Allan Tong’s Discover Picks When I last recommended AbbVie in mid-April, this popular dividend-payer was trading at 52-week highs nearing $175. In three months, shares had raced from $135, so $175 was unsustainable. Last month, shares dipped below $138 and since then it has trended around a reasonable $150. I still like AbbVie stocks. It pays a solid 3.75% dividend, trades below 22x earnings, is safe at a 0.75 beta in a rockly market, and its shares have risen 120% in five years. Read Our 3 defensive healthcare stocks picks for our full analysis.
It's one of the big healthcare stocks, a sector he likes. The issue here is that their big drug is coming off patent this year. Not sure how this will go. Be cautious in the coming year. The stock could be weak. Great dividend and drug pipeline, though.
Biotechs have strong balance sheets, better than a few years ago. Likes this as well as Amgen. Better to buy individual biotech stocks over ETFs. He has options calls on Abbvie.
(A Top Pick Oct 20/20, Up 90%) Largest biotech company. Concerns about Humira coming off patent were overblown. Likes its R&D, as well as its M&A strategy. Missed on one trial, another one coming up. Good balance sheet, pretty good dividend, consistent cashflow. Good entry point.
(A Top Pick Apr 27/21, Up 34.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ABBV has triggered its stop at $152. To remain disciplined we recommend covering the position at this time.
He trimmed his AbbVie to buy back Chipotle which he once owned. Though the near-term market direction is cloudy, he is seeking opportunity. He bought AbbVie last November at $115. Over three days, AbbVie jumped 8%, way faster than in recent years, but then it was wiped out in just three days. So, he sold half his position. He bought Chipotle, because he wanted growth at a reasonable valuation. It can endure theses inflationary times. Brand recognition helps. Fast food continues to sell.
Allan Tong’s Discover Picks Though shares are topping $175, AbbVie's PE of 25.1x is at its lowest in the past year, nearly 40x at the end of March 2021, for example. Then again, Merck trades at 18x and Pfizer 13.8x. The street remains confident in AbbVie, calling 11 buys and five holds, though the price target is $155.47, about $15 lower than current levels. AbbVie looks healthy for the long term, but it wouldn't hurt to bank a few profits while shares are riding high. Read 3 Promising Healthcare Stocks for our full analysis.
Major product, over 40% of revenues, is going off-patent next year, creating a higher risk profile. He sold. It has risen since then, but he doesn't like to be greedy, and he can sleep better. Sometimes it's time to move on. Wonderful profile, attractive dividend, attractive multiple, good growth rate, momentum.
(A Top Pick Apr 22/21, Up 47.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ABBV is progressing well. We now recommend trailing up the stop (from $140) to $152.
AbbVie Inc. is a American stock, trading under the symbol ABBV (previously ABBV-N on Stockchase) on the New York Stock Exchange (ABBV). It is usually referred to as NYSE:ABBV or ABBV