AbbVie Inc. (ABBV), headquartered in North Chicago, Illinois, is a biopharmaceutical company that discovers, develops, manufactures, and sells pharmaceuticals worldwide. Valued at $361.9 billion by market cap, the company discovers and develops medicines and therapies that solve health issues across immunology, oncology, aesthetics, neuroscience, and eye care.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and ABBV definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the general drug manufacturers industry. ABBV stands out in the fields of immunology and oncology with its extensive product portfolio, featuring leading drugs like Humira, Imbruvica, and Rinvoq, combined with heavy investments in R&D, ensuring a steady pipeline of innovative therapies and strengthening its global presence.
Despite its notable strength, ABBV slipped 1.1% from its 52-week high of $207.32, achieved on Oct. 31, 2024. Over the past three months, ABBV stock gained 12% outperforming the Health Care Select Sector SPDR Fund’s (XLV) marginal gains during the same time frame.
In the longer term, shares of ABBV rose 15.4% on a YTD basis and climbed 14.5% over the past 52 weeks, outperforming XLV’s YTD gains of 7% and marginal returns over the last year.
To confirm the bullish trend, ABBV is trading above its 50-day and 200-day moving averages since late January.
ABBV’s strong performance is fueled by the success of Skyrizi and Rinvoq in immunology, alongside key contributions from new launches, Venclexta, Vraylar, and emerging therapies like Ubrelvy, Elahere, and Qulipta further supported by the strength of its neuroscience and oncology product portfolio. Additionally, the approval of Vyalev for advanced Parkinson’s disease further strengthens its portfolio, while ongoing studies for Botox and Juvederm expand future growth opportunities. Moreover, ABBV’s continued acquisition spree and incorporation of advanced technology is boosting its prospects.
On Jan. 31, ABBV shares closed up more than 4% after reporting its Q4 results. Its revenue of $15.1 billion beat analyst estimates of $14.9 billion. The company’s adjusted EPS was $2.16, surpassing analyst estimates of $2.13. ABBV expects full-year adjusted EPS to be between $12.12 and $12.32.
ABBV’s rival, Eli Lilly and Company (LLY) shares has taken the lead over the stock, with a 17.3% gain on a YTD basis and 18.3% returns over the past 52 weeks.
Wall Street analysts are moderately bullish on ABBV’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $207.20 suggests a potential upside of 1.1% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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