78.15 0.00 (0.00%)
After hours: 5:35PM EDT
|Bid||78.12 x 1300|
|Ask||78.20 x 1400|
|Day's Range||77.50 - 79.10|
|52 Week Range||75.77 - 107.25|
|Beta (3Y Monthly)||0.99|
|PE Ratio (TTM)||21.35|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||4.28 (5.31%)|
|1y Target Est||92.18|
Strong growth of Imbruvica and Mavyret are expected to drive AbbVie (ABBV) first-quarter sales. Declining ex-U.S. Humira sales are likely to be an overhang on the top line.
While sales of Biogen's (BIIB) MS franchise are expected to decline in the first quarter of 2019 that of Spinraza are likely to increase.
With negative earnings revisions, the healthcare sector is expected to witness earnings growth of 1.8% in the first quarter, suggesting smooth trading for healthcare ETFs.
AbbVie (ABBV) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Health Canada Approves SKYRIZI™ (risankizumab) for the Treatment of Moderate to Severe Plaque Psoriasis
When most people think of marijuana stocks, the last thing they think of is dividends. Furthermore, U.S. investors in the marijuana space tend to currently focus on a handful of Canadian companies which have enjoyed the opportunity to list on U.S. exchanges. The company remains one of the most popular marijuana pharmaceuticals developers.
J&J (JNJ) beats estimates for both earnings and sales in the first quarter of 2019 and raises 2019 guidance for operational sales and adjusted operational EPS growth. Shares up in pre-market trading.
The market opportunity for cannabis is enormous. According to Grand View Research, the spending is expected to hit a staggering $146.4 billion in the U.S. by the end of 2025.Nowadays there are more publicly traded companies to play this megatrend, including names like Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON), and Tilray (NASDAQ:TLRY). Beyond these stocks' extreme volatility, they also fetch sky-high valuations, with price-to-sales multiples often well over 50x.So, is there way to get exposure to the cannabis opportunity -- but not take on too much risk? Interestingly enough, there is one such stock to consider: AbbVie (NYSE:ABBV). It's a company that rarely pops up on many people's radar screen when it comes to cannabis. After all, it's one of the world's largest traditional pharma operators, with roots going back to 1888. Keep in mind that ABBV stock was spun-off from Abbott Laboratories (NYSE:ABT) in 2013.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo what does ABBV stock have to do with cannabis? Well, consider that the company has a drug on the market, called Marinol. It is based on a compound known as dronabinol, a synthetic form of THC, which is a natural part of the marijuana plant (that is, cannabis sativa). This is what activates the "high." * 7 High-Risk Stocks With Big Potential Rewards Now Marinol has proven to be effective in dealing with the symptoms of a host of terrible diseases. For example, it helps deal with the nausea from chemotherapy and the weight problems resulting from those who suffer from AIDS.Granted, Marinol is not a blockbuster drug. But then again, it does show the promise of cannabis as a treatment. More importantly, as for AbbVie stock, the drug is an indication of the company's ability to push innovation with alternative treatments. In other words, it would not be a surprise that it will go on to leverage this experience to look at more treatments.What's more, the use of cannabis for medical purposes is certainly a major opportunity. There are already 41 countries that allow for this, whether on a federal or state level. Bottom Line on AbbVie StockGranted, it would not be a good idea to invest in AbbVie stock just because it has a cannabis drug. To be sure, as seen with the latest earnings report, the company does have some problems as it issued disappointing guidance. Since early this year, ABBV stock has sunk from $91 to $81.The nagging issue is the company's most important drug, Humira (this is for the treatment of arthritis, plaque psoriasis, Crohn's disease, and ulcerative colitis). For the most part, the growth is slowing. And yes, there are worries about when the U.S. patent protection comes off in 2023. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Despite all this, I still think there is a bullish case for AbbVie stock. One, the company has a decent roster of drug candidates that could move the needle -- and help make up for a shortfall in Humira. For example, it has several immunology treatments (risankizumab and upadacitinib) that should hit the markets this year. Interestingly enough, when it comes to the pipeline, AbbVie has lots of potential with the cancer market. To this end, its drug Imbruvica is likely to spin-off various treatments for the category.And who knows, perhaps there could be potential from cannabis as well? I think so.In the meantime, AbbVie stock sports a dirt-cheap valuation, with the forward price-to-earnings multiple at only 8.6x. Oh, and the dividend is at 5.15%, making it one of the highest among the major pharma companies.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Is AbbVie Stock An Undiscovered Cannabis Play Waiting For Some Attention? appeared first on InvestorPlace.
If stock buybacks face more restrictions, dividends may rise. Meanwhile, Goldman Sachs says that high dividend stocks should outperform the market.
There's nothing complicated at all about this approach to making a solid profit with one of the top big pharma stocks on the market.
Out of 50 of the largest companies in America, the highest median employee pay in 2018 was at Texas-based oil giants Phillips 66 and Exxon Mobil Corp.
Johnson & Johnson (NYSE:JNJ) announces earnings on Tuesday before market open. The New Brunswick, New Jersey-based healthcare company has become one of the strongest, longest-running brands in existence.Source: Shutterstock However, challenges with drug patent expirations have blunted earnings growth in JNJ stock. This has left JNJ trading in a range for more than two years. Though this report will probably not deliver any meaningful surprises, investors still need signs that earnings growth will resume in Johnson & Johnson stock to break the equity out of its range. Pharma Will Drive the Report on JNJ StockTuesday's announcement will kick off earnings season for the pharma industry. Wall Street forecasts Q1 earnings to come in at $2.06 per share, matching the number for Q1 2018. They also predict revenues of $19.6 billion, a 2% decrease from the $20.01 billion announced in the same quarter last year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Risky Stocks to Watch as Earnings Season Kicks Off Consumers know JNJ best for its consumer health products. However, many often forget that medical devices and pharma each drive greater shares of the company's revenue. It is pain in the pharma division that's driving the predicted revenue decline.Sales of Simponi/Simponi Aria and Xarelto fell in the fourth quarter. The company has also cited alternatives to Velcade, Tracleer and Zytiga in explaining revenue declines. By no means is JNJ stock the only pharma stock to struggle with new competition. AbbVie (NYSE:ABBV) faces the same issue with Humira. Also, Pfizer (NYSE:PFE) will see its patent protection go away in its blockbuster drug Lyrica this summer.Patent expirations have long affected pharma stocks, and this may have helped to trap JNJ stock in a range. Since early 2017, JNJ stock has traded near the $120 per share to $150 per share range. Now, its forward P/E ratio comes in below 15. In the past few years, JNJ's forward P/E has typically been in the high teens to the low 20s.The stagnant earnings may explain the modest discount in JNJ stock. For this reason, I think investors will focus on guidance in the upcoming report. As of now, Wall Street expects 2019 earnings to increase by 4.6%. In all likelihood, investors will need to at least see that figure to move JNJ higher. JNJ Stock Retains Numerous AdvantagesFortunately, some tailwinds could help JNJ stock. Traders should remember that JNJ stock usually beats estimates, at least on earnings. For that reason, I would expect the earnings number to come in higher than $2.06 per share.Also, JNJ stock should continue to deliver the stability for which the public knows the company. For now, JNJ and Microsoft (NASDAQ:MSFT) are the only two U.S. companies that maintain a AAA credit rating. Debt levels have fallen over the last year, so I see no change in that status coming.Also, attention should shift back to the dividend in the coming days. The company traditionally announces a hike to its JNJ stock dividend soon after the Q1 report. They have increased the payout every year since 1963. Hence, I do not see the company breaking its 56-year streak of payout increases. The only question remains how much of a dividend hike JNJ gives.Johnson & Johnson stock currently pays 90 cents per share each quarter, a yield of about 2.65%. In the past, earnings growth has had little obvious effect on the size of the increase. While I do not foresee any surprises, the dividend boost could help JNJ stock to recover. Concluding Thoughts on JNJ StockGoing into earnings, investors need to see guidance that will help break JNJ stock out of its range. Johnson & Johnson usually beats earnings. However, patent expirations on key drugs have led to modest declines in revenue. They may also explain why JNJ has traded in a range for the last two years.However, conditions increasingly point to the potential for a rising stock price. The P/E ratio has fallen below company averages. Moreover, analysts forecast earnings increases in later quarters and for the overall year. If company guidance confirms those predictions, JNJ stock should rise. An expected dividend hike in the coming weeks should offer further help. * 7 AI Stocks to Watch with Strong Long-Term Narratives JNJ stock trades at about $135 per share now. If guidance affirms or exceeds profit growth predictions, I think it could help take JNJ past $150 per share sooner rather than later.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post Forward Guidance Will Make or Break JNJ Earnings appeared first on InvestorPlace.
Across the country, numerous CEOs at many of the largest U.S. companies in 2018 were paid 100, 200, 300, 400, 500 or 600 times as much as their company's median employee.
History favors a sustained rally after the strongest first quarter in a decade, but challenges remain as growth slows in the U.S., China and Europe.