than double the S&P 500's current yield of 1.32%. Amgen recently increased its annualized payout by 10% to $7.04 a share.
Expect the company's latest acquisitions to bolster its pipeline and maintain Amgen as a great investment for the long term.
10 stocks we like better than Amgen
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amgen wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Anirudh Shankar owns shares of AbbVie. The Motley Fool recommends Amgen and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In its 2017 series A funding round, players including AbbVie, Johnson & Johnson, and Eli Lilly invested a combined $5.9 million in it, reflecting their perception of its research's potential. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of AbbVie. Through this deal, Amgen will get its hands on Rodeo's collection of assets targeting prostaglandins, a group of signaling molecules that play a role in tissue repair and regeneration. | In its 2017 series A funding round, players including AbbVie, Johnson & Johnson, and Eli Lilly invested a combined $5.9 million in it, reflecting their perception of its research's potential. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of AbbVie. Amgen (NASDAQ: AMGN) recently agreed to acquire biotechnology start-up Rodeo Therapeutics in an all-cash deal. | In its 2017 series A funding round, players including AbbVie, Johnson & Johnson, and Eli Lilly invested a combined $5.9 million in it, reflecting their perception of its research's potential. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of AbbVie. Amgen will buy all outstanding shares of Rodeo for a total of $55 million. | In its 2017 series A funding round, players including AbbVie, Johnson & Johnson, and Eli Lilly invested a combined $5.9 million in it, reflecting their perception of its research's potential. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of AbbVie. Amgen (NASDAQ: AMGN) recently agreed to acquire biotechnology start-up Rodeo Therapeutics in an all-cash deal. | b45008e6-8e97-4692-8979-4fbb8f4c2b7b |
24122.0 | 2021-04-26 00:00:00 UTC | 3 Top Blue-Chip Healthcare Stocks With Healthy Dividends | ABBV | https://www.nasdaq.com/articles/3-top-blue-chip-healthcare-stocks-with-healthy-dividends-2021-04-26 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The healthcare sector is an excellent place to find high-quality companies that produce consistent growth over long periods of time. Because of the continuously strong demand for healthcare, there are many blue-chip healthcare stocks that pay dividends to shareholders that grow over time.
Healthcare stocks should see growth moving forward, due to a major demographic trend: the aging U.S. population. It is estimated that more than half of the U.S. population will be above the age of 80 by the end of the current decade. This trend will be seen in many developed nations around the world as well.
As a result, income investors looking for safe dividends should consider the healthcare sector, and these three healthcare stocks in particular.
8 Hot, A-Rated Small-Cap Stocks to Buy Now
Blue-chip companies are often with steady growth in their profits and dividends over many years. The companies discussed in this article will likely rise to meet the challenge of serving an aging population.
These companies are all long-time reliable dividend payers, with two of them just one year away from attaining dividend king status, as their dividend streaks now stand at 49 years. The third’s back-to-back 10%-plus annual dividend increases show that the company expects earnings per share to grow meaningfully.
Investors looking for quality blue-chip healthcare stocks should start with these three:
Abbott Laboratories (NYSE:ABT)
Becton, Dickinson & Co. (NYSE:BDX)
Merck & Company (NYSE:MRK)
Healthcare Stocks: Abbott Laboratories (ABT)
Source: Sundry Photography/Shutterstock.com
Abbott Laboratories has been in business since the late 19th century and has grown into one of the largest names in health care. This $216 billion market company has annual sales of $35 billion.
The company has seen a massive contribution from Covid-19 related testing equipment since the onset of the pandemic. Sales grew more than 35% in the most recent quarter. Excluding Covid-19 related products, sales still grew nearly 8%, showing that Abbott Laboratories is more than just a Covid-19 story.
EPS is expected to be at least $5 in 2021, representing growth of 37% from the prior year. For context, since 2013, when Abbott spun off AbbVie (NYSE:ABBV), EPS has a compound annual growth rate of 7.8%.
Abbott was able to very quickly adapt to the challenges of Covid-19 and reap the rewards of diagnostic demand. This gives a glimpse into the company’s ability to innovate, something that should allow it to capture how market share in products that people will require as they age.
Innovation is how the company has been able to raise its dividend for 49 consecutive years. Abbott has paid an uninterrupted dividend for nearly 400 consecutive quarters.
Shareholders have received an average annual dividend increase of 12.5% since 2013, with the most recent increase resulting in a 25% raise. With an annualized dividend of $1.80, ABT stock has an expected payout ratio of 36%. The average payout ratio is below 40% since 2013.
Abbott has a long and storied history and has proven itself successful at bringing products to market that consumers need. Covid-19 related testing equipment is emblematic of this innovation. Abbott has capitalized on success and rewarded shareholders with a growing dividend for nearly five decades.
Just as important, the payout ratio is extremely healthy and leaves the room for continues dividend raises in the coming years.
Becton, Dickinson & Co. (BDX)
BDX) office in Ontario, Canada." width="300" height="169">
Source: JHVEPhoto / Shutterstock.com
Becton, Dickinson & Co. is another medical device company that was founded in the late 1890s. The company is valued at almost $76 billion and had sales in excess of $17 billion in fiscal year 2020.
BD has taken great steps to add to its core businesses over the past few years through acquisitions. Its most recent was acquiring C.R. Bard at the end of 2017. This acquisition greatly enhanced BD’s offerings in the area of intervention, specifically in vascular, oncology and urology.
The $24 billion purchase of Bard was made primarily from cash, which restricted BD’s ability to grow its dividend over the past few years. Following several years of sub-3% dividend growth, shareholders received a 5% increase late last year. Despite low growth over the past few years, the dividend has a compound annual growth rate of almost 9% over the last 10 years. BD’s next increase will mark the company’s 50th consecutive year of dividend growth.
With an annualized dividend of $3.32 and expected EPS of $12.80 for 2021, BD has a projected payout ratio of 26%, lower than the 10-year average payout ratio of 31%. BD has been so effective at growing its bottom line over the years that its dividend payout ratio has not been above the 35% level since at least 2011.
BD continues to evolve its business and the company has proven recently that it isn’t afraid to make large purchases to expand its reach. While the addition of Bard led to muted dividend growth in the short-term, the long-term benefits of the acquisition will prove fruitful to BD, especially as our society ages.
And with this catalyst for growth, combined with a low payout ratio, BD shareholders should continue to see a rising dividend.
Healthcare Stocks: Merck & Company (MRK)
MRK) logo outside of corporate building" width="300" height="169">
Source: Atmosphere1 / Shutterstock.com
With a market capitalization approaching $200 billion, Merck & Company is one of the largest healthcare companies in the world. Merck had revenue of $52 billion in 2020.
Merck has multiple products in its portfolio that are showing strong growth rates. Key amongst them is Keytruda, which is used as a first line treatment option in several different cancers. The product grossed more than $14 billion in 2020 and could be headed for peak sales in the mid-$20 billion range. Growth will be led by new indications as well.
Keytruda is patent protected in key markets well until at least the end of this decade. For example, Merck won’t lose protection on its top selling product until 2028 in the U.S., 2030 in the EU and 2032 in Japan.
Undoubtedly, Keytruda is very important to the company, but Merck has additional products that are also important to future success. The company’s line of vaccines, highlighted by HPV vaccine Gardasil, have shown solid growth rates. Gardasil saw some pandemic-related challenges in 2020, but was seeing high demand in key markets such as China, which did return to growth in the most recent quarter.
Merck also maintains a leadership position in animal health, which provides for some diversification away from pharmaceuticals and vaccines.
Merck’s dividend history isn’t as lengthy as the other names in this article, with just nine years of dividend increases. The dividend has compounded at a pedestrian rate of less than 4% since 2010. However, the last two dividend increases that shareholders have received were both in the double digits.
The new annualized dividend of $2.60 is expected to consume just 40% of expected EPS of $6.58 for the year. Merck’s average payout ratio since 2011 is 46%.
As one of the largest pharmaceutical companies in the world, Merck has a size and scale not easily matched. The company should continue to benefit from Keytruda as the drug doesn’t begin to lose patent protection until the end of this decade.
The dividend payout ratio has been rather consistent over the last 10 years. The dividend growth rate has increased alongside growth for EPS. Powered by a strong business model, investors can likely expect to see higher dividend increases.
On the date of publication, Bob Ciura was long MRK stock. He did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post 3 Top Blue-Chip Healthcare Stocks With Healthy Dividends 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. | For context, since 2013, when Abbott spun off AbbVie (NYSE:ABBV), EPS has a compound annual growth rate of 7.8%. The $24 billion purchase of Bard was made primarily from cash, which restricted BD’s ability to grow its dividend over the past few years. BD continues to evolve its business and the company has proven recently that it isn’t afraid to make large purchases to expand its reach. | For context, since 2013, when Abbott spun off AbbVie (NYSE:ABBV), EPS has a compound annual growth rate of 7.8%. Because of the continuously strong demand for healthcare, there are many blue-chip healthcare stocks that pay dividends to shareholders that grow over time. Investors looking for quality blue-chip healthcare stocks should start with these three: Abbott Laboratories (NYSE:ABT) Becton, Dickinson & Co. (NYSE:BDX) Merck & Company (NYSE:MRK) Healthcare Stocks: Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbott Laboratories has been in business since the late 19th century and has grown into one of the largest names in health care. | For context, since 2013, when Abbott spun off AbbVie (NYSE:ABBV), EPS has a compound annual growth rate of 7.8%. These companies are all long-time reliable dividend payers, with two of them just one year away from attaining dividend king status, as their dividend streaks now stand at 49 years. Investors looking for quality blue-chip healthcare stocks should start with these three: Abbott Laboratories (NYSE:ABT) Becton, Dickinson & Co. (NYSE:BDX) Merck & Company (NYSE:MRK) Healthcare Stocks: Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbott Laboratories has been in business since the late 19th century and has grown into one of the largest names in health care. | For context, since 2013, when Abbott spun off AbbVie (NYSE:ABBV), EPS has a compound annual growth rate of 7.8%. Despite low growth over the past few years, the dividend has a compound annual growth rate of almost 9% over the last 10 years. BD’s next increase will mark the company’s 50th consecutive year of dividend growth. | 31166196-7b87-4aa1-824c-0f8c2182c7d7 |
24123.0 | 2021-04-25 00:00:00 UTC | The Best Dividend Stocks to Buy With $300 Right Now | ABBV | https://www.nasdaq.com/articles/the-best-dividend-stocks-to-buy-with-%24300-right-now-2021-04-25 | nan | nan | You don't have to have a lot of money to start investing. And buying stocks that pay solid dividends gives you additional money on a regular basis to invest even more.
There are two primary things to look for with dividend stocks. The dividend yield -- how much a stock's annual dividend payments are divided by its share price -- is key. Just as important, though, is the ability of the company to continue paying (and preferably increasing) dividends over the long term.
What are some top picks that offer attractive dividends for investors with only a modest amount of cash? Here are three of the best dividend stocks to buy with $300 right now.
Image source: Getty Images.
AbbVie
You can currently buy one share of AbbVie (NYSE: ABBV) for around $111. The big drugmaker pays you pretty well to own its stock, too. AbbVie's dividend yield stands at 4.7%.
The odds look really good that AbbVie's dividends will grow over the long term. The company has increased its dividend for 49 consecutive years. It's only one dividend hike away from becoming a Dividend King -- the highest echelon of dividend royalty.
There are a couple of issues to be aware of with AbbVie, though. The company's top-selling drug, Humira, loses U.S. patent exclusivity in 2023. AbbVie expects its total revenue to fall year over year when that happens. Also, the U.S. Food and Drug Administration (FDA) has delayed its reviews of Rinvoq in treating atopic dermatitis and psoriatic arthritis. AbbVie is counting on the autoimmune disease drug to help offset the anticipated sales declines for Humira.
Still, AbbVie remains confident about the prospects for FDA approval of Rinvoq in the two indications. The drug has already won FDA approval in treating rheumatoid arthritis. Assuming Rinvoq and other drugs in AbbVie's lineup achieve their potential, the company expects to quickly return to growth after Humira loses exclusivity.
Pfizer
Pfizer's (NYSE: PFE) share price is under $40 right now. Its dividend yields nearly 4%. Note, though, that the giant pharma company will soon cut its dividend payment.
You don't have anything to be concerned about with this cut. It's being done in conjunction with Viatris initiating a dividend. Viatris was formed in November 2020 through the merger of Pfizer's Upjohn unit and Mylan. Pfizer's dividend will only be reduced by a small amount.
Overall, though, Pfizer appears to be in an excellent position to increase its dividend in the future. The company is in a stronger position for growth with the older drugs that were part of Upjohn no longer in its lineup.
Pfizer's prospects of solid recurring revenue from its COVID-19 vaccine are also looking increasingly better. The big drugmaker and its partner BioNTech recently signed a deal with the European Union (EU) to supply another 100 million doses of the vaccine, bringing the total supplied to 600 million doses. The two companies are also in negotiations with the EU to supply another 1.8 billion doses through 2023.
Verizon Communications
Verizon Communications' (NYSE: VZ) share price is currently below $60. The telecommunications company's dividend yield tops 4.3%. Verizon has increased its dividend payout for 14 consecutive years.
The company should be in good shape to keep that streak of dividend hikes going. Verizon reported solid if not spectacular revenue and earnings growth in its latest quarterly update. It has a relatively strong financial position.
Verizon's momentum could even accelerate. It's one of the best ways to invest in 5G. The high-speed wireless technology is only in its early stages right now but should be a key growth driver for Verizon over the next few years.
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Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool recommends Verizon Communications and 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. | Assuming Rinvoq and other drugs in AbbVie's lineup achieve their potential, the company expects to quickly return to growth after Humira loses exclusivity. AbbVie You can currently buy one share of AbbVie (NYSE: ABBV) for around $111. AbbVie's dividend yield stands at 4.7%. | Assuming Rinvoq and other drugs in AbbVie's lineup achieve their potential, the company expects to quickly return to growth after Humira loses exclusivity. AbbVie You can currently buy one share of AbbVie (NYSE: ABBV) for around $111. AbbVie's dividend yield stands at 4.7%. | AbbVie You can currently buy one share of AbbVie (NYSE: ABBV) for around $111. AbbVie's dividend yield stands at 4.7%. The odds look really good that AbbVie's dividends will grow over the long term. | AbbVie You can currently buy one share of AbbVie (NYSE: ABBV) for around $111. AbbVie's dividend yield stands at 4.7%. The odds look really good that AbbVie's dividends will grow over the long term. | 08a7410e-6ba5-461a-85bb-56f8dbe61e0f |
24124.0 | 2021-04-24 00:00:00 UTC | This Risk Might Shock Anyone Holding Johnson & Johnson Stock | ABBV | https://www.nasdaq.com/articles/this-risk-might-shock-anyone-holding-johnson-johnson-stock-2021-04-24 | nan | nan | Before the pandemic, the national health crisis on many people's minds was the opioid epidemic. Between 1999 and 2019, the drugs led to the overdose deaths of more than 500,000 Americans. Although many companies have come under scrutiny for their role in the problem, perhaps none is better-known than Johnson & Johnson (NYSE: JNJ).
The biggest U.S. healthcare company has already had one large judgment go against it, and it is actively fighting others. As it and three other drug companies go on trial this week in California, shareholders might be underestimating just how massive a potential verdict could be.
Image source: Getty Images.
The reckoning
Many opioid-related cases were put off during 2020. Although this one will be conducted virtually, four California counties will begin making the case against Johnson & Johnson, as well as Teva Pharmaceuticals (NYSE: TEVA), Endo International (NASDAQ: ENDP), and Allergan, a division of Abbvie (NYSE: ABBV). The counties claim the companies used deceptive marketing to downplay the drugs' addictive nature and they should pay for solving the problem they helped create.
The first phase of the trial will determine if the companies should be held responsible. That is likely to take months. If they are, the next phase would be for the counties to make the economic case for penalties and restitution. They are expected to seek $50 billion in damages. It's a massive number and would likely crush the stocks, but is it realistic?
Can history be a guide?
Johnson & Johnson ended the first quarter of 2021 with $9 billion of cash on its balance sheet. That sounds like a lot of money, but it could evaporate quickly if verdicts go against it. To figure out whether the California counties might actually get what they are asking for, we can use the only previous fully litigated judgment. In 2019, the company was ordered to pay $465 million for its role in Oklahoma's crisis. We can use this as a jumping-off point to make an educated guess.
Based on Oklahoma's $201 billion gross domestic product (GDP), we can calculate the percent of annual economic activity the penalty makes up. It's about 0.23%. California's GDP is a massive $2.8 trillion annually, but only four of the state's 58 counties are named in the suit.
Using the population of each, and comparing it to the state's 39.5 million people, we can estimate that the GDP for those counties makes up roughly $1.1 trillion. Now, using Johnson & Johnson's Oklahoma judgment, we can guess that the company's liability in these California counties would be about $2.54 billion.
COUNTY POPULATION PERCENT OF POPULATION
Los Angeles 10.08 million 25.5%
Orange 3.17 million 8%
Santa Clara 1.93 million 4.9%
City of Oakland 425,000 1.1%
Total 15.61 million 39.5%
Data source: U.S. Census Bureau.
Of course, this back-of-the-envelope math isn't an indication that the companies will be found liable, or that the judge will deem the argument for financial damages compelling. However, it does give a sense of just how big the problem could be for Johnson & Johnson. With more than 3,000 lawsuits across the country targeting opioid drugmakers and distributors, verdicts could add up quickly. The non-partisan group Society of Actuaries did an analysis just for the year 2018, and estimated the economic effect of the opioid crisis to be $179 billion.
A history of fighting back
One thing shareholders have going for them is the company's tendency to aggressively defend itself against litigation. Many judgments against it over the past decade have been reduced after extended appeals. Unfortunately, there have been a lot of lawsuits to fight.
In 2018, a jury awarded 22 plaintiffs $4.7 billion after they alleged the company knowingly sold talcum powder that contained asbestos, leading to ovarian cancer. The company ultimately lost its appeal, although the damages were reduced to $2.2 billion. Despite the company denying wrongdoing, the product was pulled from shelves in the U.S. and Canada.
In 2019, the company agreed to pay about $1 billion to settle lawsuits associated with its artificial hip. The defective product was discontinued in 2013 but left some patients unable to walk and in extreme pain. The settlement covered about 95% of the outstanding cases.
Last year, the company saw an $8 billion verdict reduced to less than $7 million for its antipsychotic drug, Risperdal. The company still faces thousands of cases alleging it marketed the drug for controlling children with behavioral issues and elderly nursing home and dementia patients, despite it not being approved for that purpose. In 2013, it agreed to pay $2.2 billion for illegally targeting the young and the elderly.
A calculated risk
Anyone who owns shares of Johnson & Johnson accepts the potential for billion-dollar judgments. The company consistently fights these suits and has some powerful backers. In fact, even the U.S. Chamber of Commerce is supporting the company in its attempt to appeal the Oklahoma talcum judgment to the U.S. Supreme Court.
Despite the blemishes, it is still the largest healthcare company in the U.S. and manages to keep its brand in relatively high regard. With an administration focused on dealing with the opioid epidemic and pandemic-delayed trials kicking off, the pressure will be on from both regulators and shareholders to put the issue behind them.
Late last year, the company upped its contribution to $5 billion for an all-in opioid settlement with the states. California's demands make it clear that that is woefully short of what is being sought. The longer these trials go on without a comprehensive settlement, the higher the risk of a catastrophic judgment against the company in one of the thousands of suits that remain. Shareholders shouldn't panic, but they shouldn't be surprised if the opioid crisis ends up costing them a lot more than the company has implied so far.
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Jason Hawthorne has no position in any of the stocks mentioned. 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 this one will be conducted virtually, four California counties will begin making the case against Johnson & Johnson, as well as Teva Pharmaceuticals (NYSE: TEVA), Endo International (NASDAQ: ENDP), and Allergan, a division of Abbvie (NYSE: ABBV). Based on Oklahoma's $201 billion gross domestic product (GDP), we can calculate the percent of annual economic activity the penalty makes up. In 2018, a jury awarded 22 plaintiffs $4.7 billion after they alleged the company knowingly sold talcum powder that contained asbestos, leading to ovarian cancer. | Although this one will be conducted virtually, four California counties will begin making the case against Johnson & Johnson, as well as Teva Pharmaceuticals (NYSE: TEVA), Endo International (NASDAQ: ENDP), and Allergan, a division of Abbvie (NYSE: ABBV). Based on Oklahoma's $201 billion gross domestic product (GDP), we can calculate the percent of annual economic activity the penalty makes up. Now, using Johnson & Johnson's Oklahoma judgment, we can guess that the company's liability in these California counties would be about $2.54 billion. | Although this one will be conducted virtually, four California counties will begin making the case against Johnson & Johnson, as well as Teva Pharmaceuticals (NYSE: TEVA), Endo International (NASDAQ: ENDP), and Allergan, a division of Abbvie (NYSE: ABBV). Although many companies have come under scrutiny for their role in the problem, perhaps none is better-known than Johnson & Johnson (NYSE: JNJ). Now, using Johnson & Johnson's Oklahoma judgment, we can guess that the company's liability in these California counties would be about $2.54 billion. | Although this one will be conducted virtually, four California counties will begin making the case against Johnson & Johnson, as well as Teva Pharmaceuticals (NYSE: TEVA), Endo International (NASDAQ: ENDP), and Allergan, a division of Abbvie (NYSE: ABBV). In 2019, the company was ordered to pay $465 million for its role in Oklahoma's crisis. Now, using Johnson & Johnson's Oklahoma judgment, we can guess that the company's liability in these California counties would be about $2.54 billion. | 2aff3ebc-6146-41b8-beb3-b4e5798edc84 |
24125.0 | 2021-04-24 00:00:00 UTC | 3 Bargain Stocks to Buy With the Market Near All-Time Highs | ABBV | https://www.nasdaq.com/articles/3-bargain-stocks-to-buy-with-the-market-near-all-time-highs-2021-04-24 | nan | nan | Let's face it: Most stocks are expensive right now. The cyclically adjusted price-to-earnings ratio (or CAPE ratio) popularized by economist Robert Shiller is at its highest level since 2000. There aren't many stocks trading at a discount these days.
But there are still a few stocks with attractive valuations and solid prospects. Here are three bargain stocks to buy with the market near all-time highs.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) currently trades at only 8.7 times expected earnings. By comparison, the forward earnings multiple for the S&P 500 index (of which AbbVie is a member) is over 22. Healthcare stocks in the S&P 500 have an average forward P/E ratio of 16.3.
Why is AbbVie so cheap? The company's top-selling product loses U.S. patent exclusivity in less than two years. That product, autoimmune disease drug Humira, generated more than 40% of AbbVie's total revenue in 2020.
Don't think that the stock is a value trap, though. AbbVie has a strong lineup of relatively new drugs with fast-rising sales. While the company acknowledges that its total revenue will dip in 2023, it expects to return to modest growth in 2024 and generate robust growth throughout the rest of the decade.
In addition to its solid long-term growth prospects, AbbVie also offers one of the most attractive dividends around, currently yielding 4.7%. Future payout hikes are likely as well. AbbVie ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases. The drugmaker will definitely make it a priority to keep that track record going.
Bristol Myers Squibb
AbbVie isn't the only attractively valued big pharma. Shares of Bristol Myers Squibb (NYSE: BMY) also trade at 8.7 times expected earnings.
Bristol Myers has another thing in common with AbbVie: Its top-selling drug loses U.S. patent exclusivity soon. In this case, blood cancer drug Revlimid faces generic competition starting in early 2022. But these generic rivals will only be available in limited volumes at first. Those volume limitations will fall by the wayside in 2026.
But Bristol Myers' lineup features several drugs that should help offset the anticipated lost revenue for Revlimid. These include blood thinner Eliquis; newly approved cancer cell therapy Breyanzi (liso-cel); and Zeposia, which is currently approved for treating multiple sclerosis and could soon win another approval for treating ulcerative colitis. The company's pipeline also includes several potential blockbusters such as cell therapy ide-cel and mavacamten, a chronic heart disease drug picked up with the recent acquisition of MyoKardia.
Warren Buffett gave Bristol Myers a big vote of confidence in the fourth quarter of 2020. It was one of three big pharma stocks that Buffett's Berkshire Hathaway bought in the quarter. AbbVie was one of the other two stocks.
Tronox Holdings
Bargains aren't just limited to the healthcare sector. Shares of chemical maker Tronox Holdings (NYSE: TROX) also look pretty cheap right now. The stock trades at three times trailing-12-month earnings and 13.2 times expected earnings.
Tronox ranks as the world's leading vertically integrated manufacturer of titanium dioxide pigment, which is used in lots of products, including paints, paper, and plastics.
The chemical stock has been a big winner so far in 2021 with its shares up more than 35% year to date. This impressive gain is due in large part to the housing boom in the U.S., with demand for paint products that use titanium dioxide skyrocketing.
Tronox could also benefit as the global economy recovers from the pandemic. Increased sales of consumer products should drive increased demand for titanium dioxide. This bargain stock might not be such a bargain for too much longer.
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Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Bristol Myers Squibb. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool recommends the following options: long January 2023 $200.0 calls on Berkshire Hathaway (B shares), short January 2023 $200.0 puts on Berkshire Hathaway (B shares), and short June 2021 $240.0 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 AbbVie (NYSE: ABBV) currently trades at only 8.7 times expected earnings. By comparison, the forward earnings multiple for the S&P 500 index (of which AbbVie is a member) is over 22. Why is AbbVie so cheap? | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Bristol Myers Squibb. AbbVie AbbVie (NYSE: ABBV) currently trades at only 8.7 times expected earnings. By comparison, the forward earnings multiple for the S&P 500 index (of which AbbVie is a member) is over 22. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Bristol Myers Squibb. AbbVie AbbVie (NYSE: ABBV) currently trades at only 8.7 times expected earnings. By comparison, the forward earnings multiple for the S&P 500 index (of which AbbVie is a member) is over 22. | Bristol Myers Squibb AbbVie isn't the only attractively valued big pharma. AbbVie was one of the other two stocks. AbbVie AbbVie (NYSE: ABBV) currently trades at only 8.7 times expected earnings. | 1351d441-c6b9-4112-a0b7-e8d6bf4d0cf4 |
24126.0 | 2021-04-23 00:00:00 UTC | AbbVie Announces Positive CHMP Opinion For VENCLYXTO In Acute Myeloid Leukemia | ABBV | https://www.nasdaq.com/articles/abbvie-announces-positive-chmp-opinion-for-venclyxto-in-acute-myeloid-leukemia-2021-04-23 | nan | nan | (RTTNews) - AbbVie (ABBV) said the Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion for VENCLYXTO in combination with hypomethylating agents for the treatment of adult patients with newly diagnosed acute myeloid leukemia who are ineligible for intensive chemotherapy. The company noted that the positive CHMP opinion represents the third for an extension of indications for VENCLYXTO.
Venetoclax is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S.
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 Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion for VENCLYXTO in combination with hypomethylating agents for the treatment of adult patients with newly diagnosed acute myeloid leukemia who are ineligible for intensive chemotherapy. Venetoclax is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) said the Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion for VENCLYXTO in combination with hypomethylating agents for the treatment of adult patients with newly diagnosed acute myeloid leukemia who are ineligible for intensive chemotherapy. Venetoclax is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) said the Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion for VENCLYXTO in combination with hypomethylating agents for the treatment of adult patients with newly diagnosed acute myeloid leukemia who are ineligible for intensive chemotherapy. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. Venetoclax is being developed by AbbVie and Roche. | (RTTNews) - AbbVie (ABBV) said the Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion for VENCLYXTO in combination with hypomethylating agents for the treatment of adult patients with newly diagnosed acute myeloid leukemia who are ineligible for intensive chemotherapy. Venetoclax is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | 5243a9b9-1e30-4e0a-a07b-887a0170bdf3 |
24127.0 | 2021-04-22 00:00:00 UTC | AbbVie's Humira Gets Approval In Canada For Treatment Of Pediatric Patients With Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/abbvies-humira-gets-approval-in-canada-for-treatment-of-pediatric-patients-with-ulcerative | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) Thursday said Health Canada has approved Humira (adalimumab) for inducing and maintaining clinical remission in pediatric patients five years of age and older with moderately to severely active ulcerative colitis.
With this approval, Humira offers pediatric patients with moderately to severely active ulcerative colitis the first subcutaneous anti-TNF therapeutic option.
"Ulcerative colitis is a miserable illness when it is not well controlled, and it has a significant impact on the lives of children and adolescents. When the disease is active, it is disabling and embarrassing, and affects how children can engage in their normal lives with peers and at school. Although we are able to treat a lot of children who have ulcerative colitis today, there is still a group of children and adolescents that we cannot help as well as we would like, which is why we do need access to new therapies," said Dr. Anne Griffiths, Co-Lead, Inflammatory Bowel Disease Centre at the Hospital for Sick Children.
Ulcerative colitis is characterized by inflammation of the large intestine with symptoms ranging from mild to severe bowel urgency and bowel incontinence as well as weight loss and fatigue.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) Thursday said Health Canada has approved Humira (adalimumab) for inducing and maintaining clinical remission in pediatric patients five years of age and older with moderately to severely active ulcerative colitis. With this approval, Humira offers pediatric patients with moderately to severely active ulcerative colitis the first subcutaneous anti-TNF therapeutic option. When the disease is active, it is disabling and embarrassing, and affects how children can engage in their normal lives with peers and at school. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) Thursday said Health Canada has approved Humira (adalimumab) for inducing and maintaining clinical remission in pediatric patients five years of age and older with moderately to severely active ulcerative colitis. With this approval, Humira offers pediatric patients with moderately to severely active ulcerative colitis the first subcutaneous anti-TNF therapeutic option. "Ulcerative colitis is a miserable illness when it is not well controlled, and it has a significant impact on the lives of children and adolescents. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) Thursday said Health Canada has approved Humira (adalimumab) for inducing and maintaining clinical remission in pediatric patients five years of age and older with moderately to severely active ulcerative colitis. Although we are able to treat a lot of children who have ulcerative colitis today, there is still a group of children and adolescents that we cannot help as well as we would like, which is why we do need access to new therapies," said Dr. Anne Griffiths, Co-Lead, Inflammatory Bowel Disease Centre at the Hospital for Sick Children. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) Thursday said Health Canada has approved Humira (adalimumab) for inducing and maintaining clinical remission in pediatric patients five years of age and older with moderately to severely active ulcerative colitis. With this approval, Humira offers pediatric patients with moderately to severely active ulcerative colitis the first subcutaneous anti-TNF therapeutic option. "Ulcerative colitis is a miserable illness when it is not well controlled, and it has a significant impact on the lives of children and adolescents. | be004cfb-4de8-4999-9ba6-b5f7d2696453 |
24128.0 | 2021-04-21 00:00:00 UTC | 3 Stocks for a Better Retirement | ABBV | https://www.nasdaq.com/articles/3-stocks-for-a-better-retirement-2021-04-21 | nan | nan | When it comes to investing for your retirement or investing in retirement, it's hard to beat dividend-paying stocks. No matter what the overall economy is doing, as long as a dividend-paying company is healthy, it will keep sending you regular infusions of cash. That money can be used for expenses in retirement or to buy more shares of stock.
Better still, good dividend-paying stocks are also likely to see their share prices appreciate over time, giving shareholders another way to profit from them.
Image source: Getty Images.
Here are three dividend payers to consider for your long-term portfolio. See if any or all of them pique your interest.
1. Waste Management
Waste Management (NYSE: WM), as you might have guessed by its name, is a garbage specialist. If you've seen its name emblazoned on lots of trucks in your town, you may have (correctly) surmised that it's a big garbage specialist. Indeed, with a market value recently near $57 billion, it's "the leading provider of comprehensive waste management environmental services in North America, providing services throughout the United States and Canada" -- and it's very involved in recycling and energy recovery, too, with multiple landfill gas-to-energy facilities. (Its fleet features more than 8,900 alternative-fuel vehicles.)
This is a wonderful business to invest in because it's so dependable. Whether the economy is booming or busting, there will always be garbage to collect -- along with continued calls for recycling and generating green energy, in order to protect the planet. Waste Management's business is diversified, serving residential, commercial, and industrial customers, and it gets some 20% of its revenue from landfills, among other operations.
Waste Management's dividend recently yielded about 1.7%, and it has increased that payout by an annual average of 7% over the past five years. Its payout ratio of about 62% shows that it's only spending about 62% of its earnings on dividends, leaving room for other uses and further dividend growth.
2. W. P. Carey
W. P. Carey (NYSE: WPC) is another attractive business. It's structured as a real estate investment trust (REIT), which means that in exchange for favorable tax treatment, it must pay out at least 90% of earnings as dividends. Like a typical REIT, it owns lots of properties and profits by renting them out. Unlike many REITs, it's quite diversified, with a portfolio of more than 1,200 industrial, warehouse, office, retail, and self-storage properties (plus 10% of properties in an "other" category), many of which feature long-term net leases with built-in rent escalators.
Attesting to its quality, the company performed quite well during the pandemic, with its worst monthly collection rate only dipping to 96%, in May of 2020.
W. P. Carey's dividend recently yielded 5.8%. It has hiked that payout by an annual average of only about 1.5% over the past five years, which may not be an exciting growth rate, but it's already offering a very solid yield. With some 22 consecutive years of dividend increases, the company is likely to end up added to the roster of Dividend Aristocrats -- companies that have hiked their payouts for at least 25 years in a row.
3. AbbVie
Pharmaceutical giant AbbVie (NYSE: ABBV), with a recent market value near $191 billion, is another promising company that can help you build a better retirement. It's a dividend-paying company, recently yielding 4.8%. It has upped its payout by an annual average of 18% over the past five years, too.
The company's drug lineup stars blockbuster Humira (for Crohn's disease and other indications), Skyrizi (for psoriasis), and Rinvoq (for rheumatoid arthritis), along with antipsychotic drug Vraylar and migraine drug Ubrelvy, among others. The stock is being held back to some degree because of worries over Humira, which has a looming patent expiration.
But those worrying about that may be forgetting that AbbVie has plenty of formulas in its pipeline, some of which are likely to eventually win approval from the U.S. Food and Drug Administration (FDA). And some of its drugs already on the market, such as Skyrizi and Rinvoq, may win approval to treat additional indications.
With its price-to-sales ratio, price-to-cash-flow ratio, and forward-looking price-to-earnings (P/E) ratio all recently below their five-year averages, AbbVie stock looks undervalued -- while offering a tantalizing dividend yield, too.
These are just some of the many dividend-paying stocks out there that could serve you well as you save and invest for retirement -- or if you're already investing in retirement. If any of them intrigue you, take a closer look.
10 stocks we like better than AbbVie
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But those worrying about that may be forgetting that AbbVie has plenty of formulas in its pipeline, some of which are likely to eventually win approval from the U.S. Food and Drug Administration (FDA). AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV), with a recent market value near $191 billion, is another promising company that can help you build a better retirement. With its price-to-sales ratio, price-to-cash-flow ratio, and forward-looking price-to-earnings (P/E) ratio all recently below their five-year averages, AbbVie stock looks undervalued -- while offering a tantalizing dividend yield, too. | With its price-to-sales ratio, price-to-cash-flow ratio, and forward-looking price-to-earnings (P/E) ratio all recently below their five-year averages, AbbVie stock looks undervalued -- while offering a tantalizing dividend yield, too. AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV), with a recent market value near $191 billion, is another promising company that can help you build a better retirement. But those worrying about that may be forgetting that AbbVie has plenty of formulas in its pipeline, some of which are likely to eventually win approval from the U.S. Food and Drug Administration (FDA). | With its price-to-sales ratio, price-to-cash-flow ratio, and forward-looking price-to-earnings (P/E) ratio all recently below their five-year averages, AbbVie stock looks undervalued -- while offering a tantalizing dividend yield, too. AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV), with a recent market value near $191 billion, is another promising company that can help you build a better retirement. But those worrying about that may be forgetting that AbbVie has plenty of formulas in its pipeline, some of which are likely to eventually win approval from the U.S. Food and Drug Administration (FDA). | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Selena Maranjian owns shares of AbbVie and W. P. Carey. AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV), with a recent market value near $191 billion, is another promising company that can help you build a better retirement. But those worrying about that may be forgetting that AbbVie has plenty of formulas in its pipeline, some of which are likely to eventually win approval from the U.S. Food and Drug Administration (FDA). | c5102155-208f-4bb1-8594-5ab6d3e5badf |
24129.0 | 2021-04-19 00:00:00 UTC | J&J, other drugmakers go to trial in California in $50 bln case over 'deadly legacy' of opioids | ABBV | https://www.nasdaq.com/articles/jj-other-drugmakers-go-to-trial-in-california-in-%2450-bln-case-over-deadly-legacy-of | nan | nan | By Nate Raymond and Brendan Pierson
April 19 (Reuters) - Four drugmakers helped cause the deadly U.S. opioid epidemic by deceptively marketing their drugs and downplaying their addictive risks, a lawyer for several California counties argued on Monday at the start of multibillion-dollar trial.
Those counties accuse Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International Plc ENDP.O and AbbVie's ABBV.N Allergan unit of fueling a drug crisis that according to the U.S. government resulted in nearly 500,000 opioid overdose deaths over two decades.
The plaintiffs - the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland - say the drugmakers should have to pay more than $50 billion to cover the costs of abating the public nuisance they created, plus penalties.
Their lawyer, Fidelma Fitzpatrick, told Orange County Superior Court Judge Peter Wilson that the case was about the companies' "deadly legacy" of trying to boost their profits by promoting opioid painkillers to treat chronic pain, resulting in a "mountain" of addictive pills flooding the state and country.
"The evidence will show each of these companies, all of them, knew what would happen: that their opioids would cause the crushing burden of addiction, overdose and death that California and its people have experienced," she said.
Defense lawyers countered that their drugs made up a small part of the overall opioid market, that doctors were fully warned of their risks and that the counties could not show that they caused the health crisis.
"You won't hear from a single doctor who was ever misled," said Collie James, Teva's lawyer.
Mike Yoder, J&J's lawyer, said that healthcare company's painkillers, which it no longer markets, were rarely abused.
"They did not cause any opioid crisis and they did not cause any public nuisance," he said.
More than 3,300 similar lawsuits are pending nationally over the opioid crisis. The only other case to go to trial in the opioid litigation resulted in the state of Oklahoma in 2019 winning a $465 million judgment against J&J, which is appealing.
Other cases are slated to go to trial in the coming months, creating new pressure for the companies to reach settlements.
The nation's three largest drug distributors - McKesson Corp MCK.N, AmerisourceBergen Corp ABC.N and Cardinal Health Inc CAH.N - and J&J have proposed paying a combined $26 billion to resolve the cases against them. The proposed deal has not been finalized.
(Reporting by Nate Raymond in Boston; Editing by Daniel Wallis and Bill Berkrot)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.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. | Those counties accuse Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International Plc ENDP.O and AbbVie's ABBV.N Allergan unit of fueling a drug crisis that according to the U.S. government resulted in nearly 500,000 opioid overdose deaths over two decades. By Nate Raymond and Brendan Pierson April 19 (Reuters) - Four drugmakers helped cause the deadly U.S. opioid epidemic by deceptively marketing their drugs and downplaying their addictive risks, a lawyer for several California counties argued on Monday at the start of multibillion-dollar trial. The plaintiffs - the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland - say the drugmakers should have to pay more than $50 billion to cover the costs of abating the public nuisance they created, plus penalties. | Those counties accuse Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International Plc ENDP.O and AbbVie's ABBV.N Allergan unit of fueling a drug crisis that according to the U.S. government resulted in nearly 500,000 opioid overdose deaths over two decades. By Nate Raymond and Brendan Pierson April 19 (Reuters) - Four drugmakers helped cause the deadly U.S. opioid epidemic by deceptively marketing their drugs and downplaying their addictive risks, a lawyer for several California counties argued on Monday at the start of multibillion-dollar trial. "The evidence will show each of these companies, all of them, knew what would happen: that their opioids would cause the crushing burden of addiction, overdose and death that California and its people have experienced," she said. | Those counties accuse Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International Plc ENDP.O and AbbVie's ABBV.N Allergan unit of fueling a drug crisis that according to the U.S. government resulted in nearly 500,000 opioid overdose deaths over two decades. By Nate Raymond and Brendan Pierson April 19 (Reuters) - Four drugmakers helped cause the deadly U.S. opioid epidemic by deceptively marketing their drugs and downplaying their addictive risks, a lawyer for several California counties argued on Monday at the start of multibillion-dollar trial. Their lawyer, Fidelma Fitzpatrick, told Orange County Superior Court Judge Peter Wilson that the case was about the companies' "deadly legacy" of trying to boost their profits by promoting opioid painkillers to treat chronic pain, resulting in a "mountain" of addictive pills flooding the state and country. | Those counties accuse Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International Plc ENDP.O and AbbVie's ABBV.N Allergan unit of fueling a drug crisis that according to the U.S. government resulted in nearly 500,000 opioid overdose deaths over two decades. By Nate Raymond and Brendan Pierson April 19 (Reuters) - Four drugmakers helped cause the deadly U.S. opioid epidemic by deceptively marketing their drugs and downplaying their addictive risks, a lawyer for several California counties argued on Monday at the start of multibillion-dollar trial. "They did not cause any opioid crisis and they did not cause any public nuisance," he said. | 1e60018b-8878-48bc-b84a-c751a6821fcf |
24130.0 | 2021-04-19 00:00:00 UTC | J&J, others face California trial over claims they fueled opioid epidemic | ABBV | https://www.nasdaq.com/articles/jj-others-face-california-trial-over-claims-they-fueled-opioid-epidemic-2021-04-19 | nan | nan | By Nate Raymond
April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers.
The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis.
Opioids have resulted in the overdose deaths of nearly 500,000 people from 1999 to 2019 in the United States, according to U.S. Centers for Disease Control and Prevention.
The populous Santa Clara, Los Angeles and Orange counties and the city of Oakland accuse the companies of deceptively marketing painkillers in ways that downplayed their addictive risks. The drugmakers argue they acted appropriately and that they did not cause the epidemic.
If Orange County Superior Court Judge Peter Wilson finds the companies liable following a non-jury trial, the counties say the companies should have to pay $50 billion to cover the costs of abating the public nuisance they created plus penalties.
More than 3,400 similar lawsuits are pending nationally over the opioid epidemic. The only other case to go to trial in the opioid litigation resulted in the state of Oklahoma in 2019 winning a $465 million judgment against J&J, which is appealing.
Other cases are slated to go to trial in the coming months, creating new pressure for the companies to reach settlements.
The nation's three largest drug distributors - McKesson Corp MCK.N, AmerisourceBergen Corp ABC.N and Cardinal Health Inc CAH.N - and J&J have proposed paying a combined $26 billion to resolve the cases against them. The proposed deal has not been finalized.
(Reporting by Nate Raymond in Boston; Editing by Daniel Wallis)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. Opioids have resulted in the overdose deaths of nearly 500,000 people from 1999 to 2019 in the United States, according to U.S. Centers for Disease Control and Prevention. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. The populous Santa Clara, Los Angeles and Orange counties and the city of Oakland accuse the companies of deceptively marketing painkillers in ways that downplayed their addictive risks. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. If Orange County Superior Court Judge Peter Wilson finds the companies liable following a non-jury trial, the counties say the companies should have to pay $50 billion to cover the costs of abating the public nuisance they created plus penalties. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. The populous Santa Clara, Los Angeles and Orange counties and the city of Oakland accuse the companies of deceptively marketing painkillers in ways that downplayed their addictive risks. | d90feffc-b8f7-4e95-b82e-82e642382d92 |
24131.0 | 2021-04-19 00:00:00 UTC | J&J, other drugmakers to face trial in California over claims they fueled opioid epidemic | ABBV | https://www.nasdaq.com/articles/jj-other-drugmakers-to-face-trial-in-california-over-claims-they-fueled-opioid-epidemic | nan | nan | By Nate Raymond
April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers.
The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis.
Opioids have resulted in the overdose deaths of nearly 500,000 people from 1999 to 2019 in the United States, according to U.S. Centers for Disease Control and Prevention.
The populous Santa Clara, Los Angeles and Orange counties and the city of Oakland accuse the companies of deceptively marketing painkillers in ways that downplayed their addictive risks. The drugmakers argue they acted appropriately and that they did not cause the epidemic.
If Orange County Superior Court Judge Peter Wilson finds the companies liable following a non-jury trial, the counties say the companies should have to pay $50 billion to cover the costs of abating the public nuisance they created plus penalties.
More than 3,400 similar lawsuits are pending nationally over the opioid epidemic. The only other case to go to trial in the opioid litigation resulted in the state of Oklahoma in 2019 winning a $465 million judgment against J&J, which is appealing.
Other cases are slated to go to trial in the coming months, creating new pressure for the companies to reach settlements.
The nation's three largest drug distributors - McKesson Corp MCK.N, AmerisourceBergen Corp ABC.N and Cardinal Health Inc CAH.N - and J&J have proposed paying a combined $26 billion to resolve the cases against them. The proposed deal has not been finalized.
(Reporting by Nate Raymond in Boston; Editing by Daniel Wallis)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. Opioids have resulted in the overdose deaths of nearly 500,000 people from 1999 to 2019 in the United States, according to U.S. Centers for Disease Control and Prevention. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. The populous Santa Clara, Los Angeles and Orange counties and the city of Oakland accuse the companies of deceptively marketing painkillers in ways that downplayed their addictive risks. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. If Orange County Superior Court Judge Peter Wilson finds the companies liable following a non-jury trial, the counties say the companies should have to pay $50 billion to cover the costs of abating the public nuisance they created plus penalties. | The case against Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie's ABBV.N Allergan unit is one of the thousands of lawsuits by states and local governments seeking to hold pharmaceutical companies responsible for the drug crisis. By Nate Raymond April 19 (Reuters) - Four drugmakers are set to face trial on Monday in a lawsuit by several large counties in California that are seeking more than $50 billion over claims the companies helped fuel an opioid epidemic by deceptively marketing addictive painkillers. The populous Santa Clara, Los Angeles and Orange counties and the city of Oakland accuse the companies of deceptively marketing painkillers in ways that downplayed their addictive risks. | b5fc3967-fe6c-484d-bd0b-4c6bba7b05e8 |
24132.0 | 2021-04-16 00:00:00 UTC | Drug companies to face first opioid trial following pandemic delays | ABBV | https://www.nasdaq.com/articles/drug-companies-to-face-first-opioid-trial-following-pandemic-delays-2021-04-16 | nan | nan | By Nate Raymond and Brendan Pierson
April 16 (Reuters) - Four drugmakers, including Johnson & Johnson and Teva Pharmaceutical Industries Ltd , will go to trial on Monday over claims they helped fuel an opioid crisis that has resulted in nearly 500,000 overdose deaths in the United States.
The trial is one of several looking to hold companies accountable for the overdose and abuse crisis that are set to take place this year after the coronavirus pandemic delayed litigation, putting renewed pressure on them to enter into multi-billion dollar settlements.
J&J, Teva Pharmaceutical Industries Ltd , Endo International PLC and Abbvie's Allergan unit are accused by several California counties of deceptively marketing painkillers in ways that downplayed their addictive risks to boost sales.
If the companies are held liable by Orange County Superior Court Judge Peter Wilson following a trial conducted virtually, the counties say they should have to pay $50 billion to help foot the costs of abating the public nuisance they created plus penalties.
Opioids have resulted in the overdose deaths of nearly 500,000 people from 1999 to 2019 in the United States, according to U.S. Centers for Disease Control and Prevention.
"We need these companies to fund what it takes to try to undo the harms that they have caused, and the scope and scale of that is enormous," Santa Clara County Counsel James Williams said in an interview.
His county is suing the companies along with Los Angeles and Orange counties and the city of Oakland.
The drugmakers deny wrongdoing, arguing they acted appropriately in marketing medications approved by the U.S. Food and Drug Administration, and that the counties cannot prove their promotion of opioids caused the crisis.
J&J in a statement called its marketing of the drugs "appropriate and responsible," Israel-based Teva said it will defend itself against these "unproven allegations." Endo and Allergan declined to comment.
More than 3,400 lawsuits brought largely by states and local governments are pending against companies accused of fueling the opioid epidemic.
The state of Oklahoma in 2019 won a $465 million judgment against J&J in only such trial so far. Opioid cases that were set to go to trial in 2020 were put off as a massive new public health crisis made gathering jurors and lawyers in the same room untenable.
'DAY OF RECKONING'
Some plaintiffs' lawyers said the delays benefited the companies at the cost of states, counties and municipalities who say they need settlements to help pay for the costs of addressing a painkiller addiction epidemic that only grew worse during the coronavirus pandemic.
The nation's three largest drug distributors - McKesson Corp , AmerisourceBergen Corp and Cardinal Health Inc - and J&J have proposed paying a combined $26 billion to resolve the cases against them.
The proposal, a version of which was first put forward in 2019, has yet to be finalized, and some plaintiffs lawyers say that only with trials will they and other companies come to the table to finalize payouts.
"They keep putting off the day of judgment," Elizabeth Chamblee Burch, a law professor at University of Georgia, said of the companies. "You really need trials to create that moment of pressure."
Next month, a closely-watched case is set to go to trial in West Virginia accusing the three drug distributors of ignoring red flags indicating the highly addictive painkillers were being diverted for improper uses. They deny the allegations.
That case will be followed in June by a jury trial in New York against several drugmakers and distributors, which was delayed on the eve of trial in March 2020 because of the pandemic.
"The day of reckoning is coming," said Hunter Shkolnik, a lawyer at Napoli Shkolnik who is representing New York's Nassau County. "They've been able to slow roll because there was no trial like looming over their heads. Now they have a trial." (Reporting by Nate Raymond in Boston and Brendan Pierson in New York; Editing by Noeleen Walder and Bill Berkrot) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) Keywords: USA OPIOIDS/LITIGATION (PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | J&J, Teva Pharmaceutical Industries Ltd , Endo International PLC and Abbvie's Allergan unit are accused by several California counties of deceptively marketing painkillers in ways that downplayed their addictive risks to boost sales. The trial is one of several looking to hold companies accountable for the overdose and abuse crisis that are set to take place this year after the coronavirus pandemic delayed litigation, putting renewed pressure on them to enter into multi-billion dollar settlements. Next month, a closely-watched case is set to go to trial in West Virginia accusing the three drug distributors of ignoring red flags indicating the highly addictive painkillers were being diverted for improper uses. | J&J, Teva Pharmaceutical Industries Ltd , Endo International PLC and Abbvie's Allergan unit are accused by several California counties of deceptively marketing painkillers in ways that downplayed their addictive risks to boost sales. By Nate Raymond and Brendan Pierson April 16 (Reuters) - Four drugmakers, including Johnson & Johnson and Teva Pharmaceutical Industries Ltd , will go to trial on Monday over claims they helped fuel an opioid crisis that has resulted in nearly 500,000 overdose deaths in the United States. The trial is one of several looking to hold companies accountable for the overdose and abuse crisis that are set to take place this year after the coronavirus pandemic delayed litigation, putting renewed pressure on them to enter into multi-billion dollar settlements. | J&J, Teva Pharmaceutical Industries Ltd , Endo International PLC and Abbvie's Allergan unit are accused by several California counties of deceptively marketing painkillers in ways that downplayed their addictive risks to boost sales. By Nate Raymond and Brendan Pierson April 16 (Reuters) - Four drugmakers, including Johnson & Johnson and Teva Pharmaceutical Industries Ltd , will go to trial on Monday over claims they helped fuel an opioid crisis that has resulted in nearly 500,000 overdose deaths in the United States. If the companies are held liable by Orange County Superior Court Judge Peter Wilson following a trial conducted virtually, the counties say they should have to pay $50 billion to help foot the costs of abating the public nuisance they created plus penalties. | J&J, Teva Pharmaceutical Industries Ltd , Endo International PLC and Abbvie's Allergan unit are accused by several California counties of deceptively marketing painkillers in ways that downplayed their addictive risks to boost sales. By Nate Raymond and Brendan Pierson April 16 (Reuters) - Four drugmakers, including Johnson & Johnson and Teva Pharmaceutical Industries Ltd , will go to trial on Monday over claims they helped fuel an opioid crisis that has resulted in nearly 500,000 overdose deaths in the United States. Some plaintiffs' lawyers said the delays benefited the companies at the cost of states, counties and municipalities who say they need settlements to help pay for the costs of addressing a painkiller addiction epidemic that only grew worse during the coronavirus pandemic. | 00ccd7b0-a0ae-43cf-8eb6-e6e9f4b7e9fe |
24133.0 | 2021-04-15 00:00:00 UTC | 2 Best Reddit Healthcare Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/2-best-reddit-healthcare-stocks-to-buy-now-2021-04-15 | nan | nan | Over the past quarter, traders of the legendary r/WallStreetBets have propelled shares of GameStop, AMC Entertainment Holdings, and BlackBerry to some mouth-watering (albeit roller-coaster-like) returns. The same group of investors is now eyeing two medical stocks, Trevena (NASDAQ: TRVN) and Tonix Pharmaceuticals (NASDAQ: TNXP).
The two firms are identical in that they rely almost entirely on the success of one drug in their respective pipelines. Betting on the future of one product is always risky, but it has its upside as well. Trevena and Tonix stocks are up almost 250% and 55%, respectively, over the past 12 months. Let's look at how they can further enrich investors.
Image source: Getty Images.
1. Trevena
Right now, Trevena has no product revenue and a quarterly net loss of $11.9 million per quarter, but a market cap of $283 million. What gives?
As investors know, a company's valuation isn't only about how much cash flow it generates, but also about future earnings potential based on its assets -- and Trevena is eyeing up a $1.5 billion market opportunity. Last year, the company secured regulatory approval of its drug, Olinvyk, for the treatment of acute pain in hospital and controlled clinical setting. It launched the opioid for use in the first quarter of 2021 for $17.50 per milligram (mg).
The company plans to target 9 million surgical procedures with its medication out of 45 million operations each year in the U.S. Compared to traditional opioids, like intravenous (IV) morphine, Olinvyk offers slightly less analgesia but a much better safety profile. Patients are far less likely to suffer from nausea, vomiting, dizziness, and critical respiratory events after receiving Olinvyk instead of IV morphine.
Based on its list price and safety benefits, Trevena thinks it can help hospitals achieve 10 times in medical savings by switching from IV morphine to its new branded opioid. In a recent survey (conducted by Trevena), 75% of pharmacists and physicians found Olinvyk's study results meaningful. In other words, they saw clinical and safety benefits in the drug's respiratory and gastrointestinal profiles. While it scales up, the company has more than $100 million in cash and equivalents on its balance sheet and is well funded through the end of 2022. Trevena is a great under-the-radar stock by the merit of this new drug.
2. Tonix Pharmaceuticals
Tonix Pharmaceuticals is a $382 million market cap company with a $17 million quarterly net loss and no revenue. Its intangible asset, TNX-102 SL (sublingual cyclobenzaprine), which is being studied for the management of fibromyalgia, is what's backing up the current share price. Tonix is well positioned to capitalize off the $764.1 million market to treat the condition.
Fibromyalgia is a chronic condition that affects 2% to 4% of the U.S. population. It causes recurring pain, sleep disturbances, fatigue, and cognitive symptoms. There is currently no cure for the disease.
In phase 3 clinical trials, patients who took TNX-102 SL saw their pain symptoms decrease by 1.9 from baseline on the Daily Numeric Pain Rating Scale (NPRS). Patients who received a placebo had a 1.5-point baseline decrease in their pain symptoms. The difference of 0.4 was small, but highly statistically significant. However, an endpoint measuring patients' overall impression of change compared to the placebo cohort was not met, albeit by a slim margin.
Although the results might not seem very all that impressive at first glance, keep in mind that fibromyalgia has always been a challenging condition to treat. Patients with fibromyalgia frequently take two or three medications simultaneously to manage their pain, with 50% discontinuing one course of therapy in 12 months. The last medication approved to treat fibromyalgia, AbbVie's (NYSE: ABBV) Savella, still managed to hit $130 million in peak sales despite only marginally improving patients' condition.
That's not all: Tonix is also exploring TNX-102 SL for treating post-traumatic stress disorder, agitation in Alzheimer's disease, and alcohol use disorder. Aside from that, the company also has TNX-1300 in phase 2 for treating cocaine intoxication. Tonix also has a variety of preclinical programs in the works targeting COVID-19. I'd highly recommend healthcare investors with a healthy appetite for risk add this one to their watch lists.
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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 last medication approved to treat fibromyalgia, AbbVie's (NYSE: ABBV) Savella, still managed to hit $130 million in peak sales despite only marginally improving patients' condition. As investors know, a company's valuation isn't only about how much cash flow it generates, but also about future earnings potential based on its assets -- and Trevena is eyeing up a $1.5 billion market opportunity. Based on its list price and safety benefits, Trevena thinks it can help hospitals achieve 10 times in medical savings by switching from IV morphine to its new branded opioid. | The last medication approved to treat fibromyalgia, AbbVie's (NYSE: ABBV) Savella, still managed to hit $130 million in peak sales despite only marginally improving patients' condition. The same group of investors is now eyeing two medical stocks, Trevena (NASDAQ: TRVN) and Tonix Pharmaceuticals (NASDAQ: TNXP). Trevena Right now, Trevena has no product revenue and a quarterly net loss of $11.9 million per quarter, but a market cap of $283 million. | The last medication approved to treat fibromyalgia, AbbVie's (NYSE: ABBV) Savella, still managed to hit $130 million in peak sales despite only marginally improving patients' condition. The same group of investors is now eyeing two medical stocks, Trevena (NASDAQ: TRVN) and Tonix Pharmaceuticals (NASDAQ: TNXP). Trevena Right now, Trevena has no product revenue and a quarterly net loss of $11.9 million per quarter, but a market cap of $283 million. | The last medication approved to treat fibromyalgia, AbbVie's (NYSE: ABBV) Savella, still managed to hit $130 million in peak sales despite only marginally improving patients' condition. Trevena and Tonix stocks are up almost 250% and 55%, respectively, over the past 12 months. Trevena Right now, Trevena has no product revenue and a quarterly net loss of $11.9 million per quarter, but a market cap of $283 million. | 9f13a0f9-39a4-40ea-8886-6cf1ed4d79c4 |
24134.0 | 2021-04-15 00:00:00 UTC | 3 Dividend Stocks I'd Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-id-buy-right-now-2021-04-15 | nan | nan | Recently, a young woman told me that her husband wanted to invest in dividend stocks. Both of them are in their twenties. My response to her was that at their age, they'd be better off focusing on stocks with solid long-term growth prospects, regardless of whether or not the stocks paid dividends.
My reply would have been different if the couple had been in their sixties.
Investing in dividend stocks in order to secure steady income is a great idea. Of course, you still want solid underlying businesses behind the stocks. With the two criteria of steady income and solid businesses in mind, here are three dividend stocks I'd buy right now.
Image source: Getty Images.
AbbVie
I think that AbbVie (NYSE: ABBV) ranks as one of the most attractive dividend stocks on the market right now. The big drugmaker's dividend yield currently tops 4.8%. AbbVie is only one dividend hike away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases.
A single product, Humira, generated over 40% of AbbVie's total revenue last year, but the autoimmune-disease drug loses U.S. patent exclusivity in 2023. Does this present a reason to worry about AbbVie's dividend? Nope.
The company has been preparing for a long time for the day when it could no longer depend so heavily on Humira. AbbVie now has several other drugs with strong growth potential, notably including the successors to Humira -- Rinvoq and Skyrizi.
AbbVie will definitely feel the sting as biosimilars take market share away from Humira. It expects total revenue will fall in 2023. However, the company predicts a return to modest growth in 2024, with robust growth throughout the rest of the decade. AbbVie's dividends should keep on flowing and growing.
Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE: BEP) doesn't belong to dividend royalty as AbbVie does. However, the company has increased its distribution (what limited partnerships call dividends) by a 6% compound annual growth rate (CAGR) since 2000. Its distribution currently yields nearly 2.9%.
The company's underlying business model is as solid as they come. There hasn't been a better time for renewable energy.
Demand is rising as countries across the world seek to reduce carbon emissions. Brookfield Renewable stands out as a leader in the renewable energy industry with its hydroelectric, wind, solar, and storage facilities in North America, South America, Asia, and Europe.
I view the stock as a great pick for income-seeking investors. However, Brookfield Renewable is also a very good choice for growth-oriented investors. The company claims a 23 gigawatt development pipeline that's more than double its current 19 gigawatt installed capacity.
Brookfield Renewable's growth prospects aren't just for the next few years. CEO Connor Teskey said in the company's Q4 update that management "look[s] forward to a multi-decade opportunity to advance decarbonization and assist with the transition of global electricity grids to a more sustainable future." That's the kind of opportunity that any investor would like.
Enterprise Products Partners
If you really like high dividend yields, you'll want to check out Enterprise Products Partners (NYSE: EPD). Its distribution currently yields a mouthwatering 7.8%. The company has increased its distribution for 22 consecutive years with a CAGR of 7%.
The biggest knock against EPD is that it's a midstream player in the fossil fuel industry. Yes, there's a definite shift away from fossil fuels to renewable energy sources. However, EPD's business is built for the long term.
For one thing, overall energy consumption is expected to increase over the next few decades. The U.S. Energy Information Administration projects that the percentage of total energy consumption generated by natural gas will also increase. In addition, rising demand for plastics is driving increased use of petrochemicals. It's no accident that 93% of EPD's major capital projects under construction focus on petrochemicals, natural gas, and natural gas liquids.
My Motley Fool colleague Gregg Brewer recently included EPD among his three safest energy dividends right now. I think his take is correct. EPD probably isn't a stock that will appeal to growth investors, but if you're looking for a solid dividend stock, I think it's a keeper.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. The Motley Fool recommends Enterprise Products 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. | A single product, Humira, generated over 40% of AbbVie's total revenue last year, but the autoimmune-disease drug loses U.S. patent exclusivity in 2023. AbbVie I think that AbbVie (NYSE: ABBV) ranks as one of the most attractive dividend stocks on the market right now. AbbVie is only one dividend hike away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. | Brookfield Renewable Partners Brookfield Renewable Partners (NYSE: BEP) doesn't belong to dividend royalty as AbbVie does. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. AbbVie I think that AbbVie (NYSE: ABBV) ranks as one of the most attractive dividend stocks on the market right now. | Brookfield Renewable Partners Brookfield Renewable Partners (NYSE: BEP) doesn't belong to dividend royalty as AbbVie does. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. AbbVie I think that AbbVie (NYSE: ABBV) ranks as one of the most attractive dividend stocks on the market right now. | AbbVie I think that AbbVie (NYSE: ABBV) ranks as one of the most attractive dividend stocks on the market right now. AbbVie is only one dividend hike away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. A single product, Humira, generated over 40% of AbbVie's total revenue last year, but the autoimmune-disease drug loses U.S. patent exclusivity in 2023. | 4c0dbfbb-4120-4e52-b921-c443d05e72d0 |
24135.0 | 2021-04-14 00:00:00 UTC | Got $1,000? 2 Dirt-Cheap Value Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/got-%241000-2-dirt-cheap-value-stocks-you-can-buy-right-now-2021-04-14 | nan | nan | There are good reasons to think that stocks in general are currently dangerously overvalued. For instance, the S&P 500's cyclically adjusted price-to-earnings ratio -- a measure of the stock market's valuation -- is currently 36.6, the highest it has been in more than 10 years.
Fortunately, even in a market where rich valuation metrics are run-of-the-mill, it is possible to find comparatively cheap stocks. Right now, two such companies are AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). Here is why it is worth considering purchasing shares of these healthcare giants.
1. AbbVie
AbbVie currently trades for just 8.7 times forward earnings, while its price-to-earnings growth ratio (PEG) is 0.19. For context, the average forward P/E ratio for the S&P 500 is 22.3, while a PEG below 1 is generally considered undervalued.
But there is a lot more to like about AbbVie than its low valuation metrics, even though the company's crown jewel -- the rheumatoid arthritis drug Humira -- continues to lose steam in Europe due to competition from biosimilars.
Image source: Getty Images.
In 2020, Humira brought in $3.72 billion in net revenue from international markets, a 13.6% year-over-year decrease, though sales in the U.S. were up 8.4% to $16.1 billion. Overall, the immunosuppressant recorded sales of $19.8 billion last year, a 3.5% increase over fiscal 2019.
Humira's total sales should continue growing, if ever so slightly, for at least a couple more years (biosimilars for the drug could enter the U.S. market in 2023). And even after it starts facing competition in the U.S., Humira will continue to contribute meaningfully to AbbVie's top line.
What's more, the drugmaker has several other products it can count on to offset declining sales of this blockbuster. For instance, there is plaque psoriasis medicine Skyrizi, whose sales of $1.6 billion more than doubled last year compared to 2019. Also in 2020, sales of cancer medicine Imbruvica grew by 13.7% year over year to $5.3 billion.
And AbbVie's May 2020 acquisition of Allergan, a cash-and-stock transaction valued at $63 billion, helped the company diversify its revenue stream away from Humira. Allergan's Botox alone should bring in well over $1 billion in annual revenue for some time -- last year, it totaled about $2.5 billion from the time of the closing of the acquisition in May to the end of the year.
Management thinks biosimilars for Botox are unlikely anytime soon, with CEO Richard Gonzalez noting that "based on the uniqueness of this particular molecule ... it would be extremely difficult to create a biosimilar version of Botox. ... We looked at this very extensively with a lot of outside expertise, and we feel very confident that that's the case."
Lastly, AbbVie's pipeline boasts well over two dozen ongoing clinical trials. The company is well positioned to add products to its lineup (or add new indications to existing products) every year. These factors all bode well for AbbVie, and even though the stock has underperformed the market in the past 12 months, investors willing to be patient would do well to consider buying shares of this pharma stock.
2. Pfizer
The big story surrounding Pfizer in the past year has been its COVID-19 work, and with good reason. In December, the pharma giant earned an emergency use authorization (EUA) from the U.S. Food and Drug Administration for its coronavirus vaccine, BNT162b2, which it developed in collaboration with BioNTech. Pfizer will likely record well over a billion dollars in sales from it.
And there is now good evidence that BNT162b2 is effective against new variants of the virus that causes COVID-19, especially the strain that first emerged in South Africa. Despite these factors, the market continues to undervalue Pfizer, and in the past year, the stock has severely underperformed the market. Pfizer currently trades for just 11.36 times forward earnings, while its PEG is a reasonable 0.9.
Image source: Getty Images.
Pfizer could be an excellent value play as BNT162b2 helps boost revenue in the short term. And the company does have other long-term growth drivers; Pfizer's lineup is much broader than just one vaccine, including blockbuster products such as the anticoagulant Eliquis and the cancer drugs Ibrance and Xtandi, just to name a few.
In fiscal 2020, sales of Eliquis jumped by 17% year over year to $4.9 billion; revenue from Ibrance and Xtandi increased by 9% and 22%, respectively, to $5.4 billion and $1 billion. The company's total revenue from its biopharma segment -- which after the November spinoff of its off-patent Upjohn division is now its only operating business -- grew 7% in 2020 compared with fiscal 2019, despite some negative impact from the pandemic.
With this transaction in the rearview mirror, investors can expect even stronger sales growth once the coronavirus outbreak subsides. Pfizer's pipeline is filled with dozens of ongoing clinical trials, and the company plans to beef up its vaccine business by taking advantage of the experience it acquired through developing BNT162b2 in collaboration with BioNTech.
Considering all these factors, I believe Pfizer is well equipped to rebound from its comparatively poor performance over the past year, especially for investors willing to stay the course and hold its shares over the long haul.
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Prosper Junior Bakiny 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. | But there is a lot more to like about AbbVie than its low valuation metrics, even though the company's crown jewel -- the rheumatoid arthritis drug Humira -- continues to lose steam in Europe due to competition from biosimilars. Right now, two such companies are AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie AbbVie currently trades for just 8.7 times forward earnings, while its price-to-earnings growth ratio (PEG) is 0.19. | AbbVie AbbVie currently trades for just 8.7 times forward earnings, while its price-to-earnings growth ratio (PEG) is 0.19. Right now, two such companies are AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). But there is a lot more to like about AbbVie than its low valuation metrics, even though the company's crown jewel -- the rheumatoid arthritis drug Humira -- continues to lose steam in Europe due to competition from biosimilars. | These factors all bode well for AbbVie, and even though the stock has underperformed the market in the past 12 months, investors willing to be patient would do well to consider buying shares of this pharma stock. Right now, two such companies are AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie AbbVie currently trades for just 8.7 times forward earnings, while its price-to-earnings growth ratio (PEG) is 0.19. | Right now, two such companies are AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie AbbVie currently trades for just 8.7 times forward earnings, while its price-to-earnings growth ratio (PEG) is 0.19. But there is a lot more to like about AbbVie than its low valuation metrics, even though the company's crown jewel -- the rheumatoid arthritis drug Humira -- continues to lose steam in Europe due to competition from biosimilars. | 90a77519-5719-426e-8387-9017796aba2c |
24136.0 | 2021-04-14 00:00:00 UTC | Should AbbVie Be Worried About Rinvoq? | ABBV | https://www.nasdaq.com/articles/should-abbvie-be-worried-about-rinvoq-2021-04-14 | nan | nan | The U.S. Food and Drug Administration (FDA) has now pushed back two reviews for regulatory filings by AbbVie (NYSE: ABBV) for Rinvoq. This autoimmune disease drug is an important component of the company's growth strategy. In this Motley Fool Live video, recorded on April 7, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie and its shareholders should be worried about Rinvoq.
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Keith Speights: AbbVie -- ticker there's ABBV. AbbVie announced on April 2 that the FDA has pushed back the review period for Rinvoq in treating atopic dermatitis by three months. Now the FDA had already extended the review period for this drug in treating psoriatic arthritis just a few weeks ago making that announcement.
Now, AbbVie's counting on Rinvoq to be a key part of its strategy to offset the expected decline in sales for Humira when that top-selling drug loses patent exclusivity in 2023. Brian, do you think the company or investors should be worried about Rinvoq now?
Brian Orelli: We knew this was coming because AbbVie disclosed it when the psoriatic arthritis delay happened a few weeks ago. They said they were expecting it. It's not really new, but it's definitely a worry nonetheless.
I think the biggest concern here is if the FDA delays due to reviewing an updated benefit-risk profile that AbbVie had to submit. The benefit hasn't really changed since the clinical trial. Really, the issue here is specifically the risk in the entire class of drugs.
This is a JAK inhibitor, Pfizer's Xeljanz saw an increased risk of serious heart-related issues and cancer in their clinical trial. As you said, AbbVie is really counting on Rinvoq to make up for lost sales for Humira and I think this is a major issue for AbbVie.
We'll have to wait and see exactly what the FDA does. We're just talking about a black box warning when we're talking about something more serious where they limit the number of patients that can take the drug to maybe only the most severe patients, or are we talking about even worse where they want to improve the drug?
Speights: Yeah. You made a good point, Brian, that this is a bigger issue than just Rinvoq. This is an issue for the entire category of JAK inhibitors. I saw this morning that Eli Lilly and Incyte announced that the FDA is pushing back the review period for Olumiant in atopic dermatitis, I think that was the indication. It's also a JAK inhibitor. I think the FDA is really taking its time on the reviews of any JAK inhibitors right now.
Orelli: The other problem here is that atopic dermatitis is not really the most severe disease. If you're treating cancer, you're allowed to have a lot more severe side effects than if you're treating a skin disease, where you're not going to die from atopic dermatitis. It's annoying and it doesn't look good and itches. I live with somebody with atopic dermatitis [laughs] so I know the feeling, but you're not going to die from it. That limits the side effects that the FDA is going to be willing to accept.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool recommends Incyte. 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 announced on April 2 that the FDA has pushed back the review period for Rinvoq in treating atopic dermatitis by three months. Now, AbbVie's counting on Rinvoq to be a key part of its strategy to offset the expected decline in sales for Humira when that top-selling drug loses patent exclusivity in 2023. The U.S. Food and Drug Administration (FDA) has now pushed back two reviews for regulatory filings by AbbVie (NYSE: ABBV) for Rinvoq. | In this Motley Fool Live video, recorded on April 7, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie and its shareholders should be worried about Rinvoq. AbbVie announced on April 2 that the FDA has pushed back the review period for Rinvoq in treating atopic dermatitis by three months. The U.S. Food and Drug Administration (FDA) has now pushed back two reviews for regulatory filings by AbbVie (NYSE: ABBV) for Rinvoq. | The U.S. Food and Drug Administration (FDA) has now pushed back two reviews for regulatory filings by AbbVie (NYSE: ABBV) for Rinvoq. In this Motley Fool Live video, recorded on April 7, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie and its shareholders should be worried about Rinvoq. AbbVie announced on April 2 that the FDA has pushed back the review period for Rinvoq in treating atopic dermatitis by three months. | In this Motley Fool Live video, recorded on April 7, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie and its shareholders should be worried about Rinvoq. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights: AbbVie -- ticker there's ABBV. The U.S. Food and Drug Administration (FDA) has now pushed back two reviews for regulatory filings by AbbVie (NYSE: ABBV) for Rinvoq. | beb9676f-1ecd-4c6d-b412-7d2ff12cf52a |
24137.0 | 2021-04-14 00:00:00 UTC | Is Morphic Holding a Buy? | ABBV | https://www.nasdaq.com/articles/is-morphic-holding-a-buy-2021-04-14 | nan | nan | On March 1, Morphic Holding's (NASDAQ: MORF) stock more than doubled after the company announced interim phase 1 data on its experimental therapy, MORF-057. That's a pretty significant pop for an under-the-radar biotech, especially based on data that comes from so early in a drug's clinical trial process.
Since then, the stock has sold off by nearly 33% from its highs. Can investors trust this biotech, which has no products on the market?
Image source: Getty Images.
What Morphic has to offer
Morphic is investigating oral integrin-targeting therapies for treating severe chronic diseases. Integrins are small molecules that are responsible for cellular adhesion and signaling. There are already six injectable integrin biologics that have been approved by the U.S. Food and Drug Administration. However, no oral-use variants of this treatment type have made it to market. Morphic is looking to change that.
With no product revenue, a $45 million net loss in 2020, and a $2.1 billion market cap, Morphic is a clear example of a company valued solely on its intangible assets. Investors are expecting some of its experimental drugs will make it to approval and generate substantial cash flow in the future.
Right now, most of the company's candidates are in the preclinical stages of development. Morphic has advanced just MORF-057 into phase 1 clinical studies for treating inflammatory bowel diseases such as ulcerative colitis. MORF-057 targets the α4β7 integrin receptor and blocks its reaction with a ligand that activates T-cells to target both inflamed and non-inflamed areas of the intestine, which cause the chronic condition.
In the ongoing study, healthy volunteers who received MORF-057 witnessed at least 70% to 95% α4β7 receptor occupancy with no safety concerns. This is good news based on the precedent set by Takeda's Entyvio, which is an approved integrin biologic and α4β7 antagonist used to treat ulcerative colitis. During clinical studies, patients who took Entyvio had fully saturated α4β7 receptor occupancy and witnessed substantial mucosal healing in their gastrointestinal tracts. Takeda Pharmaceuticals (NYSE: TAK) manufactures and sells that drug, which brings about $3 billion per year in revenue.
These are just the interim results. Morphic expects to release the entire dataset by the end of this quarter. Even though the company is still in the early stages of drug development, it has attracted big-name partners like Johnson & Johnson's (NYSE: JNJ) Janssen subsidiary and AbbVie (NYSE: ABBV). Morphic receives up to $45 million each year in collaboration revenue.
What's the verdict?
While I wouldn't view Morphic as a safe bet, it does have several strengths. First, the company is developing a drug based on an already proven mechanism of action. Second, the interim data results are similar to those of approved remedies, even if the similarities are just between surrogate metrics. Lastly, it has the backing of big brand pharma to vouch for its science.
Right now, Morphic has $228 million in cash, no debt, and has only lost $143 million since its inception. The company also secured $245 million via an equity capital raise after its stock rally in March. It is undoubtedly targeting a blockbuster drug development opportunity with a good chance of success. I think this is a solid biotech stock for investors with a high-risk, high-reward mindset.
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Zhiyuan Sun has no position in any of the stocks mentioned. 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. | Even though the company is still in the early stages of drug development, it has attracted big-name partners like Johnson & Johnson's (NYSE: JNJ) Janssen subsidiary and AbbVie (NYSE: ABBV). On March 1, Morphic Holding's (NASDAQ: MORF) stock more than doubled after the company announced interim phase 1 data on its experimental therapy, MORF-057. With no product revenue, a $45 million net loss in 2020, and a $2.1 billion market cap, Morphic is a clear example of a company valued solely on its intangible assets. | Even though the company is still in the early stages of drug development, it has attracted big-name partners like Johnson & Johnson's (NYSE: JNJ) Janssen subsidiary and AbbVie (NYSE: ABBV). On March 1, Morphic Holding's (NASDAQ: MORF) stock more than doubled after the company announced interim phase 1 data on its experimental therapy, MORF-057. Morphic has advanced just MORF-057 into phase 1 clinical studies for treating inflammatory bowel diseases such as ulcerative colitis. | Even though the company is still in the early stages of drug development, it has attracted big-name partners like Johnson & Johnson's (NYSE: JNJ) Janssen subsidiary and AbbVie (NYSE: ABBV). On March 1, Morphic Holding's (NASDAQ: MORF) stock more than doubled after the company announced interim phase 1 data on its experimental therapy, MORF-057. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Morphic Holding, Inc. wasn't one of them! | Even though the company is still in the early stages of drug development, it has attracted big-name partners like Johnson & Johnson's (NYSE: JNJ) Janssen subsidiary and AbbVie (NYSE: ABBV). On March 1, Morphic Holding's (NASDAQ: MORF) stock more than doubled after the company announced interim phase 1 data on its experimental therapy, MORF-057. Can investors trust this biotech, which has no products on the market? | faabff4b-7858-4fbc-8782-996b2824eb19 |
24138.0 | 2021-04-13 00:00:00 UTC | Noteworthy Tuesday Option Activity: WDC, FDX, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-wdc-fdx-abbv-2021-04-13 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Western Digital Corp (Symbol: WDC), where a total of 31,523 contracts have traded so far, representing approximately 3.2 million underlying shares. That amounts to about 74.1% of WDC's average daily trading volume over the past month of 4.3 million shares. Especially high volume was seen for the $67.50 strike call option expiring July 16, 2021, with 5,794 contracts trading so far today, representing approximately 579,400 underlying shares of WDC. Below is a chart showing WDC's trailing twelve month trading history, with the $67.50 strike highlighted in orange:
FedEx Corp (Symbol: FDX) saw options trading volume of 19,969 contracts, representing approximately 2.0 million underlying shares or approximately 72.5% of FDX's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $300 strike call option expiring April 16, 2021, with 2,020 contracts trading so far today, representing approximately 202,000 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $300 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 48,093 contracts thus far today. That number of contracts represents approximately 4.8 million underlying shares, working out to a sizeable 61.3% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Especially high volume was seen for the $105 strike call option expiring April 16, 2021, with 7,267 contracts trading so far today, representing approximately 726,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange:
For the various different available expirations for WDC options, FDX options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $105 strike call option expiring April 16, 2021, with 7,267 contracts trading so far today, representing approximately 726,700 underlying shares of ABBV. Below is a chart showing FDX's trailing twelve month trading history, with the $300 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 48,093 contracts thus far today. That number of contracts represents approximately 4.8 million underlying shares, working out to a sizeable 61.3% of ABBV's average daily trading volume over the past month, of 7.8 million shares. | Below is a chart showing FDX's trailing twelve month trading history, with the $300 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 48,093 contracts thus far today. That number of contracts represents approximately 4.8 million underlying shares, working out to a sizeable 61.3% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Especially high volume was seen for the $105 strike call option expiring April 16, 2021, with 7,267 contracts trading so far today, representing approximately 726,700 underlying shares of ABBV. | Especially high volume was seen for the $105 strike call option expiring April 16, 2021, with 7,267 contracts trading so far today, representing approximately 726,700 underlying shares of ABBV. Below is a chart showing FDX's trailing twelve month trading history, with the $300 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 48,093 contracts thus far today. That number of contracts represents approximately 4.8 million underlying shares, working out to a sizeable 61.3% of ABBV's average daily trading volume over the past month, of 7.8 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange: For the various different available expirations for WDC options, FDX options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing FDX's trailing twelve month trading history, with the $300 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 48,093 contracts thus far today. That number of contracts represents approximately 4.8 million underlying shares, working out to a sizeable 61.3% of ABBV's average daily trading volume over the past month, of 7.8 million shares. | 6492f76e-335f-4dc9-a436-bf0827561450 |
24139.0 | 2021-04-13 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for April 14, 2021 | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-ex-dividend-date-scheduled-for-april-14-2021-2021-04-13 | nan | nan | AbbVie Inc. (ABBV) will begin trading ex-dividend on April 14, 2021. A cash dividend payment of $1.3 per share is scheduled to be paid on May 14, 2021. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 10.17% increase over prior dividend payment. At the current stock price of $108.25, the dividend yield is 4.8%.
The previous trading day's last sale of ABBV was $108.25, representing a -4.55% decrease from the 52 week high of $113.41 and a 37.62% increase over the 52 week low of $78.66.
ABBV is a part of the Health Care sector, which includes companies such as Johnson & Johnson (JNJ) and Abbott Laboratories (ABT). ABBV's current earnings per share, an indicator of a company's profitability, is $2.86. Zacks Investment Research reports ABBV's forecasted earnings growth in 2021 as 18.37%, compared to an industry average of 8.4%.
For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
First Trust Morningstar ETF (FDL)
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
iShares U.S. ETF Trust (IEIH)
Invesco Dynamic Pharmaceuticals ETF (PJP)
VanEck Vectors Pharmaceutical ETF (PPH).
The top-performing ETF of this group is FDL with an increase of 16.56% over the last 100 days. It also has the highest percent weighting of ABBV at 7.48%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2021 as 18.37%, compared to an industry average of 8.4%. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. | ABBV's current earnings per share, an indicator of a company's profitability, is $2.86. The following ETF(s) have ABBV as a top-10 holding: First Trust Morningstar ETF (FDL) First Trust Nasdaq Pharmaceuticals ETF (FTXH) iShares U.S. ETF Trust (IEIH) Invesco Dynamic Pharmaceuticals ETF (PJP) VanEck Vectors Pharmaceutical ETF (PPH). AbbVie Inc. (ABBV) will begin trading ex-dividend on April 14, 2021. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. The following ETF(s) have ABBV as a top-10 holding: First Trust Morningstar ETF (FDL) First Trust Nasdaq Pharmaceuticals ETF (FTXH) iShares U.S. ETF Trust (IEIH) Invesco Dynamic Pharmaceuticals ETF (PJP) VanEck Vectors Pharmaceutical ETF (PPH). | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. ABBV's current earnings per share, an indicator of a company's profitability, is $2.86. AbbVie Inc. (ABBV) will begin trading ex-dividend on April 14, 2021. | c8f9d4f7-ce43-449a-ace3-dff23aa5c2fc |
24140.0 | 2021-04-13 00:00:00 UTC | A Short Delay Is Still Bad News for AbbVie | ABBV | https://www.nasdaq.com/articles/a-short-delay-is-still-bad-news-for-abbvie-2021-04-13 | nan | nan | The FDA extended the review for AbbVie's (NYSE: ABBV) Rinvoq as a treatment for psoriatic arthritis. On the surface, a three-month delay isn't a huge deal for the large drugmaker. But as Fool.com Contributors Brian Orelli and Keith Speights discuss in this video from Motley Fool Live, recorded on March 22, the extension could be a sign the agency is worried about the side effects of Rinvoq and other JAK inhibitors.
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Brian Orelli: So, last week, AbbVie said that the FDA is extending its review of Rinvoq as a treatment for psoriatic arthritis. On the surface, this isn't really that big of a deal, the FDA often requests data during its review and if it's too much data, the FDA has the right to extend the review period by three months.
But AbbVie said it was due to the FDA requesting "updated assessment of the risk-benefit profile," which doesn't sound too promising. They've received a similar request from the FDA related to the application for atopic dermatitis. Rinvoq is a JAK inhibitor, which is a class of drugs, that's had some issues with side effects. Can you talk about the history of JAK inhibitors and why there may be more than meets the eye to this FDA request?
Keith Speights: Yeah. I think it is that history of JAK inhibitors that makes this more concerning that it might otherwise be. If you go way back, there are several JAK inhibitors that have already been approved. Pfizer's (NYSE: PFE) Xeljanz, for example, was approved back in 2012, I think, for treating rheumatoid arthritis. Incyte (NASDAQ: INCY) developed a drug that Lilly (NYSE: LLY) licensed and they ultimately won approval for it in rheumatoid arthritis in 2018, that drug is called Olumiant. Both of those are JAK inhibitors and both received black box warnings on their labels related to blood-clotting or thrombosis. For viewers who are not familiar with what those black box labels are, they're the most serious FDA warnings about safety. They don't prevent the drug from being approved, but if you read that label, let's say the reason why it's called black box is it is I think black box around this serious safety warning. Both of these drugs received those black box warnings.
But that's not the only problem. Pfizer received approval for Xeljanz, of course. Earlier this year, Pfizer reported results from a post-marketing safety study that they were required to conduct and Xeljanz flopped. More patients taking Xeljanz had cardiovascular events, more developed cancer than did patients in the real-world who took TNF inhibitors, such as Humira and Enbrel. That was really concerning and that raise more questions about JAK inhibitors as a class.
Last year, Gilead Sciences (NASDAQ: GILD) tried to get FDA approval of a drug that it had licensed from Galapagos (NASDAQ:GLPG) that's called filgotinib. They were looking for rheumatoid arthritis approval there. It also was a JAK inhibitor and the FDA rejected the drug because of safety concerns. There's definitely a murky history of JAK inhibitors.
Now, Rinvoq has already been approved for one indication. It's already been approved actually in 2019 for treating rheumatoid arthritis. I think the real thing here, Brian, is the AbbVie has a lot riding on these additional approvals for Rinvoq. The company is counting on combined peak sales in the ballpark of $15 billion for Rinvoq and another relatively new autoimmune disease drug that it has on the market called Skyrizi.
Those psoriatic arthritis and atopic dermatitis indications are pretty lucrative. I've seen analysts estimate that those two indications could be worth around $4 billion annually in sales. That's a pretty big chunk of change that AbbVie is hoping to count on. This raises the question as to whether or not they'll get approval for these indications. Now, AbbVie says, publicly, that it's confident in the filings for Rinvoq. Of course, that's exactly what you'd expect the company to say. I would guess they'll probably still want approval, but I wouldn't say it's 100 percent the probability of it because this does raise some serious questions.
Orelli: Yeah. I think the FDA is really looking into this JAK inhibitors and wants to make sure that they're approving them only for the most serious conditions. Something like atopic dermatitis, there's a lot of other options and then also, it's a skin problem. Certainly, my wife has it and it's not fun, but it's also not life-threatening and so you don't want to give them something that has a chance of killing them to treat something that isn't nearly as bad.
Speights: I would say though, AbbVie, they know their game here. They've been in this autoimmune disease market for a long time. Humira has been the best selling drugs in the world for several years. So if any company can get an approval for a JAK inhibitor for these indications, I think it would be AbbVie. By the way, I also want shares of AbbVie, so I'm probably biased to some degree there, but I do think AbbVie has a great track record on this front. So if any company is going to win approvals, I think it will be AbbVie, but I don't think it's a slam dunk.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Incyte. 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 FDA extended the review for AbbVie's (NYSE: ABBV) Rinvoq as a treatment for psoriatic arthritis. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | The FDA extended the review for AbbVie's (NYSE: ABBV) Rinvoq as a treatment for psoriatic arthritis. Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Brian Orelli: So, last week, AbbVie said that the FDA is extending its review of Rinvoq as a treatment for psoriatic arthritis. So if any company can get an approval for a JAK inhibitor for these indications, I think it would be AbbVie. The FDA extended the review for AbbVie's (NYSE: ABBV) Rinvoq as a treatment for psoriatic arthritis. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Brian Orelli: So, last week, AbbVie said that the FDA is extending its review of Rinvoq as a treatment for psoriatic arthritis. So if any company can get an approval for a JAK inhibitor for these indications, I think it would be AbbVie. The FDA extended the review for AbbVie's (NYSE: ABBV) Rinvoq as a treatment for psoriatic arthritis. | 06b89baf-c9a8-467c-80aa-19fdb02d73d4 |
24141.0 | 2021-04-13 00:00:00 UTC | 2 Stocks That Are Perfect to Buy Now and Hold Until Retirement | ABBV | https://www.nasdaq.com/articles/2-stocks-that-are-perfect-to-buy-now-and-hold-until-retirement-2021-04-13 | nan | nan | Investors approaching retirement tend to be focused on investing prudently in those last few years before leaving the workforce, with many seeking to maximize their dividend income. Two companies in the healthcare sector stand out as good prospects in that regard, both now and in the future: AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). Both currently yield more than 4% -- much higher than the 1.37% current average of the S&P 500 -- and both are solidly positioned for consistent ongoing growth. These dependable businesses are committed to rewarding shareholders in the long run.
Image source: Getty Images.
1. AbbVie: Buy while it's still cheap
AbbVie came on to the market in 2013 after being spun off from medical device company Abbott Labs. It joined a crowded landscape, competing against the likes of Johnson & Johnson, Pfizer, Merck, and Bristol Myers Squibb. Since then, management has wasted no time in developing several breakthrough drugs and driving sales to generate tremendous returns for shareholders.
AbbVie has several leading products, including Humira (for Crohn's disease), Skyrizi (for psoriasis), and Rinvoq (for rheumatoid arthritis), all of which have helped drive returns of nearly 222% since inception. Its most recent triumph, Humira, was the world's best-selling drug in 2020 with revenue of nearly $20 billion.
Such blockbuster drugs have contributed to remarkable revenue growth since inception, with earnings per share up 32% in fiscal 2020 alone (partly thanks to sales from Allergan, which AbbVie acquired that year). Management expects adjusted EPS to be up at least 16.7%.
In today's market, not every company is right to buy and hold. But this stock looks poised to compound tremendously for the next several decades. It generates superb cash flows and offers a 5% dividend yield to reward investors both young and old. Even with AbbVie's 35% gain in the past year, I believe it is still a buy and a reliable company to hold for the long run.
2. Pfizer: Never a bad time to buy
Pfizer has been a leader in the fight against COVID-19. The vaccine it created with partner BioNTech was the first approved by the U.S. Food and Drug Administration (FDA), on Dec. 11. It's expanding by building out its vaccine business, which management thinks could be great future source of potential revenue for the company.
Pfizer has a total of 95 discovery projects in its pipeline, and while most such projects (at any company) will never make it to phase 3 trials, Pfizer has always managed to stay ahead of the competition. In 2019, the clinical trial success rate for its products was 9%, edging out the competition's average of 8%. In 2020, the company has managed to more than double its success rate to 21%, still an outperformance compared with competitors.
In recently provided 2021 financial guidance, management called for full-year revenue in the range of $59.4 billion to $61.4 billion, an almost 30% increase from the $41.9 billion in revenue it saw in 2020. The company currently trades at a P/E of just 11.21 and offers investors a 4.3% dividend yield. Management recently announced a 5.5% dividend raise, which took effect in March. Pfizer offers a growing stream of dividends for investors looking to supplement their income in retirement.
Just buy and hold
A study by Raymond James examining the many recessions going all the way back to 1926 showed that between 1926 and 2010 -- through the Great Depression, the dot-com bubble, and the Great Recession of 2008, among other things -- large-cap stocks achieved a compound annual growth of 9.9%. Investing in healthcare companies like AbbVie and Pfizer -- businesses that offer both share-price appreciation and a 4%-plus dividend yield -- can help you secure a profitable retirement.
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Anirudh Shankar owns shares of Bristol Myers Squibb, Pfizer, AbbVie, and Merck. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has several leading products, including Humira (for Crohn's disease), Skyrizi (for psoriasis), and Rinvoq (for rheumatoid arthritis), all of which have helped drive returns of nearly 222% since inception. Such blockbuster drugs have contributed to remarkable revenue growth since inception, with earnings per share up 32% in fiscal 2020 alone (partly thanks to sales from Allergan, which AbbVie acquired that year). Investing in healthcare companies like AbbVie and Pfizer -- businesses that offer both share-price appreciation and a 4%-plus dividend yield -- can help you secure a profitable retirement. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of Bristol Myers Squibb, Pfizer, AbbVie, and Merck. Two companies in the healthcare sector stand out as good prospects in that regard, both now and in the future: AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie: Buy while it's still cheap AbbVie came on to the market in 2013 after being spun off from medical device company Abbott Labs. | Investing in healthcare companies like AbbVie and Pfizer -- businesses that offer both share-price appreciation and a 4%-plus dividend yield -- can help you secure a profitable retirement. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of Bristol Myers Squibb, Pfizer, AbbVie, and Merck. Two companies in the healthcare sector stand out as good prospects in that regard, both now and in the future: AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). | Two companies in the healthcare sector stand out as good prospects in that regard, both now and in the future: AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie: Buy while it's still cheap AbbVie came on to the market in 2013 after being spun off from medical device company Abbott Labs. AbbVie has several leading products, including Humira (for Crohn's disease), Skyrizi (for psoriasis), and Rinvoq (for rheumatoid arthritis), all of which have helped drive returns of nearly 222% since inception. | fcb00384-e998-4dea-83d4-f51935f3ce92 |
24142.0 | 2021-04-12 00:00:00 UTC | COVID SCIENCE-Autoimmune-disease drugs may reduce vaccine response; antibody treatments ineffective vs Brazil variant | ABBV | https://www.nasdaq.com/articles/covid-science-autoimmune-disease-drugs-may-reduce-vaccine-response-antibody-treatments | nan | nan | By Nancy Lapid
April 12 (Reuters) - The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus.
Autoimmune disease treatments may reduce vaccine responses
Immunosuppressive drugs for inflammatory diseases like rheumatoid arthritis, multiple sclerosis, and ulcerative colitis can impair the body's response to the COVID-19 vaccines from Pfizer/BioNTech PFE.N, BNTX.O and Moderna MRNA.O, according to new data. In 133 fully vaccinated people with such conditions, antibody levels and virus neutralization were about three-fold lower than in a comparison group of vaccinated individuals not taking those medicine, researchers reported on Friday on medRxiv ahead of peer review. Most patients in the study "were able to mount antibody responses in response to SARS-CoV-2 vaccination, which is reassuring," said coauthor Alfred Kim from Washington University School of Medicine in St. Louis. It is not clear yet whether reduced antibody levels will result in decreased protection from infection or hospitalization, Kim said. Particularly concerning, he said, is the 10-fold reduction in vaccine-induced antibody levels seen in patients who routinely use steroids such as prednisone and methylprednisolone and a 36-fold reduction seen with drugs that deplete B cells, including Roche's ROG.S Rituxan (rituximab) and Ocrevus (ocrelizumab). Reductions in antibody levels were more modest with widely used rheumatoid arthritis drugs in the class known as TNF inhibitors such as Abbvie's ABBV.N Humira (adalimumab) and Amgen's AMGN.O Enbrel (etanercept); antimetabolites like methotrexate and sulfasalazine; JAK inhibitors like Pfizer's Xeljanz (tofacitinib), gut-specific agents such as Takeda Pharmaceutical Co's 4502.T Entyvio (vedolizumab), and IL-12/23 inhibitors including Johnson & Johnson's Stelara (ustekinumab). (https://bit.ly/2QmzRiY)
Most antibody drugs ineffective against Brazil variant
The coronavirus variant first identified in Brazil, known as P.1, is resistant to three of the four antibody therapies with emergency use authorization in the United States, according to a laboratory study. In test-tube experiments, researchers exposed the P.1 variant to various monoclonal antibodies, including the four currently being used to treat U.S. COVID-19 patients - imdevimab and casirivimab from Regneron Pharmaceuticals REGN.O, and bamlanivimab and etesevimab from Eli Lilly and Co LLY.N. Only imdevimab retained any potency, researchers found. The neutralizing ability of the other three were "markedly or completely abolished," according to a peer reviewed report available on bioRxiv and provisionally accepted by the journal Cell Host & Microbe. The researchers also exposed P.1 to plasma from COVID-19 survivors and blood from recipients of vaccines from Pfizer/BioNTech or Moderna. Compared to their effects against the original version of the coronavirus, the plasma and the vaccine-induced antibodies were less effective at neutralizing P.1. In earlier studies, however, they were even less effective against the B.1.351 variant first identified in South Africa. This suggests that the Brazil variant might not pose as great a threat of reinfection or decreased vaccine protection as the South Africa variant, said coauthor David Ho from Columbia University. Real-world evidence is needed to confirm the lab results, he said. (https://bit.ly/2Qgv4j1)
South Africa variant can 'break through' Pfizer vaccine
The B.1.351 coronavirus variant discovered in South Africa can "break through" Pfizer/BioNTech's COVID-19 vaccine protection to some extent, Israeli researchers have found. They compared almost 400 people who had tested positive for COVID-19 after one or two doses of the vaccine, against the same number of similar people with COVID-19 who were unvaccinated. The prevalence of the variant in Israel is low, and overall, it accounted for about 1% of all the COVID-19 cases in the study. But among those who received both doses of the vaccine, a larger proportion of COVID-19 infections were caused by B.1.351. The "disproportionately higher rate" of the South African variant in the fully vaccinated group (5.4%) compared to the rate in the unvaccinated group (0.7%) "means that the South African variant is able, to some extent, to break through the vaccine's protection," said Tel Aviv University's Adi Stern. In a report posted on Friday on medRxiv ahead of peer review, Stern's team said the research was not intended to deduce overall vaccine effectiveness against any variant, since it only looked at people who had already tested positive for COVID-19, not at overall infection rates in the community. (https://bit.ly/3sdVzCR;https://reut.rs/32aqvt0)
Open https://tmsnrt.rs/3c7R3Bl in an external browser for a Reuters graphic on vaccines in development.
Tracking the vaccine racehttp://graphics.reuters.com/HEALTH-CORONAVIRUS/VACCINE-TRACKER/xegpbqnlovq/
COVID-19 Vaccination trackerhttps://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access/
(Reporting by Nancy Lapid and Maayan Lubell; Editing by Bill Berkrot)
((Nancy.Lapid@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. | Reductions in antibody levels were more modest with widely used rheumatoid arthritis drugs in the class known as TNF inhibitors such as Abbvie's ABBV.N Humira (adalimumab) and Amgen's AMGN.O Enbrel (etanercept); antimetabolites like methotrexate and sulfasalazine; JAK inhibitors like Pfizer's Xeljanz (tofacitinib), gut-specific agents such as Takeda Pharmaceutical Co's 4502.T Entyvio (vedolizumab), and IL-12/23 inhibitors including Johnson & Johnson's Stelara (ustekinumab). By Nancy Lapid April 12 (Reuters) - The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus. In test-tube experiments, researchers exposed the P.1 variant to various monoclonal antibodies, including the four currently being used to treat U.S. COVID-19 patients - imdevimab and casirivimab from Regneron Pharmaceuticals REGN.O, and bamlanivimab and etesevimab from Eli Lilly and Co LLY.N. | Reductions in antibody levels were more modest with widely used rheumatoid arthritis drugs in the class known as TNF inhibitors such as Abbvie's ABBV.N Humira (adalimumab) and Amgen's AMGN.O Enbrel (etanercept); antimetabolites like methotrexate and sulfasalazine; JAK inhibitors like Pfizer's Xeljanz (tofacitinib), gut-specific agents such as Takeda Pharmaceutical Co's 4502.T Entyvio (vedolizumab), and IL-12/23 inhibitors including Johnson & Johnson's Stelara (ustekinumab). In 133 fully vaccinated people with such conditions, antibody levels and virus neutralization were about three-fold lower than in a comparison group of vaccinated individuals not taking those medicine, researchers reported on Friday on medRxiv ahead of peer review. (https://bit.ly/2Qgv4j1) South Africa variant can 'break through' Pfizer vaccine The B.1.351 coronavirus variant discovered in South Africa can "break through" Pfizer/BioNTech's COVID-19 vaccine protection to some extent, Israeli researchers have found. | Reductions in antibody levels were more modest with widely used rheumatoid arthritis drugs in the class known as TNF inhibitors such as Abbvie's ABBV.N Humira (adalimumab) and Amgen's AMGN.O Enbrel (etanercept); antimetabolites like methotrexate and sulfasalazine; JAK inhibitors like Pfizer's Xeljanz (tofacitinib), gut-specific agents such as Takeda Pharmaceutical Co's 4502.T Entyvio (vedolizumab), and IL-12/23 inhibitors including Johnson & Johnson's Stelara (ustekinumab). In 133 fully vaccinated people with such conditions, antibody levels and virus neutralization were about three-fold lower than in a comparison group of vaccinated individuals not taking those medicine, researchers reported on Friday on medRxiv ahead of peer review. (https://bit.ly/2Qgv4j1) South Africa variant can 'break through' Pfizer vaccine The B.1.351 coronavirus variant discovered in South Africa can "break through" Pfizer/BioNTech's COVID-19 vaccine protection to some extent, Israeli researchers have found. | Reductions in antibody levels were more modest with widely used rheumatoid arthritis drugs in the class known as TNF inhibitors such as Abbvie's ABBV.N Humira (adalimumab) and Amgen's AMGN.O Enbrel (etanercept); antimetabolites like methotrexate and sulfasalazine; JAK inhibitors like Pfizer's Xeljanz (tofacitinib), gut-specific agents such as Takeda Pharmaceutical Co's 4502.T Entyvio (vedolizumab), and IL-12/23 inhibitors including Johnson & Johnson's Stelara (ustekinumab). In earlier studies, however, they were even less effective against the B.1.351 variant first identified in South Africa. This suggests that the Brazil variant might not pose as great a threat of reinfection or decreased vaccine protection as the South Africa variant, said coauthor David Ho from Columbia University. | 046daba7-022c-44a8-8cc7-b3000ac43295 |
24143.0 | 2021-04-11 00:00:00 UTC | 4 Green Flags for AbbVie in 2021 | ABBV | https://www.nasdaq.com/articles/4-green-flags-for-abbvie-in-2021-2021-04-11 | nan | nan | Given that AbbVie (NYSE: ABBV) is one of the largest pharma companies in the world, one might expect that it has a limited number of opportunities to deliver substantial growth to its investors. But the pharma giant is anything but complacent, and its work is always paying off in the form of new revenue streams that end up in shareholders' pockets via its juicy dividend.
While it's true that the company will face headwinds once its best-selling drug Humira starts facing serious competition from generics in the U.S., AbbVie is intent on making the transition as smooth as possible for investors. Further, it expects to hit a handful of important milestones for its other projects in 2021 -- and that's worth knowing about if you're a current shareholder or if you're considering a buy.
Image source: Getty Images
1. Five possible approvals
Before the end of 2021, AbbVie may have five approvals or expanded indications for several of its drugs. The company's drug Rinvoq could see the largest expansion of its potential revenue thanks to the new approvals, given that it will be prescribable for three new conditions: atopic dermatitis, psoriatic arthritis, and ankylosing spondylitis. Of course, that assumes regulators don't find any issue with AbbVie's paperwork or clinical trial data.
Aside from Rinvoq, Atogepant should also be approved to prevent migraines, and AGN-190584 could score its first approval for presbyopia. Depending on when regulators weigh in, it might take until 2022 before shareholders see revenue growth and investment returns from the new commercialization options, however.
2. 12 upcoming new data readouts from late-stage clinical trials
While getting new information about its ongoing projects might not move AbbVie's stock price as much as it could for a smaller company, investors can still look forward to positive news supporting higher valuations. Through the end of the year, there will be a smorgasbord of readouts from phase 3 and registration-phase projects, including for the company's new moneymakers like Rinvoq and Skyrizi. Though there's no guarantee that 100% of the information in the updates will be positive, there's a good chance that the projected future revenue from at least a few of the projects will become a bit more tangible.
3. Humira secures yet another approval
In late February, AbbVie announced that its best-selling arthritis drug, Humira, had just chalked up yet another approved indication in the U.S. to treat moderate to severe pediatric ulcerative colitis. So, investors should expect new revenue flows to hit the books in the next earnings report, with sales in the new indication scaling up over the remainder of the year. The crazy part of the new approval is that Humira was already approved for around a dozen other indications, so it's no surprise that the drug made the company $19.8 billion in 2020, accounting for 43% of its total revenue.
Even as Humira will face mounting competition from biosimilars for its older indications once it loses patent exclusivity in 2023, it's clear that AbbVie is still determined to squeeze every last penny out of its best investment to date.
4. Rinvoq is looking even better than before after the latest update
In continuity with AbbVie's strong position in the arthritis market, The New England Journal of Medicine published favorable results from a phase 3 clinical trial for Rinvoq on April 1 -- and you can bet that prestigious medical journals don't do April Fool's jokes. In short, the SELECT-PsA trial found that Rinvoq helped people with treatment-resistant psoriatic arthritis resolve their symptoms like fatigue and enthesitis far beyond the relief offered by a placebo. Moreover, the study reported that these benefits were durable out to 24 weeks. That's great news for patients, and it also means that investors can look forward to higher earnings down the line when the drug could eventually be approved for the indication.
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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. | 12 upcoming new data readouts from late-stage clinical trials While getting new information about its ongoing projects might not move AbbVie's stock price as much as it could for a smaller company, investors can still look forward to positive news supporting higher valuations. Even as Humira will face mounting competition from biosimilars for its older indications once it loses patent exclusivity in 2023, it's clear that AbbVie is still determined to squeeze every last penny out of its best investment to date. Given that AbbVie (NYSE: ABBV) is one of the largest pharma companies in the world, one might expect that it has a limited number of opportunities to deliver substantial growth to its investors. | While it's true that the company will face headwinds once its best-selling drug Humira starts facing serious competition from generics in the U.S., AbbVie is intent on making the transition as smooth as possible for investors. Humira secures yet another approval In late February, AbbVie announced that its best-selling arthritis drug, Humira, had just chalked up yet another approved indication in the U.S. to treat moderate to severe pediatric ulcerative colitis. Given that AbbVie (NYSE: ABBV) is one of the largest pharma companies in the world, one might expect that it has a limited number of opportunities to deliver substantial growth to its investors. | 12 upcoming new data readouts from late-stage clinical trials While getting new information about its ongoing projects might not move AbbVie's stock price as much as it could for a smaller company, investors can still look forward to positive news supporting higher valuations. Humira secures yet another approval In late February, AbbVie announced that its best-selling arthritis drug, Humira, had just chalked up yet another approved indication in the U.S. to treat moderate to severe pediatric ulcerative colitis. Rinvoq is looking even better than before after the latest update In continuity with AbbVie's strong position in the arthritis market, The New England Journal of Medicine published favorable results from a phase 3 clinical trial for Rinvoq on April 1 -- and you can bet that prestigious medical journals don't do April Fool's jokes. | 12 upcoming new data readouts from late-stage clinical trials While getting new information about its ongoing projects might not move AbbVie's stock price as much as it could for a smaller company, investors can still look forward to positive news supporting higher valuations. Given that AbbVie (NYSE: ABBV) is one of the largest pharma companies in the world, one might expect that it has a limited number of opportunities to deliver substantial growth to its investors. While it's true that the company will face headwinds once its best-selling drug Humira starts facing serious competition from generics in the U.S., AbbVie is intent on making the transition as smooth as possible for investors. | 96bb7568-c34f-4be0-aeef-ae700bd9adc1 |
24144.0 | 2021-04-11 00:00:00 UTC | 3 Great Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-to-buy-right-now-2021-04-11 | nan | nan | You really only have to look for two things when considering dividend stocks. First, the stock has to pay a dividend. Second, the business behind the stock should be strong enough to keep the dividends coming.
Sure, there are other characteristics of dividend stocks that are nice to have. A relatively high yield would be great. A track record of dividend increases is another big plus. You'd love for the stock to offer solid growth prospects as well.
Not every stock checks off all of the must-have and nice-to-have boxes. But here are three great dividend stocks to buy right now that do.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) has paid a dividend since 1924, including the time when the company was still part of Abbott Labs. The drugmaker has increased its dividend for 49 consecutive years, qualifying AbbVie as a Dividend Aristocrat that's knocking on the door of becoming a Dividend King. The company's dividend yield currently stands at a mouthwatering 4.9%.
There's one glaring issue with AbbVie, though. The company's top-selling drug Humira loses U.S. exclusivity in 2023. That's going to make a serious dent in AbbVie's revenue, considering that Humira generated 43% of the company's total sales last year.
Could AbbVie's dividend be in jeopardy? Not at all. Actually, the company's long-term growth prospects shouldn't be impacted much either.
AbbVie does expect total sales to slip in 2023 with Humira losing market share to biosimilar rivals in the U.S. However, the pharma company thinks that it will return to growth in the following year with strong revenue growth for the rest of the decade.
Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE: BEP) has paid a distribution (equivalent to a dividend) going back to 2000, before the company existed in its current structure. During that period, the renewable energy company's distributions grew by a compound annual growth rate of 6%. Today, its distribution yield is nearly 2.9%.
The company recently boosted its distribution by 5%. More hikes should be on the way. Brookfield Renewable expects to increase its cash flow by close to 15% annually on average over the next few years.
Achieving that goal shouldn't be too difficult. Inflation pricing adjustments and improving margins should contribute up to 6% of Brookfield Renewable's target growth. The company's 23,000-megawatt development pipeline could easily add another 5% in annual growth. Brookfield Renewable anticipates that future acquisitions will generate another 4% to 5% of growth.
There's no question that the demand for renewable energy will rise over the next decade and beyond. Major countries and large corporations have established ambitious carbon-reduction targets. Wind and solar have become the cheapest source of bulk power generation. As a leader in the renewable energy sector, Brookfield Renewable should be poised to deliver solid distributions and strong total returns for years to come.
Pfizer
Pfizer (NYSE: PFE) has consistently paid a dividend every quarter for decades. Although the company cut its dividend in 2009 due to its acquisition of Wyeth, it has steadily increased its dividend payout every year since then.
Look for Pfizer to reduce its dividend again this quarter. There's nothing to worry about, though. This dividend cut will be made in conjunction with Viatris initiating its dividend program. When Pfizer first announced the merger of its Upjohn unit with Mylan, it promised that the combined dividend for Pfizer and the new entity created by the merger would be roughly the same as Pfizer's previous dividend.
One positive consequence of the Viatris transaction is that it positioned Pfizer to deliver stronger revenue and earnings growth than it has in recent years. This growth, combined with the company's attractive dividend and low valuation, makes Pfizer the best big pharma stock to buy right now in my view.
The biggest growth driver for Pfizer this year will be COVID-19 vaccine BNT162b2. It remains to be seen how much recurring revenue the company will be able to count on from the vaccine. However, with the emergence of new coronavirus variants, I think that Pfizer will have a long-term multibillion-dollar franchise on its hands.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., Pfizer, and Viatris. 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. | That's going to make a serious dent in AbbVie's revenue, considering that Humira generated 43% of the company's total sales last year. AbbVie does expect total sales to slip in 2023 with Humira losing market share to biosimilar rivals in the U.S. AbbVie AbbVie (NYSE: ABBV) has paid a dividend since 1924, including the time when the company was still part of Abbott Labs. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., Pfizer, and Viatris. AbbVie AbbVie (NYSE: ABBV) has paid a dividend since 1924, including the time when the company was still part of Abbott Labs. The drugmaker has increased its dividend for 49 consecutive years, qualifying AbbVie as a Dividend Aristocrat that's knocking on the door of becoming a Dividend King. | The drugmaker has increased its dividend for 49 consecutive years, qualifying AbbVie as a Dividend Aristocrat that's knocking on the door of becoming a Dividend King. AbbVie AbbVie (NYSE: ABBV) has paid a dividend since 1924, including the time when the company was still part of Abbott Labs. There's one glaring issue with AbbVie, though. | That's going to make a serious dent in AbbVie's revenue, considering that Humira generated 43% of the company's total sales last year. AbbVie AbbVie (NYSE: ABBV) has paid a dividend since 1924, including the time when the company was still part of Abbott Labs. The drugmaker has increased its dividend for 49 consecutive years, qualifying AbbVie as a Dividend Aristocrat that's knocking on the door of becoming a Dividend King. | e47fdc8e-a427-4b32-ab94-069bce470470 |
24145.0 | 2021-04-10 00:00:00 UTC | Better Value Stock: AbbVie or Viatris? | ABBV | https://www.nasdaq.com/articles/better-value-stock%3A-abbvie-or-viatris-2021-04-10 | nan | nan | Most stocks are expensive right now. That's to be expected with major market indexes at or near all-time highs. Amid the premium prices, though, there are still a few bargains to be found.
Two drugmakers -- AbbVie (NYSE: ABBV) and Viatris (NASDAQ: VTRS) -- especially stand out due to their attractive valuations. Which is the better value stock? Here's how AbbVie and Viatris stack up against each other.
Image source: Getty Images.
Comparing the metrics
You might think that neither AbbVie nor Viatris qualifies as value stocks based on their trailing-12-month price-to-earnings (P/E) ratios. AbbVie's P/E multiple currently stands at 39, while Viatris's P/E ratio is over 28.5. However, it's a much different story when we focus on the future instead of the past.
AbbVie's shares trade at only 8.6 times expected earnings. Viatris claims an even lower forward earnings multiple of 4.3.
If you prefer to use sales-based valuation metrics, Viatris is the clear winner. Viatris's price-to-sales (P/S) multiple is a super-low 0.7. AbbVie's P/S ratio of nearly 3.9 is a lot higher, although it's still at an attractive level.
Some investors like another metric that calculates the ratio of enterprise value (EV) to earnings before interest, taxes, depreciation, and amortization (EBITDA). The two stocks are pretty close on this metric, with AbbVie's EV/EBITDA of 21.5 just a little higher than Viatris's multiple of nearly 21.
Behind their low valuations
Determining which stock is a bigger bargain isn't quite as simple as just comparing commonly used valuation metrics. Some stocks are cheap for only a season, while others are cheap for a reason. It's better to buy the former rather than the latter.
AbbVie is less expensive than most of its peers primarily because of concerns about its top-selling drug Humira. The blockbuster autoimmune disease drug generated more than 40% of AbbVie's total revenue last year. However, Humira loses U.S. patent exclusivity in 2023.
While investors are worried about the impact of declining sales for Humira with AbbVie, Viatris's product lineup is chock-full of drugs that are past their prime. Viatris was formed by the combination of Pfizer's Upjohn unit and Mylan. Upjohn was home to Pfizer's drugs that have already lost exclusivity and for which sales are falling, notably including Lipitor and Lyrica.
AbbVie thinks that it will be able to quickly move past the hit that it will take from Humira's loss of exclusivity. The company is counting on strong growth from other products, including new autoimmune disease drugs Rinvoq and Skyrizi, to offset the revenue declines for Humira.
Viatris expects a "trough year" in 2021. However, the drugmaker expects to achieve over $1 billion in cost synergies over the next three years from the merger of Upjohn and Mylan. It projects "modest and durable" revenue growth beginning in 2024.
Better value stock?
My view is that while Viatris has a lower valuation based on nearly any metric you use, AbbVie is the better value stock. Actually, I think that AbbVie is the best value stock on the market right now.
I'm not all that concerned about the looming loss of exclusivity for Humira. AbbVie should deliver strong sales growth in 2021 and 2022. Sure, total sales will almost certainly decline in 2023 as biosimilars to Humira enter the U.S. market. However, I believe AbbVie's projections of a return to modest growth in 2024 followed by strong growth for the rest of the decade make sense.
Some might be anxious that the U.S. Food and Drug Administration (FDA) has pushed back the review period for Rinvoq for AbbVie's regulatory filings for atopic dermatitis and psoriatic arthritis. I still expect the drug will win approvals for the indications, though.
AbbVie should easily deliver stronger revenue and earnings growth than Viatris will. It also offers an attractive dividend with a long track record of dividend increases. Viatris expects to initiate its dividend program in the second quarter. However, its projected dividend yield of around 2.4% is well below AbbVie's yield of nearly 5%. In my opinion, AbbVie is clearly the better pick between these two value stocks.
10 stocks we like better than AbbVie
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Keith Speights owns shares of AbbVie, Pfizer, and Viatris. 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. | While investors are worried about the impact of declining sales for Humira with AbbVie, Viatris's product lineup is chock-full of drugs that are past their prime. Some might be anxious that the U.S. Food and Drug Administration (FDA) has pushed back the review period for Rinvoq for AbbVie's regulatory filings for atopic dermatitis and psoriatic arthritis. Two drugmakers -- AbbVie (NYSE: ABBV) and Viatris (NASDAQ: VTRS) -- especially stand out due to their attractive valuations. | While investors are worried about the impact of declining sales for Humira with AbbVie, Viatris's product lineup is chock-full of drugs that are past their prime. AbbVie should deliver strong sales growth in 2021 and 2022. Two drugmakers -- AbbVie (NYSE: ABBV) and Viatris (NASDAQ: VTRS) -- especially stand out due to their attractive valuations. | The two stocks are pretty close on this metric, with AbbVie's EV/EBITDA of 21.5 just a little higher than Viatris's multiple of nearly 21. My view is that while Viatris has a lower valuation based on nearly any metric you use, AbbVie is the better value stock. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Pfizer, and Viatris. | AbbVie's P/E multiple currently stands at 39, while Viatris's P/E ratio is over 28.5. Two drugmakers -- AbbVie (NYSE: ABBV) and Viatris (NASDAQ: VTRS) -- especially stand out due to their attractive valuations. Here's how AbbVie and Viatris stack up against each other. | ed9d331a-0d13-43a9-b849-fe8b08e80fed |
24146.0 | 2021-04-09 00:00:00 UTC | Interesting ABBV Put And Call Options For June 18th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-june-18th-2021-04-09 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 18th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 70 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $105.00 strike price has a current bid of $3.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $105.00, but will also collect the premium, putting the cost basis of the shares at $101.30 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $106.38/share today.
Because the $105.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.52% return on the cash commitment, or 18.37% 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 $105.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of $1.09. If an investor was to purchase shares of ABBV stock at the current price level of $106.38/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $115.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.13% if the stock gets called away at the June 18th 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 $115.00 strike highlighted in red:
Considering the fact that the $115.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.02% boost of extra return to the investor, or 5.34% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example above is 27%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $106.38) to be 25%. 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 $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 18th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 18th 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 $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 18th contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new June 18th 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 $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the June 18th expiration. | 7df068c0-2e7d-4196-bbc7-2e7cb65d1f77 |
24147.0 | 2021-04-09 00:00:00 UTC | Do These 3 Checks Before Buying AbbVie Inc. (NYSE:ABBV) For Its Upcoming Dividend | ABBV | https://www.nasdaq.com/articles/do-these-3-checks-before-buying-abbvie-inc.-nyse%3Aabbv-for-its-upcoming-dividend-2021-04-09 | nan | nan | Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see AbbVie Inc. (NYSE:ABBV) is about to trade ex-dividend in the next four days. This means that investors who purchase shares on or after the 14th of April will not receive the dividend, which will be paid on the 14th of May.
AbbVie's upcoming dividend is US$1.30 a share, following on from the last 12 months, when the company distributed a total of US$5.20 per share to shareholders. Based on the last year's worth of payments, AbbVie has a trailing yield of 4.9% on the current stock price of $106.1. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether AbbVie has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. AbbVie paid out 177% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. A useful secondary check can be to evaluate whether AbbVie generated enough free cash flow to afford its dividend. It distributed 46% of its free cash flow as dividends, a comfortable payout level for most companies.
It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABBV Historic Dividend April 9th 2021
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. So we're not too excited that AbbVie's earnings are down 2.8% a year over the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. AbbVie has delivered an average of 16% per year annual increase in its dividend, based on the past eight years of dividend payments. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. AbbVie is already paying out 177% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future.
To Sum It Up
Has AbbVie got what it takes to maintain its dividend payments? It's not a great combination to see a company with earnings in decline and paying out 177% of its profits, which could imply the dividend may be at risk of being cut in the future. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in AbbVie's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of AbbVie.
With that in mind though, if the poor dividend characteristics of AbbVie don't faze you, it's worth being mindful of the risks involved with this business. Every company has risks, and we've spotted 5 warning signs for AbbVie you should know about.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see AbbVie Inc. (NYSE:ABBV) is about to trade ex-dividend in the next four days. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in AbbVie's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. AbbVie's upcoming dividend is US$1.30 a share, following on from the last 12 months, when the company distributed a total of US$5.20 per share to shareholders. | A useful secondary check can be to evaluate whether AbbVie generated enough free cash flow to afford its dividend. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. NYSE:ABBV Historic Dividend April 9th 2021 Have Earnings And Dividends Been Growing? | It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. AbbVie has delivered an average of 16% per year annual increase in its dividend, based on the past eight years of dividend payments. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see AbbVie Inc. (NYSE:ABBV) is about to trade ex-dividend in the next four days. | AbbVie paid out 177% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see AbbVie Inc. (NYSE:ABBV) is about to trade ex-dividend in the next four days. AbbVie's upcoming dividend is US$1.30 a share, following on from the last 12 months, when the company distributed a total of US$5.20 per share to shareholders. | b7f0ecd8-ce2b-4c8a-b23b-42837702fe23 |
24148.0 | 2021-04-08 00:00:00 UTC | Interesting ABBV Put And Call Options For May 28th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-may-28th-2021-04-08 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $105.00 strike price has a current bid of $2.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $105.00, but will also collect the premium, putting the cost basis of the shares at $102.10 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $106.69/share today.
Because the $105.00 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 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.76% return on the cash commitment, or 20.16% 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 $105.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $1.29. If an investor was to purchase shares of ABBV stock at the current price level of $106.69/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $110.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.31% if the stock gets called away at the May 28th 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 $110.00 strike highlighted in red:
Considering the fact that the $110.00 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 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.21% boost of extra return to the investor, or 8.83% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $106.69) to be 25%. 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 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 28th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 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 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 28th 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 $105.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $1.29. Below is a chart showing ABBV's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 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 28th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 28th 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 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 28th expiration. | f356745a-295c-48c0-9d48-f11c9c2ab281 |
24149.0 | 2021-04-08 00:00:00 UTC | IVW, ABBV, INTU, NOW: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/ivw-abbv-intu-now%3A-etf-outflow-alert-2021-04-08 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $70.9 million dollar outflow -- that's a 0.2% decrease week over week (from 479,450,000 to 478,400,000). Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 1%, Intuit Inc (Symbol: INTU) is up about 1.7%, and ServiceNow Inc (Symbol: NOW) is higher by about 2.4%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $43.265 per share, with $68.205 as the 52 week high point — that compares with a last trade of $68.05. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 1%, Intuit Inc (Symbol: INTU) is up about 1.7%, and ServiceNow Inc (Symbol: NOW) is higher by about 2.4%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $43.265 per share, with $68.205 as the 52 week high point — that compares with a last trade of $68.05. 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 IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 1%, Intuit Inc (Symbol: INTU) is up about 1.7%, and ServiceNow Inc (Symbol: NOW) is higher by about 2.4%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $43.265 per share, with $68.205 as the 52 week high point — that compares with a last trade of $68.05. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 1%, Intuit Inc (Symbol: INTU) is up about 1.7%, and ServiceNow Inc (Symbol: NOW) is higher by about 2.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $70.9 million dollar outflow -- that's a 0.2% decrease week over week (from 479,450,000 to 478,400,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $43.265 per share, with $68.205 as the 52 week high point — that compares with a last trade of $68.05. | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 1%, Intuit Inc (Symbol: INTU) is up about 1.7%, and ServiceNow Inc (Symbol: NOW) is higher by about 2.4%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $43.265 per share, with $68.205 as the 52 week high point — that compares with a last trade of $68.05. 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). | ec697d6b-3a23-424d-bc40-71092abadf13 |
24150.0 | 2021-04-07 00:00:00 UTC | Does 2021's Best Biopharma to Work for Belong in Your Portfolio? | ABBV | https://www.nasdaq.com/articles/does-2021s-best-biopharma-to-work-for-belong-in-your-portfolio-2021-04-07 | nan | nan | Happy employees can create effective companies. So when a business makes it onto Fortune magazine's "Best Workplaces" list five years in a row, it suggests that employees are content, and shareholders are likely being handsomely rewarded in the process.
Consider Horizon Therapeutics (NASDAQ: HZNP), which topped the magazine's best workplaces list for 2021 in the healthcare and biopharma category. Shares of Horizon are up by more than 420% over the last five years, compared to the S&P 500, which has risen by just shy of 100%. That's a tremendous performance, but for new investors, the important questions are: What drove that growth, and where is the company headed from here?
IMAGE SOURCE: GETTY IMAGES
It started with one
Horizon Therapeutics specializes in the treatment of rare, autoimmune, and severe inflammatory diseases. Its first successful drug, Krystexxa, was approved in 2010 for chronic gout patients who did not respond to conventional treatments. While an estimated 9.5 million patients in the U.S. suffer from this painful inflammatory condition of the joints, only 100,000 or so will fail to respond to standard treatments, making them candidates for Krystexxa.
Still, sales of Krystexxa have grown steadily over the years, with net sales for 2020 up nearly 20% from 2019 to $405.9 million. The company believes that eventually, it will be a blockbuster, with annual sales topping $1 billion.
What makes the company believe it has a blockbuster on its hands? In Krystexxa's phase 3 trials for refractory gout, the drug was 42% effective, while in recent small trials, it demonstrated 70% to 100% efficacy when combined with other immune system suppressing drugs (such as methotrexate). The company has a larger phase 3 trial under way looking at a combination therapy; data from that study is due in late 2021. If Krystexxa plus methotrexate shows significant improvement in gout versus Krystexxa monotherapy, it is likely that clinicians would be more likely to prescribe Krystexxa (as part of combination therapy) for refractory gout. In fact, the company has seen that combination therapy is now being initiated in more than 30% of patients newly prescribed Krystexxa. I would expect that number to continue to rise if the phase 3 trial data is positive.
And then there were two
Horizon has blown past expectations with its second approved drug, Tepezza, which treats the inflammation and bulging of the eyes caused by severe thyroid disease. There are about 90,000 patients in the U.S. who have had this condition for less than five years. The drug's sales in 2020 -- its first year on the market -- hit $820 million, an amazing 23 times the company's initial guidance.
The best-selling drug of 2019, AbbVie's (NYSE: ABBV) Humira, sold $852 million in its first full year on the market (2004), and the second-best-selling drug of 2019, Bristol Myers Squibb's (NYSE: BMY) and Pfizer's (NYSE: PFE) Eliquis, sold $770 million in its first full year on the market (2014). To be mentioned in the same breath as Eliquis and Humira puts Tepezza in an elite class in my book.
Tepezza is currently only available by infusion, but the company is working on clinical trials of the biologic delivered via simple subcutaneous injection. That would make it easier to administer, which would likely lead to higher sales. The company already expects sales growth for the drug in excess of 50% for 2021, guiding for $1.275 billion in sales, en route to an estimatedglobal marketopportunity of more than $3.5 billion.
Cause for joy
Today, Horizon trades at a price-to-sales (P/S) ratio of 8.7, and the company is guiding for a 25% increase in revenue to $2.8 billion in 2021. Should the company reach $4 billion in sales -- and between Krystexxa and Tepezza, based on the trends, that may happen sooner rather than later -- that would give it a P/S ratio below 5 at current share prices. For context, Vertex Pharmaceuticals (NASDAQ: VRTX) has not had a P/S ratio under 9 since 2013, and Seagen (NASDAQ: SGEN) -- which is up by more than 2,900% since 2006, while the S&P 500 has gained about 230% -- has never had a P/S ratio under 10.
Given the strong growth prospects for Tepezza and Krystexxa, Horizon looks cheap. With its future growth, I suspect this biopharma will continue to keep its shareholders and employees happy. Bargain-hunting investors interested in the healthcare sector would do well to give it a closer look.
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Patrick Bafuma has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bristol Myers Squibb and Seagen Inc.. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The best-selling drug of 2019, AbbVie's (NYSE: ABBV) Humira, sold $852 million in its first full year on the market (2004), and the second-best-selling drug of 2019, Bristol Myers Squibb's (NYSE: BMY) and Pfizer's (NYSE: PFE) Eliquis, sold $770 million in its first full year on the market (2014). So when a business makes it onto Fortune magazine's "Best Workplaces" list five years in a row, it suggests that employees are content, and shareholders are likely being handsomely rewarded in the process. While an estimated 9.5 million patients in the U.S. suffer from this painful inflammatory condition of the joints, only 100,000 or so will fail to respond to standard treatments, making them candidates for Krystexxa. | The best-selling drug of 2019, AbbVie's (NYSE: ABBV) Humira, sold $852 million in its first full year on the market (2004), and the second-best-selling drug of 2019, Bristol Myers Squibb's (NYSE: BMY) and Pfizer's (NYSE: PFE) Eliquis, sold $770 million in its first full year on the market (2014). The Motley Fool owns shares of and recommends Bristol Myers Squibb and Seagen Inc.. The Motley Fool recommends Vertex Pharmaceuticals. | The best-selling drug of 2019, AbbVie's (NYSE: ABBV) Humira, sold $852 million in its first full year on the market (2004), and the second-best-selling drug of 2019, Bristol Myers Squibb's (NYSE: BMY) and Pfizer's (NYSE: PFE) Eliquis, sold $770 million in its first full year on the market (2014). The company already expects sales growth for the drug in excess of 50% for 2021, guiding for $1.275 billion in sales, en route to an estimatedglobal marketopportunity of more than $3.5 billion. Should the company reach $4 billion in sales -- and between Krystexxa and Tepezza, based on the trends, that may happen sooner rather than later -- that would give it a P/S ratio below 5 at current share prices. | The best-selling drug of 2019, AbbVie's (NYSE: ABBV) Humira, sold $852 million in its first full year on the market (2004), and the second-best-selling drug of 2019, Bristol Myers Squibb's (NYSE: BMY) and Pfizer's (NYSE: PFE) Eliquis, sold $770 million in its first full year on the market (2014). Consider Horizon Therapeutics (NASDAQ: HZNP), which topped the magazine's best workplaces list for 2021 in the healthcare and biopharma category. Still, sales of Krystexxa have grown steadily over the years, with net sales for 2020 up nearly 20% from 2019 to $405.9 million. | 75880704-12bc-48af-9874-c44958da140c |
24151.0 | 2021-04-06 00:00:00 UTC | Should You Buy AbbVie in April? | ABBV | https://www.nasdaq.com/articles/should-you-buy-abbvie-in-april-2021-04-06 | nan | nan | AbbVie (NYSE: ABBV) is one of those stocks that should be in everyone's portfolio. It's rare to find its mix of growth and value (plus a really good dividend). The pharmaceutical company has enjoyed a run of six consecutive years of double-digit earnings per share (EPS) growth, and management says they expect more of the same this year. Last year, the company posted EPS of $10.52 per share, a rise of more than 18% year over year. AbbVie expects adjusted diluted EPS for full-year 2021 of $12.32 to $12.52. It posted $45.8 billion in revenue last year, an increase of 37.7% year over year on a reported basis.
The company's share price rose 22% over the last year and has been flat over the past month. Is now the time to buy in?
Image source: Getty Images
It's important to look past Humira
A lot of investors are concerned about what biosimilar competition in the U.S. will do to the sales of AbbVie's Humira, one of the world's top-selling drugs. The versatile autoimmune diseases drug has 16 approved indications worldwide and brought in $19.8 billion in sales last year. That's well beyond blockbuster status.
AbbVie is already fighting biosimilar competition to Humira internationally, and expects biosimilar competition in the U.S. by 2023. Humira's international sales were $3.7 billion last year, down 13.6% compared to 2019. In the U.S., sales were $16.1 billion, up 8.4% year over year.
Humira's sales decline is likely to be a slow slide considering its versatility, but AbbVie has prepared itself well for that inevitability. In its fourth-quarter earnings call, the company said it expects sales will fall in 2023 but should start rising again the next year with single-digit sales growth through the decade, particularly from its blood oncology portfolio, which saw revenue gains of 15.7% in the fourth quarter.
Last year, the company purchased Allergan, which -- because of its roughly $16 billion in annual revenue prior to the sale -- boosts AbbVie's cash flow for research and development. Allergan may be best known for its stable of medical aesthetics such as Botox and Juvederm, as well as eye drug Restasis, but it also gave AbbVie antipsychotic drug Vraylar, which brought in $951 million in 2020, a rise of nearly 11% compared to the $857.5 million it earned in 2019.
On top of that, AbbVie's pipeline continues to pay off. Immunology drugs Rinvoq and Skyrizi combined for $2.3 billion in sales in their first full year on the market in 2020, and the company said it expects that total to double this year. The company also expects strong growth this year from blood cancer drug Imbruvica, which had $4.3 billion in sales last year, up 12.4% from the prior year.
Management is also looking forward to the FDA's possible approval this year of Rinvoq's label expansion to include atopic dermatitis, psoriatic arthritis, and ankylosing spondylitis (a type of arthritis that affects the spine). The drug is already approved for rheumatoid arthritis. Though the FDA last month extended the review by three months for Rinvoq for atopic dermatitis, the company has received other good news.
The FDA recently approved a new drug application for atogepant, a treatment for the prevention of migraines. AbbVie is also awaiting a decision on its New Drug Application (NDA) for AGN-190584 to combat age-related eye disease presbyopia. Beyond that, the company has several other drugs in phase 3 trials, most notably blood cancer drug candidate Venclexta and non small-cell lung cancer, breast, and ovarian cancer treatment candidate Veliparib.
It's a popular stock, and at first glance, its price-to-earnings ratio of 39.9 seems a tiny bit high compared to the typical pharmaceutical stock P/E ratio of 34.5. However, if you look at expected earnings, the company's forward P/E is 8.7, which makes it look like a bargain compared with the industry average of 34.
If you compare AbbVie with other pharmaceutical companies with similar annual revenue, then it really stands out as a bargain.
ABBV PE Ratio (Forward) data by YCharts
There's one thing that you shouldn't overlook
Because AbbVie was a part of Abbott Laboratories until 2013, the company is considered a Dividend Aristocrat, having raised its quarterly dividend for 49 consecutive years. Since its spinoff from Abbott, the company has raised its dividend by 225%, including a boost this year of 10.2% to $1.30 a share. That gives it a yield of 4.6%, which is nearly unbeatable for a company with AbbVie's growth record.
At its current price, it's still below its 52-week high. Considering the company's prospects for revenue this year, I'd say that April is still a good time to buy AbbVie stock.
The company's dividend allows investors to be patient, so even if sales slip in a couple of years, total returns should rise until AbbVie's expanding pipeline makes up for Humira's decline.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year, the company purchased Allergan, which -- because of its roughly $16 billion in annual revenue prior to the sale -- boosts AbbVie's cash flow for research and development. AbbVie is also awaiting a decision on its New Drug Application (NDA) for AGN-190584 to combat age-related eye disease presbyopia. The company's dividend allows investors to be patient, so even if sales slip in a couple of years, total returns should rise until AbbVie's expanding pipeline makes up for Humira's decline. | AbbVie (NYSE: ABBV) is one of those stocks that should be in everyone's portfolio. AbbVie expects adjusted diluted EPS for full-year 2021 of $12.32 to $12.52. Image source: Getty Images It's important to look past Humira A lot of investors are concerned about what biosimilar competition in the U.S. will do to the sales of AbbVie's Humira, one of the world's top-selling drugs. | AbbVie (NYSE: ABBV) is one of those stocks that should be in everyone's portfolio. AbbVie expects adjusted diluted EPS for full-year 2021 of $12.32 to $12.52. Image source: Getty Images It's important to look past Humira A lot of investors are concerned about what biosimilar competition in the U.S. will do to the sales of AbbVie's Humira, one of the world's top-selling drugs. | AbbVie (NYSE: ABBV) is one of those stocks that should be in everyone's portfolio. AbbVie expects adjusted diluted EPS for full-year 2021 of $12.32 to $12.52. Image source: Getty Images It's important to look past Humira A lot of investors are concerned about what biosimilar competition in the U.S. will do to the sales of AbbVie's Humira, one of the world's top-selling drugs. | 52782182-fbd0-4ce2-ad69-ff50bf68373a |
24152.0 | 2021-04-06 00:00:00 UTC | What Kind Of Shareholders Hold The Majority In AbbVie Inc.'s (NYSE:ABBV) Shares? | ABBV | https://www.nasdaq.com/articles/what-kind-of-shareholders-hold-the-majority-in-abbvie-inc.s-nyse%3Aabbv-shares-2021-04-06 | nan | nan | If you want to know who really controls AbbVie Inc. (NYSE:ABBV), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.
AbbVie is a pretty big company. It has a market capitalization of US$192b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about AbbVie.
NYSE:ABBV Ownership Breakdown April 6th 2021
What Does The Institutional Ownership Tell Us About AbbVie?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that AbbVie does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see AbbVie's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:ABBV Earnings and Revenue Growth April 6th 2021
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. AbbVie is not owned by hedge funds. The Vanguard Group, Inc. is currently the company's largest shareholder with 8.1% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.1% and 4.4%, of the shares outstanding, respectively.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of AbbVie
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data suggests that insiders own under 1% of AbbVie Inc. in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$188m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 31% ownership, the general public have some degree of sway over AbbVie. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 5 warning signs for AbbVie you should know about.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:ABBV Earnings and Revenue Growth April 6th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. If you want to know who really controls AbbVie Inc. (NYSE:ABBV), then you'll have to look at the makeup of its share registry. AbbVie is a pretty big company. | NYSE:ABBV Earnings and Revenue Growth April 6th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. If you want to know who really controls AbbVie Inc. (NYSE:ABBV), then you'll have to look at the makeup of its share registry. AbbVie is a pretty big company. | We can see that AbbVie does have institutional investors; and they hold a good portion of the company's stock. Insider Ownership Of AbbVie The definition of company insiders can be subjective and does vary between jurisdictions. If you want to know who really controls AbbVie Inc. (NYSE:ABBV), then you'll have to look at the makeup of its share registry. | We can see that AbbVie does have institutional investors; and they hold a good portion of the company's stock. NYSE:ABBV Earnings and Revenue Growth April 6th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. If you want to know who really controls AbbVie Inc. (NYSE:ABBV), then you'll have to look at the makeup of its share registry. | b749ab8c-9bd3-4a16-a337-82eab2d4b5d8 |
24153.0 | 2021-04-04 00:00:00 UTC | 3 Dividend Stocks That Are Perfect for Retirement | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-are-perfect-for-retirement-2021-04-04 | nan | nan | Most retirees will want to stay far away from "meme stocks." Such stocks skyrocket due to online hype rather than their underlying business performance. Their gains could easily evaporate, leaving your retirement account in shambles.
Retired investors are much better off going with the stocks of strong companies that pay solid dividends. Here are three dividend stocks that are perfect for retirement.
Image source: Getty Images.
AbbVie
To qualify as a Dividend King, a member of the S&P 500 must increase its dividend for 50 consecutive years. AbbVie (NYSE: ABBV) is only one dividend hike away from moving into this highest echelon of dividend royalty. The big drugmaker has raised its dividend for 49 consecutive years, which qualifies AbbVie as a Dividend Aristocrat.
Retirees should love AbbVie's strong dividend track record. They'll also really like its juicy dividend yield, currently at 4.8%. But AbbVie offers more than just a great dividend program: The company is set to deliver solid long-term growth as well.
That growth will take a temporary pause in 2023 when AbbVie's top-selling drug Humira loses U.S. patent exclusivity. However, AbbVie expects to quickly return to modest growth the next year. The company projects high single-digit-percentage annual revenue growth for the rest of the decade.
Many pharmaceutical companies aren't able to handle loss of exclusivity for their top products so well. AbbVie, though, has been preparing for Humira's sunset for quite a while. It already has two autoimmune disease drugs on the market ready to take the baton from Humira. The company also has several other products that should drive growth.
Brookfield Renewable Partners
Brookfield Renewable Partners' (NYSE: BEP) current dividend yield of 4.6% isn't too far behind AbbVie's. The renewable energy company expects to grow its distributions by between 5% and 9% annually over the long term. Since 2000, Brookfield Renewable's distribution has increased by a compound annual growth rate of 6%.
The company shouldn't have any problems sustaining its momentum. Countries and major companies across the world are turning to renewable power to reduce their carbon emissions due to concerns about climate change.
Brookfield Renewable's hydroelectric power facilities generate more than 80% of its funds from operations (FFO). However, the company continues to move more into wind and solar power -- a smart move since wind and solar are now the cheapest sources of bulk energy generation.
Just how much can Brookfield Renewable grow? The company's capacity currently stands at 19,000 megawatts; it has a development pipeline that will add another 23,000 megawatts. Retirees should be able to sleep peacefully knowing that Brookfield Renewable will keep those distributions coming for years to come.
Johnson & Johnson
While AbbVie isn't a Dividend King just yet, Johnson & Johnson (NYSE: JNJ) has been a member of the elite group for nearly a decade. The healthcare giant has increased its dividend for an impressive 58 consecutive years. J&J's dividend is yielding close to 2.5%.
Retirees prize Johnson & Johnson's stability. The company has been in business since 1886, and it's survived and thrived during economic recessions and depressions, world wars, and global pandemics. Part of J&J's stability stems from its diversification across healthcare. The company operates three multibillion-dollar business segments -- consumer health, medical devices, and pharmaceuticals.
Sure, the company might not deliver jaw-dropping growth. However, J&J isn't shy about using its financial strength to make acquisitions and invest in research and development so it remains highly competitive in all of its markets.
One great example of J&J's commitment to R&D is its COVID-19 vaccine. U.S. Emergency Use Authorization of the vaccine in March was big news, in large part because it was the first to require only a single dose. Although the company is selling the vaccine at cost during the pandemic, it could be a significant moneymaker for J&J in the future.
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Keith Speights owns shares of AbbVie and Brookfield Renewable Partners L.P. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie To qualify as a Dividend King, a member of the S&P 500 must increase its dividend for 50 consecutive years. AbbVie (NYSE: ABBV) is only one dividend hike away from moving into this highest echelon of dividend royalty. The big drugmaker has raised its dividend for 49 consecutive years, which qualifies AbbVie as a Dividend Aristocrat. | Brookfield Renewable Partners Brookfield Renewable Partners' (NYSE: BEP) current dividend yield of 4.6% isn't too far behind AbbVie's. Johnson & Johnson While AbbVie isn't a Dividend King just yet, Johnson & Johnson (NYSE: JNJ) has been a member of the elite group for nearly a decade. AbbVie To qualify as a Dividend King, a member of the S&P 500 must increase its dividend for 50 consecutive years. | But AbbVie offers more than just a great dividend program: The company is set to deliver solid long-term growth as well. Brookfield Renewable Partners Brookfield Renewable Partners' (NYSE: BEP) current dividend yield of 4.6% isn't too far behind AbbVie's. Johnson & Johnson While AbbVie isn't a Dividend King just yet, Johnson & Johnson (NYSE: JNJ) has been a member of the elite group for nearly a decade. | AbbVie To qualify as a Dividend King, a member of the S&P 500 must increase its dividend for 50 consecutive years. AbbVie (NYSE: ABBV) is only one dividend hike away from moving into this highest echelon of dividend royalty. The big drugmaker has raised its dividend for 49 consecutive years, which qualifies AbbVie as a Dividend Aristocrat. | 306a20cc-0d21-4513-8964-4296030a6591 |
24154.0 | 2021-04-03 00:00:00 UTC | 11 Words From President Biden That Frighten Big Pharma | ABBV | https://www.nasdaq.com/articles/11-words-from-president-biden-that-frighten-big-pharma-2021-04-03 | nan | nan | Just about everybody working in America agrees that the country's crumbling infrastructure needs more investment. Behind closed doors, though, America's largest pharmaceutical companies probably want the American Jobs Plan to just go away. That's because big pharmaceutical companies have been heavily incentivized to move their profits and manufacturing offshore.
While speaking to carpenters in Pittsburgh on Wednesday, March 31, President Biden explained to the crowd that the $2 trillion infrastructure bill his administration wants from Congress will also "eliminate deductions by corporations for offshoring jobs and shifting assets overseas." Here's why provisions buried in the fine print of the American Jobs Plan could mean trouble for companies that generate most of their profits in the U.S. like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).
Image source: The White House.
Unintended consequences
You probably don't realize it, but active ingredients in the vast majority of prescription drugs Americans pay for are made offshore. This problem didn't begin under the previous White House administration, but short-sighted rules regarding intellectual property enacted in 2017 poured more fuel on a fire that was already raging.
Until 2017, the U.S. had the world's most severe corporate tax rate, which inspired a lot of companies profiting from intellectual property to redomicile their patents in countries with lower tax rates. On its face, the Tax Cuts and Jobs Act of 2017 was supposed to encourage high-tech companies to bring high-wage manufacturing jobs back to the U.S. Unfortunately, shortsighted rules in the bill have encouraged U.S. companies to do the exact opposite.
For example, the Global Intangible Low Tax Income (GILTI) rule was designed to prevent companies from avoiding federal taxes by shifting intellectual property to subsidiaries in zero-tax jurisdictions like Bermuda. Unfortunately, the shortsighted GILTI rule allows businesses to use tax payments made outside of the U.S. to offset profits shifted to low-tax jurisdictions, like Bermuda and Ireland. This makes countries with higher tax rates than the U.S. more attractive places to generate income than the U.S. itself.
The Tax Cuts and Jobs Act also contains a Foreign Derived Intangible Income (FDII) provision that was supposed to encourage U.S. companies to retain profits from their intellectual property at home. The FDII provision defines intangible income as profits on foreign sales in excess of a 10% return on a company's tangible U.S. assets. Back in 2017, experts tried to explain to Congress that this simply encouraged companies to build factories outside of the U.S., but the warnings fell on deaf ears.
That's some loophole
It's hard to measure just how beneficial the Tax Cuts and Jobs Act was for America's pharmaceutical industry, but it's clearly working out well. With the exception of Merck, cash flows generated by the industry's largest players have outpaced the sums these companies set aside for taxes.
JNJ Provision for Income Taxes (TTM) data by YCharts.
Repatriating a lot of cash that had accumulated abroad led to some hefty tax bills for Johnson & Johnson in 2018. With subsidiaries in different tax jurisdictions around the world, though, Johnson & Johnson was able to set aside 47% less for taxes over the past year than it did five years ago, even though the amount of cash generated by operations rose 25% over the same period.
AbbVie's operations are generating nearly three times as much cash as they were in 2017, but the company's tax bills have gotten a lot smaller. AbbVie reported an effective income tax rate of negative 36% last year and the company's provision for income taxes made a deep dive into negative territory, thanks to a parade of tax loopholes related to foreign income.
What to do
If President Biden signs the infrastructure bill he's been promoting, it will also raise the corporate tax rate to 28% from the 21% rate set by the Tax Cuts and Jobs Act. Every dollar spent on income taxes is a dollar earned from operations that a company can't distribute to its shareholders, so this bill would almost certainly lead to some stock-price pressure for U.S. pharma companies.
The Biden Administration hasn't been clear about what rewards will be offered to U.S. companies that repatriate jobs that have already been outsourced, and I don't expect much. That means we can be fairly sure that the American Jobs Plan will affect the returns you can expect from your pharma stocks -- but that isn't a reason to start selling. Before you go and dump all your U.S. pharma stocks, remember that this bill's aimed at all companies that send jobs, profits, and intellectual property abroad.
10 stocks we like better than AbbVie
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why provisions buried in the fine print of the American Jobs Plan could mean trouble for companies that generate most of their profits in the U.S. like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie's operations are generating nearly three times as much cash as they were in 2017, but the company's tax bills have gotten a lot smaller. AbbVie reported an effective income tax rate of negative 36% last year and the company's provision for income taxes made a deep dive into negative territory, thanks to a parade of tax loopholes related to foreign income. | AbbVie reported an effective income tax rate of negative 36% last year and the company's provision for income taxes made a deep dive into negative territory, thanks to a parade of tax loopholes related to foreign income. Here's why provisions buried in the fine print of the American Jobs Plan could mean trouble for companies that generate most of their profits in the U.S. like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie's operations are generating nearly three times as much cash as they were in 2017, but the company's tax bills have gotten a lot smaller. | AbbVie reported an effective income tax rate of negative 36% last year and the company's provision for income taxes made a deep dive into negative territory, thanks to a parade of tax loopholes related to foreign income. Here's why provisions buried in the fine print of the American Jobs Plan could mean trouble for companies that generate most of their profits in the U.S. like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie's operations are generating nearly three times as much cash as they were in 2017, but the company's tax bills have gotten a lot smaller. | AbbVie's operations are generating nearly three times as much cash as they were in 2017, but the company's tax bills have gotten a lot smaller. Here's why provisions buried in the fine print of the American Jobs Plan could mean trouble for companies that generate most of their profits in the U.S. like Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). AbbVie reported an effective income tax rate of negative 36% last year and the company's provision for income taxes made a deep dive into negative territory, thanks to a parade of tax loopholes related to foreign income. | cd64eaa6-1238-4d53-b8a1-94c3bc6e89d9 |
24155.0 | 2021-04-02 00:00:00 UTC | AbbVie : FDA Extends Review Period For SNDA Of Upadacitinib For Treatment Of Atopic Dermatitis | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-fda-extends-review-period-for-snda-of-upadacitinib-for-treatment-of-atopic | nan | nan | (RTTNews) - AbbVie (ABBV) said Friday that the U.S. Food and Drug Administration has extended the review period for the supplemental New Drug Application (sNDA) for upadacitinib in the treatment of adults and adolescents with moderate to severe atopic dermatitis.
The Prescription Drug User Fee Act or PDUFA action date has been extended three months to early third-quarter 2021.
AbbVie received an information request from the FDA for an updated assessment of the benefit-risk profile for upadacitinib in atopic dermatitis. AbbVie responded to the request and the FDA has informed AbbVie that it requires additional time for a full review of the submission.
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 Friday that the U.S. Food and Drug Administration has extended the review period for the supplemental New Drug Application (sNDA) for upadacitinib in the treatment of adults and adolescents with moderate to severe atopic dermatitis. AbbVie received an information request from the FDA for an updated assessment of the benefit-risk profile for upadacitinib in atopic dermatitis. AbbVie responded to the request and the FDA has informed AbbVie that it requires additional time for a full review of the submission. | (RTTNews) - AbbVie (ABBV) said Friday that the U.S. Food and Drug Administration has extended the review period for the supplemental New Drug Application (sNDA) for upadacitinib in the treatment of adults and adolescents with moderate to severe atopic dermatitis. AbbVie received an information request from the FDA for an updated assessment of the benefit-risk profile for upadacitinib in atopic dermatitis. AbbVie responded to the request and the FDA has informed AbbVie that it requires additional time for a full review of the submission. | (RTTNews) - AbbVie (ABBV) said Friday that the U.S. Food and Drug Administration has extended the review period for the supplemental New Drug Application (sNDA) for upadacitinib in the treatment of adults and adolescents with moderate to severe atopic dermatitis. AbbVie responded to the request and the FDA has informed AbbVie that it requires additional time for a full review of the submission. AbbVie received an information request from the FDA for an updated assessment of the benefit-risk profile for upadacitinib in atopic dermatitis. | (RTTNews) - AbbVie (ABBV) said Friday that the U.S. Food and Drug Administration has extended the review period for the supplemental New Drug Application (sNDA) for upadacitinib in the treatment of adults and adolescents with moderate to severe atopic dermatitis. AbbVie received an information request from the FDA for an updated assessment of the benefit-risk profile for upadacitinib in atopic dermatitis. AbbVie responded to the request and the FDA has informed AbbVie that it requires additional time for a full review of the submission. | c9fc1ab7-18d0-4fa6-9392-4a7af5a266b0 |
24156.0 | 2021-04-01 00:00:00 UTC | AbbVie : Upadacitinib Improves Clinical And Radiographic Outcomes In Psoriatic Arthritis People | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-upadacitinib-improves-clinical-and-radiographic-outcomes-in-psoriatic-arthritis | nan | nan | (RTTNews) - AbbVie (ABBV) said that the New England Journal of Medicine has published 24-week results from the Phase 3 SELECT-PsA 1 trial evaluating RINVOQ (upadacitinib, 15 mg and 30 mg) in adults with active psoriatic arthritis who had responded inadequately or were intolerant to one or more non-biologic disease modifying anti-rheumatic drugs.
The data showed upadacitinib's potential to improve clinical and radiographic outcomes for people with psoriatic arthritis.
The data build on previously announced Phase 3 results showing that upadacitinib 15 mg and 30 mg met the primary endpoint of ACR20 response at week 12 versus placebo as well as key secondary endpoints.
The safety profile of upadacitinib was generally similar to results reported previously in rheumatoid arthritis trials. Through 24 weeks, rates of treatment-emergent adverse events (AEs) and serious AEs were similar between 15 mg of upadacitinib and 40 mg of adalimumab, but were more frequent with upadacitinib 30 mg.
Recently, the European Commission approved RINVOQ (15 mg) for use in adults with active psoriatic arthritis. Use of RINVOQ in psoriatic arthritis is not approved and its safety and efficacy are under evaluation by regulatory authorities in the United States.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that the New England Journal of Medicine has published 24-week results from the Phase 3 SELECT-PsA 1 trial evaluating RINVOQ (upadacitinib, 15 mg and 30 mg) in adults with active psoriatic arthritis who had responded inadequately or were intolerant to one or more non-biologic disease modifying anti-rheumatic drugs. The data showed upadacitinib's potential to improve clinical and radiographic outcomes for people with psoriatic arthritis. Use of RINVOQ in psoriatic arthritis is not approved and its safety and efficacy are under evaluation by regulatory authorities in the United States. | (RTTNews) - AbbVie (ABBV) said that the New England Journal of Medicine has published 24-week results from the Phase 3 SELECT-PsA 1 trial evaluating RINVOQ (upadacitinib, 15 mg and 30 mg) in adults with active psoriatic arthritis who had responded inadequately or were intolerant to one or more non-biologic disease modifying anti-rheumatic drugs. The data build on previously announced Phase 3 results showing that upadacitinib 15 mg and 30 mg met the primary endpoint of ACR20 response at week 12 versus placebo as well as key secondary endpoints. Recently, the European Commission approved RINVOQ (15 mg) for use in adults with active psoriatic arthritis. | (RTTNews) - AbbVie (ABBV) said that the New England Journal of Medicine has published 24-week results from the Phase 3 SELECT-PsA 1 trial evaluating RINVOQ (upadacitinib, 15 mg and 30 mg) in adults with active psoriatic arthritis who had responded inadequately or were intolerant to one or more non-biologic disease modifying anti-rheumatic drugs. The data build on previously announced Phase 3 results showing that upadacitinib 15 mg and 30 mg met the primary endpoint of ACR20 response at week 12 versus placebo as well as key secondary endpoints. Through 24 weeks, rates of treatment-emergent adverse events (AEs) and serious AEs were similar between 15 mg of upadacitinib and 40 mg of adalimumab, but were more frequent with upadacitinib 30 mg. | (RTTNews) - AbbVie (ABBV) said that the New England Journal of Medicine has published 24-week results from the Phase 3 SELECT-PsA 1 trial evaluating RINVOQ (upadacitinib, 15 mg and 30 mg) in adults with active psoriatic arthritis who had responded inadequately or were intolerant to one or more non-biologic disease modifying anti-rheumatic drugs. The data showed upadacitinib's potential to improve clinical and radiographic outcomes for people with psoriatic arthritis. The data build on previously announced Phase 3 results showing that upadacitinib 15 mg and 30 mg met the primary endpoint of ACR20 response at week 12 versus placebo as well as key secondary endpoints. | e5bf9dc0-04c0-44d1-99e6-4e7e4a58dde3 |
24157.0 | 2021-03-31 00:00:00 UTC | Noteworthy ETF Inflows: IWF, GOOG, UNH, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-iwf-goog-unh-abbv-2021-03-31 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $84.0 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 260,000,000 to 260,350,000). Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOG) is up about 1.1%, UnitedHealth Group Inc (Symbol: UNH) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.5%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $142.87 per share, with $255.61 as the 52 week high point — that compares with a last trade of $242.99. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOG) is up about 1.1%, UnitedHealth Group Inc (Symbol: UNH) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.5%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $142.87 per share, with $255.61 as the 52 week high point — that compares with a last trade of $242.99. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOG) is up about 1.1%, UnitedHealth Group Inc (Symbol: UNH) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.5%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $142.87 per share, with $255.61 as the 52 week high point — that compares with a last trade of $242.99. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOG) is up about 1.1%, UnitedHealth Group Inc (Symbol: UNH) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $84.0 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 260,000,000 to 260,350,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $142.87 per share, with $255.61 as the 52 week high point — that compares with a last trade of $242.99. | Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOG) is up about 1.1%, UnitedHealth Group Inc (Symbol: UNH) is down about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $84.0 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 260,000,000 to 260,350,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $142.87 per share, with $255.61 as the 52 week high point — that compares with a last trade of $242.99. | 85b3e6bc-595f-40d2-8147-42aa71b64b7a |
24158.0 | 2021-03-31 00:00:00 UTC | The Best Value Stock to Buy Right Now | ABBV | https://www.nasdaq.com/articles/the-best-value-stock-to-buy-right-now-2021-03-31 | nan | nan | Investors who are bargain hunters are having to look pretty hard right now to find stocks trading at a discount. That's not surprising, with a stock market that has tripled in value over the past 10 years.
But while they're few and far between, bargains still can be found. There's one stock, in particular, that I think value investors will really like. In my opinion, the best value stock to buy right now is AbbVie (NYSE: ABBV).
Image source: Getty Images.
Biggest and best bargain
Only seven stocks with market caps of $100 billion or more have forward earnings multiples below 10. AbbVie ranks as the biggest of the group.
The drugmaker's shares currently trade at 7.74 times expected 2022 earnings. Sure, you can find stocks with lower forward earnings multiples. However, most of them are small-cap stocks that don't come close to measuring up to AbbVie in terms of overall strength.
AbbVie generated revenue of $45.8 billion last year. Its profits topped $4.6 billion. The company ended 2020 with cash, cash equivalents, and short-term investments totaling nearly $8.5 billion.
It's not surprising that Warren Buffett has scooped up shares of AbbVie in recent quarters for Berkshire Hathaway. Buffett studied under the father of value investing, Benjamin Graham. While the Oracle of Omaha isn't exactly a purist value investor these days, he still likes to buy great stocks at attractive prices.
Why AbbVie stands out
You might wonder, though, why AbbVie's valuation is so low. There's a simple explanation: Many investors are concerned about the loss of U.S. exclusivity for Humira in 2023. The autoimmune-disease drug contributed more than 43% of AbbVie's total revenue last year. However, I don't think there's much to worry about.
Sure, AbbVie will experience an overall sales decline in 2023. But the company expects to return to growth the following year. Over the rest of the decade, AbbVie projects high single-digit-percentage annual revenue growth.
The company already has two successors to Humira on the market with Rinvoq and Skyrizi. It thinks the two drugs will together generate sales of more than $15 billion by 2025. AbbVie's lineup also includes other key growth drivers such as antipsychotic drug Vraylar and migraine drug Ubrelvy.
In addition to its solid long-term growth prospects, AbbVie offers one of the most attractive dividends around. Its dividend yield currently stands at nearly 4.9%. AbbVie is a Dividend Aristocrat, with 49 consecutive years of dividend increases.
Playing devil's advocate
My view is that AbbVie appears to be a great stock to buy for many investors. However, allow me to briefly play devil's advocate.
AbbVie does face some risks. It's depending on growing sales for other products to offset the certain revenue decline for Humira that's on the way. That growth might not happen, at least not to the extent that AbbVie is counting on.
For example, the U.S. Food and Drug Administration (FDA) is skeptical about JAK inhibitors these days because of safety concerns. AbbVie had hoped to win FDA approval for JAK inhibitor Rinvoq in treating psoriatic arthritis by now. However, the FDA pushed its decision back three months and requested additional information from AbbVie about the benefit-risk profile for the drug.
AbbVie has experienced its fair share of clinical setbacks as well. There's no guarantee that the company's pipeline candidates will become the winners that it hopes they'll be.
Despite these risks, AbbVie still ranks as the best value stock on the market, in my view. I don't think there are any other stocks that offer the combination of value, growth, and dividends that AbbVie does.
10 stocks we like better than AbbVie
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Keith Speights owns shares of AbbVie and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short March 2021 $225 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 had hoped to win FDA approval for JAK inhibitor Rinvoq in treating psoriatic arthritis by now. However, the FDA pushed its decision back three months and requested additional information from AbbVie about the benefit-risk profile for the drug. In my opinion, the best value stock to buy right now is AbbVie (NYSE: ABBV). | In my opinion, the best value stock to buy right now is AbbVie (NYSE: ABBV). AbbVie ranks as the biggest of the group. However, most of them are small-cap stocks that don't come close to measuring up to AbbVie in terms of overall strength. | Playing devil's advocate My view is that AbbVie appears to be a great stock to buy for many investors. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie and Berkshire Hathaway (B shares). | The autoimmune-disease drug contributed more than 43% of AbbVie's total revenue last year. Despite these risks, AbbVie still ranks as the best value stock on the market, in my view. In my opinion, the best value stock to buy right now is AbbVie (NYSE: ABBV). | 77ee6409-d219-4d07-978c-7671505c655d |
24159.0 | 2021-03-30 00:00:00 UTC | 7 Cannabis Stocks That Offer Much More Than Just Pot | ABBV | https://www.nasdaq.com/articles/7-cannabis-stocks-that-offer-much-more-than-just-pot-2021-03-30 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
During the Trump administration, one commodity strangely sparked consensus in what was otherwise a tumultuous period. That’s right, I’m talking about cannabis! With landmark legislation such as the Agriculture Improvement Act of 2018, colloquially known as the hemp bill, the fundamentals boded very well for cannabis stocks.
During the runup to the 2020 election, now President Joe Biden pledged to decriminalize marijuana. Although it was a tad bit short of full legalization, the overture was well received by proponents of both personal liberties and marijuana stocks. Further, with the Biden administration having the benefit of Democratic control of Congress (albeit a tenuous one), the future looks bright for botanicals.
At the same time, investors need to be realistic about cannabis stocks. Yes, the legislative backdrop continues to support the concept of legalization, with even conservative states warming up to acceptance of the plant to various degrees or conditions. Yet the marijuana investment market hasn’t been the most stable, irrespective of the encouraging ecosystem.
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This is why prospective buyers who are bullish on cannabis stocks should consider companies that offer a diversified take on the industry. These include companies that offer traditional cannabis-based solutions but other products as well. And they might not even be marijuana firms at all but provide necessary services for the industry. Some of these names include the following:
Scotts Miracle-Gro (NYSE:SMG)
AbbVie (NYSE:ABBV)
Pfizer (NYSE:PFE)
Constellation Brands (NYSE:STZ)
cbdMD (NYSEAMERICAN:YCBD)
Innovative Industrial Properties (NYSE:IIPR)
Village Farms (NASDAQ:VFF)
Lastly, the market is turning quite volatile recently. That might hurt pure-play marijuana stocks, which are largely speculative. By expanding your horizon, these companies will get you some exposure to cannabis while providing coverage for other relevant industries.
Scotts Miracle-Gro (SMG)
SMG) logo displayed on a web browser and magnified by a magnifying glass" width="300" height="169">
Source: Casimiro PT / Shutterstock.com
Technically not a classic among cannabis stocks, Scotts Miracle-Gro is nevertheless an important name in the botanical industry. Featuring a variety of gardening resources and hydroponic solutions, Scotts is a brand people trust for non-controversial projects, as well as the more adventurous side of the gardening sector.
Better yet, the general banality of SMG stock is what makes it so appealing. If you have a robust portfolio of marijuana stocks, chances are, you’re levered to some of the sexier names in the green market. But you likely won’t go wrong with adding Scotts Miracle-Gro in there considering its diverse exposure to several relevant uses.
You know what? It’s not too shabby on the performance end either. Over the trailing year, SMG stock is up 128%. On a year-to-date basis, we’re looking at nearly 20% up. Since we don’t know what’s going to happen with the cannabis environment, Scotts offers a solid safety valve.
AbbVie (ABBV)
Another company that’s technically a non-cannabis brand, I’m going to include AbbVie anyways on this list of marijuana stocks. A few years ago, green-friendly investors added ABBV stock to their portfolio on the basis of Marinol, a cannabinoid indicated in adults for anorexia and associated with weight loss in patients with AIDS.
However, at the end of 2019, Alkem Labs acquired Marinol from AbbVie in a $10 million deal. Nevertheless, if you’re looking for business diversity in your cannabis stocks, ABBV remains an equity unit to consider. That’s because in the year that it sold Marinol, it had 59 cannabis patents, far more than second-place holder Sanofi (NASDAQ:SNY) at 39 patents.
7 Safe Stocks to Buy If You’re Allergic to Volatility
Logically, this indicates that management sees substantial value in medicinal marijuana research. Plus, as a diversified opportunity, I especially like ABBV stock for the underlying company’s acquisition of Botox. Once we’re fully recovered from this pandemic, shares could see significant upside from increased demand in elective procedures.
Pfizer (PFE)
PFE) logo on Pfizer building. Pfizer is an American pharmaceutical corporation." width="300" height="169">
Source: Manuel Esteban / Shutterstock.com
If you didn’t know the brand Pfizer before the novel coronavirus pandemic, you certainly know it now. Along with Moderna (NASDAQ:MRNA), Pfizer was on the frontlines of the vaccine race, developing a messenger-RNA-based solution. Thanks to the approach’s rapid-fire manufacturing capabilities, PFE stock enjoyed an appeal that it really didn’t receive for a long time.
But as a play on cannabis stocks? Have I lost my mind? This is one that surprised me, but Pfizer currently has “25 U.S. patents for molecules relating to the cannabis plant.” As with big pharmaceutical rival AbbVie, Pfizer apparently sees significant value in medical marijuana and has enough confidence in its upward trajectory to fork over some research and development dollars.
If you’re gung-ho on marijuana stocks, PFE isn’t going to light up the leader board anytime soon. However, it’s an interesting play on diversification. Should the Covid-19 crisis worsen, Pfizer could cynically rise higher. And if not, the company might start directing more effort on its botanical resources.
Constellation Brands (STZ)
Source: ShinoStock / Shutterstock.com
An excellent candidate among vice-related investments, Constellation Brands offers a multi-faceted take on cannabis stocks. Primarily, Constellation is a beverage conglomerate best known for Corona (not virus). But weed investors know STZ stock because the underlying company has a significant stake in Canopy Growth (NASDAQ:CGC).
True, you can just get shares of Canopy to get more direct exposure to the cannabis side of the equation. However, marijuana stocks have been on the shaky side as of late. For instance, for most of March, CGC has traded below its 50-day moving average, which is not a great sign if you’re a proponent of technical analysis.
While Canopy outperforms STZ stock on a YTD basis, the latter at time of writing is trading above its 50 DMA. This suggests more stability for Constellation’s business, which is centered on alcoholic drinks.
7 Recession-Proof Safe Stocks to Keep Close At All Times
But on the cannabis side, Constellation offers Canopy a strategic partnership as CGC attempts to break into the U.S. cannabidiol (CBD)-infused beverage market. This is an interesting space that investors should watch closely.
cbdMD (YCBD)
Source: Shutterstock
As the name suggests, cbdMD focuses exclusively on CBD so you’re not going to find non-cannabis-related products here. However, I still include it on this list of diversified cannabis stocks because of the myriad options that the underlying compound opens up. Go to cbdMD’s website and you’ll find virtually every product you need for overall health and wellness, ranging from tinctures to sleep aids to bath products.
Interestingly, when I first covered YCBD stock, the underlying company endorsed a few notable names, most prominently two-times Masters champion Bubba Watson. This effectively demonstrated the confidence that cbdMD places in its broad spectrum CBD products — if Watson got pinged for a positive drug test result, YCBD would presumably suffer badly.
Today, the company has added many more athletes to its roster, including one of my favorite mixed-martial arts fighters Chael Sonnen. Featuring the CBD Recover anti-inflammation cream, if it works for a cage fighter, I’m sure it also works for keyboard commandos.
Plus, Sonnen might put you into a rear naked choke hold if you don’t buy YCBD stock so that’s another good incentive to consider shares.
Innovative Industrial Properties (IIPR)
Source: Shutterstock
Consistently one of the top-performing cannabis stocks over the last several years, Innovative Industrial Properties is a botanical business that focuses on the other kind of green products. Structured as a real estate investment trust (REIT), Innovative Industrial provides real estate capital to the medical-use cannabis industry.
As a REIT, IIPR stock is a very shareholder-friendly opportunity. That’s because the underlying company must distribute through a dividend at least 90% of its taxable income. I suppose there’s some controversy with this business model in that it might focus too much attention on shareholders and not enough on growing viable enterprises.
I look at it this way — years ago, too many players were focused on outright growth and not on sustainability. Through the turbulence, IIPR stock generally performed well because management made sensible decisions, not emotional ones.
7 Recession-Proof Safe Stocks to Keep Close At All Times
Moving forward, this disciplined approach is exactly what you need with this sometimes chaotic market. Moreover, we don’t know which specific cannabis firm will stick around. However, as long as the industry remains relevant, there will always be a need for business capital, making IIPR stock a compelling idea.
Village Farms (VFF)
Source: Shutterstock
According to the website of Village Farms, the company claims to be “one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada.” Primarily, its business revolves around producing and distributing fresh, premium-quality produce.
And no, don’t look to get high on Village Farms’ tomatoes, cucumbers and peppers — they really are just that.
But where VFF stocks gets interesting for those seeking a multifaceted approach to their cannabis stocks is the underlying company’s ambitions for the U.S. hemp-derived CBD market. On Village Farms’ investor relations page, it notes that the firm has “established a joint venture, Village Fields Hemp USA, LLC, for multi-state outdoor hemp cultivation and CBD extraction and plans to pursue controlled environment hemp production at its Texas greenhouse operations.”
Two factors bolster Village Farms’ long-term strategies. First, a majority of Americans support marijuana legalization. Second, the Democrats need job-building opportunities and the botanical sector is a natural place to look. That bodes well for marijuana stocks, even the less-than-direct ones like VFF.
On the date of publication, Josh Enomoto held a long position in YCBD.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Cannabis Stocks That Offer Much More Than Just Pot 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. | A few years ago, green-friendly investors added ABBV stock to their portfolio on the basis of Marinol, a cannabinoid indicated in adults for anorexia and associated with weight loss in patients with AIDS. Some of these names include the following: Scotts Miracle-Gro (NYSE:SMG) AbbVie (NYSE:ABBV) Pfizer (NYSE:PFE) Constellation Brands (NYSE:STZ) cbdMD (NYSEAMERICAN:YCBD) Innovative Industrial Properties (NYSE:IIPR) Village Farms (NASDAQ:VFF) Lastly, the market is turning quite volatile recently. AbbVie (ABBV) Another company that’s technically a non-cannabis brand, I’m going to include AbbVie anyways on this list of marijuana stocks. | Some of these names include the following: Scotts Miracle-Gro (NYSE:SMG) AbbVie (NYSE:ABBV) Pfizer (NYSE:PFE) Constellation Brands (NYSE:STZ) cbdMD (NYSEAMERICAN:YCBD) Innovative Industrial Properties (NYSE:IIPR) Village Farms (NASDAQ:VFF) Lastly, the market is turning quite volatile recently. AbbVie (ABBV) Another company that’s technically a non-cannabis brand, I’m going to include AbbVie anyways on this list of marijuana stocks. A few years ago, green-friendly investors added ABBV stock to their portfolio on the basis of Marinol, a cannabinoid indicated in adults for anorexia and associated with weight loss in patients with AIDS. | Some of these names include the following: Scotts Miracle-Gro (NYSE:SMG) AbbVie (NYSE:ABBV) Pfizer (NYSE:PFE) Constellation Brands (NYSE:STZ) cbdMD (NYSEAMERICAN:YCBD) Innovative Industrial Properties (NYSE:IIPR) Village Farms (NASDAQ:VFF) Lastly, the market is turning quite volatile recently. AbbVie (ABBV) Another company that’s technically a non-cannabis brand, I’m going to include AbbVie anyways on this list of marijuana stocks. A few years ago, green-friendly investors added ABBV stock to their portfolio on the basis of Marinol, a cannabinoid indicated in adults for anorexia and associated with weight loss in patients with AIDS. | Plus, as a diversified opportunity, I especially like ABBV stock for the underlying company’s acquisition of Botox. This is one that surprised me, but Pfizer currently has “25 U.S. patents for molecules relating to the cannabis plant.” As with big pharmaceutical rival AbbVie, Pfizer apparently sees significant value in medical marijuana and has enough confidence in its upward trajectory to fork over some research and development dollars. Some of these names include the following: Scotts Miracle-Gro (NYSE:SMG) AbbVie (NYSE:ABBV) Pfizer (NYSE:PFE) Constellation Brands (NYSE:STZ) cbdMD (NYSEAMERICAN:YCBD) Innovative Industrial Properties (NYSE:IIPR) Village Farms (NASDAQ:VFF) Lastly, the market is turning quite volatile recently. | b9852d69-ccbf-493b-9167-cd009d0673d2 |
24160.0 | 2021-03-29 00:00:00 UTC | This Stalwart's Growth Story Isn't Over Yet | ABBV | https://www.nasdaq.com/articles/this-stalwarts-growth-story-isnt-over-yet-2021-03-29 | nan | nan | Pharmaceutical stocks have lagged the broader market recently, with the Vanguard Health Care Fund ETF (NYSEMKT: VHT) trailing the S&P 500 by about 15% in the past year and 10% in the past five. And while a majority of big-pharma names (like Pfizer, Bristol Myers Squibb, and AbbVie) continue to underperform, Eli Lilly (NYSE: LLY) is an exception. One of the world's largest pharmaceutical companies, Eli Lilly is poised to keep going higher, deploying its resources to tackle some of the biggest health challenges facing humanity today.
The company's wide range of products treats conditions including cancer, diabetes, immune disorders, and more. As current blockbusters continue to set records and new treatments (including for Alzheimer's disease) proceed in development, Eli Lilly is not a company healthcare investors will want to miss.
Image Source: Getty Images.
A high-performing portfolio of products
Eli Lilly's easy-to-understand products are the engine driving this company to outperform its peers. Lilly is a big player in the insulin space through a variety of products like Humalog, Humulin, and Basglar, which combined added $5.22 billion in revenue in 2019. But the biggest current driver of the business is Lilly's diabetes drug, Trulicity. Coming onto the market in 2014, it quickly grew to be the company's best-selling drug. In 2019 alone, Trulicity did $4.1 billion in sales, and that number increased by almost 20% in fiscal 2020, to $5.06 billion.
Beyond diabetes-related medications, the company boasts Varzenio, which treats breast cancer, and Jardiance, which treats type 2 diabetes. These drugs showed impressive growth of 22% and 54% respectively from 2019 to 2020.
Ongoing business expansion
Founded in 1903, Lilly has set its sights on a number of conditions over the years. One current area of focus, neurological diseases, came to the forefront in 1988 with the launch of Prozac. It's currently evident in Lilly's recent acquisition of Disarm Therapeutics, a biotechnology company that is creating breakthrough disease-modifying therapeutics to treat patients with neurological diseases by preventing axonal degeneration. This acquisition will strengthen Eli Lilly's position on the neurological diseases front and allow for further expansion.
Management has also been attentive to the coronavirus pandemic, diverting resources toward developing a monoclonal antibody therapy named bamlanivimab, which acts as a substitute antibody that can restore, enhance, or mimic the immune system's attack on cells. The company has received emergency use authorization from the U.S. Food and Drug Administration for the drug, as well as an $812 million purchase agreement from the Trump administration. The company's revenue in 2020 was $24.5 billion, so at about 3.3% of that total, this marks another source of income for Eli Lilly in an already diverse portfolio of products.
It's beaten the market for years, and it's not stopping now
Eli Lilly is one of the few pharmaceutical companies that has managed to outperform the S&P 500 over the past few years. Premier blue chip Johnson & Johnson has only managed to return 51% to shareholders over the past five years, while Eli Lilly notched 160% in share-price appreciation during the same time period. Bristol Myers Squibb ended up losing 1.5% and Pfizer returned only 27%. Lilly has truly been a standout.
JNJ data by YCharts
The company is currently valued at a price-to-earnings ratio of about 22, which is in line with its historical average since 2014. Over time, stock prices tend to track earnings, and the handsome growth in Lilly's earnings over the past few years is what I believe has led to such tremendous share-price appreciation -- and I see no reason that should stop. The company also offers a 1.89% dividend yield, which was actually increased by 14.7% in both 2019 and 2020. The bottom line is that the growth is not over for Eli Lilly, and there may be no better time for healthcare investors to buy than now.
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The Motley Fool owns shares of and recommends Bristol Myers Squibb. 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. | And while a majority of big-pharma names (like Pfizer, Bristol Myers Squibb, and AbbVie) continue to underperform, Eli Lilly (NYSE: LLY) is an exception. One of the world's largest pharmaceutical companies, Eli Lilly is poised to keep going higher, deploying its resources to tackle some of the biggest health challenges facing humanity today. As current blockbusters continue to set records and new treatments (including for Alzheimer's disease) proceed in development, Eli Lilly is not a company healthcare investors will want to miss. | And while a majority of big-pharma names (like Pfizer, Bristol Myers Squibb, and AbbVie) continue to underperform, Eli Lilly (NYSE: LLY) is an exception. The company's wide range of products treats conditions including cancer, diabetes, immune disorders, and more. The Motley Fool recommends Johnson & Johnson. | And while a majority of big-pharma names (like Pfizer, Bristol Myers Squibb, and AbbVie) continue to underperform, Eli Lilly (NYSE: LLY) is an exception. It's beaten the market for years, and it's not stopping now Eli Lilly is one of the few pharmaceutical companies that has managed to outperform the S&P 500 over the past few years. 10 stocks we like better than Eli Lilly and Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | And while a majority of big-pharma names (like Pfizer, Bristol Myers Squibb, and AbbVie) continue to underperform, Eli Lilly (NYSE: LLY) is an exception. In 2019 alone, Trulicity did $4.1 billion in sales, and that number increased by almost 20% in fiscal 2020, to $5.06 billion. The bottom line is that the growth is not over for Eli Lilly, and there may be no better time for healthcare investors to buy than now. | 78538026-33ed-467a-814d-baaf80dc794e |
24161.0 | 2021-03-28 00:00:00 UTC | 3 High-Yield Dividend Stocks With Solid Growth Prospects | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-with-solid-growth-prospects-2021-03-28 | nan | nan | Trade-offs are inevitable when it comes to investing. The biggest one is the relationship between risk and returns. If you want lower risk, you'll usually have to forego the possibility of big returns.
However, some investing trade-offs aren't unavoidable. For example, you don't necessarily have to give up on the potential for growth when you buy attractive dividend stocks. Here are three high-yield dividend stocks with solid growth prospects.
Image source: Getty Images.
AbbVie
You're not going to find many stocks with the dividend pedigree that AbbVie (NYSE: ABBV) has. AbbVie is a Dividend Aristocrat with 49 consecutive years of dividend increases. Since its spin-off from Abbott Labs in 2013, the company has boosted its dividend payout by 225%. Its dividend yield currently stands at over 5%.
What about growth? AbbVie's revenue soared 59% year over year in the fourth quarter of 2020 with adjusted earnings per share (EPS) jumping 32%. However, there's an important asterisk: Much of this increase resulted from AbbVie's acquisition of Allergan. Still, the company delivered 6.8% revenue growth on a comparable operational basis.
AbbVie expects adjusted EPS will increase by nearly 18% in 2021. It also looks for strong sales growth over the next couple of years. In 2023, though, the company projects its sales will decline due to the loss of exclusivity for its top-selling drug Humira.
Don't worry: The dip will be a short-lived one. Thanks to its lineup of powerhouse new drugs including Rinvoq, Skyrizi, Ubrelvy, and Vraylar, AbbVie projects modest revenue growth in 2024 followed by strong growth beginning in 2025 throughout the rest of the decade.
Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) definitely offers a dividend that's bound to catch investors' attention. The midstream energy company's dividend currently yields more than 8%. It has also increased its annual distribution for 22 consecutive years.
You might not be as impressed by Enterprise Products' recent growth story, however. In 2020, the company's revenue and earnings sank 17% year over year. The COVID-19 pandemic seriously disrupted the global economy, causing oil and gas prices to plunge.
Things are looking up for Enterprise, though. CEO Jim Teague expressed optimism in the company's fourth quarter update that "the combination of the vaccines, significant government stimulus and shorter economic cycles associated with pandemics and natural disasters will lead to the world emerging from this economic sudden stop in 2021." There's reason to believe that Teague's confidence is well founded.
The midstream energy company's prospects could improve even more in the coming years. Enterprise expects to begin operations at three new projects this year, including two in the second half of 2021, that should really start to pay off down the road.
Pfizer
Pfizer (NYSE: PFE) has been a longtime favorite for income-seeking investors. It still is, with a dividend yield of nearly 4.4%.
On the other hand, Pfizer hasn't enjoyed much favor for its growth in recent years. But the dynamics for the company are much different now. Pfizer is no longer held back by declining sales for older drugs that have lost exclusivity, thanks to its merger of Upjohn with Mylan in November.
The company now projects annual revenue growth of at least 6% and adjusted EPS growth of at least 10% over the next few years. Importantly, though, those projections don't include the impact of Pfizer's COVID-19 programs.
Pfizer's COVID-19 vaccine could generate sales of $20 billion or more this year. It's uncertain how much of that revenue will be recurring. However, the company's CFO recently said that Pfizer expects annual revaccination will be likely. That could mean Pfizer will be able to count on billions of dollars in sales from its COVID vaccine for years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie You're not going to find many stocks with the dividend pedigree that AbbVie (NYSE: ABBV) has. AbbVie is a Dividend Aristocrat with 49 consecutive years of dividend increases. AbbVie's revenue soared 59% year over year in the fourth quarter of 2020 with adjusted earnings per share (EPS) jumping 32%. | AbbVie's revenue soared 59% year over year in the fourth quarter of 2020 with adjusted earnings per share (EPS) jumping 32%. AbbVie You're not going to find many stocks with the dividend pedigree that AbbVie (NYSE: ABBV) has. AbbVie is a Dividend Aristocrat with 49 consecutive years of dividend increases. | AbbVie is a Dividend Aristocrat with 49 consecutive years of dividend increases. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, and Pfizer. AbbVie You're not going to find many stocks with the dividend pedigree that AbbVie (NYSE: ABBV) has. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, and Pfizer. AbbVie You're not going to find many stocks with the dividend pedigree that AbbVie (NYSE: ABBV) has. AbbVie is a Dividend Aristocrat with 49 consecutive years of dividend increases. | d3727e99-224d-4965-8699-609191f74bfd |
24162.0 | 2021-03-23 00:00:00 UTC | Merck Stock Remains Significantly Undervalued At $77 | ABBV | https://www.nasdaq.com/articles/merck-stock-remains-significantly-undervalued-at-%2477-2021-03-23 | nan | nan | Merck (NYSE: MRK) looks very attractive at current levels of $77, as it is up only 17% from the levels it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. This marks a significant underperformance compared to the S&P which has moved 75% since its March 2020 lows, with the resumption of economic activities as lockdowns are gradually lifted and vaccination programs have been initiated in multiple countries. This underperformance doesn’t make sense in our view. While there are investor concerns over the company’s diabetes portfolio of Januvia and Janumet (accounts for 12% of Merck’s total sales), which will likely see a slowdown in sales going forward, as it nears the end of the exclusivity period, it does not explain the large underperformance. In fact, we believe that Merck is currently one of the best picks in pharmaceuticals sector. Even if we were to look at a longer time period, MRK stock is up a mere 1% from levels seen toward the end of 2018.
This is surprising given the robust fundamentals of the company. Merck’s total revenue grew 13% to $48.0 billion in 2020, as compared to $42.3 billion in 2018. Also, the company saw an expansion of 390 bps for its adjusted net margins from 27.5% in 2018 to 31.4% in 2020, resulting in a 30% growth in net income from $11.6 billion to $15.1 billion over the same period. The company’s total shares also saw a decline of 5% over this period, and on a per share basis, adjusted earnings grew a solid 37% to $5.94 in 2020, as compared to $4.34 in 2018. Despite the robust performance over the recent years, Merck’s P/E multiple has contracted, and we believe it will likely expand going forward. Our dashboard, ‘What Factors Drove 1% Change In Merck Stock between 2018 and now?‘, has the underlying numbers.
Merck’s P/E multiple contracted from 18x in 2018 to 14x in 2020 based on trailing adjusted EPS. While the company’s P/E is at 13x now, it can see an expansion in the near term, led by steady earnings growth. We discuss more in the section below.
So what’s the likely trigger and timing for upside?
For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Though the Covid-19 pandemic surely impacted the sales growth for some of its drugs due to fewer hospital visits, and a lower vaccination rate for Gardasil and Proquad, this will likely reverse as the Covid-19 crisis winds down. Keytruda continues to gain market share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. Now, Keytruda’s patents are protected till 2028, which is at a distance, and it will likely garner over $25 billion in annual sales by 2026. Other than Keytruda, Merck is seeing steady growth in its Animal Health business, while Lynparaza and Lenvima look promising, aiding the company’s overall revenue growth. Furthermore, Merck, over the next few months, will complete the spin-off of its women’s health, legacy brands, and biosimilars businesses, forming a new company – Organon & Co. This will allow Merck to focus on more profitable drugs, implying better margins going forward.
Looking ahead, Merck will likely see an increase in sales, as the Covid-19 crisis winds down. That said, any further recovery in the economy and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. Looking at valuation, at the current price of $77, Merck is trading at 12x its estimated adjusted EPS of around $6.56 in 2021, compared to levels of over 17x seen in 2018 and 2019, implying there is more room for growth for MRK stock. Also, with the steady earnings growth going forward, led by improved margins and market share gains for Keytruda, the P/E multiple will likely expand further. As such, we believe Merck is significantly undervalued at the current levels of $77.
While MRK stock may see higher levels, 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 UnitedHealth vs Ingevity.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This marks a significant underperformance compared to the S&P which has moved 75% since its March 2020 lows, with the resumption of economic activities as lockdowns are gradually lifted and vaccination programs have been initiated in multiple countries. Though the Covid-19 pandemic surely impacted the sales growth for some of its drugs due to fewer hospital visits, and a lower vaccination rate for Gardasil and Proquad, this will likely reverse as the Covid-19 crisis winds down. Looking at valuation, at the current price of $77, Merck is trading at 12x its estimated adjusted EPS of around $6.56 in 2021, compared to levels of over 17x seen in 2018 and 2019, implying there is more room for growth for MRK stock. | For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Looking at valuation, at the current price of $77, Merck is trading at 12x its estimated adjusted EPS of around $6.56 in 2021, compared to levels of over 17x seen in 2018 and 2019, implying there is more room for growth for MRK stock. Also, with the steady earnings growth going forward, led by improved margins and market share gains for Keytruda, the P/E multiple will likely expand further. | Merck (NYSE: MRK) looks very attractive at current levels of $77, as it is up only 17% from the levels it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Looking at valuation, at the current price of $77, Merck is trading at 12x its estimated adjusted EPS of around $6.56 in 2021, compared to levels of over 17x seen in 2018 and 2019, implying there is more room for growth for MRK stock. | For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Looking at valuation, at the current price of $77, Merck is trading at 12x its estimated adjusted EPS of around $6.56 in 2021, compared to levels of over 17x seen in 2018 and 2019, implying there is more room for growth for MRK stock. Also, with the steady earnings growth going forward, led by improved margins and market share gains for Keytruda, the P/E multiple will likely expand further. | 546bdc75-051d-4126-97c9-0759da954fe2 |
24163.0 | 2021-03-22 00:00:00 UTC | First Week of ABBV August 20th Options Trading | ABBV | https://www.nasdaq.com/articles/first-week-of-abbv-august-20th-options-trading-2021-03-22 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the August 20th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 151 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new August 20th contracts and identified one put and one call contract of particular interest.
The put contract at the $100.00 strike price has a current bid of $6.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $100.00, but will also collect the premium, putting the cost basis of the shares at $94.00 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $104.66/share today.
Because the $100.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. 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 6.00% return on the cash commitment, or 14.50% 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 $100.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of 9 cents. If an investor was to purchase shares of ABBV stock at the current price level of $104.66/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $160.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 52.96% if the stock gets called away at the August 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red:
Considering the fact that the $160.00 strike represents an approximate 53% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.09% boost of extra return to the investor, or 0.21% 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 48%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $104.66) to be 27%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 53% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the August 20th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 53% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the August 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new August 20th 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 $100.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of 9 cents. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 53% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the August 20th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new August 20th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 53% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the August 20th expiration. | 8a16f6e3-6b49-4a06-930f-a3dd90a22308 |
24164.0 | 2021-03-21 00:00:00 UTC | 3 Embarrassingly Cheap Dividend Stocks | ABBV | https://www.nasdaq.com/articles/3-embarrassingly-cheap-dividend-stocks-2021-03-21 | nan | nan | You'd think that investors would be willing to pay more for stocks that pay them back every quarter with a juicy dividend. However, that's not always the case.
There are plenty of dividend stocks with valuations that are attractive. And some of them are really inexpensive. Here are three dividend stocks that are almost embarrassingly cheap.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) arguably ranks as one of the best dividend stocks on the market. Its dividend currently yields nearly 5%. The drugmaker is also only one dividend hike away from becoming a Dividend King -- an elite group of S&P 500 members that have increased their dividend for at least 50 consecutive years.
The stock is also quite cheap right now. AbbVie's shares trade at close to 8.5 times expected earnings. That's well below the forward earnings multiples for most of the company's big pharma peers.
Why is AbbVie valued so attractively? Many investors are concerned about Humira losing U.S. exclusivity in 2023. The drug currently generates around 37% of the company's total revenue.
However, AbbVie's lineup includes several strong growth drivers. These include newer autoimmune disease drugs Rinvoq and Skyrizi, blood cancer drugs Imbruvica and Venclexta, and antipsychotic drug Vraylar. The company expects its total revenue will decline in 2023 but rebound the following year. AbbVie projects high single-digit-percentage growth through the rest of the decade.
2. Bristol Myers Squibb
Like AbbVie, Bristol Myers Squibb (NYSE: BMY) is one of the dirt cheap big pharma stocks that Warren Buffett really likes these days. And it's even more of a bargain than AbbVie with shares trading at 8.2 times expected earnings.
Bristol Myers Squibb also offers a solid dividend. Its yield currently stands at close to 3.2%. The company has increased its dividend payout every year since 2010.
There's another common denominator that BMS shares with AbbVie. The company's top-selling drug, Revlimid, will soon lose U.S. patent exclusivity. The blood disorder drug faces limited-volume generic competition beginning in 2022. Revlimid accounted for nearly 30% of BMS' total revenue in the fourth quarter of 2020.
But Bristol Myers Squibb has multiple products that should pick up the slack. Blockbuster blood thinner Eliquis and cancer immunotherapy continue to deliver sizzling sales growth. Another immunotherapy, Opdivo, should regain momentum as it wins additional approved indications. BMS' lineup also features new products with tremendous potential, notably including multiple sclerosis drug Zeposia and anemia drug Reblozyl.
3. Viatris
Technically, Viatris (NASDAQ: VTRS) isn't a dividend stock just yet. However, it will be soon. The company was formed in November 2020 with the merger of Pfizer's Upjohn unit and Mylan. Viatris intends to initiate a dividend program in the second quarter of this year and increase the payout each year going forward. The expected initial dividend yield will be in the ballpark of 3%.
Viatris is also one of the cheapest stocks you're going to find on the market. Its shares trade at around 4.7 times expected earnings.
The company looks for 2021 to be a "trough year" as it deals with declining sales for some older drugs. However, its free cash flow should continue to grow. Viatris also thinks it will achieve over $1 billion in synergies from the Upjohn/Mylan merger by 2023.
Beginning in 2024, Viatris anticipates that it will deliver consistent revenue growth each year. The company also expects to buy back shares once it reduces debt to target levels.
Viatris won't be the kind of stock that excites growth investors. However, it should be exactly the type of stock that income-seeking investors will like over the long run.
10 stocks we like better than Viatris Inc.
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Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. The Motley Fool owns shares of and recommends Bristol Myers Squibb. 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. | AbbVie AbbVie (NYSE: ABBV) arguably ranks as one of the best dividend stocks on the market. AbbVie's shares trade at close to 8.5 times expected earnings. Why is AbbVie valued so attractively? | Bristol Myers Squibb Like AbbVie, Bristol Myers Squibb (NYSE: BMY) is one of the dirt cheap big pharma stocks that Warren Buffett really likes these days. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie (NYSE: ABBV) arguably ranks as one of the best dividend stocks on the market. | Bristol Myers Squibb Like AbbVie, Bristol Myers Squibb (NYSE: BMY) is one of the dirt cheap big pharma stocks that Warren Buffett really likes these days. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie (NYSE: ABBV) arguably ranks as one of the best dividend stocks on the market. | AbbVie's shares trade at close to 8.5 times expected earnings. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie (NYSE: ABBV) arguably ranks as one of the best dividend stocks on the market. | f9d079fe-8faf-466a-9f43-cdd0e9e9fe40 |
24165.0 | 2021-03-19 00:00:00 UTC | iShares Core S&P 500 ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-inflow-2021-03-19 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $648.4 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 653,500,000 to 655,150,000). Among the largest underlying components of IVV, in trading today Coca-Cola Co (Symbol: KO) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is off about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $399.65 as the 52 week high point — that compares with a last trade of $391.56. 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 IVV, in trading today Coca-Cola Co (Symbol: KO) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is off about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $399.65 as the 52 week high point — that compares with a last trade of $391.56. 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 IVV, in trading today Coca-Cola Co (Symbol: KO) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is off about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $399.65 as the 52 week high point — that compares with a last trade of $391.56. 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 IVV, in trading today Coca-Cola Co (Symbol: KO) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is off about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $648.4 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 653,500,000 to 655,150,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $399.65 as the 52 week high point — that compares with a last trade of $391.56. | Among the largest underlying components of IVV, in trading today Coca-Cola Co (Symbol: KO) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is off about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $648.4 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 653,500,000 to 655,150,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $399.65 as the 52 week high point — that compares with a last trade of $391.56. | 3e29f43f-cac9-404a-a2c5-5cdb256d1b63 |
24166.0 | 2021-03-19 00:00:00 UTC | 1 Stock Warren Buffett and Cathie Wood Have in Common and 1 They Should | ABBV | https://www.nasdaq.com/articles/1-stock-warren-buffett-and-cathie-wood-have-in-common-and-1-they-should-2021-03-19 | nan | nan | It might be a surprise to find out that two investors with virtually opposite approaches -- one who invests in large, cheap, iconic companies and the other who rose to fame on the heels of her outlandishly bullish (and accurate) predictions about "overvalued" stocks -- would have the same company in their portfolios. Perhaps the bigger surprise is the stock you might expect them to both own that they don't. Let's take a look at the two companies in question and what these successful investors must see.
Image source: Getty Images.
The surprising stock they both own
First, it's doubtful that Warren Buffett actually bought Snowflake (NYSE: SNOW), the cloud data warehouse-as-a-service company. In recent years, lieutenants Todd Combs and Ted Weschler have been making more of the investment decisions, and the $750 million in stock Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) purchased before the initial public offering (IPO) certainly doesn't match the investment style of the legendary nonagenarian. In fact, Buffett hasn't bought an IPO since Ford in 1956. The company does fit the style of Cathie Wood at ARK Invest, a global asset management company focused on disruptive innovation. That said, Snowflake is putting up numbers that would get any investor's attention.
The company recently reported its full fiscal year earnings, and the growth was jaw-dropping. Fourth-quarter revenue of $178 million was up 116% year over year. Topping that, remaining performance obligations, what customers have signed on to buy, was up 213% over the same point last year. The company has 77 customers that spend more than $1 million per year. That number is up from 65 just three months earlier. Management is projecting between 92% and 96% revenue growth for the current year. Snowflake posted an operating margin of negative 92%. Losing money never sounds good, but that is closer to profitability than the negative 135% for the year ending January 2020 or the negative 192% in 2019. If the company really wanted to turn a profit it could just curb its spending on sales and marketing.
It may not be a typical Buffett stock, but Snowflake definitely fits the mold of Wood's investments. The ARK founder has become synonymous with innovation, building a portfolio around futuristic themes such as genomics, space exploration, mobility-as-a-service, and the next-generation internet. It's the last theme, encompassing artificial intelligence and cloud computing, where Snowflake fits. The company's pay-as-you-consume, real-time access to data and analytical tools is a giant leap forward compared to the slow, bogged-down daily or weekly updates companies have long come to accept with managing their internal data warehouses.
Another stock in ARK's portfolio touches both the data-related and genomic revolution strategy. Based on his other holdings, it's actually surprising Buffett doesn't own it too.
The surprising stock they don't both own
The Oracle of Omaha has been buying up the stocks of pharmaceutical companies in the past year. In the third quarter of 2020 he added shares of Pfizer (NYSE: PFE), AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and Bristol Myers Squibb (NYSE: BMY). Every member of that group gives investors between 3% and 5% in dividends annually. Other than Bristol Myers, they all hover around a $200 billion market cap as well, and Bristol Myers is nearly as large at $136 billion. Similarly, Novartis (NYSE: NVS) is a $211 billion company yielding 3.8%. Perhaps the reason Buffett hasn't bought this big pharma stock is that it is a Swiss company. It turns out, Buffett favors American brands in food, cola, and apparently drugmakers.
Novartis did catch the eye of Wood, thanks to its work toward developing a leading digital and data science platform for drug discovery. Although it isn't a pure play on any of ARK's strategies, Wood considers it a deep value pick, to be held through a bull market and then sold in times of volatility to add to higher-conviction growth names that get beaten down.
Portfolio juxtaposition
It may be counterintuitive for an investor who prides himself on unemotional investing to buy into one of the hottest IPOs of last year, but once Snowflake started trading, the investment doubled almost immediately. Similarly, few would think someone famous for a $4,000 price target on Tesla and presentations that literally map out the future of entire industries would own a nearly 4% dividend paying pharmaceutical company with no growth. However, there is a great lesson in these examples.
Don't settle for the labels Wall Street places on companies or investors. Value and growth are just words. Investors may have tendencies that define them in the public eye, but that oversimplification may obscure the characteristics that draw their interest in an investment. Although Buffett likely didn't buy shares of Snowflake, it may have been the customer loyalty, leadership team, and consistent march toward profitability that made Combs or Weschler comfortable buying Snowflake shares. Wood may have a lot of fast-growing companies that don't make a profit, but it's the innovation that compels her to invest, not just growth rate. In the case of Novartis, innovation came in the form of a mega-cap pharmaceutical company.
Instead of focusing on the labels Wall Street slaps on a company or following Warren Buffett or Cathie Wood into the stock, try to identify the characteristics of the business that they find compelling. Try approaching the company as if you were going to inherit it, learning how dedicated customers are, where money gets spent to attract new ones, or what advantages it has over competitors. These answers will lead to a more informed investment decision and better outcomes over time.
It turns out, both Snowflake and Novartis are compelling to different types of investors for a variety of reasons. Exploring those reasons can teach us a lot more about investing than focusing solely on who owns them. The more we know about a company, the easier it is to figure out whether the next sell-off is something to fear or a great opportunity.
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Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Bristol Myers Squibb, Snowflake Inc., and Tesla and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the third quarter of 2020 he added shares of Pfizer (NYSE: PFE), AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and Bristol Myers Squibb (NYSE: BMY). Although it isn't a pure play on any of ARK's strategies, Wood considers it a deep value pick, to be held through a bull market and then sold in times of volatility to add to higher-conviction growth names that get beaten down. Similarly, few would think someone famous for a $4,000 price target on Tesla and presentations that literally map out the future of entire industries would own a nearly 4% dividend paying pharmaceutical company with no growth. | In the third quarter of 2020 he added shares of Pfizer (NYSE: PFE), AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and Bristol Myers Squibb (NYSE: BMY). In recent years, lieutenants Todd Combs and Ted Weschler have been making more of the investment decisions, and the $750 million in stock Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) purchased before the initial public offering (IPO) certainly doesn't match the investment style of the legendary nonagenarian. The company does fit the style of Cathie Wood at ARK Invest, a global asset management company focused on disruptive innovation. | In the third quarter of 2020 he added shares of Pfizer (NYSE: PFE), AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and Bristol Myers Squibb (NYSE: BMY). In recent years, lieutenants Todd Combs and Ted Weschler have been making more of the investment decisions, and the $750 million in stock Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) purchased before the initial public offering (IPO) certainly doesn't match the investment style of the legendary nonagenarian. The surprising stock they don't both own The Oracle of Omaha has been buying up the stocks of pharmaceutical companies in the past year. | In the third quarter of 2020 he added shares of Pfizer (NYSE: PFE), AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and Bristol Myers Squibb (NYSE: BMY). The surprising stock they both own First, it's doubtful that Warren Buffett actually bought Snowflake (NYSE: SNOW), the cloud data warehouse-as-a-service company. It turns out, both Snowflake and Novartis are compelling to different types of investors for a variety of reasons. | 3d27f589-8782-440c-9012-922c8b9d5c89 |
24167.0 | 2021-03-18 00:00:00 UTC | Analysts See 10% Gains Ahead For The Holdings of DEF | ABBV | https://www.nasdaq.com/articles/analysts-see-10-gains-ahead-for-the-holdings-of-def-2021-03-18 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Defensive Equity ETF (Symbol: DEF), we found that the implied analyst target price for the ETF based upon its underlying holdings is $65.49 per unit.
With DEF trading at a recent price near $59.73 per unit, that means that analysts see 9.64% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Although PG has traded at a recent price of $128.42/share, the average analyst target is 17.58% higher at $151.00/share. Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. Below is a twelve month price history chart comparing the stock performance of PG, D, and ABBV:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64%
Procter & Gamble Company PG $128.42 $151.00 17.58%
Dominion Energy Inc D $73.17 $81.36 11.20%
AbbVie Inc ABBV $105.04 $116.73 11.13%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64% Procter & Gamble Company PG $128.42 $151.00 17.58% Dominion Energy Inc D $73.17 $81.36 11.20% AbbVie Inc ABBV $105.04 $116.73 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. | Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64% Procter & Gamble Company PG $128.42 $151.00 17.58% Dominion Energy Inc D $73.17 $81.36 11.20% AbbVie Inc ABBV $105.04 $116.73 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Below is a twelve month price history chart comparing the stock performance of PG, D, and ABBV: Below is a summary table of the current analyst target prices discussed above: | Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64% Procter & Gamble Company PG $128.42 $151.00 17.58% Dominion Energy Inc D $73.17 $81.36 11.20% AbbVie Inc ABBV $105.04 $116.73 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. | 5f58a0a3-fbbb-4ad0-bc70-853ed53a0788 |
24168.0 | 2021-03-17 00:00:00 UTC | 4 Top Stock Trades for Thursday: ABBV, TLT, PDD, FIVE | ABBV | https://www.nasdaq.com/articles/4-top-stock-trades-for-thursday%3A-abbv-tlt-pdd-five-2021-03-17 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We’re getting the typical volatility associated with a Fed Day, as stocks gyrate around the Federal Reserve’s commentary and asset-buying plans. So far, the reaction has been bullish, but we’ll need to see how we finish the week. That said, let’s look at some top stock trades ahead of Thursday.
Top Stock Trades for Tomorrow No. 1: AbbVie (ABBV)
Click to Enlarge
Source: Chart courtesy of TrendSpider
AbbVie (NYSE:ABBV) stock has been a solid performer from the fourth-quarter lows, ripping from about $80 to more than $100 by the end of the year.
Range support has been coming into play near $102, while bulls have had trouble sustaining price moves over $110.
Wednesday’s sharp decline has buyers stepping in near range support and the 100-day moving average. If ABBV stock loses Wednesday’s low, look for support at the 200-day moving average and the prior 2020 pre-coronavirus high near $98.
On the upside, however, I want to see shares reclaim its cluster of moving averages — the 10-day, 21-day and 50-day — near $107.50. Above that puts $110-plus in play.
7 Stocks to Buy No Matter What the Treasury Yield Does
So far, all we have here is a gap-down to support that’s holding as of now.
Top Stock Trades for Tomorrow No. 2: Treasury Bond ETF (TLT)
Click to Enlarge
Source: Chart courtesy of TrendSpider
What a washout we’ve been seeing in bonds lately, as the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has been heavily crushed.
Shares bounced sharply in late February, but were met with resistance at the 10-day moving average. This measure rejected the TLT twice followed that bounce, with the second rejection leading to a sharp gap-down to the 200-week moving average.
The TLT broke that measure on Wednesday, although it’s bouncing off the lows. We’re talking about weekly levels, and so we should be measuring in dollars, not cents.
In any regard, let’s see how the TLT closes this week. Risky as it feels to be long down here, I like this name for a bounce provided it can close the week above the 200-week moving average.
If it can do that, the first target is the $138.50 gap-fill and the 10-day moving average. Above that, and the second target becomes $140 and the 21-day moving average.
Let’s see if we can get this name to bounce a bit.
Top Stock Trades for Tomorrow No. 3: Pinduoduo (PDD)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Pinduoduo (NASDAQ:PDD) is rallying off the lows, but still finished Wednesday down 7.1%.
Shares are forming an interesting pattern, particularly with that healthy bounce off the lows.
We have a 1-2-3 pattern down to $136, with a solid bounce back up toward $170. Back below most of its moving averages now and struggling after earnings has investors wondering what the low will be on the longer term 1-2-3-4-5 pattern.
Without getting too detailed, we can either have a flat five-wave pattern — where the low comes into play near the bottom of the third wave (labeled with a “3” on the chart) at $136 — or we can have a lower low.
If it’s the first option, we need to keep a close eye on $136. A close below puts the $115 level and the 200-day moving average in play as a potential short-term low, (which could be the fifth wave, shown as a “5” on the chart).
For now, though, it’s great to see the 61.8% retracement hold, but it would be even better if PDD stock could reclaim the 10-day and 100-day moving averages. Above them puts $170 and the 21-day moving average back on the table.
Top Trades for Tomorrow No. 4: Five Below (FIVE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Five Below (NASDAQ:FIVE) reported its Q4 and fiscal year 2020 earnings after the close on Wednesday.
The setup was pretty nice going into the report. Five Below has been making a series of higher lows, but hasn’t been able to stay above $197.50. Known as an ascending triangle, let’s see if Five Below can clear $197.50 and break out over $200.
If it can do that, perhaps the two-times range extension up near $212 will be in play.
On the downside, however, I want to see FIVE stock hold the 50-day moving average and uptrend support (blue line). However, with earnings in play, that may be too tight of a leash for us to expect it to hold that mark.
If it loses these marks, I’d like to see shares hold the 161.8% extension near $180, but it needs to hold range support near $172.70 and the 100-day moving average.
On the date of publication, Bret Kenwell held a long position in TLT.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Thursday: ABBV, TLT, PDD, FIVE appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) stock has been a solid performer from the fourth-quarter lows, ripping from about $80 to more than $100 by the end of the year. 1: AbbVie (ABBV) If ABBV stock loses Wednesday’s low, look for support at the 200-day moving average and the prior 2020 pre-coronavirus high near $98. | Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) stock has been a solid performer from the fourth-quarter lows, ripping from about $80 to more than $100 by the end of the year. 1: AbbVie (ABBV) If ABBV stock loses Wednesday’s low, look for support at the 200-day moving average and the prior 2020 pre-coronavirus high near $98. | If ABBV stock loses Wednesday’s low, look for support at the 200-day moving average and the prior 2020 pre-coronavirus high near $98. 1: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) stock has been a solid performer from the fourth-quarter lows, ripping from about $80 to more than $100 by the end of the year. | The post 4 Top Stock Trades for Thursday: ABBV, TLT, PDD, FIVE appeared first on InvestorPlace. 1: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) stock has been a solid performer from the fourth-quarter lows, ripping from about $80 to more than $100 by the end of the year. | 2295c532-9ebc-4b93-8253-d66d13236b2f |
24169.0 | 2021-03-17 00:00:00 UTC | S&P 500 Movers: NRG, DOW | ABBV | https://www.nasdaq.com/articles/sp-500-movers%3A-nrg-dow-2021-03-17 | nan | nan | In early trading on Wednesday, shares of Dow topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. Year to date, Dow registers a 17.9% gain.
And the worst performing S&P 500 component thus far on the day is NRG Energy, trading down 13.8%. NRG Energy Inc is lower by about 0.3% looking at the year to date performance.
Two other components making moves today are AbbVie, trading down 6.4%, and Host Hotels & Resorts, trading up 2.8% on the day.
VIDEO: S&P 500 Movers: NRG, DOW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two other components making moves today are AbbVie, trading down 6.4%, and Host Hotels & Resorts, trading up 2.8% on the day. And the worst performing S&P 500 component thus far on the day is NRG Energy, trading down 13.8%. NRG Energy Inc is lower by about 0.3% looking at the year to date performance. | Two other components making moves today are AbbVie, trading down 6.4%, and Host Hotels & Resorts, trading up 2.8% on the day. In early trading on Wednesday, shares of Dow topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. And the worst performing S&P 500 component thus far on the day is NRG Energy, trading down 13.8%. | Two other components making moves today are AbbVie, trading down 6.4%, and Host Hotels & Resorts, trading up 2.8% on the day. In early trading on Wednesday, shares of Dow topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. And the worst performing S&P 500 component thus far on the day is NRG Energy, trading down 13.8%. | Two other components making moves today are AbbVie, trading down 6.4%, and Host Hotels & Resorts, trading up 2.8% on the day. And the worst performing S&P 500 component thus far on the day is NRG Energy, trading down 13.8%. NRG Energy Inc is lower by about 0.3% looking at the year to date performance. | 6a812699-7d85-4103-ba52-ac2694071872 |
24170.0 | 2021-03-17 00:00:00 UTC | U.S. FDA extends review period for expanded use of Abbvie's arthritis drug | ABBV | https://www.nasdaq.com/articles/u.s.-fda-extends-review-period-for-expanded-use-of-abbvies-arthritis-drug-2021-03-17-0 | nan | nan | Corrects typo in paragraph 1
March 17 - Abbvie Inc ABBV.N said the U.S. Food and Drug Administration has extended the review period for expanded use of its rheumatoid arthritis drug Rinvoq by three months, citing the need for more time to assess the drug's benefit-risk profile.
Shares of the drugmaker fell 7.04% to $103.8 in early trading.
Abbvie said on Wednesday the U.S. health agency was reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis, a type of inflammatory arthritis.
The drug was approved for the treatment of rheumatoid arthritis in 2019.
Abbvie has been betting on Rinvoq as it is set to lose patent protection in 2023 for its blockbuster drug Humira in the United States, its biggest market.
The drugmaker said it had responded to the U.S. agency's request for additional details on the benefit-risk profile of the drug, adding the FDA would require additional time for a full review of the application.
FDA is also reviewing the expanded use of Rinvoq in atopic dermatitis and has sought additional information, which Abbvie plans to provide shortly.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
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 been betting on Rinvoq as it is set to lose patent protection in 2023 for its blockbuster drug Humira in the United States, its biggest market. FDA is also reviewing the expanded use of Rinvoq in atopic dermatitis and has sought additional information, which Abbvie plans to provide shortly. Corrects typo in paragraph 1 March 17 - Abbvie Inc ABBV.N said the U.S. Food and Drug Administration has extended the review period for expanded use of its rheumatoid arthritis drug Rinvoq by three months, citing the need for more time to assess the drug's benefit-risk profile. | Corrects typo in paragraph 1 March 17 - Abbvie Inc ABBV.N said the U.S. Food and Drug Administration has extended the review period for expanded use of its rheumatoid arthritis drug Rinvoq by three months, citing the need for more time to assess the drug's benefit-risk profile. Abbvie said on Wednesday the U.S. health agency was reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis, a type of inflammatory arthritis. Abbvie has been betting on Rinvoq as it is set to lose patent protection in 2023 for its blockbuster drug Humira in the United States, its biggest market. | Corrects typo in paragraph 1 March 17 - Abbvie Inc ABBV.N said the U.S. Food and Drug Administration has extended the review period for expanded use of its rheumatoid arthritis drug Rinvoq by three months, citing the need for more time to assess the drug's benefit-risk profile. Abbvie said on Wednesday the U.S. health agency was reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis, a type of inflammatory arthritis. Abbvie has been betting on Rinvoq as it is set to lose patent protection in 2023 for its blockbuster drug Humira in the United States, its biggest market. | Corrects typo in paragraph 1 March 17 - Abbvie Inc ABBV.N said the U.S. Food and Drug Administration has extended the review period for expanded use of its rheumatoid arthritis drug Rinvoq by three months, citing the need for more time to assess the drug's benefit-risk profile. Abbvie said on Wednesday the U.S. health agency was reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis, a type of inflammatory arthritis. Abbvie has been betting on Rinvoq as it is set to lose patent protection in 2023 for its blockbuster drug Humira in the United States, its biggest market. | eca278bd-c362-4adb-803d-64ef1e8df798 |
24171.0 | 2021-03-17 00:00:00 UTC | U.S. FDA extends review period for expanded use of Abbvie's arthritis drug | ABBV | https://www.nasdaq.com/articles/u.s.-fda-extends-review-period-for-expanded-use-of-abbvies-arthritis-drug-2021-03-17 | nan | nan | March 17 - The U.S. Food and Drug Administration has extended the review period for expanded use of Abbvie Inc's ABBV. rheumatoid arthritis drug Rinvoq by three months, the U.S. drugmaker said on Wednesday.
Abbvie said the U.S. health agency is reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis. Rinvoq was approved for the treatment of rheumatoid arthritis in 2019.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 17 - The U.S. Food and Drug Administration has extended the review period for expanded use of Abbvie Inc's ABBV. Abbvie said the U.S. health agency is reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis. (Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 17 - The U.S. Food and Drug Administration has extended the review period for expanded use of Abbvie Inc's ABBV. Abbvie said the U.S. health agency is reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis. rheumatoid arthritis drug Rinvoq by three months, the U.S. drugmaker said on Wednesday. | Abbvie said the U.S. health agency is reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis. March 17 - The U.S. Food and Drug Administration has extended the review period for expanded use of Abbvie Inc's ABBV. rheumatoid arthritis drug Rinvoq by three months, the U.S. drugmaker said on Wednesday. | March 17 - The U.S. Food and Drug Administration has extended the review period for expanded use of Abbvie Inc's ABBV. Abbvie said the U.S. health agency is reviewing the application for the use of Rinvoq in patients with active psoriatic arthritis. rheumatoid arthritis drug Rinvoq by three months, the U.S. drugmaker said on Wednesday. | 0c078887-3f7f-4402-ad75-1276c020cebd |
24172.0 | 2021-03-17 00:00:00 UTC | 4 Pharma Stocks That Could Be Losers With the $1.9 Trillion Stimulus Package | ABBV | https://www.nasdaq.com/articles/4-pharma-stocks-that-could-be-losers-with-the-%241.9-trillion-stimulus-package-2021-03-17 | nan | nan | Major government spending bills tend to create both winners and losers. The $1.9 trillion stimulus bill recently passed by Congress and signed into law by President Joe Biden is no exception. In this Motley Fool Live video, recorded on March 10, Fool.com contributors Keith Speights and Brian Orelli discuss four pharma stocks that could be losers as a result of the legislation.
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Keith Speights: While the $1.9 trillion stimulus package could create some winners in the private sector, a lot of times government legislation also creates losers. There's one provision buried in the stimulus bill that hasn't gotten a lot of attention. There's a provision to sunset a Medicaid cap that limits how much states can collect in rebates on certain drugs.
For our viewers who are unfamiliar with this rebate process, what drugmakers do is they set a price for their drug. But in many cases, they'll provide rebates to the purchasers, whether it's Medicaid in this case, or pharmacy benefit managers, other payers, and they'll give rebates to those payers to get their drugs on their formularies and to encourage and promote the purchases of their drugs.
Maybe a list price of the drug might be $100. The pharmaceutical companies might give a $20 rebate, so the actual cost ends up being $80. One of the provisions in this stimulus package is to remove the limitation on how much rebates Medicaid can collect.
Brian, what stocks do you think might be losers from this particular change?
Brian Orelli: Eli Lilly (NYSE: LLY) has a lot of insulins and that's obviously a big competition among the different insulins because they are a little bit fungible in terms of one insulin versus the other. AbbVie (NYSE: ABBV) with Humira, again rheumatoid arthritis, there's a whole bunch of different rheumatoid authorized drugs. Merck (NYSE: MRK) has diabetes drugs as well. Janumet and Januvia, and then Jazz Pharmaceuticals (NASDAQ: JAZZ) has a narcolepsy drug called X-Y-R-E-M, is it Xyrem?
Speights: I think that's how you pronounce it, yeah. Some of these drug names are especially difficult to pronounce. [laughs].
Orelli: I saw some study once where they looked at the amount of Z's and X's and Y's in drug names versus the general words in the dictionary. It's crazy high the usage of Z's and X's and Y's in drug names.
Speights: Now, I noticed a couple of common denominators with the ones that you listed. First of all, one common denominator is that all of these drugs are pretty pricey, right?
Orelli: Yeah, I think maybe insulins are not necessarily super high, but Humira's a biologic or small drug but I think they can raise the price because not many people have this drug.
Speights: Then another common denominator, at least for most of them anyway, is that they all have pretty stiff competition. Obviously, there are companies other than Eli Lilly that make insulin products. AbbVie's Humira faces really intense competition in its market. There are quite a few autoimmune disease drugs, quite a few diabetes drugs that compete with Merck's Janumet and Januvia.
Orelli: That's the reason why these rebates have to happen, right?
Speights: Yeah.
Orelli: Because they're trying to get to be the lowest-priced and therefore the only drug that's on the formulary, or to not be excluded from the formulary, you have to lower your prices enough.
Speights: Right. That's really kind of the point I was getting at, is that these rebates are competitive tools for drugmakers. So any company that faces competition, especially if they have a higher-priced drug, they're likely to give rebates, and they could be impacted by this change to Medicaid.
The companies you mentioned probably are the ones that will be most impacted because they're making an awful lot of money from those particular drugs, particularly AbbVie with Humira, I think it's still the top-selling drug in the world, at least the last I checked.
Orelli: Until the vaccines.
Speights: Yeah. You're right. Humira's about to be dethroned by Pfizer's vaccine, Moderna's vaccine.
Orelli: Yeah.
Speights: There are winners and losers with the stimulus package in the healthcare industry. Let me ask this though, Brian, how bad do you think the impact will be on these particular stocks; Eli Lilly, AbbVie, Merck, and Jazz Pharmaceuticals?
Orelli: I don't know how much the Medicaid cap is. The question is how much is going to Medicaid and then it's only a portion of that. I'm not sure that it's really going to be that big of an impact, but it may be noticeable percentage points, but not tens of percentage would be my guess.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let me ask this though, Brian, how bad do you think the impact will be on these particular stocks; Eli Lilly, AbbVie, Merck, and Jazz Pharmaceuticals? 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | Let me ask this though, Brian, how bad do you think the impact will be on these particular stocks; Eli Lilly, AbbVie, Merck, and Jazz Pharmaceuticals? 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! AbbVie (NYSE: ABBV) with Humira, again rheumatoid arthritis, there's a whole bunch of different rheumatoid authorized drugs. | Let me ask this though, Brian, how bad do you think the impact will be on these particular stocks; Eli Lilly, AbbVie, Merck, and Jazz Pharmaceuticals? 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! | c64b1167-1e68-413b-ae56-3aefa84b2f83 |
24173.0 | 2021-03-16 00:00:00 UTC | 3 Reasons to Avoid Arena Pharmaceuticals -- and 1 Reason to Buy | ABBV | https://www.nasdaq.com/articles/3-reasons-to-avoid-arena-pharmaceuticals-and-1-reason-to-buy-2021-03-16 | nan | nan | What do drugs for weight loss, pulmonary hypertension, and irritable bowel syndrome all have in common? Not much -- except they are all offerings in which Arena Pharmaceuticals (NASDAQ: ARNA) has come close to the finish line over the past two decades, only to come up short.
IMAGE SOURCE: GETTY IMAGES.
Reason No. 1 Not to Buy: Approval does not guarantee sales
Ten-plus years ago, Arena was touting its appetite-reduction drug, Belviq, for weight loss. After Belviq was approved by the FDA in mid-2012, the stock price went up five times in value within four months, from $18 in March 2012 to $118 in July 2012, which also marked the last time it saw the triple digits. Much like other weight-loss drugs, including now-bankrupt Orexigen's Contrave, Belviq subsequently underperformed. It was sold to Eisai (OTC: ESALY) for a mere $23 million in January 2017 and was removed from the market in 2020 due to safety concerns. Yikes.
As the Belviq saga indicates, Arena has a failed track record of being able to capitalize on approvals.
Reason No. 2 Not to Buy: Be wary of companies that jump on a keyword bandwagon.
But that's not the only thing about Arena that makes me wary. Another drug, olorinab, was first described by Arena in March 2017 as having "selectivity for (the cannabinoid receptor 2)" and as being "designed to provide pain relief while minimizing the risk of psychoactive adverse effects." At that point, cannabis was a hot topic -- shares of cannabis producer Canopy Growth (NASDAQ: CGC), for instance, had grown from $2.50 Canadian in March 2016 to CA$11 in March 2017, and would go on to peak at CA$67 in September 2018. Unsurprisingly, this flame was extinguished when olorinab recently flopped in top-line results, losing 12% of its market share in two days earlier this month in a slide from $80 per share down to $71.50.
The takeaway: Investors should be especially cautious with pharmas that switch their pipelines on a dime into headline-grabbing areas of medicine (or public perception) -- especially those that already seem to lack focus. Which brings me to ...
Reason No. 3 Not to Buy: A small, cash-strapped biotech should have a focused pipeline.
Five years ago, Arena was working on a drug called ralinepag for pulmonary hypertension. In November of 2018, management agreed to a licensing deal with pulmonary hypertension leader United Therapeutics (NASDAQ: UTHR). This deal gave United Therapeutics worldwide licensing rights to ralinepag in exchange for $800 million up front and up to $400 million in milestone payments, as well as royalties in the low double digits. This provided Arena with a much-needed cash infusion to better focus on the development of what management believed were better opportunities within their pipeline.
This would have been the perfect time to refocus their efforts. For a company like Arena, having multiple shots on goal is OK if they are within a certain specialty or drug class, but to be working simultaneously on a pulmonary hypertension drug, an appetite suppressant, and a cannabinoid receptor agonist for gastrointestinal disease demonstrates lack of focus -- and spreads precious resources thin. Even if a company in this position does hit the jackpot, it's not often in a position to capitalize and is sometimes trapped in agreements that limit upside. So what did Arena do with its cash infusion? In August 2019, it started investigating a congestive heart failure drug.
The 1 Reason You Might Buy It Anyway
Currently, Arena is taking aim at another condition, albeit one that's somewhat in its existing wheelhouse: ulcerative colitis (UC). The moderate to severe UC market is currently dominated by several blockbuster injectable drugs, including AbbVie's (NYSE: ABBV) Humira, Johnson & Johnson's (NYSE: JNJ) Stelara, and Takeda's (NYSE: TAK) Entyvio. Clearly this is a lucrative market with room for multiple drugs to be highly successful; the difference is that Arena's lead investigational drug, etrasimod, is one of the few oral medications looking to tackle moderate to severe UC. If etrasimod, which just completed enrollment for phase 3 trials in UC, is a success, this could be a multibillion-dollar opportunity within a few years for the UC market alone.
And with such a large potential addressable market for an oral alternative, there is likely room for multiple players. That's a good thing, given that Arena's anticipated top-line data in Q1 2022 should be coming in about a year after Bristol Myers Squibb's (NYSE: BMY) May 2021 FDA meeting for ozanimod, a drug with a similar mechanism of action that's already in the running for FDA approval for UC. Even if Arena does make it to approval on its own this time, it won't be without staunch competition, and it will already be playing from behind against a behemoth.
For context, ozanimod was originally brought through clinical trials by Receptos, which was later bought out by Celgene in July 2015. Celgene, now a part of Bristol Myers Squibb, paid $7.2 billion for Receptos when ozanimod was in phase 3 trials for UC. Arena currently has $4.7 billion market cap. All this is to say, there is significant upside here if etrasimod offers positive results for UC in early 2022.
Sky-high, or up in smoke?
If Arena can demonstrate positive results for etrasimod in UC, it is easy to see how this company could rapidly rise again. But given its track record, healthcare investors may want to sit on the sidelines to see how this game plays out.
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Patrick Bafuma has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bristol Myers Squibb. 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. | The moderate to severe UC market is currently dominated by several blockbuster injectable drugs, including AbbVie's (NYSE: ABBV) Humira, Johnson & Johnson's (NYSE: JNJ) Stelara, and Takeda's (NYSE: TAK) Entyvio. 1 Not to Buy: Approval does not guarantee sales Ten-plus years ago, Arena was touting its appetite-reduction drug, Belviq, for weight loss. Another drug, olorinab, was first described by Arena in March 2017 as having "selectivity for (the cannabinoid receptor 2)" and as being "designed to provide pain relief while minimizing the risk of psychoactive adverse effects." | The moderate to severe UC market is currently dominated by several blockbuster injectable drugs, including AbbVie's (NYSE: ABBV) Humira, Johnson & Johnson's (NYSE: JNJ) Stelara, and Takeda's (NYSE: TAK) Entyvio. Five years ago, Arena was working on a drug called ralinepag for pulmonary hypertension. Celgene, now a part of Bristol Myers Squibb, paid $7.2 billion for Receptos when ozanimod was in phase 3 trials for UC. | The moderate to severe UC market is currently dominated by several blockbuster injectable drugs, including AbbVie's (NYSE: ABBV) Humira, Johnson & Johnson's (NYSE: JNJ) Stelara, and Takeda's (NYSE: TAK) Entyvio. For a company like Arena, having multiple shots on goal is OK if they are within a certain specialty or drug class, but to be working simultaneously on a pulmonary hypertension drug, an appetite suppressant, and a cannabinoid receptor agonist for gastrointestinal disease demonstrates lack of focus -- and spreads precious resources thin. Clearly this is a lucrative market with room for multiple drugs to be highly successful; the difference is that Arena's lead investigational drug, etrasimod, is one of the few oral medications looking to tackle moderate to severe UC. | The moderate to severe UC market is currently dominated by several blockbuster injectable drugs, including AbbVie's (NYSE: ABBV) Humira, Johnson & Johnson's (NYSE: JNJ) Stelara, and Takeda's (NYSE: TAK) Entyvio. Clearly this is a lucrative market with room for multiple drugs to be highly successful; the difference is that Arena's lead investigational drug, etrasimod, is one of the few oral medications looking to tackle moderate to severe UC. Celgene, now a part of Bristol Myers Squibb, paid $7.2 billion for Receptos when ozanimod was in phase 3 trials for UC. | 350796c3-0efc-4f00-8d91-291a72612e4e |
24174.0 | 2021-03-16 00:00:00 UTC | 3 Stocks That'll Turn Your $1,400 Stimulus Check Into a Money Machine | ABBV | https://www.nasdaq.com/articles/3-stocks-thatll-turn-your-%241400-stimulus-check-into-a-money-machine-2021-03-16 | nan | nan | Uncle Sam wants you...to have more money. Last week, the $1.9 trillion stimulus package was signed into law. Most Americans will soon receive $1,400 stimulus checks.
The best thing to do with the extra cash coming your way is to pay any outstanding bills and make sure you have a solid emergency fund. If you've checked off those boxes, though, investing in stocks is a smart way to put your $1,400 to good use. Here are three stocks to buy that'll turn your stimulus check into a money machine.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is a big drugmaker that pays a dividend yielding over 4.7%. You won't get that kind of return from parking your stimulus check in a savings account. Even better, AbbVie is a Dividend Aristocrat with an impressive track record of 49 consecutive years of dividend increases. The payments you'll receive in the future will almost certainly be greater than what you'll get now.
Any stock that both Warren Buffett and ARK Investment Management CEO Cathie Wood like is definitely one you'll want to check out. The two successful investors no doubt like AbbVie's dividend, but they probably chose to buy AbbVie just as much for its long-term growth prospects.
It's true that AbbVie's growth will take a hit soon. The company expects a year-over-year revenue decline in 2023 when top-selling drug Humira loses U.S. patent exclusivity. But that should only be a short-lived trough. AbbVie looks for a quick rebound beginning in 2024 with revenue growing in the high single digits throughout the rest of the decade.
The company's lineup includes several fast-rising stars, with newer autoimmune-disease drugs Rinvoq and Skyrizi standing out. AbbVie's pipeline is also loaded with promising immunology, oncology, and neuroscience candidates. With a great dividend and solid growth prospects, your $1,400 should generate attractive total returns over the long run with this pharma stock.
Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE: BEP) ranks as another outstanding dividend stock that should provide consistent quarterly income. Its dividend currently yields nearly 4.8%.
The company's middle name highlights its business. Brookfield Renewable Partners is one of the top renewable energy providers in the world. It operates hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia.
Renewable energy is practically guaranteed to enjoy stronger demand. Countries across the world have set aggressive targets to reduce carbon emissions, and the Biden administration has made renewable energy a top focus. It certainly helps that renewable energy sources such as wind and solar are more cost-effective than their fossil fuel rivals.
Brookfield Renewable is set to capitalize on this growth. The company currently has over 19,000 megawatts of capacity. Its development pipeline could boost that total by 23,000 megawatts. Buying shares of this stock with your stimulus check should pay off nicely over the next decade and beyond.
Enterprise Products Partners
If you're looking for fantastic quarterly income payments, you'll probably love Enterprise Products Partners (NYSE: EPD). The midstream energy company currently pays a distribution that yields a whopping 7.6%.
Enterprise Products Partners' operations are diversified across a wide range of energy services. The company processes, transports, and stores natural gas. It transports and stores natural gas liquids, oil, and other petrochemicals.
The company is also expanding increasingly into renewable energy. Enterprise Products Partners announced a deal earlier this month to buy 100 megawatts of power from a solar project developed by EDF Renewables, a subsidiary of Electricite de France. Its goal is to generate 25% of total power from renewable sources by 2025.
Look for 2021 to potentially be a big year for Enterprise Products Partners. The combination of economic stimulus and widespread availability of COVID-19 vaccines should jump-start travel and boost the company's business. Those $1,400 stimulus checks should help Enterprise Products Partners. And investing your $1,400 in this stock could help stimulate your financial future as well.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. The Motley Fool recommends Enterprise Products 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 AbbVie (NYSE: ABBV) is a big drugmaker that pays a dividend yielding over 4.7%. Even better, AbbVie is a Dividend Aristocrat with an impressive track record of 49 consecutive years of dividend increases. The two successful investors no doubt like AbbVie's dividend, but they probably chose to buy AbbVie just as much for its long-term growth prospects. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. AbbVie AbbVie (NYSE: ABBV) is a big drugmaker that pays a dividend yielding over 4.7%. Even better, AbbVie is a Dividend Aristocrat with an impressive track record of 49 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. AbbVie AbbVie (NYSE: ABBV) is a big drugmaker that pays a dividend yielding over 4.7%. Even better, AbbVie is a Dividend Aristocrat with an impressive track record of 49 consecutive years of dividend increases. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Enterprise Products Partners. AbbVie AbbVie (NYSE: ABBV) is a big drugmaker that pays a dividend yielding over 4.7%. Even better, AbbVie is a Dividend Aristocrat with an impressive track record of 49 consecutive years of dividend increases. | 1f5ea62b-9783-4513-9197-4b7e5fb36caf |
24175.0 | 2021-03-15 00:00:00 UTC | EXCLUSIVE-AbbVie in talks to sell $5 bln women's drugs portfolio -sources | ABBV | https://www.nasdaq.com/articles/exclusive-abbvie-in-talks-to-sell-%245-bln-womens-drugs-portfolio-sources-2021-03-15-0 | nan | nan | By Pamela Barbaglia and Arno Schuetze
March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is in discussions to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters.
The move revives a process to sell the business, which makes the Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019.
AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources, speaking on condition of anonymity.
The portfolio generates 12-month earnings before interest, taxes, depreciation and amortization (EBITDA) of about $500 million and could be valued at about 10 times its EBITDA, the sources added.
AbbVie, Morgan Stanley and CVC declined to comment.
AbbVie has been relying heavily on its blockbuster psoriasis and rheumatoid arthritis drug Humira to drive up sales and beat revenue forecasts.
But with Humira's U.S. patent protection expiring in 2023, AbbVie needs to pay down some $143.7 billion of debt amassed through the Allergan purchase in order to focus on new investments.
The sources said CVC could use the AbbVie division to bulk up its portfolio company Theramex, formed in 2018 through its acquisition of the international women's health assets of Israeli drugmaker Teva Pharmaceutical Industries Ltd TEVA.TA.
London-based Theramex, led by Chief Executive Robert Stewart, makes birth control pills Zoely and Seasonique, as well as osteoporosis drug Actonel.
(Reporting by Pamela Barbaglia and Arno Schuetze, additional reporting by Rebecca Spalding; Editing by Richard Chang and Sonya Hepinstall)
((pamela.barbaglia@thomsonreuters.com; +442075427723; Reuters Messaging: pamela.barbaglia.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The move revives a process to sell the business, which makes the Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources, speaking on condition of anonymity. The sources said CVC could use the AbbVie division to bulk up its portfolio company Theramex, formed in 2018 through its acquisition of the international women's health assets of Israeli drugmaker Teva Pharmaceutical Industries Ltd TEVA.TA. | By Pamela Barbaglia and Arno Schuetze March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is in discussions to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters. The move revives a process to sell the business, which makes the Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources, speaking on condition of anonymity. | By Pamela Barbaglia and Arno Schuetze March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is in discussions to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources, speaking on condition of anonymity. The sources said CVC could use the AbbVie division to bulk up its portfolio company Theramex, formed in 2018 through its acquisition of the international women's health assets of Israeli drugmaker Teva Pharmaceutical Industries Ltd TEVA.TA. | By Pamela Barbaglia and Arno Schuetze March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is in discussions to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters. The move revives a process to sell the business, which makes the Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources, speaking on condition of anonymity. | 603c2aaa-c80c-4982-8b37-cfe00a9d75bc |
24176.0 | 2021-03-15 00:00:00 UTC | EXCLUSIVE-AbbVie in talks to sell $5 bln women's drugs portfolio - sources | ABBV | https://www.nasdaq.com/articles/exclusive-abbvie-in-talks-to-sell-%245-bln-womens-drugs-portfolio-sources-2021-03-15 | nan | nan | By Pamela Barbaglia and Arno Schuetze
March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is holding talks to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters.
The move revives a process to sell the business, which makes Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019.
AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources speaking on condition of anonymity.
The portfolio generates 12-month earnings before interest, taxes, depreciation and amortization (EBITDA) of roughly $500 million, the sources added.
AbbVie and CVC declined to comment while Morgan Stanley was not immediately available for comment.
AbbVie has been relying heavily on its blockbuster psoriasis and rheumatoid arthritis drug Humira to drive up sales and beat revenue forecasts.
But with Humira's U.S. patent protection expiring in 2023, AbbVie needs to pay down some $143.7 billion of debt amassed through the Allergan purchase in order to focus on new investments.
The sources said CVC could use the AbbVie division to bulk up its portfolio company Theramex, formed in 2018 through its acquisition of the international women's health assets of Israeli drugmaker Teva Pharmaceutical Industries Ltd TEVA.TA.
London-based Theramex, led by Chief Executive Robert Stewart, makes birth control pills Zoely and Seasonique as well as osteoporosis drug Actonel.
(Reporting by Pamela Barbaglia in London and Arno Schuetze in Frankfurt, additional reporting by Rebecca Spalding; Editing by Richard Chang)
((pamela.barbaglia@thomsonreuters.com; +442075427723; Reuters Messaging: pamela.barbaglia.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The move revives a process to sell the business, which makes Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources speaking on condition of anonymity. The sources said CVC could use the AbbVie division to bulk up its portfolio company Theramex, formed in 2018 through its acquisition of the international women's health assets of Israeli drugmaker Teva Pharmaceutical Industries Ltd TEVA.TA. | By Pamela Barbaglia and Arno Schuetze March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is holding talks to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters. The move revives a process to sell the business, which makes Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources speaking on condition of anonymity. | By Pamela Barbaglia and Arno Schuetze March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is holding talks to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources speaking on condition of anonymity. The sources said CVC could use the AbbVie division to bulk up its portfolio company Theramex, formed in 2018 through its acquisition of the international women's health assets of Israeli drugmaker Teva Pharmaceutical Industries Ltd TEVA.TA. | By Pamela Barbaglia and Arno Schuetze March 15 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N is holding talks to sell a roughly $5 billion portfolio of women's drugs acquired last year through its $63 billion purchase of Botox maker Allergan Plc, sources familiar with the matter told Reuters. The move revives a process to sell the business, which makes Lo Loestrin Fe birth control pill, that Allergan started in 2018 only to ditch five months before being acquired by AbbVie in 2019. AbbVie is working with investment bank Morgan Stanley MS.N on an auction process that has attracted interest from private equity firms including CVC Capital Partners, said the sources speaking on condition of anonymity. | d3908147-c852-45f3-85de-a5f6e30c66d7 |
24177.0 | 2021-03-15 00:00:00 UTC | Notable Monday Option Activity: ABBV, U, GRWG | ABBV | https://www.nasdaq.com/articles/notable-monday-option-activity%3A-abbv-u-grwg-2021-03-15 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 31,929 contracts have traded so far, representing approximately 3.2 million underlying shares. That amounts to about 49.2% of ABBV's average daily trading volume over the past month of 6.5 million shares. Especially high volume was seen for the $115 strike call option expiring April 16, 2021, with 3,255 contracts trading so far today, representing approximately 325,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $115 strike highlighted in orange:
Unity Software Inc (Symbol: U) saw options trading volume of 28,247 contracts, representing approximately 2.8 million underlying shares or approximately 48.7% of U's average daily trading volume over the past month, of 5.8 million shares. Especially high volume was seen for the $120 strike call option expiring March 19, 2021, with 10,572 contracts trading so far today, representing approximately 1.1 million underlying shares of U. Below is a chart showing U's trailing twelve month trading history, with the $120 strike highlighted in orange:
And GrowGeneration Corp (Symbol: GRWG) saw options trading volume of 11,985 contracts, representing approximately 1.2 million underlying shares or approximately 47.7% of GRWG's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $55 strike call option expiring March 19, 2021, with 1,568 contracts trading so far today, representing approximately 156,800 underlying shares of GRWG. Below is a chart showing GRWG's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for ABBV options, U options, or GRWG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $115 strike call option expiring April 16, 2021, with 3,255 contracts trading so far today, representing approximately 325,500 underlying shares of ABBV. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 31,929 contracts have traded so far, representing approximately 3.2 million underlying shares. That amounts to about 49.2% 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 $115 strike highlighted in orange: Unity Software Inc (Symbol: U) saw options trading volume of 28,247 contracts, representing approximately 2.8 million underlying shares or approximately 48.7% of U's average daily trading volume over the past month, of 5.8 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 31,929 contracts have traded so far, representing approximately 3.2 million underlying shares. That amounts to about 49.2% of ABBV's average daily trading volume over the past month of 6.5 million shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 31,929 contracts have traded so far, representing approximately 3.2 million underlying shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $115 strike highlighted in orange: Unity Software Inc (Symbol: U) saw options trading volume of 28,247 contracts, representing approximately 2.8 million underlying shares or approximately 48.7% of U's average daily trading volume over the past month, of 5.8 million shares. That amounts to about 49.2% 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 $115 strike highlighted in orange: Unity Software Inc (Symbol: U) saw options trading volume of 28,247 contracts, representing approximately 2.8 million underlying shares or approximately 48.7% of U's average daily trading volume over the past month, of 5.8 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 31,929 contracts have traded so far, representing approximately 3.2 million underlying shares. That amounts to about 49.2% of ABBV's average daily trading volume over the past month of 6.5 million shares. | fe0576f2-0727-4869-a70b-f3b24a201b1e |
24178.0 | 2021-03-14 00:00:00 UTC | 3 High-Yield Dividend Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-to-buy-now-2021-03-14 | nan | nan | Any time is a great time to buy solid dividend stocks. The trick, of course, is figuring out which companies' payouts will be steady and reliable.
To aid you in your search for such stocks, here's a trio of companies that have strong underlying businesses and high-yielding dividends that should keep growing for a long time to come.
Image source: Getty Images.
1. AbbVie
If you're looking for steadily increasing dividends, AbbVie (NYSE: ABBV) should definitely be on your list. It's a Dividend Aristocrat with a track record of 49 consecutive years of payout hikes. And the drugmaker's dividend yield -- 4.8% at current share prices -- is also quite attractive.
Some investors might be leery of AbbVie because the company's top-selling product, Humira, will lose patent protection in the U.S. in 2023. But will a rapid decline of that drug's sales once generic versions hit the market put AbbVie's dividend in jeopardy? Not at all.
The company does expect that its overall revenue will decline in 2023. However, it anticipates that will be followed by a modest uptick in 2024 and a return to strong revenue growth throughout the rest of the decade.
That forecast seems attainable. AbbVie already has two new autoimmune disease drugs on the market, Rinvoq and Skyrizi, that should take the baton from Humira. It also has other products that should generate plenty of revenue growth, notably including its blood cancer drugs Imbruvica and Venclexta.
2. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) offers the kind of dividend that makes income investors' mouths water. Its yield currently sits north of 7.7%. And while the company isn't a Dividend Aristocrat like AbbVie yet, it has boosted its distribution for 22 years in a row.
You might be hesitant about investing in oil stocks considering the volatility of the energy sector. However, as a midstream leader focused on transporting, processing, and storing natural gas and oil, Enterprise Products Partners has some degree of cushion against major swings in commodity prices.
To be sure, Enterprise Products Partners faced major headwinds in 2020 because of the COVID-19 pandemic. But the company anticipates a major rebound this year as vaccines help ease worries about the coronavirus and allow economic activity to further recover.
The company is also positioning itself for growth. Enterprise Products Partners is developing projects valued at $3.6 billion that will go into operation over the next couple of years. Investors should be able to count on its distributions continuing to grow.
3. Pfizer
One of the top companies helping the global economy bounce back is Pfizer (NYSE: PFE). BNT162b2, the COVID-19 vaccine developed by Pfizer and its partner BioNTech, has already been administered to millions of people around the world.
Pfizer also offers one of the most attractive dividends in the healthcare sector. It currently yields close to 4.5%, and the company has increased its payout every year since 2009.
Investors should be aware, though, that Pfizer will soon cut its dividend. But they also need to recognize that it's nothing to worry about. The drugmaker spun off its Upjohn unit and merged it with Mylan in November 2020 to form a new entity, Viatris. When Viatris declares its first dividend, Pfizer will lower its payout accordingly. However, Pfizer's dividend should still be one that most investors will like.
Investors should also like Pfizer's growth prospects. The divestiture of Upjohn removed several older drugs with declining sales from the company's lineup. BNT162b2 will also be a huge winner -- the coronavirus vaccine is expected to generate sales this year of well over $18 billion. Pfizer's dividend yield might slip somewhat in the near future, but its growth should more than make up for the decrease.
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Keith Speights owns shares of AbbVie, Enterprise Products Partners, Pfizer, and Viatris Inc. The Motley Fool recommends Enterprise Products Partners and 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. | AbbVie If you're looking for steadily increasing dividends, AbbVie (NYSE: ABBV) should definitely be on your list. Some investors might be leery of AbbVie because the company's top-selling product, Humira, will lose patent protection in the U.S. in 2023. But will a rapid decline of that drug's sales once generic versions hit the market put AbbVie's dividend in jeopardy? | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, Pfizer, and Viatris Inc. AbbVie If you're looking for steadily increasing dividends, AbbVie (NYSE: ABBV) should definitely be on your list. Some investors might be leery of AbbVie because the company's top-selling product, Humira, will lose patent protection in the U.S. in 2023. | And while the company isn't a Dividend Aristocrat like AbbVie yet, it has boosted its distribution for 22 years in a row. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, Pfizer, and Viatris Inc. AbbVie If you're looking for steadily increasing dividends, AbbVie (NYSE: ABBV) should definitely be on your list. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, Pfizer, and Viatris Inc. AbbVie If you're looking for steadily increasing dividends, AbbVie (NYSE: ABBV) should definitely be on your list. Some investors might be leery of AbbVie because the company's top-selling product, Humira, will lose patent protection in the U.S. in 2023. | 75239093-7380-4516-8f35-0b30156e4fb0 |
24179.0 | 2021-03-13 00:00:00 UTC | Why the Growth Isn't Over for This Best-in-Breed Biotech Stock | ABBV | https://www.nasdaq.com/articles/why-the-growth-isnt-over-for-this-best-in-breed-biotech-stock-2021-03-13 | nan | nan | It's been a busy few weeks for the healthcare industry, with Pfizer and BioNTech, Moderna, and Johnson & Johnson hard at work manufacturing and distributing their versions of the COVID vaccine all over the country.
There's one big name, however, that's been out of the headlines. It's true that Amgen (NASDAQ: AMGN) has helped from the sidelines, signing partnerships with companies like Eli Lilly to manufacture COVID-19 therapeutics. It just seems that investors are flocking to companies putting a lot more resources toward combating the pandemic (note Johnson & Johnson's recent new high of $170).
However, this is not a time to count out Amgen. The company has been busy bolstering its pipeline of new drugs and adding to its biosimilars. In 2020 alone, revenue was up 9%, and more growth is on the horizon. Overall, the future for this company looks strong -- here's why it's worth considering buying this stock now.
Image Source: Getty Images.
The emergence of biotech
One of the world's biggest biotechnology companies, Amgen has established itself as a pioneer in the space, proving within a few years of its founding in 1980 to be a disruptor of the industry with its first breakthrough drug, Epogen.
The world of biotech -- which involves creating medicine from living organisms -- was relatively limited in 1980, but over just the past few decades, we've seen a shift in which new drugs are commercially successful. Where once these belonged to legacy pharmaceutical companies, now the momentum is with up-and-coming biotechs. The space has been hot over the past few years, with companies including Amgen, AbbVie, and Celgene (now part of Bristol-Myers) establishing themselves with blockbuster drugs including Humira (AbbVie's treatment for Crohn's disease and other indications), Revlimid (Celgene's medication for myeloma), and Otezla (Amgen's drug for psoriatric arthritis).
In 2019, one survey found that 64% of the drugs approved by the FDA in 2018 were made by biotech companies. Looking to the future, biotech will play an important role in the development of breakthrough treatments for rare and complex diseases, in contrast to the smaller improvements we tend to see from traditional pharmaceutical companies.
A solid pipeline and quality products
Amgen's first blockbuster drug, Epogen, was introduced in 1989, and has been a bestseller ever since. This drug is used in certain cases of anemia to stimulate a patient's bone marrow to create more red blood cells. It was followed by Neupogen, which stimulates the growth of white blood cells. While sales of Neupogen have fallen off considerably since 2015 because of biosimilar competition, these drugs made Amgen a household name -- and the success didn't stop there.
Looking at the present day, Amgen boasts a fantastic lineup of drugs. Some bestsellers include Enbrel (for severe arthritis), Prolia (for osteoporosis), somewhat recent newcomer Repatha (for high cholesterol), and the new shining star, Otezla. Amgen seems to be doubling down on Otezla, a drug acquired from Celgene in August 2019. Sales of the treatment were up in 2019 by 25% to $1.6 billion. In 2020, the drug did $2.2 billion in sales, representing a 36.5% increase. Amgen expects Otezla to grow sales by more than 10% per year over the next few years, and management in general hopes to dominate the immunology space with new drugs in the pipeline, as well as focusing on creating biosimilars. All that is easy to understand given its current growth rate.
The company has also reported advancements in its pipeline, including positive data from several potential medications that will enable registrations. The company has completed regulatory submissions for sotorasib, a medication treating lung cancer, in most geographies, with phase 2 studies planned for the first half of 2021. With a robust pipeline and good news regarding research and development, Amgen is focused on the now and the future.
Great growth in the past, and more to come
Vaccine makers aside, many healthcare companies are currently going through a period of stagnation and very little growth. Amgen, however, has been a standout, growing earnings at an average 11.7% per year over the past 10 years. The company has beaten the big pharma names and been a star in its own peer group. For full-year 2020, Amgen posted 9% revenue growth and 12% non-GAAP earnings per share. As we all know, past performance is not indicative of future results -- but that kind of resilience in its business, shown during one of the worst recessions on record, demonstrates the wideness of Amgen's moat and the competence of its board. In 2020, the company also managed to expand into new markets including China and Japan.
Existing drugs such as Enbrel are Amgen's top sellers by revenue (Enbrel brought in almost $5 billion in 2020 alone). But newcomers aren't slacking, with Otezla delivering 30%-plus prescription growth in 2020. Throw in the company's 3% dividend yield -- which was last raised by 10% three months back -- and Amgen looks like a great buy that healthcare investors will likely want to hold for a long time.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amgen wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Anirudh Shankar owns shares of Johnson & Johnson and Amgen. The Motley Fool recommends Amgen, Johnson & Johnson, and Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The space has been hot over the past few years, with companies including Amgen, AbbVie, and Celgene (now part of Bristol-Myers) establishing themselves with blockbuster drugs including Humira (AbbVie's treatment for Crohn's disease and other indications), Revlimid (Celgene's medication for myeloma), and Otezla (Amgen's drug for psoriatric arthritis). The emergence of biotech One of the world's biggest biotechnology companies, Amgen has established itself as a pioneer in the space, proving within a few years of its founding in 1980 to be a disruptor of the industry with its first breakthrough drug, Epogen. Looking to the future, biotech will play an important role in the development of breakthrough treatments for rare and complex diseases, in contrast to the smaller improvements we tend to see from traditional pharmaceutical companies. | The space has been hot over the past few years, with companies including Amgen, AbbVie, and Celgene (now part of Bristol-Myers) establishing themselves with blockbuster drugs including Humira (AbbVie's treatment for Crohn's disease and other indications), Revlimid (Celgene's medication for myeloma), and Otezla (Amgen's drug for psoriatric arthritis). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Amgen, Johnson & Johnson, and Moderna Inc. | The space has been hot over the past few years, with companies including Amgen, AbbVie, and Celgene (now part of Bristol-Myers) establishing themselves with blockbuster drugs including Humira (AbbVie's treatment for Crohn's disease and other indications), Revlimid (Celgene's medication for myeloma), and Otezla (Amgen's drug for psoriatric arthritis). The emergence of biotech One of the world's biggest biotechnology companies, Amgen has established itself as a pioneer in the space, proving within a few years of its founding in 1980 to be a disruptor of the industry with its first breakthrough drug, Epogen. Amgen expects Otezla to grow sales by more than 10% per year over the next few years, and management in general hopes to dominate the immunology space with new drugs in the pipeline, as well as focusing on creating biosimilars. | The space has been hot over the past few years, with companies including Amgen, AbbVie, and Celgene (now part of Bristol-Myers) establishing themselves with blockbuster drugs including Humira (AbbVie's treatment for Crohn's disease and other indications), Revlimid (Celgene's medication for myeloma), and Otezla (Amgen's drug for psoriatric arthritis). The emergence of biotech One of the world's biggest biotechnology companies, Amgen has established itself as a pioneer in the space, proving within a few years of its founding in 1980 to be a disruptor of the industry with its first breakthrough drug, Epogen. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of Johnson & Johnson and Amgen. | dbe7db85-e3ba-4e9a-8baf-d9855033e9f5 |
24180.0 | 2021-03-11 00:00:00 UTC | These 3 Value Stocks Are Absurdly Cheap Right Now | ABBV | https://www.nasdaq.com/articles/these-3-value-stocks-are-absurdly-cheap-right-now-2021-03-11 | nan | nan | Are you looking for some ridiculously cheap stocks to buy? Despite the Dow Jones Industrial Average hanging out around all-time highs, there are still some good deals out there. It isn't always easy finding them, especially since the coronavirus pandemic has crippled many businesses, making their earnings look abysmal over the past year. That is why I am going to focus on dirt-cheap stocks that are trading at incredibly low forward price-to-earnings (P/E) multiples, which factor in analyst expectations for profits next year.
Three stocks that are trading with forward P/Es of 10 or less (the current P/E for the S&P 500 is 34) that bargain hunters will want to consider buying today include AbbVie (NYSE: ABBV), Jazz Pharmaceuticals (NASDAQ: JAZZ), and Hewlett Packard Enterprise (NYSE: HPE). With strong fundamentals and business models that could do well in 2021, now may be a great time to buy any of these three stocks.
Image source: Getty Images.
1. AbbVie
Healthcare company AbbVie currently trades at a forward P/E of less than nine, a bargain compared to industry giant Johnson & Johnson, which is at a multiple of 16. Shares of AbbVie have been flat thus far in 2021, up less than 1%, while the S&P 500 has risen by around 4%. But the stock could become a much hotter buy over the next 12 months, even if life doesn't return to normal just yet.
One of the reasons analysts are expecting big things from AbbVie in the year ahead is that it was only in May 2020 that the company closed on its $63 billion acquisition of Botox-maker Allergan. The company has already started to see a boost in its numbers from that acquisition. When it released its year-end earnings report on Feb. 3, its net sales for the full year of 2020 totaled $45.8 billion, a 37.7% increase from the previous year.
The Allergan acquisition was key to that growth, as there were numerous segments of AbbVie's business that didnt reportsales a year ago, including Aesthetics, which brought in $2.6 billion -- and that wasn't a full year's worth of revenue. Top-selling drug Humira continued to generate solid organic growth as it generated $19.8 billion in revenue for 2020, which was up 3.5% year over year.
AbbVie's products span many different areas, from immunology to neuroscience to eye care and others. That diversification makes the stock an attractive long-term buy. With its shares still looking cheap and this Dividend Aristocrat paying a yield of 4.5%, it makes for a solid addition to any portfolio right now.
2. Jazz Pharmaceuticals
Jazz Pharmaceuticals is trading right around a forward P/E of 10, and it is another top healthcare stock you can buy today. In 2020, the company's top line grew by 9% to $2.4 billion. Single-digit revenue growth isn't all that exciting, and Jazz wouldn't be nearly as attractive a buy if not for its planned $7.2 billion acquisition of GW Pharmaceuticals (NASDAQ: GWPH). The fast-growing cannabis stock will give Jazz's top line a shot in the arm.
GW Pharma is known for its cannabis-based drug, Epidiolex. It makes up nearly all of the company's sales. In 2020, GW reported revenue of $527.2 million -- a 69.3% increase from the $311.3 million it generated in the previous year. And Epidiolex itself brought in $510.5 million. Although the company incurred a loss of $58.1 million during the year, Jazz's strong bottom line will help offset that -- it reported $238.6 million in profit last year with diluted earnings per share (EPS) of $4.22. But for 2021, the company is projecting those diluted per-share profits to come in between $8.30 and $10.45.
Jazz doesn't offer a dividend, but it could still become a great investment. Down 1% year to date, there hasn't been much bullishness on the stock, and that could change, as the company is eyeing a stronger year ahead.
3. Hewlett Packard Enterprise
Outside of healthcare, Hewlett Packard Enterprise can help diversify your holdings while also allowing you to tap into the growing demand for data analysis. Its forward P/E ratio is just over eight, and that is even with the stock climbing more than 28% in 2021.
Hewlett Packard reported its first-quarter numbers on March 2 for the period ending Jan. 31, in which sales of $6.8 billion declined 2% year over year but still came in better than the company's expectations. The one high-growth area for the company was in Intelligent Edge, which enables businesses to quickly analyze real-time data. In Q1, the segment generated $806 million and was 12% higher than it was a year ago.
As companies are getting leaner, cutting staff, and looking for ways to get by with less, data analysis is going to be more important than ever in making good decisions, which is why the growth in Intelligent Edge could remain strong for the foreseeable future. Hewlett Packard is bullish on the year ahead and has raised its guidance for net EPS, projecting between $0.48 and $0.66 in per-share profits (previously it was forecasting a range of $0.38 to $0.56).
That would be a big improvement from fiscal 2020, when Hewlett Packard incurred a loss for the year. In fiscal 2019, its diluted EPS was $0.77.
The tech company currently pays a quarterly dividend of $0.12, which yields 3.17%. The company last declared an increase to the dividend in October 2019. But with a better outlook ahead, it wouldn't be surprising to see Hewlett Packard get back to boosting its payouts soon. The dividend, along with a cheap price and solid growth prospects, makes this one of the better stocks to buy right now.
10 stocks we like better than AbbVie
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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. | Three stocks that are trading with forward P/Es of 10 or less (the current P/E for the S&P 500 is 34) that bargain hunters will want to consider buying today include AbbVie (NYSE: ABBV), Jazz Pharmaceuticals (NASDAQ: JAZZ), and Hewlett Packard Enterprise (NYSE: HPE). AbbVie Healthcare company AbbVie currently trades at a forward P/E of less than nine, a bargain compared to industry giant Johnson & Johnson, which is at a multiple of 16. Shares of AbbVie have been flat thus far in 2021, up less than 1%, while the S&P 500 has risen by around 4%. | Three stocks that are trading with forward P/Es of 10 or less (the current P/E for the S&P 500 is 34) that bargain hunters will want to consider buying today include AbbVie (NYSE: ABBV), Jazz Pharmaceuticals (NASDAQ: JAZZ), and Hewlett Packard Enterprise (NYSE: HPE). AbbVie Healthcare company AbbVie currently trades at a forward P/E of less than nine, a bargain compared to industry giant Johnson & Johnson, which is at a multiple of 16. Shares of AbbVie have been flat thus far in 2021, up less than 1%, while the S&P 500 has risen by around 4%. | Three stocks that are trading with forward P/Es of 10 or less (the current P/E for the S&P 500 is 34) that bargain hunters will want to consider buying today include AbbVie (NYSE: ABBV), Jazz Pharmaceuticals (NASDAQ: JAZZ), and Hewlett Packard Enterprise (NYSE: HPE). AbbVie Healthcare company AbbVie currently trades at a forward P/E of less than nine, a bargain compared to industry giant Johnson & Johnson, which is at a multiple of 16. Shares of AbbVie have been flat thus far in 2021, up less than 1%, while the S&P 500 has risen by around 4%. | Three stocks that are trading with forward P/Es of 10 or less (the current P/E for the S&P 500 is 34) that bargain hunters will want to consider buying today include AbbVie (NYSE: ABBV), Jazz Pharmaceuticals (NASDAQ: JAZZ), and Hewlett Packard Enterprise (NYSE: HPE). AbbVie Healthcare company AbbVie currently trades at a forward P/E of less than nine, a bargain compared to industry giant Johnson & Johnson, which is at a multiple of 16. Shares of AbbVie have been flat thus far in 2021, up less than 1%, while the S&P 500 has risen by around 4%. | f1095989-20a8-4bf8-ad03-bf27b1277f99 |
24181.0 | 2021-03-10 00:00:00 UTC | 3 Healthcare Companies Worth a Look | ABBV | https://www.nasdaq.com/articles/3-healthcare-companies-worth-a-look-2021-03-10 | nan | nan | On this week's episode of Industry Focus: Wildcard, host Jason Moser and Motley Fool contributor Brian Feroldi take a closer look at three companies in the healthcare space that possess many of the characteristics of investments with the potential to offer patient investors tenfold returns!
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.
10 stocks we like better than DermTech, Inc.
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This video was recorded on March 3, 2021.
Jason Moser: It's Wednesday, March 3rd, I'm your host, Jason Moser. On this week's Wildcard episode, we're swinging for the fences in healthcare, folks. Today we're going to take a closer look at three companies in the healthcare space that possess many of the characteristics of investments that have the potential to offer patient investors up to 10X returns, maybe, potential. Joining me this week, again, as we did about a month ago, I think, Brian, I really am happy to have you back. It's Mr. Brian Feroldi, everybody. Brian, nice to have you back here in the virtual studio.
Brian Feroldi: Jason, awesome to be here. I love that Wildcard Wednesday is returning to its healthcare roots today.
Moser: [laughs] We know listeners love healthcare. I love talking about healthcare. I think healthcare is a fascinating market, particularly as technology is changing so many different industries, healthcare is certainly no exception. I think that today's conversation is going to be a really fun one because everybody loves the dream of finding that next 10-bagger, and it's [laughs] a lot easier said than done. But you got to start somewhere. I mean, 10-baggers require a few things, they require companies with big market opportunities, require investors with a lot of patience. Before we dig into the actual companies, I want to talk a little bit about just these 10-bagger stocks, and what are some of the characteristics that you look for in these potential 10-baggers?
Feroldi: For a stock of 10-bag, it has to go up 10X in value, and its market cap has to go up 10X in value. When I think about what I look for in a company that could potentially do that, the No. 1 thing to me is a relatively small market cap, usually below, say, $5 billion. Although, there's no hard and fast rules. I mean, Microsoft was worth $200 billion and then 10-bagged. There you have to keep the scale of things in mind. But, when you're thinking about opportunities in the market that can go up hugely, starting from a very small market cap is certainly a big help. Then I also look for companies that do something special, they are inventing a new market, they have a new product, or they're rapidly taking market share. It's one of the reasons why I love looking at healthcare, because there's so much innovation in healthcare, and a lot of times companies create new solutions, and they literally have no competition, or their solution is so different that it's not hard to believe that they can capture market share from incumbents for a long time. The final thing is just huge growth potential. They are just early on in the beginning stages of their commercialization phase, and basically, if they can do what they hope to do, it's not hard to believe that their revenue could grow 10X, a 100X, or a 1,000 fold over the next couple of years.
Moser: Now, to your point there, on smaller companies, and they can tend to be a little bit on the riskier side. Maybe it does feel like the healthcare sector has a lot of these types of businesses, probably folks will see a lot of those smaller businesses with low share prices, small market caps. Biotechs really come to mind. I mean, there are a lot of biotech companies that play in the space. It seems like they offer that potential. The lure is there, but you have to be really careful with those too, that requires a certain intimate knowledge of that market, that not everyone really possesses.
Feroldi: I mean, there's lots of biotech companies that will go onto 10-bag, but there are hundreds of clinical stage biotechs on the market, and that is truly like picking a needle out of a haystack, not only do you have to be right with your clinical assessment about the company, you have to be right with the company getting it through the regulatory process, you have to draw all safety hazards, and then there's just the commercialization of the product itself. That doesn't mean that there aren't, their companies in there that will, there certainly are lots of great biotechs to buy. Biotech in general is just in my too hard pile. I've discovered that about myself. The companies that we're going to talk about today are all on more of the diagnostics or the medical device aside. That's an area that I'm much more comfortable with. More importantly, all three of these companies are past the regulatory barriers. They either just recently got FDA approval, or they have had FDA approval for a while, and they're in the commercialization stage. That's my favorite area to invest because the risk is so much lower.
Moser: Yeah, that regulatory risk really does rear its ugly head. I'm like you, I put those biotech companies. I don't know enough about them, and I don't have any inside knowledge as to what goes on in that universe. Fortunately for me, I learned that early on as an investor. It was a lesson from a positive outcome. I'd invested in a small biotech company, it was going through those phases I, II, and III trials pursuing a unique condition, and I just thought, "Well, that's pretty cool, I am going to learn more about this as I go along." I got out while the getting was good, I made some money from the investment. That was all fine and dandy, but I learned very quickly through that process. I was, "Man, this is really hard." What threw me for a loop is when you get that Phase III trial positive report, and then the stock tanks on great news. I was "This doesn't make any sense at all, what's going on?" [laughs] A lot of that stuff added up to just what you said. It's too difficult for me to really fully understand. I typically avoid them, and that's what investing is all about. It is learning about yourself as you go along, and where you feel most comfortable. With that in mind, let's dive into these stocks that we want to talk about today, and stock No. 1, one that I think folks in our Foolish universe are learning more and more about. I've certainly seen a lot of talk about it in some of our services and elsewhere. It's a company called DermTech (NASDAQ: DMTK). The ticker is D-M-T-K. Tell us a little bit about what DermTech does and why you like it.
Feroldi: I'm hoping this name sounds familiar to your listeners because we talked about an Industry Focus way back in October when the stock was at $12 per share, it's currently at $68. It's had a bit of a run over the last couple of months. The good news there is that the market cap is still relatively small. This is a $1.7 billion company, and I think if this thesis plays out even from today, there is still 10-bag potential. Please don't anchor to that $12 price that you would have gotten that several months ago. But as a reminder, DermTech is focused on non-invasive skin disease diagnosis, and particularly on cancer. Skin cancer is the most common type of cancer and in fact, more people are diagnosed with skin cancer than all other cancers combined. About one in every five people will develop skin cancer at some point in their life before they reach age 70. Now, if any cancer and skin cancer falls into this category, early diagnosis is key. If you can diagnose skin cancer in the very early stages, it's extremely treatable. If you diagnose cancer in the later stages, it's much harder, much harder to treat, and survival rates just plummet. The current way that we diagnose skin cancer is with a lesion. So a dermatologist will go, they'll find some part of your skin they don't like and they literally cut it out with a scalpel and they send it up to a lab for analysis. Unfortunately, that isn't a relatively invasive procedure. It leaves scars on patients and the accuracy rates on diagnostics are just not that high. DermTech's innovation they created a clear band-aid-like patch that you put on top of a troublesome skinny area. That patch collects the RNA and DNA from the site of the lesion and then you take it off and send it off to DermTech's labs for genetic analysis. Not only is their test more accurate, but there's no scar that the patient goes on. It's literally putting a band-aid on, waiting a couple of seconds, and taking the band-aid off. So there's a big win on the diagnostic side as well as a big win on the patient side.
Moser: Yeah, that's interesting. Do you feel like it's part of the calculus here for the patient to more or less say, well, I've got a spot on my arm here that maybe looks a little bit concerning, I may want to have that checked out and then they would be able to use that patch or is this something where you would go visit a doctor and the doctor would say, "Hey, this is something we need to be a little bit aware of, and so we're going to go ahead and take this patch and do the quasi biopsy that it offers?" Or maybe it's both? I guess my question is, is this something that only takes place through visiting the physician, or is there something that patients can do at home?
Feroldi: The answer there is both in the long term. They just started commercializing this product a few months ago. Expect it to do about $2 million in revenue in the fourth quarter. So we're talking very, very early days here, but again, it is generating revenue at least. This company's initial focus is on dermatologists because that's where a lot of the diagnostics do take place. You can see this being very attractive for their practices. A lot of times if a patient is on the fence, do I want to have a scar in me to get something checked or not? I could easily see this device helping doctors, dermatologists talk their patients into checking something because there's no invasive thing, there's no scar or anything like that. So I can also see that being used more often. Now, longer-term, the company does recognize that the vast majority of patients do not visit a dermatologist. They visit primary care. So DermTech longer term does want to go into the PCP market, the Primary Care Market, as well as they're making investments in telehealth. You could imagine you having a telehealth visit with your doctor, and this thing just comes in the mail. I don't know if it's simple enough that you can do it at home on your own or if you have to do it while a doctor is watching you do it over telehealth, but there is massive potential for this company to penetrate in markets that are beyond dermatology.
Moser: Yeah, I like that idea. To that point about telemedicine and primary care. You go through Teladoc Health's recent quarterly results in seeing their enthusiasm for the primary care product that they are building out. It really does feel like this entire way that we're visiting the doctor, this entire way that we perceive having the doctor in our lives is changing for the better. I think it's giving us more options as patients, which is ultimately a good thing. In regard to the actual market that's pursuing, clearly, very early stage companies are not making a whole heck of a lot on the way to revenue here, but it looks like it's a pretty decent market opportunity that they're pursuing here overall at least domestically.
Feroldi: Yeah, they believe that the opportunity for their current approvals in the United States are about a $2.5 billion market. What they've been doing over the last couple of months has been gaining reimbursement access. They do have access to Medicare, which is half of the market. So that was a really key win in 2020. More recently, one of the reasons that stock has been soaring so much is, they've signed on a number of other insurers to start covering this, including Blue Cross Blue Shield plans, [...] plans, etc. So as we see those announcements come out on the access to this grow and grow, it makes sense that investors are getting excited about it. Now, they believe that their opportunity is $2.5 billion just within the U.S., but that is just within their current indications. They believe that this platform can be used in other types of cancers. They have carcinoma and something called CTCL. That is in the proof-of-concept and validation stage and their pipeline. They also have a number of research partnerships with the likes of Johnson & Johnson, AbbVie, AstraZeneca, Biogen, L'Oreal insights to use their technology on other types of skin diseases like psoriasis, and lupus, and atopic dermatitis, etc. So this company is not starved for opportunity right now, but even if they don't get any label expansion claims at all, they believe that the opportunity for their current products are $2.5 billion in the U.S. That's a lot of room for growth between $2.25 million and $2.5 billion per year.
Moser: Yes, absolutely. No question about it. Given everything that we've covered, clearly no investment idea is risk-free. What are one or two of the things that concern you or risks that you feel like investors should be aware of with their own thing?
Feroldi: It's really hard to go from being a research organization into a commercialization organization. Those are two different skill sets and the management team here does have some history behind them, but it's a mistake to just say, "Oh, this company is really great at research, therefore, they're going to be really great at commercialization." Those are just two different things. All three of the companies that we're going to talk about today, to me, the biggest risks with all three of them is, this doesn't work, period. They do not have operating histories behind them that show that their products and services have been adopted by the market. I worked in healthcare for 10 years and I can tell you, things that seem like no brainers on paper, might not necessarily work in the healthcare community for a number of reasons. It can make sense again to go slow with these companies and really judge them by their revenue growth. In a sense say, OK, this sounds awesome. Prove it with some strong revenue growth and then we will believe you.
Moser: Yeah, I think that's a great point there. You have the idea, the product, the concept, it all sounds awesome. How do you gauge success? It really is just as simple as looking at that top line. Let's see that revenue growth because that really tells the tale. Certainly, that seems to be a core metric to stay focused on would be that revenue growth, but absolutely neat business there. Clearly, skin cancer seems to be something that is only becoming more and more prevalent. I think it's something that we're seeing more education, more awareness. There are far more people focused on it. It's a big plant, full of a lot of people, and the sun is shining bright most days. So I think that this is a problem that has a lot of opportunity for them in trying to solve. Okay, let's take a look at stock number two here. I have not heard of this one before, but the notes that you have here are really neat. Outset Medical (NASDAQ: OM), ticker is OM, tell us a little bit about what you like about Outset Medical.
Feroldi: This is a company we did a deep dive on in September of 2020, just after it came public. Outset Medical is a medical device company that is focused on dialysis. Dialysis is treatment for kidney failure. So your kidney stops functioning for a range of reasons, like, your kidneys can no longer take toxins out of your body and regulate the fluids. That's one of their key functions. If that's the case then you have no choice, you have to go on dialysis to live. Dialysis is the process of filtering your blood and regulating the fluids inside your system. Dialysis is incredibly important to keep people alive, but it's hugely expensive. There's about 800,000 Americans that are on dialysis, and while it's only 1% of the Medicare population that is on dialysis, dialysis accounts for 7% of Medicare spending. So once somebody goes on dialysis, it is hugely expensive to treat them. If you know anything about dialysis, you're probably familiar that most patients go to a dialysis facility and they have to go there several times a week to receive treatment. The reason they have to go to a facility is, there is a huge training and cost burden to getting set up with dialysis. What Outset has done that's really exciting is, they have developed a device that they call Tableau, which is now again FDA approved, it is on the market. This takes essentially seven machines that are used in dialysis treatment and converts them into one. So it is a much smaller version of all these other treatment options that happen at the clinic and you could use by the patient or by the healthcare provider.
They have simplified everything about the dialysis so that there's only two parts to the system. There is the actual console itself, which looks like a [...] that you would have in college. [laughs] It's about that big and it has some wheels on the bottle with a little iPad on top. Then there's a disposable part that goes into it and it has everything in that disposable part that you need to have dialysis done successfully. You basically plug it into the wall, you add some tap water to it, you put in the little cartridge that is replaced and boom, you are up and running with dialysis. This machine is also Wi-Fi connected. So if you're using this in the home, if you're using this in the hospital, all of the information that you are using about your dialysis and treatment is constantly being upload to Outset's medical system and can be shared with your physician so they can monitor what's happening with your dialysis treatment while they are far away. The simple way of saying this is, they have revolutionized the way that dialysis is done and made it simple and easy.
Moser: There are so many things that I like about that, and selfishly [laughs] just from one of the services I run at work here that focuses on 5G and the economy developing around 5G technology. We hear a lot about the Internet of Things, but there is a sub-sector of the Internet of Things called the Internet of Medical Things. This certainly seems like it plays into that, at least a little bit, bringing the hospital to the home, and we're seeing more and more medical device companies really making those investments. One that stands out to me is Masimo. We've talked about Masimo before, about a pulse oximetry company that's working on the same type of stuff. Bringing the service from the hospital to the home to make it easier for the patient and the physician to communicate and keep up with each other, monitor progress, and ensure better outcomes. It really feels like this is honestly growing. I think I might be putting this one on my watch list for the 5G service, now that we're talking about it. But I tell you what really got my attention, when I looked through the business model for this business, very similar to Intuitive Surgical you said, please elaborate.
Feroldi: Yeah. If you're a fan of Intuitive Surgical, and you should be, if you are in the healthcare industry.
Moser: I am. [laughs]
Feroldi: Yes, exactly. It's a very similar business model here. So Outset will sell, they call it the capital sales, which again is the fridge-sized machine that houses all the equipment that you need, as well as the iPad. That is sold to healthcare facilities, and then Outset also receives recurring revenue from two sources. First, every time that a dialysis is done, there is that one piece that is a consumable part so that has to be changed out between every single treatment, that is a recurring revenue source for the company. As well as for each of these systems, they have to be serviced over time, so there's a service contract component to this. Now, Outset has only just recently launched this. This is a relatively new technology. They do have revenue already. Through the 1st nine months of 2020, the company did about $33 million in revenue. The bulk of that was from the capital sales because they're still getting these devices out into the world, but they did have some service revenue and some product revenue that's starting to pick up there. So it's going to be several years before that recurring revenue takes over and becomes the lion share of revenue, just like we saw with Intuitive Surgical in the early days. But I really love that over the long term, if this company is successful, you could easily see that 70%, 80% of its revenue is coming from recurring sources.
Moser: Yeah. That recurring revenue, it's just such a great quality for a great long-term investment. We just look forward to it all the time. It does feel like in oftentimes, the healthcare space has a lot of these types of opportunities, and so it was really nice to see that aspect of this business model. Let's talk a little bit about the financials here, because it's still a fairly young business and not really generating any money, so to speak, but it is growing very quickly.
Feroldi: Yeah, it's reporting triple-digit topline growth. Getting this kind of system off the ground is hugely expensive, that's one of the reasons this company came public. We do have data from Q3 2020, we should get Q4 data within a couple of days here. The revenue is growing extremely quickly, 349% revenue growth of products, 1,200% revenue growth for the services segment. When you add all that together, it's only about $16 million in quarterly revenue. The gross margin here is still negative, so it's costing them more to make this system than it is for them to capture. That is something that will be improved over time with scale. If you're not making money on the system sales, how can your company be any more close to profitability.
Moser: Exactly. [laughs]
Feroldi: Their quarterly net loss is about $28 million. They do have plenty of capital for right now. They had $377 million before coming public, at the IPO, they raised another $200 million. So that gives them call it $550 million, roughly, in capital that they should have had at year-end. That will allow them to commercialize this thing, and get it up off the ground at least for a couple of years. It will be sometime before that gross margin turns positive and they start covering their cost, but no surprise given the stage that they're at.
Moser: The market clearly is enthusiastic about this. Certainly, there's some belief out there right now that what they're doing is working, but it feels like a lot of the same types of risks that we talked about. DermTech probably played for Outset as well, another thing that stood out to me. I'm not sure how familiar you are with Davita. But this company made me think of Davita, which is a company that also works in the same space, dialysis. It's not a sadly larger company, it's a $11 billion market gap versus Outset's $2.2 billion. I guess really the difference there is that Davita is generating around $11 billion in sales and Outset is not quite there yet, of course. What are some of the things to keep an eye on in regard to an investment like this?
Feroldi: Same things for all three here this year. When you read through management's commentary about Tableau, it just seems like a no-brainer. It simplifies the training procedure, it allows people to do these things at home. There's actually a cost saving component, we didn't get into. But the Cleveland Clinic did an analysis using Tableau in their hospitals, and they noted that they saw a 55% cost reduction in using dialysis because of Tableau. A half of those savings were from the supplies, and the other half were from the labor and the training costs. I know one thing about healthcare, if you can lower training costs, boy, do healthcare providers pay attention. Especially for something like this, where there's a huge patient training cost. If you want patients to be doing this in the house, you have to subject them to hours upon hours of training to make sure that they're using it right. If Tableau can simplify that process, it sounds like a no brainer. The question is, is it? Are there some other things that we are overlooking here? That we don't know. But I do like seeing that this company has grown it's revenue so quickly, and if this works, boy, is there a lot of room for this company to grow.
Moser: Yeah. To your point on the training, Brian, you and I did some work together on the augmented reality beyond service era. Just got that I wouldn't be shocked at all, if there were some type of immersive technology or augmented/virtual/extended reality dynamic to some training that they offer very similar to what Intuitive Surgical has done. That's something we see more and more in the healthcare space. So maybe Outset is the company that belongs on the watch list for both the 5G service and the augmented reality service.
Feroldi: Boy, that'd be great. The CEO of Outset is a lady named Leslie Trigg, and I reached out to her to potentially come on Fool, I have to interview her. If we get that, I'll say, "Well, hey, what's the augmented reality angle here?"
Moser: [laughs] Excellent, save that question for sure. Well, let's jump into the 3rd stock here. The final stock for the day, this is TransMedics Group (NASDAQ: TMDX) and the ticker for this one is TMDX . I do recall you and I had spoken about this one a while back, when I was reading through what the company does, really working to solve an important problem. Tell us a little bit about TransMedics and what they do.
Feroldi: So TransMedics is a $1.1 billion company. It is focused on organ transportation, on specifically keeping organs alive between the donor and the recipient. This is a really sad stat, but only about 20%-30% of donated hearts, lungs, and livers make it successfully into the recipient. That stinks, if you're an organ donor. I hate that knowing that only there's a 20% chance of my organs making it into somebody else to keep them alive. Now, why is that? Why is the failure rate so high? That is because the standard of care way to transporting organs between people is by flushing them with cold pharmaceutical solutions and then putting them on ice. Now, I don't know about that, but I do know that [laughs] organs generally like to be in 98 degree temperatures with warm blood put over them. That is their natural operating environment.
Moser: So I've heard. That's what I've heard.
Feroldi: [laughs] That's exactly what TransMedics Group enables. They have a device that they call the Organ Care System, the OCS, and it does exactly that. You can take a donated heart, liver, or lung, you put it in the OCS, and this will keep it at the right temperature. It will continuously circulate oxygen and nutrient-rich blood over the organ. You can actually monitor the health of the organ in transit. If you go to this company's website, I really warn you from doing so, you will literally see hearts beating outside the body, lungs breathing outside the body, livers producing bile outside of the body. But because of this system, they dramatically improved the survivability rate of these organs between patients and they allow these organs to be outside the body and live for up to 20 hours. Now, that matters hugely because it enables long-distance travel of organs. If there is a donor that becomes available in say, Hawaii and you live in Tennessee, that organ can now get to you in time because it can stay alive for many hours. The big benefit here is it increases the chances of having a successful transplant surgery because the organ is healthier when it's going into you as well as it could dramatically increase the total supply of organs by keeping them healthier.
Moser: Yeah, it really feels that way. It's essentially creating just a nice temporary little body for these organs, which makes a lot of sense. That statistic is just astounding to me. The 20%-30% actually make it. It'd be different if it was 20%-30% fail, but only 20%-30% actually making it. That is a bit depressing because, yeah, I've got that little thing checked on my driver's license. I'm an organ donor and I'd like to think that at some point, maybe I would be able to help someone else out. But man, knowing that the chances are better than not that even if you try, you're going to fail. That's frustrating. That's what really caught my eye about this business in really what they're trying to do. It looks regulatory-wise, they're pretty much clear for take off here, aren't they?
Feroldi: They do have regulatory approval for their lung version of their system, but they are currently pending FDA approval for the heart and the liver versions of the system. I do like that they already have one of these approvals through the FDA. The management on their recent conference call did say that they expect to have the other two in the second half of this year. So it isn't fully a de-risks, but again, they have gotten one device, one system through the FDA, and it is already generating revenue for them. Now, there isn't a lot of revenue to go on here. 2020 was a pretty tough year for a lot of medical companies. There were hospitals that were just shut down. It's really hard to get physician interest in this when everything was focused on, all resources were devoted to COVID. But in the most recent quarter, we saw revenue grow 26% to $7.6 million. This company does have a positive gross margin already of about 63%. It did lose about $6.3 million in revenue and about $29 million for the entire year. But it ended the year with about $126 million in cash, so it can fund itself for a few more years. The exciting thing about TransMedic in the long term is not only what the technology enables, but for investors, this company believes that once it reaches scale, that 90% of its revenue will come from recurring sources.
Moser: Nice.
Feroldi: Every time an organ is transported from one spot to the other, it requires these perfusion sets as well as liquid to keep them alive and healthy. Those are disposed between every single treatment. Just like we saw with Outset Medical, the majority of revenue for TransMedics's case should be recurring in nature in time.
Moser: I love seeing that. In regard to the market opportunity, what do you estimate the market opportunity pursued today? Do you feel like that grows over time or is that something that it's pretty plain to see with what they're doing today?
Feroldi: Management believes that if it can get FDA regulatory approval for lung, heart, and liver and execute as well as the things that it can, it projects that it can get to about $8 billion in revenue over time. Again, for last year, they only did far, far less than that, less than $30 million in total revenue for the year. Lots of room for this company to grow if it could be successful.
Moser: Yeah, sounds like it. Assuming that probably the same types of risks exist here with the other two businesses that we've spoken about today. But does anything stand out in particular, otherwise, in regard to TransMedics? I mean, risk outstanding specific to a company like this.
Feroldi: Again, everything that we've talked about with all three of these companies are all post-FDA approval. They're all three very, very early on in the commercialization stage, and management is telling a really good story for all three of these companies. Now, the risk is they don't execute period [laughs] for whatever reason. For insurance reasons, for their commercialization reason, for manufacturing reasons, that's why they call it risk. These are not foregone conclusions, but all of these companies check enough boxes for me that I think it's worth highlighting them and it could be worth building a basket. I'm talking to Jason Moser here, right? [laughs] This could be an interesting healthcare basket.
Moser: This could be the Wildcard Wednesday basket, man. [laughs] I think we may have just invented a new basket, Brian.
Feroldi: There you go. [laughs]
Moser: Well, you've may have invented a new basket and we can brand it the Wildcard Wednesday basket. Because I was going to ask you, when we look at these three businesses side by side, you've got DermTech at a $1.7 billion market. We got Outset at $2.2 billion, TransMedics at $1.1 billion. All fairly small. Absolutely can see 10-bagger potential there just through the numbers. Can certainly see it with the problems that they're solving and the market opportunities that exist. I was going to ask you to pick one, but it really sounds like you think that just all three make the most sense. To me, that makes sense too.
Feroldi: If you forced me to pick one, I would probably go with DermTech just because I think it sounds the coolest. I think that there is huge potential for that company. I really like the optionality that's embedded in the company's long-term pipeline too. But yeah, I wouldn't go hog wild with any of them. If I was going to play this, I would buy a small basket of these three companies, as well as many of the other high-risk, high-reward companies that we've talked about on Wildcard Wednesday before, and then watch them and add to the ones that are executing.
Moser: I think that's a great point there. Watch them and add to those winners because typically, those winners are winning for a reason. It means they're doing something right, and those are the businesses you want to keep building those positions in. Listen, Brian, this is terrific. All three really fascinating companies. I know our listeners always enjoyed getting fresh ideas, particularly ideas that offer so much potential upside. I think you've really keyed in on three businesses that a lot of folks need to know more about in three businesses. I'm going to enjoy following one in particular with Outset. So I'm going to dig a little bit more into this one for the purpose of those services. I think after we get done taping me, you and I need to set a meeting and talk a little bit more about those one. [laughs]
Feroldi: Let's do it.
Moser: Well, I think that's going to do it for us as this week, Brian. But thank you so much for all the work and for taking the time to jump on the show today.
Feroldi: Anytime, Jason. Happy to be here.
Moser: Remember, folks, you can always reach out to us on Twitter @MFIndustryFocus or you can drop us an email at industryfocus@fool.com. 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 or sell stocks based solely on what you hear. Thanks as always to Tim Sparks for putting the show together for us. For Brian Feroldi, I'm Jason Moser. Thanks for listening, and we'll see you next week.
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Brian Feroldi owns shares of Intuitive Surgical and Microsoft. Jason Moser owns shares of Masimo and Teladoc Health. The Motley Fool owns shares of and recommends Intuitive Surgical, Masimo, Microsoft, and Teladoc Health. The Motley Fool owns shares of TransMedics Group Inc. The Motley Fool recommends Biogen and Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on 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. | They also have a number of research partnerships with the likes of Johnson & Johnson, AbbVie, AstraZeneca, Biogen, L'Oreal insights to use their technology on other types of skin diseases like psoriasis, and lupus, and atopic dermatitis, etc. On this week's episode of Industry Focus: Wildcard, host Jason Moser and Motley Fool contributor Brian Feroldi take a closer look at three companies in the healthcare space that possess many of the characteristics of investments with the potential to offer patient investors tenfold returns! I'd invested in a small biotech company, it was going through those phases I, II, and III trials pursuing a unique condition, and I just thought, "Well, that's pretty cool, I am going to learn more about this as I go along." | They also have a number of research partnerships with the likes of Johnson & Johnson, AbbVie, AstraZeneca, Biogen, L'Oreal insights to use their technology on other types of skin diseases like psoriasis, and lupus, and atopic dermatitis, etc. On this week's episode of Industry Focus: Wildcard, host Jason Moser and Motley Fool contributor Brian Feroldi take a closer look at three companies in the healthcare space that possess many of the characteristics of investments with the potential to offer patient investors tenfold returns! The Motley Fool owns shares of and recommends Intuitive Surgical, Masimo, Microsoft, and Teladoc Health. | They also have a number of research partnerships with the likes of Johnson & Johnson, AbbVie, AstraZeneca, Biogen, L'Oreal insights to use their technology on other types of skin diseases like psoriasis, and lupus, and atopic dermatitis, etc. On this week's episode of Industry Focus: Wildcard, host Jason Moser and Motley Fool contributor Brian Feroldi take a closer look at three companies in the healthcare space that possess many of the characteristics of investments with the potential to offer patient investors tenfold returns! Feroldi: I mean, there's lots of biotech companies that will go onto 10-bag, but there are hundreds of clinical stage biotechs on the market, and that is truly like picking a needle out of a haystack, not only do you have to be right with your clinical assessment about the company, you have to be right with the company getting it through the regulatory process, you have to draw all safety hazards, and then there's just the commercialization of the product itself. | They also have a number of research partnerships with the likes of Johnson & Johnson, AbbVie, AstraZeneca, Biogen, L'Oreal insights to use their technology on other types of skin diseases like psoriasis, and lupus, and atopic dermatitis, etc. Moser: [laughs] We know listeners love healthcare. Feroldi: It's really hard to go from being a research organization into a commercialization organization. | eb631452-70d9-4de5-a50c-1fe11e7350da |
24182.0 | 2021-03-10 00:00:00 UTC | How to Boost Your Retirement Income When Social Security Only Covers 40% | ABBV | https://www.nasdaq.com/articles/how-to-boost-your-retirement-income-when-social-security-only-covers-40-2021-03-10 | nan | nan | Only 40%? That's right -- Social Security has been designed to provide roughly 40%, on average, of your preretirement income. So don't assume that it will provide enough cash on which to live somewhat comfortably.
That means most of us need to be saving and investing for retirement in order to supplement our Social Security income. Here are five steps you might want to take to improve your future financial security.
Image source: Getty Images.
1. Save and invest more
If you're only socking away 10% of your income, that may not be enough -- especially if you haven't been doing so since you were young. Consider saving more aggressively and investing effectively -- aiming to at least match the stock market's average over the long run. Your simplest and easiest choice is a low-fee, broad-market index fund.
Here's how much you might amass over time:
GROWING AT 8% FOR
$10,000 INVESTED ANNUALLY
$15,000 INVESTED ANNUALLY
$20,000 INVESTED ANNUALLY
5 years
$63,359
$95,039
$126,718
10 years
$156,455
$234,683
$312,910
15 years
$293,243
$439,865
$586,486
20 years
$494,229
$741,344
$988,458
25 years
$789,544
$1,184,316
$1,579,088
30 years
$1,223,459
$1,835,189
$2,446,918
Data source: Calculations by author.
2. Load up on dividend-paying stocks
Index funds pay dividends, though at various times, their yields won't be substantial. The S&P 500 recently yielded about 2.6%, for example. You might include a few dividend-paying funds or solid dividend-paying stocks, as they can deliver more income in retirement without you having to sell any or many shares.
A portfolio with a total value of, say, $300,000, and an overall average yield of 4% will generate $12,000 in income -- $1,000 per month (though much of it will be delivered quarterly). Double that, and you can collect an average of $2,000 per month -- which might top your Social Security check.
There are plenty of familiar names offering substantial yields these days:
STOCK
RECENT DIVIDEND YIELD
AT&T (NYSE: T)
7.2%
International Business Machines (NYSE: IBM)
5.3%
Chevron (NYSE: CVX)
4.9%
AbbVie (NYSE: ABBV)
4.9%
Verizon Communications (NYSE: VZ)
4.5%
Walgreens Boots Alliance (NASDAQ: WBA)
4%
Merck (NYSE: MRK)
3.6%
Cisco Systems (NASDAQ: CSCO)
3.2%
Coca-Cola (NYSE: KO)
3.3%
CVS Health (NYSE: CVS)
2.8%
Data source: Yahoo! Finance.
3. Consider fixed annuities
Another solid way to generate income for yourself in retirement is via one or more fixed annuities. You choose the best-rate insurance company or companies and hand over a fat wad of money in exchange for their promise to deliver regular income to you for a specified period or for the rest of your life and/or your spouse's life.
This isn't the most perfect time to buy an annuity, as interest rates are super low -- you'll be offered bigger checks if you buy when rates are higher -- but it's hard to argue with almost-guaranteed income requiring no studying of stocks or funds or anything like that. If you're still far from retirement, you can simply keep this option in mind, hoping to snag bigger payments later, at higher interest rates.
Image source: Getty Images.
4. Get creative
Thinking inside and outside the box can yield more retirement income, too. For example, while a reverse mortgage is not right for everyone, it might be right for you, allowing you to draw income from your home equity until you move out of your home (perhaps due to death) -- at which time the debt comes due and is typically settled by selling the home. This can leave your heirs with little, but might serve you well.
Another strategy is just working for a few more years than you originally planned to, as that allows you to save more and perhaps remain on your employer's health insurance plan, while shortening the period of time that your nest egg will have to support you for. You might also get a side gig for a few years or many years -- ideally one you enjoy, such as tutoring kids, selling crafts online, or driving for a ride-sharing service.
5. Increase your Social Security benefits
Finally, know that there are ways to increase your Social Security checks, too. For example, your benefits are based on the 35 years in which you earned the most (adjusted for inflation), so if you've only worked 30 years, the formula will be incorporating five years of zero earnings. Work a few more years, and your benefits will increase. Timing is critical, too, because you can make your checks bigger by delaying when you start collecting them.
Don't plan to just settle for Social Security checks, because they probably won't be enough -- the average monthly payment was recently just $1,547 -- or about $18,500 per year. Start thinking and planning now for how you'll build yourself an additional income stream or two in retirement.
The $16,728 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
Selena Maranjian owns shares of AbbVie, AT&T, IBM, and Verizon Communications. The Motley Fool recommends CVS Health 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. | 7.2% International Business Machines (NYSE: IBM) 5.3% Chevron (NYSE: CVX) 4.9% AbbVie (NYSE: ABBV) 4.9% Verizon Communications (NYSE: VZ) 4.5% Walgreens Boots Alliance (NASDAQ: WBA) 4% Merck (NYSE: MRK) 3.6% Cisco Systems (NASDAQ: CSCO) 3.2% Coca-Cola (NYSE: KO) 3.3% CVS Health (NYSE: CVS) 2.8% Data source: Yahoo! Selena Maranjian owns shares of AbbVie, AT&T, IBM, and Verizon Communications. Consider saving more aggressively and investing effectively -- aiming to at least match the stock market's average over the long run. | 7.2% International Business Machines (NYSE: IBM) 5.3% Chevron (NYSE: CVX) 4.9% AbbVie (NYSE: ABBV) 4.9% Verizon Communications (NYSE: VZ) 4.5% Walgreens Boots Alliance (NASDAQ: WBA) 4% Merck (NYSE: MRK) 3.6% Cisco Systems (NASDAQ: CSCO) 3.2% Coca-Cola (NYSE: KO) 3.3% CVS Health (NYSE: CVS) 2.8% Data source: Yahoo! Selena Maranjian owns shares of AbbVie, AT&T, IBM, and Verizon Communications. 5 years $63,359 $95,039 $126,718 10 years $156,455 $234,683 $312,910 15 years $293,243 $439,865 $586,486 20 years $494,229 $741,344 $988,458 25 years $789,544 $1,184,316 $1,579,088 30 years $1,223,459 $1,835,189 $2,446,918 Data source: Calculations by author. | 7.2% International Business Machines (NYSE: IBM) 5.3% Chevron (NYSE: CVX) 4.9% AbbVie (NYSE: ABBV) 4.9% Verizon Communications (NYSE: VZ) 4.5% Walgreens Boots Alliance (NASDAQ: WBA) 4% Merck (NYSE: MRK) 3.6% Cisco Systems (NASDAQ: CSCO) 3.2% Coca-Cola (NYSE: KO) 3.3% CVS Health (NYSE: CVS) 2.8% Data source: Yahoo! Selena Maranjian owns shares of AbbVie, AT&T, IBM, and Verizon Communications. 5 years $63,359 $95,039 $126,718 10 years $156,455 $234,683 $312,910 15 years $293,243 $439,865 $586,486 20 years $494,229 $741,344 $988,458 25 years $789,544 $1,184,316 $1,579,088 30 years $1,223,459 $1,835,189 $2,446,918 Data source: Calculations by author. | 7.2% International Business Machines (NYSE: IBM) 5.3% Chevron (NYSE: CVX) 4.9% AbbVie (NYSE: ABBV) 4.9% Verizon Communications (NYSE: VZ) 4.5% Walgreens Boots Alliance (NASDAQ: WBA) 4% Merck (NYSE: MRK) 3.6% Cisco Systems (NASDAQ: CSCO) 3.2% Coca-Cola (NYSE: KO) 3.3% CVS Health (NYSE: CVS) 2.8% Data source: Yahoo! Selena Maranjian owns shares of AbbVie, AT&T, IBM, and Verizon Communications. That means most of us need to be saving and investing for retirement in order to supplement our Social Security income. | b6aac5a4-279a-4655-9f7f-3d876bacb657 |
24183.0 | 2021-03-09 00:00:00 UTC | IVW, QCOM, ABBV, CMCSA: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/ivw-qcom-abbv-cmcsa%3A-large-outflows-detected-at-etf-2021-03-09 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $285.6 million dollar outflow -- that's a 1.0% decrease week over week (from 486,550,000 to 481,900,000). Among the largest underlying components of IVW, in trading today Qualcomm Inc (Symbol: QCOM) is up about 4.2%, AbbVie Inc (Symbol: ABBV) is up about 1.9%, and Comcast Corp (Symbol: CMCSA) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $63.44. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVW, in trading today Qualcomm Inc (Symbol: QCOM) is up about 4.2%, AbbVie Inc (Symbol: ABBV) is up about 1.9%, and Comcast Corp (Symbol: CMCSA) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $63.44. 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 IVW, in trading today Qualcomm Inc (Symbol: QCOM) is up about 4.2%, AbbVie Inc (Symbol: ABBV) is up about 1.9%, and Comcast Corp (Symbol: CMCSA) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $63.44. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IVW, in trading today Qualcomm Inc (Symbol: QCOM) is up about 4.2%, AbbVie Inc (Symbol: ABBV) is up about 1.9%, and Comcast Corp (Symbol: CMCSA) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $285.6 million dollar outflow -- that's a 1.0% decrease week over week (from 486,550,000 to 481,900,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $63.44. | Among the largest underlying components of IVW, in trading today Qualcomm Inc (Symbol: QCOM) is up about 4.2%, AbbVie Inc (Symbol: ABBV) is up about 1.9%, and Comcast Corp (Symbol: CMCSA) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $63.44. 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). | cbf0e9bb-2668-49e2-97d3-c3fe473d7b93 |
24184.0 | 2021-03-09 00:00:00 UTC | 3 Reasons to Invest in Dividend-Paying Stocks for Retirement | ABBV | https://www.nasdaq.com/articles/3-reasons-to-invest-in-dividend-paying-stocks-for-retirement-2021-03-09 | nan | nan | Here's something you probably didn't know: The average monthly Social Security retirement benefit was recently just $1,547, or about $18,500 per year. Yes, if you earned an above-average income during your working life, you'll likely collect more than that -- but it still is probably not going to be enough to cover your expenses in retirement.
Enter dividend-paying stocks, which can supplement your Social Security checks. Here are three good reasons to consider adding some (or many) to your portfolio.
Image source: Getty Images.
1. They deliver income through thick and thin
No matter what the economy is doing -- surging, stalling, or falling -- healthy dividend-paying companies will keep paying those dividends. So even if we go through a several-year period where your stock holdings hardly grow at all, your brokerage account (or retirement account) will keep receiving installments of cash, for you to do with what you'd like. If you're retired, you can use that money for food, housing, and other essential or discretionary expenses. If you're still working, you can reinvest that money into more shares of stock -- which may then start generating dividend income of their own!
All this isn't guaranteed, of course. If a company is struggling, it may eventually resort to reducing, suspending, or eliminating its payout. Many companies have done so, but they all try hard not to. And many suspended dividends do resume once the economic environment improves or the company's issues are resolved. The vast majority of dividends are rarely or never interrupted.
2. They can help you keep up with inflation
We often forget about inflation, but it can be a silent killer of retirement dreams. It has averaged about 3% annually over long periods, but can be as low as zero or hit double digits in some years. Just experiencing typical inflation rates is enough to cut your purchasing power roughly in half over 30 years, so that something that costs you $100 when you retire will cost you $200 30 years later.
Worse still, while Social Security benefits are adjusted for inflation over time, they generally don't quite keep up with it, as the measure of inflation used doesn't reflect retiree spending very well. So be sure to have ways to keep up with inflation, such as by buying dividend payers and perhaps other inflation-fighting investments. Dividend payers are effective because dividend-paying companies tend to increase their payout -- if not every year, then every few years. Plenty of companies will increase their payout by more than 5% or even 10% in a given year, and those kinds of hikes are very effective against inflation.
Check out some examples:
COMPANY
RECENT DIVIDEND YIELD
5-YEAR DIVIDEND GROWTH RATE
AbbVie
4.9%
18%
Hasbro
2.9%
8%
PepsiCo
3.1%
8%
Starbucks
1.7%
18%
Apple
0.7%
10%
Visa
0.6%
18%
Clorox
2.4%
8%
Walgreen Boots Alliance
4%
5%
Data sources: Yahoo! Finance and author calculations.
Note also that in today's ultra-low interest rate environment, many savings accounts and CDs and bonds are offering paltry payouts, often well below 1%. You're going to lose ground and purchasing power if you're keeping long-term money in any of those these days.
Image source: Getty Images.
3. They can preserve your portfolio
Finally, one more wonderful thing about dividend-paying stocks is that they can help preserve your portfolio. If you have filled your portfolio with non-payers and you need cash, you'll have to sell off some shares occasionally or frequently. They will be gone, no longer growing in value for you. But if some or many of your stocks are generating meaningful income, you might be able to just tap that income, leaving the shares of stock in place.
Even if you need more income than the dividends are providing, you'll likely be able to sell fewer shares, preserving more of your invested capital.
For these reasons alone, you should consider adding some solid dividend-paying stocks or dividend-focused funds to your portfolio.
10 stocks we like better than Apple
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Selena Maranjian owns shares of AbbVie, Apple, and Starbucks. The Motley Fool owns shares of and recommends Apple, Hasbro, Starbucks, and Visa and recommends the following options: short April 2021 $110 calls on Starbucks, short March 2023 $130 calls on Apple, and long March 2023 $120 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. | AbbVie 4.9% 18% Hasbro 2.9% 8% PepsiCo 3.1% 8% Starbucks 1.7% 18% Apple 0.7% 10% Visa 0.6% 18% Clorox 2.4% 8% Walgreen Boots Alliance 4% 5% Data sources: Yahoo! See the 10 stocks *Stock Advisor returns as of February 24, 2021 Selena Maranjian owns shares of AbbVie, Apple, and Starbucks. They deliver income through thick and thin No matter what the economy is doing -- surging, stalling, or falling -- healthy dividend-paying companies will keep paying those dividends. | AbbVie 4.9% 18% Hasbro 2.9% 8% PepsiCo 3.1% 8% Starbucks 1.7% 18% Apple 0.7% 10% Visa 0.6% 18% Clorox 2.4% 8% Walgreen Boots Alliance 4% 5% Data sources: Yahoo! See the 10 stocks *Stock Advisor returns as of February 24, 2021 Selena Maranjian owns shares of AbbVie, Apple, and Starbucks. Here's something you probably didn't know: The average monthly Social Security retirement benefit was recently just $1,547, or about $18,500 per year. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Selena Maranjian owns shares of AbbVie, Apple, and Starbucks. AbbVie 4.9% 18% Hasbro 2.9% 8% PepsiCo 3.1% 8% Starbucks 1.7% 18% Apple 0.7% 10% Visa 0.6% 18% Clorox 2.4% 8% Walgreen Boots Alliance 4% 5% Data sources: Yahoo! But if some or many of your stocks are generating meaningful income, you might be able to just tap that income, leaving the shares of stock in place. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Selena Maranjian owns shares of AbbVie, Apple, and Starbucks. AbbVie 4.9% 18% Hasbro 2.9% 8% PepsiCo 3.1% 8% Starbucks 1.7% 18% Apple 0.7% 10% Visa 0.6% 18% Clorox 2.4% 8% Walgreen Boots Alliance 4% 5% Data sources: Yahoo! Here's something you probably didn't know: The average monthly Social Security retirement benefit was recently just $1,547, or about $18,500 per year. | c222793e-1611-4786-a640-b48b2bca7505 |
24185.0 | 2021-03-07 00:00:00 UTC | 5 High-Yield Dividend Stocks to Buy for a Biden Bull Market | ABBV | https://www.nasdaq.com/articles/5-high-yield-dividend-stocks-to-buy-for-a-biden-bull-market-2021-03-07 | nan | nan | Historically, it hasn't mattered whether a Democrat or Republican has been president: Stock market investors do quite well with either party in office, as long as they're focused on the long term.
However, it's hard to ignore the near-perfect scenario that President Joe Biden and his administration have walked into. Although Biden will be tackling a number of key issues, including the coronavirus vaccination campaign, the combination of historically low lending rates, dovish monetary policy, and ongoing fiscal stimulus from Capitol Hill could create an epic bull market.
While growth stocks have been investors' go-to choice for more than a decade, dividend stocks are the market's brightest spot over the very long term. Since the vast majority of dividend stocks are profitable on a recurring basis and have time-tested operating models, they're good candidates to outperform.
If a Biden bull market does take shape, the following five high-yield dividend stocks (yields of 4%, or greater) would be perfect additions to your portfolio.
Image source: Getty Images.
Annaly Capital Management: 10.6% dividend yield
It may not be the flashiest name of the bunch, but mortgage real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is about to enter the sweet spot of a multiyear growth trend, assuming the Biden administration is successful in buoying the U.S. economy.
Without getting too technical, a mortgage REIT like Annaly borrows money at lower short-term rates and acquires assets with higher long-term yields, such as mortgage-backed securities (MBSs). The difference between the yield it receives and what it owes is known as net interest margin (NIM). During the first couple of years of an economic recovery, it's commonplace to see the yield curve steepen. This is to say that longer-term yields rise notably, while short-term yields flatten out or even decline. When this happens, mortgage REITs like Annaly usually see their NIM expand significantly.
The other noteworthy consideration here is that Annaly almost exclusively deals with agency-only MBSs and securities. Agency assets are backed by a federal agency in the event of default. Having this protection means lower yields relative to nonagency assets. But it also allows Annaly to use leverage to its advantage when the market conditions are right. With the yield curve steepening, Annaly is expected to use leverage to really pump up its income potential (and dividend).
Image source: Getty Images.
Duke Energy: 4.4% dividend yield
After watching growth stocks run rampant for more than a decade, the idea of buying an electric utility stock is enough to put some investors to sleep. But Duke Energy (NYSE: DUK), the nation's second-largest electric utility operator, could be an excellent buy with Biden in the White House.
You see, the Biden administration is looking to tackle climate change head on. One of the many ways it could do so is by encouraging utilities to make the switch to renewable energy sources via regulation or tax credits. Either way, it's good news for Duke Energy.
Duke plans to spend up to $60 billion through 2025 to invest in renewable energy projects and support its regulated operations. This is a fancy way of saying that Duke aims to get ahead of the curve on switching to green energy sources, and it should benefit from a higher annual growth rate once this transformation really takes shape.
What's more, the utility sector offers highly predictable demand and cash flow. Duke's traditional operations (i.e., those run on fossil fuels) are regulated. Though it can't just raise prices anytime it wants, it also means Duke isn't exposed to potentially volatile wholesale prices. In other words, it's a very safe bet for steady growth.
Image source: Getty Images.
Altria Group: 7.7% dividend yield
Like utilities, tobacco stocks have seen their growth heyday come and go. But the future could still have some smokin' good returns in store for Altria Group (NYSE: MO) shareholders during a Biden bull market.
Altria, the company behind the extremely popular Marlboro cigarette brand in the U.S., has been hit by lower adult smoking rates for decades. But what it lacks in volume, the company has been able to make up for with price hikes. Since tobacco contains nicotine, an addictive chemical, Altria has been able to pass along higher price points for its products without hurting demand from existing customers.
It has plenty of opportunity to expand its reach beyond tobacco, as well. It has a licensing agreement in place with Philip Morris International to market the IQOS heated tobacco system in a number of U.S. markets. Also, in March 2019, Altria completed a $1.8 billion equity investment into Canadian marijuana stock Cronos Group. If the Biden administration were to legalize weed in the U.S., Altria would be expected to play a leading role in helping Cronos develop, market, and distribute cannabis vapes throughout North America.
Image source: Getty Images.
AbbVie: 4.8% dividend yield
Although healthcare stocks aren't well known for their dividends, diversified drug developer AbbVie (NYSE: ABBV) looks poised to shine with Biden as president.
The biggest knock against AbbVie has always been that it's too reliant on the anti-inflammatory drug Humira. Last year, Humira brought in just over $19.8 billion of the $45.8 billion AbbVie recognized in net sales. Yet, in spite of biosimilar competition in overseas markets, sales in the highly lucrative U.S. market continue to climb. Multiple label-expansion opportunities, coupled with annual price hikes, have helped Humira become the top-selling drug in the world. Even when biosimilar drugs hit U.S. pharmacy shelves in 2023, it's unlikely that Humira's sales fall off a cliff. This is to say that AbbVie can sustainably deliver well over $10 billion in annual operating cash flow, even with Humira fending off biosimilar competition in two more years.
It's also very unlikely that lawmakers will tackle drug-price reform. It's been a Capitol Hill talking point for more than a decade, but there's never the requisite support in the Senate to enact meaningful change. For AbbVie, this suggests its immunology and oncology product portfolios will continue to benefit from label expansion opportunities, increased duration of use, and higher list prices.
Image source: Getty Images.
IBM: 5.4% dividend yield
Finally, don't sleep on tech laggard IBM (NYSE: IBM). Though its sales have been backpedaling for the better part of a decade, an ongoing business transformation should begin to bear fruit in 2021, and beyond.
The front-and-center concern for IBM is that it waited too long to begin transitioning away from hardware and software and into cloud computing. Despite efforts to emphasize cloud services, revenue declines in legacy operations have overshadowed its higher-growth segments. But during the fourth quarter, IBM's cloud sales inched to yet another new high (approximately 37% of total sales). With cloud sales rising 19% for the full year in 2020 and 10% in the fourth quarter, it's only a matter of time before this higher-margin, higher-growth segment overshadows legacy weakness.
It's worth pointing out that IBM's legacy operations aren't performing as poorly as you might think. Tactical cost-cutting has actually improved margins in these segments as sales have retraced. IBM has been able to use its tens of billions in annual cash flow to make bolt-on acquisitions in the cloud space, as well as return capital to shareholders via dividends and buybacks. This trend should continue in a Biden bull market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie: 4.8% dividend yield Although healthcare stocks aren't well known for their dividends, diversified drug developer AbbVie (NYSE: ABBV) looks poised to shine with Biden as president. The biggest knock against AbbVie has always been that it's too reliant on the anti-inflammatory drug Humira. Last year, Humira brought in just over $19.8 billion of the $45.8 billion AbbVie recognized in net sales. | AbbVie: 4.8% dividend yield Although healthcare stocks aren't well known for their dividends, diversified drug developer AbbVie (NYSE: ABBV) looks poised to shine with Biden as president. The biggest knock against AbbVie has always been that it's too reliant on the anti-inflammatory drug Humira. Last year, Humira brought in just over $19.8 billion of the $45.8 billion AbbVie recognized in net sales. | AbbVie: 4.8% dividend yield Although healthcare stocks aren't well known for their dividends, diversified drug developer AbbVie (NYSE: ABBV) looks poised to shine with Biden as president. The biggest knock against AbbVie has always been that it's too reliant on the anti-inflammatory drug Humira. Last year, Humira brought in just over $19.8 billion of the $45.8 billion AbbVie recognized in net sales. | AbbVie: 4.8% dividend yield Although healthcare stocks aren't well known for their dividends, diversified drug developer AbbVie (NYSE: ABBV) looks poised to shine with Biden as president. The biggest knock against AbbVie has always been that it's too reliant on the anti-inflammatory drug Humira. Last year, Humira brought in just over $19.8 billion of the $45.8 billion AbbVie recognized in net sales. | d9452381-b27b-4161-a4a8-0a519c67caa0 |
24186.0 | 2021-03-05 00:00:00 UTC | Notable Friday Option Activity: ABBV, DE, QCOM | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-abbv-de-qcom-2021-03-05 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.3% of ABBV's average daily trading volume over the past month, of 6.9 million shares. Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 8,819 contracts thus far today. That number of contracts represents approximately 881,900 underlying shares, working out to a sizeable 42.1% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $380 strike call option expiring April 16, 2021, with 1,357 contracts trading so far today, representing approximately 135,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $380 strike highlighted in orange:
And Qualcomm Inc (Symbol: QCOM) saw options trading volume of 58,219 contracts, representing approximately 5.8 million underlying shares or approximately 41.4% of QCOM's average daily trading volume over the past month, of 14.1 million shares. Particularly high volume was seen for the $135 strike call option expiring March 26, 2021, with 2,560 contracts trading so far today, representing approximately 256,000 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $135 strike highlighted in orange:
For the various different available expirations for ABBV options, DE options, or QCOM 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 $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.3% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,819 contracts thus far today. That number works out to 42.3% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. That number works out to 42.3% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 29,064 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $110 strike call option expiring May 21, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of ABBV. That number works out to 42.3% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | 57b3f1c3-dcfa-4ceb-a5f5-e5f16b6827cd |
24187.0 | 2021-03-04 00:00:00 UTC | 5 Stocks Warren Buffett Just Sold From Berkshire's Portfolio | ABBV | https://www.nasdaq.com/articles/5-stocks-warren-buffett-just-sold-from-berkshires-portfolio-2021-03-04 | nan | nan | Warren Buffett has said "our favorite holding period is forever," but this doesn't necessarily mean that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) will hold any of its stocks forever. In fact, Buffett and his investing team sell stocks regularly, and for a variety of reasons.
In this Fool Live video clip, recorded on Feb. 22, Fool.com contributor Matt Frankel, CFP, and Industry Focus host Jason Moser talk about five stocks Berkshire decided to get rid of entirely during the fourth quarter of 2020.
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Jason Moser: Then he exited completely, it looks like five positions here. Anything stand out to you there?
Matt Frankel: Well, the ones that didn't surprise me were the banks, like I said, he's been selling pretty much every bank but Bank of America (NYSE: BAC).
Moser: Right.
Frankel: He's calling that the winner. He sold PNC Financial (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), and M&T Bank (NYSE: MTB) completely, which surprised me a little bit. The big surprise here was that he sold Barrick Gold (NYSE: GOLD), which he just bought. Remember he made the investment in the gold miner about a quarter, I think just the quarter before.
Moser: Yeah. I was going to say, I feel like that that just happened. It sounds like it did.
Frankel: It didn't last long and Buffett's normally not one to make a short-term trade. So that just happened, he sold all 12 million shares that they bought.
Moser: Maybe he's going Bitcoin (CRYPTO: BTC) now.
Frankel: I don't think so. I would bet money that he's not going Bitcoin.
Moser: I'm just kidding. [laughs]
Frankel: But I have been wrong about things before. You never know, especially with his lieutenants, Ted and Todd in charge of a lot of it.
Moser: Yeah. They're more forward-looking.
Frankel: It's not out of the realm of possibilities. Buffett and Munger have both said that they don't like Bitcoin.
Moser: Right.
Frankel: That has nothing to do with what his stock pickers who have complete control over billions of dollars want to do. It's not outside the realm of possibilities.
Moser: Not at all.
Frankel: I'll keep my Bitcoin opinions zipped up for a moment.
Moser: Okay.
Frankel: Just because I don't want to get down that rabbit hole today. The fifth one that he sold was Pfizer (NYSE: PFE), which actually surprised me a little bit. He added to his other three healthcare plays. I mentioned Bristol Myers (NYSE: BMY), AbbVie (NYSE: ABBV), but sold out of Pfizer completely. What do you think about that? Do you think it was a vaccine play or --
Moser: I kind of wonder if maybe that isn't it. Obviously the market being very forward looking, I think a lot of what the market has been looking forward with in regards to Pfizer has probably really come to fruition and been pulled forward. So maybe he is looking at that, thinking I've got other opportunities. Perhaps part of that was that Verizon (NYSE: VZ) idea. A little more of a slow and steady, reliable dividend play there with Verizon. That was obviously a massive investment he made, that it may not seem very exciting. I tell you those operators, utilities or the mobile operators, they have that annuity quality to them. There are things that people need, and so they more or less are going to keep running, and they are able to offer up those dividends. It's not like the sun coming up, but they're pretty reliable, Matt.
Frankel: Buffett likes reliable dividends. Berkshire makes billions in dividend income each year off of that portfolio, and that's money that Berkshire can reinvest.
Jason Moser has no position in any of the stocks mentioned. Matthew Frankel, CFP owns shares of Bank of America and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool recommends Bitcoin and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 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. | I mentioned Bristol Myers (NYSE: BMY), AbbVie (NYSE: ABBV), but sold out of Pfizer completely. In fact, Buffett and his investing team sell stocks regularly, and for a variety of reasons. In this Fool Live video clip, recorded on Feb. 22, Fool.com contributor Matt Frankel, CFP, and Industry Focus host Jason Moser talk about five stocks Berkshire decided to get rid of entirely during the fourth quarter of 2020. | I mentioned Bristol Myers (NYSE: BMY), AbbVie (NYSE: ABBV), but sold out of Pfizer completely. Matthew Frankel, CFP owns shares of Bank of America and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. | I mentioned Bristol Myers (NYSE: BMY), AbbVie (NYSE: ABBV), but sold out of Pfizer completely. Warren Buffett has said "our favorite holding period is forever," but this doesn't necessarily mean that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) will hold any of its stocks forever. In this Fool Live video clip, recorded on Feb. 22, Fool.com contributor Matt Frankel, CFP, and Industry Focus host Jason Moser talk about five stocks Berkshire decided to get rid of entirely during the fourth quarter of 2020. | I mentioned Bristol Myers (NYSE: BMY), AbbVie (NYSE: ABBV), but sold out of Pfizer completely. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Frankel: I don't think so. | fccf20c2-219a-4601-b1ff-bbe7143b79e4 |
24188.0 | 2021-03-03 00:00:00 UTC | 7 Great Dividend Stocks Outside the Energy Sector | ABBV | https://www.nasdaq.com/articles/7-great-dividend-stocks-outside-the-energy-sector-2021-03-03 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last year was a tale of two halves for dividend stocks. The novel coronavirus pandemic made the first half of 2020 a period of payout cuts and halts by S&P 500 Index names, but payouts came back mightily in the second half of the year, indicating that many of the top stocks for 2021 are dividend payers.
Goldman Sachs analysts expect a 5% rise. “Goldman expects the vaccine distribution efforts by mid 2021 should help real GDP growth reach 5%, which itself is 120bps above the consensus for growth,” noted Seeking Alpha in December. “The analysts also point to historical annualized growth in dividends, which, since the early 1950s, never dipped below 2.2% CAGR, while dividend futures are pricing in an average annual dividend growth from 2019-2029 of -1%.”
Investors seeking dividend stocks often look to the energy sector. That’s because the energy sector is known historically to contain reliable dividend payers. However, outside of the sector, yield seekers still have many options.
7 of the Best Warren Buffett Stock Picks of the Past Decade
That’s where we’ll look today. There are many great companies to invest in that bear dividends across industry. A few of these companies also possess significant growth potential.
AbbVie (NYSE:ABBV)
Walmart (NYSE:WMT)
Fortress Transportation & Infrastructure (NYSE:FTAI)
Albemarle (NYSE:ACRE)
Phillip Morris International (NYSE:PM)
Archer-Daniels-Midland (NYSE:ADM)
Gaming and Leisure Properties (NASDAQ:GLPI)
Dividend Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie is a pharmaceutical company focusing on a range of therapeutics. These cover a range of specialties, including immunology, neuroscience, oncology, virology and eye care, among others. AbbVie also manufactures medical devices.
AbbVie declared a $1.30 dividend on Feb. 18. The company has increased its dividend 225% since its inception in 2013.
Still, AbbVie is a great stock outside of its dividend. It is a strong company. 2020 revenues were $45.8 billion which was a year-over-year increase of 37.7%. Immunology was its strongest business in 2020, accounting for 48.4% of revenues. AbbVie depends on Humira for the bulk of those revenues but other immunology products, including Skyrizi and Rinvoq, grew at over 100% in 2020. AbbVie’s other businesses including oncology and neuroscience actually grew faster in 2020.
But, back to the dividend. I believe AbbVie is a strong company with growth ahead of it. But it should be noted that its dividend is not perfect. Does it continue to grow? Yes. But it does have a high dividend payout ratio of 1.74 in order to maintain that constant increase. This means AbbVie is paying 174% of earnings toward its dividend. That isn’t sustainable.
A healthier dividend payout ratio tends to be in the 35% to 55% range. Nevertheless, ABBV stock is strong and its dividend stable.
Walmart (WMT)
WMT) logo on Walmart store with clear blue sky in the background" width="300" height="169">Source: Jonathan Weiss / Shutterstock.com
Walmart remained the largest global retailer in 2020. Its full year revenues for 2020 totaled $560 billion. This was an increase of $35 billion during the year. Amazon (NASDAQ:AMZN) remains the second-largest retailer, but made significant progress in closing the gap between the two companies. Amazon posted full year sales of $386.1 billion in 2020, up 38% from $280.5 billion in 2019.
But I digress. Aside from its massive scale and impressive business operations, Walmart is also a company with a strong dividend. The dividend not been cut since 1975. The yield is fairly modest at 1.66% trailing, and 1.69% forward. That translated into 55-cent payouts in each of the past four quarters. WMT stock traded between $102 and $153 in the past 52 weeks.
The dividend is extremely stable and predictable historically. Investors can expect Walmart to continue to increase its dividend 4 cents per year if the past is prologue. As the big-box retailer continues to improve its e-commerce platform, share prices may grow. The company is now the number two company in retail e-commerce sales.
Walmart doesn’t have the appeal that Amazon possesses. However, it is the larger retailer. Further, it has a dividend that Amazon lacks.
Fortress Transportation & Infrastructure (FTAI)
Source: Vitpho/Shutterstock.com
Compared to the first two names on this list, Fortress Transportation & Infrastructure is much lesser known. I’d venture to guess most readers have never heard of the company. I know I hadn’t before researching it recently. The company works in transportation and infrastructure.
Fortress acquires and operates transportation and transportation infrastructure.
Some of the company’s operations do touch upon energy, but the company is diverse enough to merit a spot on this non-energy list. The company is divided into two main businesses: equipment leasing, $1.66 billion; and, infrastructure, worth $971 million.
The equipment leasing arm is aviation focused, while the infrastructure does touch upon midstream energy operations. The equipment leasing section owns 264 assets including 78 aircraft and 186 engines which it leases to customers. Therefore, as full disclosure, those seeking dividends completely outside of energy beware.
Fortress began paying a 33-cent quarterly dividend in November 2018 which continues unchanged. The 4.97% yield rate is neither exceptional nor low. But the company looks to be in strong position as infrastructure investments should climb. And with its aviation assets, FTAI stock can benefit as air traveler traffic inches upward.
Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle is a company that operates in the relatively unsexy sector of chemical manufacturing. Despite that staid playing field, it is in a strong position due to the much-sexier electric vehicle industry. That’s because it produces lithium central to the production of EV batteries.
This makes ALB stock a bit speculative. Part of the argument in favor of buying Albemarle shares depends upon the continued growth of the EV market. A recent report from Deloitte assumes that compound annual growth in the sector will hit 29% through 2030. That same report anticipates that EVs will constitute 31% of all new car sales in 2030.
Another part of the argument favoring Albemarle assumes that lithium will remain the leading battery chemistry in EV batteries. That indeed looks to be the case at least through 2030, according to IDTechEx.
Albemarle isn’t a dedicated lithium producer, but it is a name deeply entrenched in the EV conversation. So, consider it a play on EV sector growth with a modest dividend attached to it.
The company’s annualized dividend is $1.56, equating to around a 1% yield at current prices.
Phillip Morris International (PM)
Source: vfhnb12 / Shutterstock.com
Phillip Morris is one of the biggest worldwide names in tobacco. That means it is a company in transition. Cigarette smoking hit an all-time low of 13.7% in 2018. It decreased again in 2019. Then cigarette sales flattened in 2020, meaning they actually trended upward, as the pandemic led to an increase in alcohol and tobacco consumption.
Phillip Morris is transitioning toward more smoke-free alternatives. How much those take root remains to be seen. In fact, the report liked above indicates that some consumers are returning to cigarettes following concerns about vape safety.
There were several positives from the company’s full-year report released on Feb. 4. EPS rose by 11.9% to $5.16 for 2020. EPS was even stronger in Q4, up 22.1% year-over-year to $1.27 during that period. Operating income increased by 10.8% while revenues declined by 3.7%. That indicates efficiency on the part of Phillip Morris.
PM stock carries a forward dividend yield of 5.66%, which now stands at $1.20 per quarter. There’s a fair bit of upside in shares themselves. Wall Street gives PM stock an average target price of $98.04 currently. That implies a good return based on current $84.12 share prices.
Archer-Daniels-Midland (ADM)
Source: Katherine Welles / Shutterstock.com
Archer-Daniels-Midland is the agricultural commodity firm behind many other companies. It produces things like wheat, corn and oils among its roster of agricultural commodities.
ADM is also a dividend aristocrat — since 1976 — with a $32 billion market capitalization.
The company, like many others, struggled during the pandemic. These struggles resulted in a 2020 which saw overall revenues remain flat from 2019. In fact they decreased a modest .47% year-over-year. However, overall profits increased 29.22% from 2019 through 2020. And although revenues were flat for the entire year, Q4 showed an increase. Q4 2020 revenues increased 9.7% of the same period in the previous year.
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Archer Daniels Midland is separated into 3 main business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. All 3 showed increased profitability in 2020. Investors can anticipate a lot of stability from ADM stock.
Its forward dividend yield is 2.63% and the company maintains a healthy 0.46 payout ratio. Thus, even though ADM’s dividend doesn’t yield massive returns, there is absolutely no reason it is at any risk at all. In fact, ADM could easily increase its yield and remain in a very healthy range of payout ratio.
Gaming and Leisure Properties (GLPI)
Source: Shutterstock
Gaming and Leisure Properties stock carries a nicely growing dividend. The company just increased its quarterly payout to 65 cents per share. The company acquires, owns, and finances real estate which it leases to gaming operators.
The company is the name behind up-and-coming names in the gambling space including Penn National Gaming (NASDAQ:PENN) and DraftKings (NASDAQ:DKNG). GLPI is underpinned by 48 properties which it states are all current in respect to rental payments. Some 47 of its 48 properties are now open under safety protocols.
I personally think this is an exciting stock to own because it is a REIT operating in the gambling sector. Gambling is certainly a growth sector worth considering. The rise of DraftKings and Penn speak to this trend.
Real estate is usually a fairly safe bet although it has downsides. Investors have seen this in 2020 as remote work roiled real estate. However, the real estate GLPI operates will certainly continue to draw users because it is unique among commercial real estate. People simply will come to gamble.
GLPI’s dividend yield is about 5.5% and, based on the most recent 65-cent dividend, pays $2.60 on an annualized basis.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Great Dividend Stocks Outside the Energy Sector appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE:ABBV) Walmart (NYSE:WMT) Fortress Transportation & Infrastructure (NYSE:FTAI) Albemarle (NYSE:ACRE) Phillip Morris International (NYSE:PM) Archer-Daniels-Midland (NYSE:ADM) Gaming and Leisure Properties (NASDAQ:GLPI) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical company focusing on a range of therapeutics. AbbVie also manufactures medical devices. AbbVie declared a $1.30 dividend on Feb. 18. | AbbVie (NYSE:ABBV) Walmart (NYSE:WMT) Fortress Transportation & Infrastructure (NYSE:FTAI) Albemarle (NYSE:ACRE) Phillip Morris International (NYSE:PM) Archer-Daniels-Midland (NYSE:ADM) Gaming and Leisure Properties (NASDAQ:GLPI) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical company focusing on a range of therapeutics. AbbVie also manufactures medical devices. AbbVie declared a $1.30 dividend on Feb. 18. | AbbVie (NYSE:ABBV) Walmart (NYSE:WMT) Fortress Transportation & Infrastructure (NYSE:FTAI) Albemarle (NYSE:ACRE) Phillip Morris International (NYSE:PM) Archer-Daniels-Midland (NYSE:ADM) Gaming and Leisure Properties (NASDAQ:GLPI) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical company focusing on a range of therapeutics. AbbVie also manufactures medical devices. AbbVie declared a $1.30 dividend on Feb. 18. | AbbVie (NYSE:ABBV) Walmart (NYSE:WMT) Fortress Transportation & Infrastructure (NYSE:FTAI) Albemarle (NYSE:ACRE) Phillip Morris International (NYSE:PM) Archer-Daniels-Midland (NYSE:ADM) Gaming and Leisure Properties (NASDAQ:GLPI) Dividend Stocks: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical company focusing on a range of therapeutics. AbbVie also manufactures medical devices. AbbVie declared a $1.30 dividend on Feb. 18. | 5799fe0f-30b5-4560-bf56-abcd362e4517 |
24189.0 | 2021-03-02 00:00:00 UTC | 6 Things to Do When the Stock Market Skyrockets | ABBV | https://www.nasdaq.com/articles/6-things-to-do-when-the-stock-market-skyrockets-2021-03-02 | nan | nan | When the stock market has a great day, it's supposed to be good news. That's what happened on Mar. 1, when markets like the S&P 500 posted some of their best point gains in history. But let's face it: Sometimes, it leaves you feeling like you've missed out on the chance to score a bargain.
Fear not, though: Whether the stock market is up or down, the opportunities are limitless. Here's what to do whenever the stock market skyrockets.
Image source: Getty Images.
1. Buy anyway if your conviction is strong
There's nothing wrong with waiting for a dip to buy stocks on the cheap. But if you have a strong conviction about a stock's potential, go ahead and invest anyway.
Let's go back a decade and imagine you invested $10,000 in Amazon (NASDAQ: AMZN) in 2011. Had you bought the stock at its low for the year on March 17, 2011, for $160.97 a share, you'd have $192,000 today. If you'd invested $10,000 at the year's peak price of $246.71 on Oct. 14, 2011, you'd still have more than $125,000.
Of course you'd buy for the low price if you could. But the point is that even when shares had risen 53% in less than seven months, there was still amazing opportunity. If you're truly passionate about a stock's prospects, invest in it even if the market is up. You can work the stock into your dollar-cost averaging budget so you can buy some shares while they're down as well.
Image source: The Motley Fool.
2. Copy Warren Buffett's strategy
When you own a stock that's already soared, it can become too highly concentrated in your portfolio. That's risky whether you're an everyday investor or a billionaire like Warren Buffett. Instead of cashing out, copy Buffett's strategy for dealing with winners: Keep the value of your investment the same, but use the appreciation to fund new stock ideas.
Throughout 2020, Buffett modestly cut Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) share in Apple (NASDAQ: AAPL). He used the freed-up cash to diversify with stocks like AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ).
3. Selectively take profits
On the flip side, sometimes you buy and realize you don't want to hold forever. If that's the case, it might be time to sell some stocks while they're up. This especially applies if you need to cash out some of your holdings because you expect you'll need the money in the next couple of years.
4. Avoid taking short positions
Perhaps certain stocks just popped, but you expect they'll nosedive soon. While it may be tempting to short a stock that you think is a loser, the recent GameStop short squeeze shows just how risky doing so can be. Unless you're an extremely experienced investor who understands the virtually unlimited potential for losses, short positions are best avoided.
Image source: Getty Images.
5. Buy call options if you're afraid of missing out on gains
If you aren't quite ready to buy certain stocks but you think the market will continue to skyrocket, buying call options can help you lock in a low price. Buying calls gives you the right (but not the obligation) to buy shares at a certain price within a specified timeframe. Note that buying and selling options is complex and is something you should only do if you're a knowledgeable investor.
6. Review your other goals
A soaring stock market can distract you from your other goals, but investing returns are just one piece of your larger financial picture. So take a step back and look at how you're doing on your other goals, whether they include paying off debt or saving for a down payment on a home. Don't let one good day of the stock market alter your priorities.
10 stocks we like better than Walmart
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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. | He used the freed-up cash to diversify with stocks like AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ). Copy Warren Buffett's strategy When you own a stock that's already soared, it can become too highly concentrated in your portfolio. Instead of cashing out, copy Buffett's strategy for dealing with winners: Keep the value of your investment the same, but use the appreciation to fund new stock ideas. | He used the freed-up cash to diversify with stocks like AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ). Throughout 2020, Buffett modestly cut Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) share in Apple (NASDAQ: AAPL). The Motley Fool owns shares of and recommends Amazon, Apple, and Berkshire Hathaway (B shares). | He used the freed-up cash to diversify with stocks like AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ). Buy call options if you're afraid of missing out on gains If you aren't quite ready to buy certain stocks but you think the market will continue to skyrocket, buying call options can help you lock in a low price. See the 10 stocks Stock Advisor returns as of 2/1/20 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | He used the freed-up cash to diversify with stocks like AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ). Here's what to do whenever the stock market skyrockets. Buy call options if you're afraid of missing out on gains If you aren't quite ready to buy certain stocks but you think the market will continue to skyrocket, buying call options can help you lock in a low price. | a7b80f2c-2fec-489d-90a6-68c6e2e4464a |
24190.0 | 2021-03-02 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-03-02 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Medtronic PLC (Symbol: MDT) $117.86 $128.21 8.78%
National Fuel Gas Co. (Symbol: NFG) $45.88 $49.83 8.62%
AbbVie Inc (Symbol: ABBV) $108.41 $116.73 7.68%
Brown & Brown Inc (Symbol: BRO) $46.84 $50.00 6.75%
UGI Corp. (Symbol: UGI) $38.54 $40.50 5.09%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Medtronic PLC (Symbol: MDT) 1.97% 8.78% 10.75%
National Fuel Gas Co. (Symbol: NFG) 3.88% 8.62% 12.5%
AbbVie Inc (Symbol: ABBV) 4.80% 7.68% 12.48%
Brown & Brown Inc (Symbol: BRO) 0.79% 6.75% 7.54%
UGI Corp. (Symbol: UGI) 3.42% 5.09% 8.51%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Medtronic PLC (Symbol: MDT) $2.12 $2.28 7.55%
National Fuel Gas Co. (Symbol: NFG) $1.73 $1.77 2.31%
AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25%
Brown & Brown Inc (Symbol: BRO) $0.33 $0.356 7.88%
UGI Corp. (Symbol: UGI) $1.21 $1.315 8.68%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Medtronic PLC (Symbol: MDT) $117.86 $128.21 8.78% National Fuel Gas Co. (Symbol: NFG) $45.88 $49.83 8.62% AbbVie Inc (Symbol: ABBV) $108.41 $116.73 7.68% Brown & Brown Inc (Symbol: BRO) $46.84 $50.00 6.75% UGI Corp. (Symbol: UGI) $38.54 $40.50 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 1.97% 8.78% 10.75% National Fuel Gas Co. (Symbol: NFG) 3.88% 8.62% 12.5% AbbVie Inc (Symbol: ABBV) 4.80% 7.68% 12.48% Brown & Brown Inc (Symbol: BRO) 0.79% 6.75% 7.54% UGI Corp. (Symbol: UGI) 3.42% 5.09% 8.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.12 $2.28 7.55% National Fuel Gas Co. (Symbol: NFG) $1.73 $1.77 2.31% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Brown & Brown Inc (Symbol: BRO) $0.33 $0.356 7.88% UGI Corp. (Symbol: UGI) $1.21 $1.315 8.68% These five stocks are part of our full Dividend Aristocrats List. | Medtronic PLC (Symbol: MDT) $117.86 $128.21 8.78% National Fuel Gas Co. (Symbol: NFG) $45.88 $49.83 8.62% AbbVie Inc (Symbol: ABBV) $108.41 $116.73 7.68% Brown & Brown Inc (Symbol: BRO) $46.84 $50.00 6.75% UGI Corp. (Symbol: UGI) $38.54 $40.50 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 1.97% 8.78% 10.75% National Fuel Gas Co. (Symbol: NFG) 3.88% 8.62% 12.5% AbbVie Inc (Symbol: ABBV) 4.80% 7.68% 12.48% Brown & Brown Inc (Symbol: BRO) 0.79% 6.75% 7.54% UGI Corp. (Symbol: UGI) 3.42% 5.09% 8.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.12 $2.28 7.55% National Fuel Gas Co. (Symbol: NFG) $1.73 $1.77 2.31% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Brown & Brown Inc (Symbol: BRO) $0.33 $0.356 7.88% UGI Corp. (Symbol: UGI) $1.21 $1.315 8.68% These five stocks are part of our full Dividend Aristocrats List. | Medtronic PLC (Symbol: MDT) $117.86 $128.21 8.78% National Fuel Gas Co. (Symbol: NFG) $45.88 $49.83 8.62% AbbVie Inc (Symbol: ABBV) $108.41 $116.73 7.68% Brown & Brown Inc (Symbol: BRO) $46.84 $50.00 6.75% UGI Corp. (Symbol: UGI) $38.54 $40.50 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 1.97% 8.78% 10.75% National Fuel Gas Co. (Symbol: NFG) 3.88% 8.62% 12.5% AbbVie Inc (Symbol: ABBV) 4.80% 7.68% 12.48% Brown & Brown Inc (Symbol: BRO) 0.79% 6.75% 7.54% UGI Corp. (Symbol: UGI) 3.42% 5.09% 8.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.12 $2.28 7.55% National Fuel Gas Co. (Symbol: NFG) $1.73 $1.77 2.31% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Brown & Brown Inc (Symbol: BRO) $0.33 $0.356 7.88% UGI Corp. (Symbol: UGI) $1.21 $1.315 8.68% These five stocks are part of our full Dividend Aristocrats List. | Medtronic PLC (Symbol: MDT) $117.86 $128.21 8.78% National Fuel Gas Co. (Symbol: NFG) $45.88 $49.83 8.62% AbbVie Inc (Symbol: ABBV) $108.41 $116.73 7.68% Brown & Brown Inc (Symbol: BRO) $46.84 $50.00 6.75% UGI Corp. (Symbol: UGI) $38.54 $40.50 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Medtronic PLC (Symbol: MDT) 1.97% 8.78% 10.75% National Fuel Gas Co. (Symbol: NFG) 3.88% 8.62% 12.5% AbbVie Inc (Symbol: ABBV) 4.80% 7.68% 12.48% Brown & Brown Inc (Symbol: BRO) 0.79% 6.75% 7.54% UGI Corp. (Symbol: UGI) 3.42% 5.09% 8.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Medtronic PLC (Symbol: MDT) $2.12 $2.28 7.55% National Fuel Gas Co. (Symbol: NFG) $1.73 $1.77 2.31% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Brown & Brown Inc (Symbol: BRO) $0.33 $0.356 7.88% UGI Corp. (Symbol: UGI) $1.21 $1.315 8.68% These five stocks are part of our full Dividend Aristocrats List. | a4e10965-5836-427c-a29d-eda73e66f48d |
24191.0 | 2021-03-02 00:00:00 UTC | Where Will Pfizer Be in 1 Year? | ABBV | https://www.nasdaq.com/articles/where-will-pfizer-be-in-1-year-2021-03-02 | nan | nan | Those following the headlines about Pfizer (NYSE: PFE) last year may have thought 2020 was all about developing a vaccine for COVID-19. For society at large, it was. For the company, though, 2020 was about transformation. Management is hoping to reestablish Pfizer as a scientific trailblazer after shedding slow-growth businesses. By this time next year, we should know whether the move is paying off or whether competition will stunt the 172-year-old pharmaceutical giant's attempt to ignite growth.
The new Pfizer
Over the last decade, the company has been converting itself into what it calls a pure-play science and innovation-focused company. After the August 2019 deal with GlaxoSmithKline to create a joint venture of consumer health assets, and the November 2020 deal to combine its off-patent arm, Upjohn, with Mylan to form Viatris, management is finally able to devote all of its energy to the biopharmaceuticals business. The unit is surprisingly well-diversified, with no single segment comprising more than roughly a quarter of sales, as the recently reported full-year 2020 results demonstrate.
SEGMENT 2020 REVENUE PERCENT OF REVENUE YOY GROWTH
Internal medicine $9 billion 22% 3%
Oncology $10.9 billion 26% 21%
Hospital $8 billion 19% 3%
Vaccines $6.6 billion 16% 2%
Inflammation & immunology $4.6 billion 11% (3%)
Rare disease $2.9 billion 7% 29%
Total $41.9 billion 100% 8%
Data source: Pfizer. YOY = year over year.
As the largest segment, oncology is the most important growth driver for the company. Breast cancer drug Ibrance is the best seller there, and its sales were up 9% year over year in 2020. The $5.4 billion in revenue made it the company's second best-selling drug overall. Other smaller contributors in the segment included Xtandi and Inlyta, drugs for prostate and kidney cancer, respectively. Beyond oncology, blockbuster drugs for arthritis, heart failure, and blood clots all grew at least as fast as Ibrance.
That is impressive diversification across a portfolio of drugs for many different diseases. Of course, the greatest success of 2020 was the development and rollout of Comirnaty, the COVID-19 vaccine developed with partner BioNTech (NASDAQ: BNTX).
Image source: Getty Images.
A bevy of competition
To maintain this kind of growth, Pfizer will have to fight off competition on nearly every front. So far, the company has shared the stage with Moderna in the fight against COVID-19. However, with Johnson & Johnson's single-dose vaccine now authorized for emergency use, that may change fast. And there's another contender not far behind; this one, from Novavax, requires two shots but doesn't use a genetic delivery mechanism and has no special storage requirements. The company could see its market share shrink fast as these alternative options emerge.
In oncology, a clinical trial studying the ability of Ibrance to prevent recurrence in women after treatment for early stage breast cancer did not meet its goal. That opens the door for Eli Lilly's (NYSE: LLY) competing drug, Verzenio, which did reduce the risk of recurrence in its own study.
In inflammation and immunology, patients taking arthritis drug Xeljanz were shown to be at greater risk of heart complications and cancer than if they were taking other anti-inflammatory drugs. The issue may not be with the drug itself. Instead, the entire class of JAK inhibitors -- drugs that block an enzyme that regulates immune response -- has come under scrutiny. That should give investors concern about the durability of the $2.4 billion Xeljanz produced last year. Competing drugs like Abbvie's (NYSE: ABBV) Humira, which generated nearly $20 billion in sales last year, and Amgen's (NASDAQ: AMGN) Enbrel, which produced $1.3 billion, take a different approach to treating inflammatory diseases.
Pfizer's best-selling drug is pneumococcal vaccine Prevnar, bringing in $5.85 billion last year. It was the highest-grossing vaccine in the world before COVID-19, and it could also be under threat. Pfizer and Merck (NYSE: MRK) both have improved pneumococcal vaccines for adults slated for a decision from the U.S. Food and Drug Administration this summer. However, adults only account for 20% of Prevnar sales -- and Merck's new candidate is expected to have results on its effects in children by November, a year earlier than Pfizer's. That head start could eat into sales of Prevnar for at least a year, or even longer if doctors stick with the Merck treatment once they start using it.
This time next year
A year from now, investors will have a lot more information about the growth prospects for Pfizer. Prevnar sales could be under assault, COVID-19 vaccine sales could be limited to boosters, and some of the company's blockbuster drugs could have been replaced. Management has guided for $59.4 billion to $61.4 billion in revenue this year thanks to $15 billion from COVID-19 vaccine sales, but these risks could undermine the minimum 6% annual revenue growth CEO Albert Bourla has promised beyond this year.
That said, Pfizer is mounting a defense. The company is currently investigating a third vaccine shot in the hopes that it will extend protection, in addition to developing a version of the vaccine to target the South African variant. Also, the recent launches of biosimilars should bolster the oncology segment and fill some of the gap left by the inability of Ibrance to expand beyond metastatic breast cancer. These biosimilar drugs generated $866 million in revenue last year, up 203% year over year.
2021 will be the first year of Pfizer operating in its new form. Despite the risks, the company has a broad portfolio of drugs and well-performing new products in the key oncology segment. Investors seeking stability may want to add shares to their portfolio. So far, the company is managing risks despite some setbacks, and the next 12 months should provide a lot of clarity about the long-term outlook.
10 stocks we like better than Pfizer
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool recommends Amgen, Johnson & Johnson, Moderna Inc., and 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. | Competing drugs like Abbvie's (NYSE: ABBV) Humira, which generated nearly $20 billion in sales last year, and Amgen's (NASDAQ: AMGN) Enbrel, which produced $1.3 billion, take a different approach to treating inflammatory diseases. In oncology, a clinical trial studying the ability of Ibrance to prevent recurrence in women after treatment for early stage breast cancer did not meet its goal. However, adults only account for 20% of Prevnar sales -- and Merck's new candidate is expected to have results on its effects in children by November, a year earlier than Pfizer's. | Competing drugs like Abbvie's (NYSE: ABBV) Humira, which generated nearly $20 billion in sales last year, and Amgen's (NASDAQ: AMGN) Enbrel, which produced $1.3 billion, take a different approach to treating inflammatory diseases. Internal medicine $9 billion 22% 3% Oncology $10.9 billion 26% 21% Hospital $8 billion 19% 3% Vaccines $6.6 billion 16% 2% Inflammation & immunology $4.6 billion 11% (3%) Rare disease $2.9 billion 7% 29% Total $41.9 billion 100% 8% Data source: Pfizer. The Motley Fool recommends Amgen, Johnson & Johnson, Moderna Inc., and Viatris Inc. | Competing drugs like Abbvie's (NYSE: ABBV) Humira, which generated nearly $20 billion in sales last year, and Amgen's (NASDAQ: AMGN) Enbrel, which produced $1.3 billion, take a different approach to treating inflammatory diseases. Internal medicine $9 billion 22% 3% Oncology $10.9 billion 26% 21% Hospital $8 billion 19% 3% Vaccines $6.6 billion 16% 2% Inflammation & immunology $4.6 billion 11% (3%) Rare disease $2.9 billion 7% 29% Total $41.9 billion 100% 8% Data source: Pfizer. Management has guided for $59.4 billion to $61.4 billion in revenue this year thanks to $15 billion from COVID-19 vaccine sales, but these risks could undermine the minimum 6% annual revenue growth CEO Albert Bourla has promised beyond this year. | Competing drugs like Abbvie's (NYSE: ABBV) Humira, which generated nearly $20 billion in sales last year, and Amgen's (NASDAQ: AMGN) Enbrel, which produced $1.3 billion, take a different approach to treating inflammatory diseases. Breast cancer drug Ibrance is the best seller there, and its sales were up 9% year over year in 2020. Pfizer's best-selling drug is pneumococcal vaccine Prevnar, bringing in $5.85 billion last year. | a1a49bba-69ed-4c93-bbd7-eba09cb54094 |
24192.0 | 2021-03-01 00:00:00 UTC | 7 Safe Stocks You Can Hold Onto Forever | ABBV | https://www.nasdaq.com/articles/7-safe-stocks-you-can-hold-onto-forever-2021-03-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The continued rise in the stock market is widening the gap between value and growth investments. Technology, electric vehicles, special purpose acquisition companies (SPACs) and clean energy are just a few segments that have doubled or more. Dividend-income investors watching markets rise while their holdings move nowhere may only express disbelief. The rising market will only lure such investors to join the momentum trades higher. This all leads investors to wonder, what are some safe stocks to buy now?
Safe stocks earn their passive buy-and-hold status for a reason. Most of the time, they pay a dividend. So, the company will distribute its cash flow to investors instead of investing it back to the business. Investors get a steady income in exchange for safety and peace of mind. If these investments do not pay a dividend, they are still safe stocks to buy, provided the company’s balance sheet is not saddled with debt.
7 Stocks to Sell for March
There are seven safe stocks to buy and hold onto forever. In alphabetical order:
Apple (NASDAQ:AAPL)
AbbVie (NYSE:ABBV)
Amazon (NASDAQ:AMZN)
Coca-Cola (NYSE:KO)
Altria Group (NYSE:MO)
PepsiCo (NASDAQ:PEP)
Wells Fargo (NYSE:WFC)
Overall Stock Score and quality score on stocks to hold forever.
Data courtesy of Stock Rover
Left: Overall stock scores for the seven stocks. This score considers quality, sentiment, growth and value. Nearly every pick is “green” on quality, except Wells Fargo. A Fed cap lift would put an end to its low score.
Keep reading for a discussion on Wells Fargo stock.
Safe Stocks to Buy: Apple (AAPL)
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Source: pio3 / Shutterstock.com
Rumors that Apple would enter the electric vehicle (EV) market signal the market’s bullishness for the company’s reach. The smartphone giant is enjoying strong device sales and subscription growth. The impressive Q1 2021 results reaffirm Apple as a stock to buy and hold forever.
Apple posted first-quarter earnings showing earnings per share (EPS) growing by 35% to record levels. The company earned $1.68 a share as revenue rose by 21% year-over-year to $111.4 billion. The $38.8 billion in quarterly cash flow is enough to fund Apple’s EV ambitions. An EV partnership with a big auto brand like Nissan (OTCMKTS:NSANY) would hurt investors. So, investors should have expressed relief when talks ended after clashes over branding. Before that, AAPL discussed a partnership with Hyundai (OTCMKTS:HYMTF). That ended on Feb. 8.
Apple’s impressive iPhone sales will continue through the year. Supply constraints limited production of the iPhone Pro and Pro Max in the quarter. Expect product awareness to lift demand for those models. This will coincide with the company working through supply limitations.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie shares are stuck in a narrow trading range. While markets continue to ignore this drug manufacturer’s strong quarterly results, investors may collect a dividend that yields around 5%.
In the fourth-quarter and full-year report, AbbVie posted EPS of $2.72 for the fiscal year. Revenue grew by 37.7% to $45.8 billion. Results include revenue from the Allergan acquisition, which was completed last year. Adjusted for Allergan’s operations in the prior year, revenue grew by 9.4% year-over-year. AbbVie operates in many markets. Revenue from the immunology unit, led by sales of Humira, rose by 9.4% in the U.S. but fell internationally.
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In the aesthetics division, expect a rebound in revenue as easing restrictions from the pandemic help lift results in 2021. Chief Executive Officer Richard Gonzalez said that the unit will regain its growth trajectory this year. It will grow in the high single-digit percentage over the next decade.
Amazon (AMZN)
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Source: Eric Broder Van Dyke / Shutterstock.com
The pandemic accelerated market-share growth for online retailers. Amazon posted exceptional fourth-quarter results and announced that Andy Jassy would become the new CEO.
The company posted operating-cash-flow growth of 72% to $66.1 billion. AWS, or Amazon Web Services, enjoyed significant customer momentum in the quarter. AWS’s customers need to migrate to the platform while new customers commit to it. Demand is so strong that Amazon’s AWS re:Invent attracted over 570,000 registered attendees. The more than 180 new services announced will further fuel demand and lift revenue.
AMZN shares are trading in a narrow range around $3,200. Once thought of as an expensive stock, momentum investors are ignoring the online giant’s prospects. Chasing high-flying SPACs that are pre-revenue will prove costly. Conversely, Amazon is a stock to buy and hold forever.
Coca-Cola (KO)
Source: Tetiana Shumbasova / Shutterstock.com
Besides increasing its dividend by a penny for shareholders, Coca-Cola’s underperformance is unusual. It earned 47 cents a share as revenue dropped 5.31% to $8.6 billion. Investors may excuse the lower sales because of the negative impact of the pandemic.
Coca-Cola has two approaches in strengthening sales. It will ensure seamless execution of its supply chain. And it will support customers. For example, the Sprite campaign and Fanta Global Initiatives will spur demand.
KO stock faces near-term headwinds from a U.S. tax dispute. But if the court upholds its decision, the company will owe around $12 billion in incremental tax liability. Resolving the dispute will take time. The uncertainties already hurt the share price. This will not distract management, as the team focuses on delivering growth and creating long-term value for shareholders.
A five-year DCF Growth Exit model uses the perpetuity growth formula (also known as Gordon Growth) to calculate terminal value after five years. At a 4% growth rate, KO stock is worth around $61, using this finbox calculator.
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The stock has strong brand recognition. With revenue set to rebound, investors should consider holding this stock forever.
Altria Group (MO)
Source: defotoberg / Shutterstock.com
Investors look at tobacco stocks as a taboo investment. Yet Altria’s expansion into markets beyond cigarettes will pay off for the patient shareholder. The steady quarterly results also suggest limited downside risk as Altria pivots into e-cigarettes and cannabis.
In Q4 of 2020, Altria posted revenue growth of 5.27%, or $5.05 billion. EPS topped 99 cents. On its conference call, Chief Executive Officer Billy Gifford expressed confidence in its outlook for the year. He said that cigarette sales over the next decade are the core driver of the business. But in that 10-year timeframe, non-combustible products will add meaningfully to results. Altria will continue to invest in that market segment to support the non-combustible portfolio.
Investors may count on the proven management team to expand the business. While invested, MO stock will pay a dividend that yields near the 8% range.
PepsiCo (PEP)
Source: FotograFFF / Shutterstock.com
Pepsi drifted lower in sympathy to the drop in Coca-Cola shares. Besides paying a dividend of around 3%, the 2020 Q4 results are solid.
Pepsi posted Q4 revenue growing by 8.8% year-over-year. EPS topped $1.47 in the quarter and $5.52 for the year. For 2021, PEP stock will pay a dividend that is 5% higher than last year. The beverage firm also sells food products across a wide market. For example, Frito-Lay is a snack brand, while Quaker Foods sells everything from breakfast oatmeal to snacks.
Quaker’s North American performance is notable. Operating profit grew 17%. The unit benefited from strong revenue growth and lower advertising and marketing spend. Though it took a Covid-19-related charge that hurt profit growth by 2%, such costs are unlikely this year.
Europe underperformed as profits fell. Since currency exchange rate costs are to blame, expect a stable U.S. dollar supporting results next quarter.
7 Safe Stocks to Buy for Your Retirement
In a five-year DCF EBITDA Exit model, assume a discount rate of 8%. This would suggest a fair value of $129 for PEP stock.
Wells Fargo (WFC)
Source: Ken Wolter / Shutterstock.com
Wells Fargo barely pays a dividend. This did not stop WFC stock from rising in recent months. Bloomberg reported that the Fed may accept the bank’s overhaul plan. Easing asset caps will put an end to the bank’s underperformance.
Getting the Fed’s approval is a sign that the new management team is of better quality. An asset cap lift may not come until later this year. However, WFC stock will still have a good chance of outperforming the other banks. Markets are pricing expectations of improved net interest income. Plus, the asset cap easing will lift the price-to-book ratio as investors pay more for holding the stock. This suggests that Wells Fargo is a stock to hold forever.
On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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 Safe Stocks You Can Hold Onto Forever appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In alphabetical order: Apple (NASDAQ:AAPL) AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) Coca-Cola (NYSE:KO) Altria Group (NYSE:MO) PepsiCo (NASDAQ:PEP) Wells Fargo (NYSE:WFC) Overall Stock Score and quality score on stocks to hold forever. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie shares are stuck in a narrow trading range. In the fourth-quarter and full-year report, AbbVie posted EPS of $2.72 for the fiscal year. | In alphabetical order: Apple (NASDAQ:AAPL) AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) Coca-Cola (NYSE:KO) Altria Group (NYSE:MO) PepsiCo (NASDAQ:PEP) Wells Fargo (NYSE:WFC) Overall Stock Score and quality score on stocks to hold forever. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie shares are stuck in a narrow trading range. In the fourth-quarter and full-year report, AbbVie posted EPS of $2.72 for the fiscal year. | In alphabetical order: Apple (NASDAQ:AAPL) AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) Coca-Cola (NYSE:KO) Altria Group (NYSE:MO) PepsiCo (NASDAQ:PEP) Wells Fargo (NYSE:WFC) Overall Stock Score and quality score on stocks to hold forever. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie shares are stuck in a narrow trading range. In the fourth-quarter and full-year report, AbbVie posted EPS of $2.72 for the fiscal year. | In alphabetical order: Apple (NASDAQ:AAPL) AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) Coca-Cola (NYSE:KO) Altria Group (NYSE:MO) PepsiCo (NASDAQ:PEP) Wells Fargo (NYSE:WFC) Overall Stock Score and quality score on stocks to hold forever. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie shares are stuck in a narrow trading range. In the fourth-quarter and full-year report, AbbVie posted EPS of $2.72 for the fiscal year. | d56df743-63f4-492b-8433-d6f69538aafb |
24193.0 | 2021-03-01 00:00:00 UTC | iShares S&P 500 Growth ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/ishares-sp-500-growth-etf-experiences-big-outflow-2021-03-01 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $295.0 million dollar outflow -- that's a 0.9% decrease week over week (from 491,200,000 to 486,550,000). Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. 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 IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $295.0 million dollar outflow -- that's a 0.9% decrease week over week (from 491,200,000 to 486,550,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $295.0 million dollar outflow -- that's a 0.9% decrease week over week (from 491,200,000 to 486,550,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. | 006442bf-90f5-4696-95b7-c420cbd9f169 |
24194.0 | 2021-02-26 00:00:00 UTC | 5 High-Yield Dividend Stocks to Watch | ABBV | https://www.nasdaq.com/articles/5-high-yield-dividend-stocks-to-watch-2021-02-26 | nan | nan | Interest rates may be just a tad above record lows, and while that dynamic is somewhat reflected in bond yields at the moment, it isn't so much in dividend yields. Indeed, a handful of stocks are still dishing out surprisingly high dividend payouts despite the somewhat adverse overall economic environment. Investors looking for high-yield dividends just have to look in the more obscure corners of the market to find them.
Here's a rundown of five high-yield dividend stocks to watch and perhaps even go ahead and add to a diversified investment portfolio.
Image source: Getty Images.
1. AT&T
Dividend yield: 7.1%
There's no denying AT&T (NYSE: T) is dealing with a major debt headache.
It was already deeply indebted, and the 2015 acquisition of DirecTV ultimately cost the company $67 billion. It's now got $154 billion in debt on its balance sheet, with the DirecTV property accounting for the biggest piece of that debt load doing the least to help service it. After years of trying to fix what's broken with the satellite cable TV brand, the company is now just looking to sell it at what will certainly be a significant loss.
What's largely gotten lost in the noise, however, is that AT&T's television woes and its subsequent debt burden aren't actually threatening the telecom giant's payout. While the company opted to not increase its dividend when it normally would have in December -- for the first time since 2006 -- the current annualized payout of $2.08 is still less than last year's suppressed adjusted earnings of $3.18 per share. Moreover, the analyst community is calling for decent earnings growth next year after another slight lull this year. The eventual sale of DirecTV shouldn't adversely affect the ability to keep funding this level of payout.
2. New York Community Bancorp
Dividend yield: 5.9%
Sinking interest rates haven't just worked against bond and dividend yields. They've also made the lending business less profitable, as the margins on loans are directly linked to rates. Generally speaking, the higher the rate, the more profitable the loan.
To this end, New York Community Bancorp's (NYSE: NYCB) net interest slumped in 2017, 2018, and again in 2019, in step with falling rates. Ditto for last year, with or without the headaches caused by the contagion. This may be why New York Community Bancorp shares have been falling since 2016.
We could be nearer a cyclical bottom than many people might realize, however.
At the same time interest rates have leveled off from a multi-year decline that carried rates to what may be absolute floors, analysts are calling for a 15% rebound in sales this year driving per-share earnings up from $1.02 in 2020 to $1.12 this time around. Both are more than enough to cover the current quarterly payout of $0.17 per share, but given the outlook, there may be room for New York Community Bancorp to finally start increasing a common stock dividend that's been stagnant since 2016.
3. AbbVie
Dividend yield: 5%
Any investor who knows AbbVie (NYSE: ABBV) well knows it's almost synonymous with its flagship product Humira. This drug meant to treat arthritis and intestinal problems accounted for nearly half of last year's revenue. That's becoming a big problem fast, as Humira's patent protection starts to expire in a big way beginning next year. Sales could deteriorate quickly beginning the following year.
But AbbVie may not be in the sort of trouble the market suggests it is. It's also the name behind cancer therapy drug Imbruvica, which added $5.3 billion to the company's top line in 2020. Imbruvica could drive between $7 billion and $10 billion in annual sales at its peak. Newer drugs Rinvoq and Skyrizi are only producing around $2.3 billion in annual revenue now, but CEO Richard Gonzalez has suggested those two franchises could jointly produce $20 billion worth of yearly sales at their peaks.
At the very least, it's a transition worth watching.
4. STAG Industrial
Dividend yield: 4.5%
Not all real estate investment trusts -- or REITs -- are built the same. While this category of holdings seems to focus on mortgages, residential dwellings, and hotels, a wide swath of REITs are dedicated to far more consistent customers.
Take STAG Industrial (NYSE: STAG) as an example. This landlord owns 98.2 million square feet worth of industrial space, boasting a tenant list of companies and organizations that aren't about to abandon their rented spaces. The company's three biggest tenants are (in order) Amazon, the U.S. federal government, and XPO Logistics. In the same resiliency vein, around 40% of its property portfolio is an e-commerce player.
The staying power of its customer base is evidenced in how much rent it's continued to collect despite the economic fallout from the coronavirus. As of the end of December, 96.9% of its portfolio remains occupied, and as of Feb. 10, STAG Industrial had collected 99.6% of the rent it was due as of the end of 2020.
5. Enbridge
Dividend yield: 7.6%
Finally, add Enbridge (NYSE: ENB) to your list of high-yield dividend stocks to put on your radar.
It's not exactly a household name. Not only does the gas and oil pipeline operator remain in the background of the energy sector, it's also a Canadian company. Don't let its obscurity fool you, though. Enbridge handles around a fourth of North America's crude oil, and about a fifth of the United States' natural gas.
Yes, this stock tanked early last year when the COVID-19 pandemic torpedoed the price of oil and gas. Shares are well up from last March's lows but have yet to reclaim their pre-pandemic highs. Investors remain concerned about the effect a slowing global economy may have on the energy industry's profitability.
That weakness may be rooted in a misunderstanding of Enbridge's role within the business, however. This company gets paid for every barrel of oil and every cubic foot of natural gas it pushes through its pipelines, regardless of the price agreed upon by the buyers and sellers. Its 2020 adjusted EBITDA and distributable cash flow were both up, and full-year earnings per share of CA$2.42 and distributable cash flow of CA$4.67 easily cover the company's dividend payments -- a dividend that's grown for 26 straight years.
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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. James Brumley owns shares of AT&T. The Motley Fool owns shares of and recommends Amazon, Enbridge, and Stag Industrial. The Motley Fool recommends XPO Logistics and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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 Dividend yield: 5% Any investor who knows AbbVie (NYSE: ABBV) well knows it's almost synonymous with its flagship product Humira. But AbbVie may not be in the sort of trouble the market suggests it is. While the company opted to not increase its dividend when it normally would have in December -- for the first time since 2006 -- the current annualized payout of $2.08 is still less than last year's suppressed adjusted earnings of $3.18 per share. | AbbVie Dividend yield: 5% Any investor who knows AbbVie (NYSE: ABBV) well knows it's almost synonymous with its flagship product Humira. But AbbVie may not be in the sort of trouble the market suggests it is. New York Community Bancorp Dividend yield: 5.9% Sinking interest rates haven't just worked against bond and dividend yields. | AbbVie Dividend yield: 5% Any investor who knows AbbVie (NYSE: ABBV) well knows it's almost synonymous with its flagship product Humira. But AbbVie may not be in the sort of trouble the market suggests it is. New York Community Bancorp Dividend yield: 5.9% Sinking interest rates haven't just worked against bond and dividend yields. | AbbVie Dividend yield: 5% Any investor who knows AbbVie (NYSE: ABBV) well knows it's almost synonymous with its flagship product Humira. But AbbVie may not be in the sort of trouble the market suggests it is. It's now got $154 billion in debt on its balance sheet, with the DirecTV property accounting for the biggest piece of that debt load doing the least to help service it. | cc99b8d0-404f-438e-b3ba-b55c83972911 |
24195.0 | 2021-02-24 00:00:00 UTC | FDA Approves AbbVie's Humira For Pediatric Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/fda-approves-abbvies-humira-for-pediatric-ulcerative-colitis-2021-02-24 | nan | nan | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved Humira or adalimumab for the treatment of moderately to severely active ulcerative colitis in pediatric patients 5 years of age and older.
The approval was based on results from the pivotal Phase 3 ENVISION I study, which showed that the higher dosage of Humira induced clinical remission in 60 percent of patients at Week 8 and 45 percent of patients, who responded at Week 8, were in remission at Week 52.
HUMIRA is now approved in the U.S. for use in 11 indications, including 5 approvals in pediatric populations.
Ulcerative colitis is characterized by inflammation of the large intestine with symptoms ranging from mild to severe bowel urgency and bowel incontinence as well as weight loss and fatigue.
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 U.S. Food and Drug Administration approved Humira or adalimumab for the treatment of moderately to severely active ulcerative colitis in pediatric patients 5 years of age and older. The approval was based on results from the pivotal Phase 3 ENVISION I study, which showed that the higher dosage of Humira induced clinical remission in 60 percent of patients at Week 8 and 45 percent of patients, who responded at Week 8, were in remission at Week 52. Ulcerative colitis is characterized by inflammation of the large intestine with symptoms ranging from mild to severe bowel urgency and bowel incontinence as well as weight loss and fatigue. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved Humira or adalimumab for the treatment of moderately to severely active ulcerative colitis in pediatric patients 5 years of age and older. The approval was based on results from the pivotal Phase 3 ENVISION I study, which showed that the higher dosage of Humira induced clinical remission in 60 percent of patients at Week 8 and 45 percent of patients, who responded at Week 8, were in remission at Week 52. Ulcerative colitis is characterized by inflammation of the large intestine with symptoms ranging from mild to severe bowel urgency and bowel incontinence as well as weight loss and fatigue. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration approved Humira or adalimumab for the treatment of moderately to severely active ulcerative colitis in pediatric patients 5 years of age and older. The approval was based on results from the pivotal Phase 3 ENVISION I study, which showed that the higher dosage of Humira induced clinical remission in 60 percent of patients at Week 8 and 45 percent of patients, who responded at Week 8, were in remission at Week 52. 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 U.S. Food and Drug Administration approved Humira or adalimumab for the treatment of moderately to severely active ulcerative colitis in pediatric patients 5 years of age and older. The approval was based on results from the pivotal Phase 3 ENVISION I study, which showed that the higher dosage of Humira induced clinical remission in 60 percent of patients at Week 8 and 45 percent of patients, who responded at Week 8, were in remission at Week 52. HUMIRA is now approved in the U.S. for use in 11 indications, including 5 approvals in pediatric populations. | 965a485b-978a-49f7-bc39-5bb78c60f60e |
24196.0 | 2021-02-24 00:00:00 UTC | How to Invest Like Warren Buffett in 2021 | ABBV | https://www.nasdaq.com/articles/how-to-invest-like-warren-buffett-in-2021-2021-02-24 | nan | nan | Warren Buffett stands as one of history's most successful investors. His incredible market-beating tenure as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) and the market-beating investment choices he has made during that time have earned him the moniker The Oracle of Omaha, and it's not hard to see why Buffett's investing advice and stock moves are so closely followed.
With a combination of uncertainty and opportunity currently on the stock market horizon, there are good reasons to turn to one of the investing world's all-time greats for some potential insight.
Read on for guidance on how to invest like Buffett in 2021.
Warren Buffett. Image source: The Motley Fool.
Make your picks with the long term in mind
Warren Buffett has famously said that his favorite period for owning a stock is "forever." That doesn't mean that he never sells shares, but his long-term approach to investing has been a huge part of his success through the years.
Under Buffett's guidance since 1965, Berkshire has notched average annual growth of 20.3%, absolutely crushing the return for the broader market over the same time period. The conglomerate ended last year having outperformed the S&P 500 index by roughly 2,700,000% since Buffett assumed leadership of the company, and his steady, quality-focused approach to investing played a big role in that.
Investors should be concentrating on high-quality businesses with competitive advantages and ongoing opportunities that position their portfolio to thrive over the long term. This bit of wisdom is summed up by one of Buffett's most frequently quoted bits of wisdom: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
While backing cheap stocks that have struggling underlying businesses or chasing volatile pricing swings can sometimes result in big wins, these successes are difficult to repeat consistently. Timing the market is incredibly hard. Investing in strong companies with a buy-to-hold approach will put you on the path to superior performance over the long term.
What moves have Buffett and Berkshire been making?
If you want to extend the goal of investing like Buffett beyond simply incorporating his approach to analyzing, buying, and holding stocks, then looking at Berkshire Hathaway's recent moves will show you how to do that. Berkshire is required to file a disclosure of its holdings each quarter in a document known as a 13F. Investors can reference these documents in order to see which stocks Buffett's company has bought and sold across the previous quarter.
There are a couple of different ways that investors can go about replicating its investment strategies. One of these is to follow Berkshire's biggest recent buys. The table below shows the stock purchases detailed in its most recent 13F filing, which was published on Feb. 16 and represents the company's positions as of Dec. 31, 2020.
COMPANY
SHARES PURCHASED
CURRENT MARKET VALUATION
Verizon (NYSE: VZ)
146,716,496
$8.29 billion
Chevron (NYSE: CVX)
48,498,965
$4.65 billion
Marsh & McLennan (NYSE: MMC)
4,267,825
$500 million
Merck (NYSE: MRK)
6,294,333
$468 million
AbbVie (NYSE: ABBV)
4,286,766
$451 million
E.W. Scripps (NYSE: SSP)
23,076,923
$441 million
T-Mobile (NASDAQ: TMUS)
2,824,844
$337 million
Kroger (NYSE: KR)
8,555,578
$291 million
Bristol Myers Squibb (NYSE: BMY)
3,364,822
$203 million
RH (NYSE: RH)
24,200
$12 million
Data source: Berkshire Hathaway; valuations as of Feb. 22.
Of the recent purchases, Verizon, Chevron, Marsh & McLennan, and E.W. Scripps were entirely new additions to the Berkshire portfolio, while the firm increased positions in the other companies on the list.
Investors can also replicate Buffett's approach by building positions in Berkshire's biggest overall stock positions, including Apple, Bank of America, Coca-Cola, American Express, and Kraft Heinz. Looking at the overlap between the company's biggest recent buys and largest overall holdings, Berkshire's highest-conviction stock pick in the last quarter appears to be Verizon. It made a huge purchase of the telecom giant's stock in the fourth quarter, quickly making it the company's sixth-largest overall stock holding.
One more way to invest like Buffett in 2021
The other obvious way to invest like Buffett is to buy Berkshire Hathaway stock. The company invested more in buying its own shares than any other stock or asset over the trailing-12-month reporting period. That's a strong indication Buffett believes his company's shares are undervalued.
Berkshire Hathaway stock gives investors a simplified avenue to building a diversified position in a wide range of holdings. In addition to its publicly traded stocks and real estate ventures, the company also has full ownership of businesses including GEICO, See's Candies, and Duracell, among others.
While Berkshire's somewhat conservative approach has meant that it's lagged broader-market performance in recent years as high-growth tech stocks have scored big wins, the investment firm has one of the best management teams in the financial industry.
The market could be primed for substantial volatility through the rest of the year, and keeping an eye on the evolving strategies of one of history's most-successful, value-focused money men continues to be a good idea. Investors will be able to get an even closer look at Buffett's thinking when Berkshire publishes its annual shareholder letter at the end of this month.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb. The Motley Fool recommends RH, T-Mobile US, and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 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. | Verizon (NYSE: VZ) 146,716,496 $8.29 billion Chevron (NYSE: CVX) 48,498,965 $4.65 billion Marsh & McLennan (NYSE: MMC) 4,267,825 $500 million Merck (NYSE: MRK) 6,294,333 $468 million AbbVie (NYSE: ABBV) 4,286,766 $451 million E.W. The conglomerate ended last year having outperformed the S&P 500 index by roughly 2,700,000% since Buffett assumed leadership of the company, and his steady, quality-focused approach to investing played a big role in that. While Berkshire's somewhat conservative approach has meant that it's lagged broader-market performance in recent years as high-growth tech stocks have scored big wins, the investment firm has one of the best management teams in the financial industry. | Verizon (NYSE: VZ) 146,716,496 $8.29 billion Chevron (NYSE: CVX) 48,498,965 $4.65 billion Marsh & McLennan (NYSE: MMC) 4,267,825 $500 million Merck (NYSE: MRK) 6,294,333 $468 million AbbVie (NYSE: ABBV) 4,286,766 $451 million E.W. Scripps (NYSE: SSP) 23,076,923 $441 million T-Mobile (NASDAQ: TMUS) 2,824,844 $337 million Kroger (NYSE: KR) 8,555,578 $291 million Bristol Myers Squibb (NYSE: BMY) 3,364,822 $203 million The Motley Fool recommends RH, T-Mobile US, and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). | Verizon (NYSE: VZ) 146,716,496 $8.29 billion Chevron (NYSE: CVX) 48,498,965 $4.65 billion Marsh & McLennan (NYSE: MMC) 4,267,825 $500 million Merck (NYSE: MRK) 6,294,333 $468 million AbbVie (NYSE: ABBV) 4,286,766 $451 million E.W. His incredible market-beating tenure as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) and the market-beating investment choices he has made during that time have earned him the moniker The Oracle of Omaha, and it's not hard to see why Buffett's investing advice and stock moves are so closely followed. One more way to invest like Buffett in 2021 The other obvious way to invest like Buffett is to buy Berkshire Hathaway stock. | Verizon (NYSE: VZ) 146,716,496 $8.29 billion Chevron (NYSE: CVX) 48,498,965 $4.65 billion Marsh & McLennan (NYSE: MMC) 4,267,825 $500 million Merck (NYSE: MRK) 6,294,333 $468 million AbbVie (NYSE: ABBV) 4,286,766 $451 million E.W. Investors can also replicate Buffett's approach by building positions in Berkshire's biggest overall stock positions, including Apple, Bank of America, Coca-Cola, American Express, and Kraft Heinz. One more way to invest like Buffett in 2021 The other obvious way to invest like Buffett is to buy Berkshire Hathaway stock. | fb732ca5-9b8c-4d7a-8597-55286909958c |
24197.0 | 2021-02-23 00:00:00 UTC | Cathie Wood Couldn't Stop Buying These 3 Stocks for ARK Invest Last Week | ABBV | https://www.nasdaq.com/articles/cathie-wood-couldnt-stop-buying-these-3-stocks-for-ark-invest-last-week-2021-02-23 | nan | nan | The hottest person in the usually quiet world of exchange-traded funds is Cathie Wood. Her ARK Invest actively managed ETFs have been a pioneering force in the industry, and the fact that they all doubled in price in 2020 was a huge selling point.
Wood is constantly buying and selling stocks for her five main active ETFs. However, three companies in particular really stood out last week, given the size and persistence of Wood's purchasing activity. Let's look at these companies and see whether they look like solid picks right now.
Image source: ARK Invest.
1. Palantir Technologies
Palantir Technologies (NYSE: PLTR) was a big buy from Wood last week. Her flagship ARK Innovation ETF (NYSEMKT: ARKK) bought more than 5.27 million shares of the data analytics specialist's stock on Feb. 18, making up about half a percent of the ETF's total holdings. That followed a Feb. 16 purchase of 1.56 million shares for the ARK Next-Generation Internet ETF (NYSEMKT: ARKW), representing roughly the same 0.5% buy. That adds up to almost $200 million in purchases.
The big Feb. 18 buy came immediately after Palantir reported its quarterly financials, which sent the stock sharply lower and gave Wood a bargain entry point. Some investors were nervous that although Palantir's revenue jumped 40% year over year, it contained to lose money at a higher rate than most had anticipated. Yet as with many young companies, Palantir had a lot of stock-based compensation to weigh on its bottom line. Back that out, and there were encouraging things to see, including improving margins and considerable growth in its nongovernment private-sector business.
I'd anticipate that Wood will continue to add to positions in Palantir at opportunistic moments. It's one of ARK Innovation's smallest positions, but that could change quickly based on her past practice.
2. Tesla
Tesla (NASDAQ: TSLA) has been the driving force behind Wood's success over the past year, and the electric-vehicle maker's stock is a top holding across several ARK Invest ETFs. Wood remains optimistic about the Elon Musk-led company's future success.
Specifically, Wood bought a total of nearly 162,000 shares for ARK Innovation on Feb. 17 and Feb. 19, spending almost half a percent of assets. She bought a bit over 29,500 shares for ARK Next-Generation Internet and almost 13,200 shares for ARK Autonomous Technology & Robotics (NYSEMKT: ARKQ), working out to roughly 0.25% of assets for both funds. All told, she likely spent around $160 million to bring holdings of Tesla in those three ETFs to between 8% and 10% each.
Wood likes Tesla not just for its fast-growing dominant EV franchise but also for adjacent opportunities in areas like autonomous driving, artificial intelligence, and battery technology. Last week, she mentioned ride-sharing as a potential use for Tesla vehicles as well. Wood isn't giving up on the horse that helped her win the race in 2020, and many investors also remain optimistic on the stock's prospects.
3. AbbVie
Finally, AbbVie (NYSE: ABBV) was a big favorite for the ARK Genomic Revolution ETF (NYSEMKT: ARKG). Wood made successive purchases of 122,000, 295,000, and 186,000 shares on Feb. 16, 17, and 18, adding up to about 0.5% of the ETF's assets. The genomics ETF is smaller than its peers, so that amounted to spending of around $60 million.
Two of ARK Invest's big ideas for 2021 involve multi-cancer screening and second-generation cell and gene therapies. Many of the companies held by the genomics ETF are newer players in the field, such as top holding Teladoc Health (NYSE: TDOC). However, AbbVie has a massive pipeline of candidate treatments along with a solid balance sheet for potential acquisitions and strategic partnerships. Wood apparently believes that AbbVie is well-positioned to take advantage of what she sees as groundbreaking trends in the healthcare space.
Don't take your eyes off Cathie Wood's stock picks
With so many investors watching Cathie Wood's investment moves in her red-hot actively managed ETFs, it's essential to know the big moves she's making. Her opinions carry a huge amount of weight, and she can serve as a useful source of ideas if you're looking for stocks to add to your portfolio.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health and Tesla. The Motley Fool owns shares of Palantir Technologies 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. | AbbVie Finally, AbbVie (NYSE: ABBV) was a big favorite for the ARK Genomic Revolution ETF (NYSEMKT: ARKG). However, AbbVie has a massive pipeline of candidate treatments along with a solid balance sheet for potential acquisitions and strategic partnerships. Wood apparently believes that AbbVie is well-positioned to take advantage of what she sees as groundbreaking trends in the healthcare space. | AbbVie Finally, AbbVie (NYSE: ABBV) was a big favorite for the ARK Genomic Revolution ETF (NYSEMKT: ARKG). However, AbbVie has a massive pipeline of candidate treatments along with a solid balance sheet for potential acquisitions and strategic partnerships. Wood apparently believes that AbbVie is well-positioned to take advantage of what she sees as groundbreaking trends in the healthcare space. | AbbVie Finally, AbbVie (NYSE: ABBV) was a big favorite for the ARK Genomic Revolution ETF (NYSEMKT: ARKG). However, AbbVie has a massive pipeline of candidate treatments along with a solid balance sheet for potential acquisitions and strategic partnerships. Wood apparently believes that AbbVie is well-positioned to take advantage of what she sees as groundbreaking trends in the healthcare space. | AbbVie Finally, AbbVie (NYSE: ABBV) was a big favorite for the ARK Genomic Revolution ETF (NYSEMKT: ARKG). However, AbbVie has a massive pipeline of candidate treatments along with a solid balance sheet for potential acquisitions and strategic partnerships. Wood apparently believes that AbbVie is well-positioned to take advantage of what she sees as groundbreaking trends in the healthcare space. | 808fffc8-8b0f-4263-8c96-c13f965207dc |
24198.0 | 2021-02-23 00:00:00 UTC | 2 Best Pharma Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-best-pharma-stocks-to-buy-right-now-2021-02-23 | nan | nan | Regeneron Pharmaceuticals (NASDAQ: REGN) and AbbVie (NYSE: ABBV) have managed to deliver strong fourth quarter earnings. However, investors seem to be ignoring these well-established pharmaceutical players with diversified product portfolios, deep research pipelines, broad geographic presence, robust cash flows, and healthy balance sheets.
Hence, now may just be the right time to take a closer look at these potential long-term pharma winners.
Image source: Getty Images.
1. Regeneron Pharmaceuticals
Regeneron Pharmaceuticals' fiscal 2020 performance has been quite remarkable, considering the many pressures it faced due to COVID-19 related restrictions. The company's revenue jumped 30% year over year to $8.5 billion, and net income is up year over year by a staggering 66% to $3.5 billion. The company's cash flows from operations also rose by 7.7% to $2.6 billion.
Ironically, these results have not instilled much confidence in the stock. That said, a company as fundamentally strong as Regeneron cannot remain ignored for long.
Regeneron's blockbuster retinal disease drug, EYLEA, continues to be a force to reckon with, clocking sales of $7.9 billion globally (in conjucnction with Bayer). Even when considering the upcoming U.S. patent expiration in June 2023, competition from Novartis' (NYSE: NVS) Beovu and Roche Holdings' (OTC: RHHBY) Lucentis, as well as future competition from Roche's investigational therapy, Faricimab, EYLEA is well-positioned to withstand competitive pressures.
As of now, EYLEA is the only available therapy with real-world efficacy, safety, and convenience data based on over 30 million injections administered to date. The drug accounted for just over 55% of Regeneron's total revenues in fiscal 2020, which is lower than the 70% total revenue contribution of the drug in fiscal 2019.
In fiscal 2020, more than 80% of Regeneron's top line growth came from products other than Eylea. Prominent among them have been immunology drug Dupixent, cancer drug Libtayo, and COVID-19 combinational monoclonal antibody regimen called REGEN-COV. Dupixent's global sales jumped 75% year over year to over $4 billion in fiscal 2020. Already approved by the U.S. Food and Drug Administration (FDA) for treating atopic dermatitis, sinus infections, and asthma, Dupixent is also being studied in late-stage clinical trials for eight additional diseases. There is also much scope for growth for Dupixent in existing indications, considering that the drug has reached only 6% of the 2.2 million eligible patients in the U.S.
Libtayo is also emerging as a major growth driver, having already secured FDA approvals for two types of skin cancers, squamous cell carcinoma and basal cell carcinoma. However, a much bigger catalyst for the drug will be a potential FDA approval in advanced lung cancer by Feb. 28.
Finally, there is REGEN-COV, Regeneron Pharmaceuticals' antibody cocktail which has secured FDA emergency use authorization (EUA) for patients with mild to moderate cases of COVID-19. Although previously forgotten amid the euphoria surrounding COVID-19 vaccines, governments across the world are slowly becoming aware of the importance of this therapeutic in the global fight against the virus. The company has reported clinical data demonstrating the potential of REGEN-COV as prophylactic therapy for patients exposed to COVID-19. This antibody cocktail regimen has also demonstrated efficacy against the U.K. and South African variants of the virus in vitro studies. Regeneron has already entered into agreements to supply up to 1.5 million doses and 200,000 doses to the U.S. and German governments, respectively.
Despite the many positives, Regeneron Pharmaceuticals is trading at a forward price-to-earnings (P/E) multiple of 12.1 and price-to-sales multiple of 6.1. This is quite cheap for a company with multiple promising growth assets in its kitty. Hence, healthcare investors can expect handsome returns from this stock in the long run.
2. AbbVie
Biopharmaceutical company AbbVie pays a handsome dividend yield of 4.9%, which is much higher than the S&P 500's yield of 1.6%. With a dividend payout ratio of 58.2% in the last 12 months, this S&P Dividend Aristocrat (first as a part of Abbott Laboratories and then post spinoff in 2008, as an independent company) has sufficient financial flexibility to continue to increase its dividend payouts for foreseeable future.
However, this high-yield stock has not seen any meaningful appreciation, even after it released stellar fourth quarter results and handsomely beat consensus estimates. Investor fears related to the upcoming Humira patent expiry and generic erosion of this blockbuster franchise in the U.S. post-2023 refuse to quell, and for a good reason. In fiscal 2020, the drug accounted for 43% of AbbVie's total revenues, which is quite significant.
But the situation is not as dire as it seems. To start with, being a biologic drug, Humira may not face the same pace of generic erosion as seen for small molecule drugs. This has already been seen in Europe, where Humira has already lost patent protection and is facing competition from biosimilars such as Amgen's (NASDAQ: AMGN) Amgevita, Novartis' (NYSE: NVS) Hyrimoz, Biogen (NASDAQ: BIIB) and Samsung Bioepis' Imraldi, and Mylan's (NASDAQ: MYL) Hulio. Yet Humira's fiscal 2020 international market revenues were $3.7 billion, which is a modest year-over-year decline of 13.6%. Small molecule drugs usually report up to a 90% reduction in market share within the first year of entry of generic competition.
Hence, Humira will continue to be a cash cow, not only till 2023, but even for few more years. Until then, AbbVie expects to position two recently launched immunology drugs, Skyrizi and Rinvoq, as alternatives to Humira. FDA has already approved Skyrizi for plaque psoriasis and Rinvoq for rheumatoid arthritis. Both these drugs have also proved superiority to Humira in their respective approved indications. AbbVie is also studying Skyrizi and Rinvoq in other Humira indications, and expects the two drugs to fetch risk-adjusted sales over $15 billion by 2025.
AbbVie also has high hopes for its blood cancer drugs, Imbruvica and Venclexta, which together earned revenues close to $6.6 billion in 2020. The company expects these drugs to report double-digit revenue growth in 2021. Finally, although the aesthetics portfolio acquired from Allergan did not perform well in 2020, AbbVie remains confident of its recovery in the years post-pandemic. Hence, considering these assets, the chances of the company facing a dramatic revenue decline post-2023 seem low.
AbbVie is trading at forward P/E multiple of only 7.7, which is quite cheap. Considering the company's very promising and diversified portfolio, it is well-positioned for a solid future growth trajectory and can prove to be a promising investment for retail investors.
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool recommends Amgen and Biogen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Regeneron Pharmaceuticals (NASDAQ: REGN) and AbbVie (NYSE: ABBV) have managed to deliver strong fourth quarter earnings. AbbVie Biopharmaceutical company AbbVie pays a handsome dividend yield of 4.9%, which is much higher than the S&P 500's yield of 1.6%. In fiscal 2020, the drug accounted for 43% of AbbVie's total revenues, which is quite significant. | Regeneron Pharmaceuticals (NASDAQ: REGN) and AbbVie (NYSE: ABBV) have managed to deliver strong fourth quarter earnings. AbbVie Biopharmaceutical company AbbVie pays a handsome dividend yield of 4.9%, which is much higher than the S&P 500's yield of 1.6%. In fiscal 2020, the drug accounted for 43% of AbbVie's total revenues, which is quite significant. | Regeneron Pharmaceuticals (NASDAQ: REGN) and AbbVie (NYSE: ABBV) have managed to deliver strong fourth quarter earnings. AbbVie Biopharmaceutical company AbbVie pays a handsome dividend yield of 4.9%, which is much higher than the S&P 500's yield of 1.6%. In fiscal 2020, the drug accounted for 43% of AbbVie's total revenues, which is quite significant. | AbbVie is also studying Skyrizi and Rinvoq in other Humira indications, and expects the two drugs to fetch risk-adjusted sales over $15 billion by 2025. Regeneron Pharmaceuticals (NASDAQ: REGN) and AbbVie (NYSE: ABBV) have managed to deliver strong fourth quarter earnings. AbbVie Biopharmaceutical company AbbVie pays a handsome dividend yield of 4.9%, which is much higher than the S&P 500's yield of 1.6%. | 7009f8ad-2e24-49b7-a591-7f5afcb5b3ce |
24199.0 | 2021-02-23 00:00:00 UTC | Warren Buffett Just Bought These 2 Dirt-Cheap Stocks. Should You? | ABBV | https://www.nasdaq.com/articles/warren-buffett-just-bought-these-2-dirt-cheap-stocks.-should-you-2021-02-23 | nan | nan | We now know which stocks Warren Buffett liked and disliked in the fourth quarter of 2020. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) submitted its 13F-HR regulatory filing to the U.S. Securities and Exchange Commission (SEC) last week.
In total, Berkshire bought 10 stocks in Q4. Its activity featured new positions in four stocks and adding to positions in six stocks, including AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Buffett just bought these two dirt-cheap stocks. Should you?
Image source: The Motley Fool.
Buffett's dirt cheap buys
Berkshire first scooped up shares of AbbVie and Bristol Myers Squibb in the third quarter. They weren't the only big pharma stocks bought in Q3; the giant conglomerate also purchased shares of Merck and Pfizer. In the fourth quarter, Berkshire sold off its stake in Pfizer. However, it added to its positions in AbbVie, BMS, and Merck.
We don't know for sure if Buffett personally made the decisions on each of these transactions. However, he undoubtedly approved the buys and sells, even if one of Berkshire's investment managers actually made the calls. AbbVie and BMS are great fits with Buffett's roots in targeting value stocks.
AbbVie currently trades at less than 8.6 times expected earnings. BMS trades at slightly above eight times expected earnings. By comparison, Merck's forward earnings multiple is 11.3. Berkshire stock itself looks downright expensive, relatively speaking, with shares trading at 22.5 times expected earnings.
Attractive beyond their valuations
Buffett likely viewed AbbVie's and Bristol Myers Squibb's valuations as too cheap to pass up. However, there are other things that are attractive about both stocks.
AbbVie boasts one of the juiciest dividends in all of healthcare. Its dividend currently yields 4.95%. The company is also a Dividend Aristocrat, with 49 consecutive years of dividend increases. BMS doesn't have as impressive of a track record as AbbVie does, but I suspect Buffett liked the drugmaker's dividend yield of over 3.2%.
BMS' growth prospects are even more appealing, though. Analysts project average annual earnings growth of more than 21% over the next five years. Current blockbusters, such as blood thinner Eliquis and cancer immunotherapies Opdivo and Yervoy, will likely fuel most of this growth. In addition to its promising pipeline, BMS has rising stars with anemia drug Reblozyl and multiple sclerosis drug Zeposia.
AbbVie's growth story will consist of three phases. The company should deliver strong growth over the next couple of years. However, in 2023, sales of AbbVie's top-selling drug, Humira, will begin to fall as it faces biosimilar competition in the U.S. The third growth phase, though, should begin in 2025 and beyond as AbbVie returns to strong growth and the company's other products more than offset Humira's declining sales.
Follow the leader?
You shouldn't buy any stock just because someone else did, even if that person is legendary investor Warren Buffett. For that matter, you shouldn't sell a stock just because Buffett or another respected investor did.
However, it's smart to understand why Buffett likes or dislikes a stock. In the case of AbbVie and Bristol Myers Squibb, he almost certainly appreciates their low valuations and strong dividends. He also likely thinks the long-term growth prospects are solid for both companies.
AbbVie and BMS likely won't appeal to investors seeking aggressive growth. But if you're looking for an attractive valuation, a strong dividend, and solid long-term growth prospects, these two stocks look like good picks right now.
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Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 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. | Buffett's dirt cheap buys Berkshire first scooped up shares of AbbVie and Bristol Myers Squibb in the third quarter. BMS doesn't have as impressive of a track record as AbbVie does, but I suspect Buffett liked the drugmaker's dividend yield of over 3.2%. Its activity featured new positions in four stocks and adding to positions in six stocks, including AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). | Attractive beyond their valuations Buffett likely viewed AbbVie's and Bristol Myers Squibb's valuations as too cheap to pass up. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. Its activity featured new positions in four stocks and adding to positions in six stocks, including AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). | Its activity featured new positions in four stocks and adding to positions in six stocks, including AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. Buffett's dirt cheap buys Berkshire first scooped up shares of AbbVie and Bristol Myers Squibb in the third quarter. | Buffett's dirt cheap buys Berkshire first scooped up shares of AbbVie and Bristol Myers Squibb in the third quarter. The third growth phase, though, should begin in 2025 and beyond as AbbVie returns to strong growth and the company's other products more than offset Humira's declining sales. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. | 41277afa-868c-490a-870f-d6d0e6c06a73 |
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