Seems surprisingly cheap vs peers - MRK, BMY, LLY, etc. Seems like ABBV has some confused. It's growth rate is 25% of ABT and ABBV is catching the bid post-split - it may be the higher dividend but the disconnect will fade and ABT will be above $40 just to be on par with slower-growing peers! Any intelligent responses?
It's not clear what companies are now peers for ABT, and not clear what to compare the PE to. MRK, BMY and LLY are pharmaceuticals companies. ABT has spun off its pharmaceuticals business as ABBV, leaving it with a mix of health/medical/diagnostics related products, a line that is unlike that of any other business. So, it's hard to say whether the PE is relatively cheap or not. If you think it is, then it's a good time to buy. And just as an unrelated comment: a response can not be intelligent. A person can be intelligent, and a response can be written by an intelligent person, but that doesn't make the response itself intelligent. Perhaps you meant relevant, or coherent, or cogent?
Chick, you are exactly right. You can no longer compare Abt to other large Pharma Companies. Abt is kinda of out there on its own. It is not a straight medical device company, generic pharma, etc. It does have a nice balanced product portfolio but how do you compare it to peers is still a question. J&J maybe a little closer but not on target due to size.