AbbVie Inc. (ABBV) Buy or Sell Stock Guide
The analysis below may be helpful to you if you have any of the following questions about ABBV stock:
- Is ABBV a buy or a sell?
- Should I sell or hold ABBV stock today?
- Is ABBV a good buy / a good investment?
- What are ABBV analyst opinions, recommendations, ratings?
Here are ABBV stock buy reasons/signals:
1. AbbVie supports a strong dividend yield of close to 4%, which should act as valuation support, as the cash flows to support the dividend look fairly secure over the next few years.
2. AbbVie's increasing entrenchment in blood cancers should bode well for growth as pricing power remains strong in this therapeutic area of the healthcare market.
3. AbbVie's next generation immunology drugs targeting IL23 and JAK pathways should help mitigate the competitive headwinds facing Humira.
4. ABBV quarterly revenue growth was 7.60%, higher than the industry and sector average revenue growth (4.38% and 3.94%, respectively).
5. ABBV profitability is improving. The YoY profit margin change was 0.72pp.
6. ABBV forward dividend yield is 3.13%, higher than the industry (0.13%) and sector (0.60%) forward dividend yields.
7. ABBV PEG ratio (P/E adjusted for growth) is 1.06, and it’s low compared to its industry peers’ PEG ratios.
8. ABBV average analyst rating is Buy.
Here are ABBV stock sell reasons/signals:
1. Several of AbbVie's pipeline products in immunology have mechanisms of action similar to drugs already approved, taking away the first mover advantage.
2. The high profit margins on Humira will cause an amplified impact on earnings as sales are lost to eventual biosimilar competition.
3. The pricing power of hepatitis C drugs has eroded significantly over the past few years, which may put further pressure on AbbVie hepatitis C platform.
4. ABBV stock price ($87.44) is close to the 52-week high ($89.32). Perhaps now is a good time to sell?
5. ABBV Price/Book ratio is 22.63, and it’s high compared to its industry peers’ P/B ratios.
6. ABBV average analyst price target ($77.24) is below its current price ($87.44).
7. ABBV short interest (days to cover the shorts) ratio is 5.37. The stock garners more short interest than the average industry, sector or S&P 500 stock.
What are your thoughts on ABBV?
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