|Bid||58.84 x 900|
|Ask||60.46 x 800|
|Day's Range||59.90 - 60.50|
|52 Week Range||52.39 - 64.90|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.98|
|Expense Ratio (net)||0.36%|
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.
VanEck announced today its regular distribution per share for the following VanEck Vectors® equity exchange-traded fund.
In a turbulent year for Gilead Sciences (NASDAQ:GILD), the company recently generated headlines that will hopefully turn things around for GILD stock. Over the weekend, insider information pegged Roche Holdings (OTCMKTS:RHHBY) executive Daniel O’Day as its new CEO. O’Day is no stranger to the industry, having served as Roche Pharmaceuticals’ chief executive since June 3, 2016.
On November 19, GlaxoSmithKline’s (GSK) stock price closed at $40.83, which represents ~1.21% growth from its close of $40.34 on November 16. GlaxoSmithKline’s stock price grew from $35.47 when the market closed on December 29, 2017, to $40.83 November 19, which reflects ~15% year-to-date growth.
VanEck announced today preliminary yearend distribution estimates for its VanEck Vectors® equity exchange-traded funds.
Jazz Pharmaceuticals’ (JAZZ) Xyrem generated revenues of $357.3 million in the third quarter—compared to $303.9 million in the third quarter of 2017, which reflected ~18% YoY (year-over-year) growth. Xyrem’s net revenues over the first nine months of 2018 amounted to $1.0 billion—compared to $874.2 million in the same period in 2017, which reflects 18% YoY growth.
GW Pharmaceuticals (GWPH) is a developer of plant-derived cannabinoid therapeutics. GW Pharmaceuticals reported EPS of -$1.26 on revenue of $3.46 million in the third quarter, reflecting a 10.2% year-over-year revenue rise in the quarter.
As we discussed earlier, analysts expect Sanofi’s (SNY) revenues to grow 3.3% to 9.3 billion euros during the third quarter. In this part, we’ll discuss Sanofi’s business structure and the estimates for each segment during the third quarter.
As we saw in the first part of this series, Wall Street analysts expect a 2.5% growth in GlaxoSmithKline’s (GSK) third-quarter revenues to 8.02 billion pounds. The growth could be offset by lower sales of some products and the impact of divestitures.
Investors should focus on some strategies as to which sector should they take positions or which should be avoided if bipartisan government forms.
At constant exchange rates, Novartis (NVS) reported 6% growth in year-over-year revenues to $12,779 million during the third quarter of 2018 as compared to $12,413 million during the third quarter of 2017. Also, foreign exchange had a 2% negative impact on revenues during the quarter.
Novartis (NVS), one of the leading healthcare companies, released its third-quarter earnings on October 18. Novartis surpassed Wall Street analysts’ estimates for EPS but missed estimates for revenues with reported EPS of $1.32 on revenues of ~$12.78 billion as compared to the estimated EPS of $1.31 on revenues of ~$13.02 billion during the third quarter of 2018.
Johnson & Johnson’s (JNJ) beauty business generated revenue of $1.1 billion in the third quarter compared to $1.0 billion in the third quarter of 2017, reflecting a ~4.4% YoY rise.
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Wall Street analysts estimate that Novartis (NVS) will report revenues of $13.02 billion for the third quarter of 2018, a 4.9% growth year-over-year compared to $12.41 billion. Novartis stock has decreased ~4.9% over the last 12 months. As of October 12, there are two analysts tracking Novartis ADR (American Depositary Receipts).
Novartis (NVS) is set to release its third quarter of 2018 earnings results on October 18. Analysts are estimating EPS of $1.31 and revenues of $13.02 billion. Novartis, one of the largest pharmaceutical companies by revenue, specializes in the development, manufacturing, and marketing of healthcare products.
Bausch + Lomb/International, a subsidiary of Bausch Health (BHC), generated net revenues of $1.21 billion in the second quarter, compared to $1.22 billion in the second quarter of 2017. This increase reflects ~4.0% YoY (year-over-year) organic growth.
The healthcare sector will continue to see political attention in the remainder of 2018, with the 2017 U.S. tax reform bill influencing it in a number of ways. Its repeal of mandated healthcare is likely to change demand and effect provider participation.
Novartis AG (NVS) reported EPS of $1.29 on revenue of $13.2 billion in the second quarter, reporting a 7% YoY (year-over-year) rise in revenue compared to $12.2 billion in the second quarter of 2017.
GW Pharmaceuticals (GWPH) is a leader in the development of plant-derived cannabinoid therapeutics. GW Pharmaceuticals reported EPS of -$1.26 on revenues of $3.46 million in the third quarter. It was a 10.2% revenue growth year-over-year.