|Bid||0.00 x 1000|
|Ask||79.90 x 1000|
|Day's Range||78.41 - 80.04|
|52 Week Range||75.77 - 107.25|
|Beta (3Y Monthly)||0.95|
|PE Ratio (TTM)||21.72|
|Earnings Date||Apr 24, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||4.28 (5.37%)|
|1y Target Est||92.18|
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does AbbVie (ABBV) have what it takes? Let's find out.
AbbVie (NYSE:ABBV) stock continues to slide, despite a buoyant market. The shares are down 12.3% year-to-date and 28.5% over the past 12 months. That's a dreadful performance in comparison to either the Nasdaq Composite index's 5.22% increase or the 11.8% gain by VanEck Vectors Pharmaceutical ETF (NASDAQ:PPH) from year-ago levels. ABBV stock makes up 5% of the pharma industry exchange-traded fund's current portfolio.Losses continued following AbbVie's latest quarterly report. In it, we saw 2019 guidance fail to excite investors. Several drugs underperformed expectations. However, many investors see the continued weakness in AbbVie stock as an opportunity. The now-5.31% dividend yield in particular has generated much enthusiasm. In this market, that sort of yield is amazing. That is, assuming it comes from a safe source. Should you trust ABBV stock here? AbbVie Stock ConsReplacing Humira: Investors are asking where AbbVie goes after Humira? As of Q4 2018, Humira made up 61% of the company's revenues. Yes, that is down from 65% for the same quarter in 2017, but the company's transition to other products simply isn't happening fast enough to inspire much confidence.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHumira generates about $20 billion in annual sales at the moment and 2018 was another record year for the franchise. However, cracks are showing. International sales -- now getting hit by generics competition -- fell by double digits in 2018. While that was more than offset by a continued rise in U.S. sales, the plaque psoriasis drug should lose American patent protection in 2023. At that point, AbbVie could lose the biggest share of its revenue if other pipeline drugs don't come along fast enough. * Top 7 Service Sector Stocks That Will Pay You to Own Them Political Pressures: The intro of the Trump Administration's proposed 2020 budget has drug prices back in the news. The budget takes aim at drug pricing with a variety of measures. Perhaps most relevant to AbbVie, the budget would sharply cut reimbursements for prescription drugs once a generic hits the market. Given the reliance here on Humira, that's a major concern.Meanwhile, the presidential election cycle is kicking off again. Remember that pharma and biotech stocks got clobbered ahead of the 2016 election as investors considered negative comments from both leading candidates. The Trump administration is going after drug prices, and several of the Democratic candidates seem inclined to do the same. Expect more negative political headlines in coming months.Dividend Cut Coming? Most analyses of AbbVie's dividend safety seem focused almost exclusively on 2019. Yes, the drug maker can afford the ABBV stock 5.5% dividend yield for the time being. In fact, there is plenty of room to spare, based on its relatively low dividend payout ratio.However, so much of the shareholder base here is like that of Gilead Sciences (NASDAQ:GILD) in 2015. That is to say, investors were attracted to past rising profits and oblivious to future threats. Just as Gilead's profits plummeted once HCV revenue started dropping, AbbVie will face a far more-complicated situation in a few years. People buying AbbVie for its past dividend history are driving while looking out the rearview mirror. AbbVie Stock ProsThat Dividend Yield: Just as any bearish argument involving ABBV stock starts with Humira's patent problems, bulls invariably point to the dividend yield. And with good reason. At this point, ABBV stock is offering investors a choice yield of 5.31%. You'll find only a handful of other $100-billion market cap companies that pay as much.On top of that, AbbVie continues to increase its dividend. In the past year, it upped its quarterly payout from 96 cents to $1.07. Sure, there is good reason to doubt that the dividend hikes will continue once Humira goes off patent. But for income investors that are willing to play the timing game, there should be a few good years of income potential here as Humira enjoys its waning years of windfall sales numbers. * 5 Cloud Stocks to Help Your Portfolio Fly New And Rising Drugs: AbbVie has a lot of newly launching or still-growing drugs moving to replace Humira. Analysts have suggested that AbbVie could hit $7 billion peak sales with Imbruvica, and reach the $1-2 billion range for each of three others, Venclexta, Orlissa, and Mayvret. Meanwhile, while Risankizumab and Upadacitinib are still a distance from commercial success, both are potentially $5 billion drugs if all goes according to plan.Add it all up, and you could match Humira's current $20 billion annual sales contribution with this assortment of newer drugs. It would take a lot to go right -- and in pharma, things usually don't all follow plan -- but there is a path here. It's also worth remembering that Humira sales won't go straight to zero even as the generics arrive; there will be several more years of reasonably strong cash flows first.AbbVie still has a respectable pipeline and some time to keep developing other options even as Humira's U.S. patent cliff steadily approaches.Discounted Stock: Despite a hot stock market, ABBV shares have been caught in a downdraft. With the stock market up 15% for the year, AbbVie's 13% decline stands in a rather stark contrast.Given the decline, the stock is now trading at under 9x forward earnings. I don't think P/E multiples are a great metric for pharma companies due to patent issues. But plenty of other investors do. The combination of a low P/E ratio and a stock that has fallen sharply will likely attract numerous dip buyers to help give ABBV stock a bounce. AbbVie Stock VerdictThe clock is ticking. In 2023, Humira's U.S. sales are likely to start to plunge as generic competition arrives. As we've seen internationally, Humira sales started to tank as soon as that happen elsewhere. Will the company's newly launched drugs and pipeline do enough to replace Humira?My guess that it won't be. Humira did $19.9 billion in sales last year. A typical blockbuster drug will hit a few billion a year in sales. AbbVie needs multiple new blockbusters simply to maintain its current revenue stream, let alone grow additionally. It's not impossible, but the odds are long. Unfortunately, $30 billion-plus in debt limits AbbVie's options and makes a dividend cut in coming years quite likely. That will be terrible news for ABBV stock, given its huge dividend income investor base.At the time of this writing, Ian Bezek owned GILD stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Does Recent Weakness in AbbVie Stock Make It a Buy? 3 Pros, 3 Cons appeared first on InvestorPlace.
FDA places a partial clinical hold on all studies evaluating AbbVie's (ABBV) Venclexta (venetoclax) for the treatment of multiple myeloma.
Today, I'd like to discuss the outlook for AbbVie (NYSE:ABBV), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25.Source: Shutterstock * Top 7 Service Sector Stocks That Will Pay You to Own Them There could be further price volatility and weakness in the ABBV stock price in the coming weeks, pushing it toward the low-$70's or even mid-$60's level. However, it is a company with robust growth prospects and respectable dividends that may deserve a place in a diversified portfolio.Therefore, if you already own AbbVie shares, you might want to hold your position. That said, within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 5-7% below the current price point. Expect nearer-term trading to be choppy at best.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf you are an experienced investor in the options market, you may want to protect your portfolio with a covered call or possibly a put option spread with a 3-month time horizon. If you do not yet hold ABBV, you may want to wait several weeks to buy into the stock at the next dip.With all of that in mind, here's a deeper look into at AbbVie stock. A Hiccup in the Robust Fundamental StoryIn 2013, Abbott Laboratories (NYSE:ABT) spun off its research-based pharmaceuticals business, creating AbbVie, an independent biopharmaceutical company. Abbott decided to retain the branded generic pharmaceuticals, diagnostics, medical devices and nutrition.Meanwhile, AbbVie took control of the development and commercialization of a range of brands, including Humira, its flagship drug used to treat autoimmune diseases, Imbruvica, which differentiates between cancer cells and regular cells, and Synthroid, a replacement for a hormone normally produced by the thyroid gland.The company's financials and growth metrics over the past five years have been impressive and ABBV was in a strong financial position heading into 2019, with hopes of a higher share price during the first quarter.However, in January, AbbVie's fourth-quarter earnings release weighed heavily on the stock. For starters, the company missed the consensus on revenue. Its earnings per share of $1.90 was below the expected number of $1.94. The next day, the stock fell by 6% and that decline has intensified over the past two months.ABBV's quarterly report also showed that the international sales of Humira fell by almost 15% year over year, mostly as a result of 'biosimilar' competition in Europe, which makes up three-quarters of the overseas Humira business. In October 2018, its patent in the European Union (E.U) expired.The U.S. Food and Drug Administration (FDA) refers to biosimilars as "highly similar to an FDA-approved biological product … [that has] no clinically meaningful differences in terms of safety and effectiveness." Although Wall Street had already known about this sales decline in Europe, when coupled with the other question marks in the earnings report, it was enough to increase the selling pressure on the stock.It is also possible that investors got worried about the potential fall in Humira revenue when the drug comes off patent in 2023 in the U.S. It is important to emphasize that AbbVie's revenue from the drug will not decline to nothing when the biosimilars hit the market in 2023. What will most likely happen is that as the company's pricing power decreases, the revenue will also gradually decline.Therefore, many analysts feel that ABBV shares offer value and that any bad news that is specific to Humira is already baked into the stock price. Value PlayWhen markets penalize biopharma stocks, it can take some time for them to recover. However, for patient long-term investors, the returns can be significant -- especially when the company boasts several other current drugs, as well promising ones in the pipeline.At present, AbbVie's other major products include: * AndroGel, a testosterone replacement therapy. * Creon, a pancreatic enzyme therapy to treat exocrine pancreatic insufficiency. * Duopa and Duodopa, gels to treat Parkinson's disease. * Viekira Pak, which treats chronic hepatitis C. * Zinbryta, to treat multiple sclerosis.Analysts are also expecting a slew of new products in 2020, such as next-generation immunology drugs. These drugs and others that are being developed and commercialized, highlight how impressive the potential growth story could be in the next few years.ABBV trades at a trailing price-to-earnings (P/E) ratio of 21. This number is rather modest when compared with the P/E ratios of several competitors, including AstraZeneca (NYSE:AZN) with a P/E of 49.9, Pfizer (NYSE:PFE) with a P/E of 25.2, and Merck (NYSE:MRK) with a P/E of 34.8. Reinvesting the Sweet Dividend Yield of ABBV stockIncome investors know that they can compound their returns through reinvesting dividends from high-yielding shares. AbbVie also offers investors a healthy dividend yield of about 5.4%, another reason why I believe the stock belongs in a capital-growth portfolio.Since its spin-off from Abbott Laboratories in 2013, ABBV has increased dividends every year -- a trend that is likely to continue. The next dividend payment is scheduled for May 15, 2019, with an ex-dividend date of April 12.It would not be wrong to call AbbVie a cashflow machine; as of Dec. 31, the company had a free cash flow of $3.27 billion. This strength not only gives shareholders conviction that the dividends are safe, but also provides the company with enough flexibility to, for example, make acquisitions to offset any further Humira revenue decline (especially in the U.S. when the drug comes off patent in 2023). The Bottom Line on AbbVie StockLike most biopharma stocks, AbbVie is a high-momentum stock. In other words, when the broader markets go up or when the company's earnings beat expectations, both investors and momentum traders tend to hit the "buy" button fast, expecting superior gains within days or weeks.However, if markets suffer a decline or if the company cannot keep up with the rising expectations, investors' risk appetite decreases fast and these stocks can fall much harder than less volatile stocks. * 7 Financial Stocks to Invest In Today The market has punished Abbvie stock since the start of the year. The stock may continue to struggle through much of 2019. However, patient ABBV bulls will probably be proven right to believe in the management's commitment to create shareholder value and to further grow the company both organically and through acquisitions. In the meantime, they can continue to collect high dividends.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post Why You Should Buy ABBV Stock for Income and Value appeared first on InvestorPlace.
AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study. Patients who are currently enrolled in studies and receiving the therapy may continue with the treatment, but no new patients should be enrolled in trials testing Venclexta for multiple myeloma until a further analysis of the data is completed, the drugmaker said. The drug is already approved to treat other types of cancer, including chronic lymphocytic leukemia and acute myeloid leukemia.
Shares of AbbVie Inc. fell 0.8% in premarket trade Tuesday after the Food and Drug Administration placed a partial hold on all the company's clinical trials of venetoclax as a potential treatment for multiple myeloma. The hold came after a review of Phase 3 data showed a higher proportion of deaths in the treatment arm than in the control arm. "As a result of this action, no new patients should be enrolled in any studies of venetoclax for multiple myeloma until a further analysis of the data is completed. Patients who are currently enrolled in studies and receiving benefit from the therapy may continue with treatment, after consultation with their physician," the company said in a statement. The FDA's hold will not impact any of the already-approved indications for venetoclax, such as chronic lymphocytic leukemia or acute myeloid leukemia, AbbVie said. Shares of AbbVie have fallen 12.5% in the year to date, while the S&P 500 has gained 13%.
NORTH CHICAGO, Ill., March 19, 2019 /PRNewswire/ -- AbbVie (ABBV), a research-based global biopharmaceutical company, today announced the U.S. Food and Drug Administration (FDA) has placed a partial clinical hold on all clinical trials evaluating venetoclax (VENCLEXTA®/VENCLYXTO®) for the investigational treatment of multiple myeloma. The partial clinical hold follows a review of data from the ongoing Phase 3 BELLINI trial (M14-031), a study in relapsed/refractory multiple myeloma, in which a higher proportion of deaths was observed in the venetoclax arm compared to the control arm of the trial. As a result of this action, no new patients should be enrolled in any studies of venetoclax for multiple myeloma until a further analysis of the data is completed. This action does not impact any of the approved indications for venetoclax, such as chronic lymphocytic leukemia (CLL) or acute myeloid leukemia (AML), and is limited to investigational clinical trials in multiple myeloma.
Our The Timely Ten list represents our top ten current recommendations from among our universe of undervalued blue chip stocks, explains dividend expert Kelley Wright, editor of the industry-leading advisory service, Investment Quality Trends.
Shares of major drug makers including Pfizer Inc. (PFE), Eli Lilly & Co. (LLY), Amgen Inc. (AMGN), Novartis AG (NVS) and AbbVie Inc. (ABBV), are already dramatically lagging the broader market this year.
Theravance (TBPH) commences phase IIb/III study for its gut-selective pan- JAK inhibitor, TD-1473 in patients with moderately to severely active ulcerative colitis.
Despite many politicians, particularly declared presidential candidates, beginning to speak out against big pharma, an FDA medical adviser does not think that anything will come out of it “because Congress is owned by pharma.”
AbbVie Inc NYSE:ABBVView full report here! Summary * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for ABBV with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ABBV. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold ABBV had net inflows of $2.29 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.