North Chicago, Illinois-based AbbVie Inc. (ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. With a market cap of $405.6 billion, 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 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 5.3% from its 52-week high of $244.81, achieved on Oct. 1. Over the past three months, ABBV stock gained 11.7%, outperforming the Nasdaq Composite’s ($NASX) 7.4% gains during the same time frame.
In the longer term, shares of ABBV rose 30.4% on a YTD basis and climbed 30.9% over the past 52 weeks, outperforming NASX’s YTD gains of 19.2% and 20.8% returns over the last year.
ABBV has been trading above its 200-day moving average since early July, with slight fluctuations, indicating a bullish trend. The stock has been trading above its 50-day moving average since early June, experiencing some fluctuations.
AbbVie's strong performance is driven by the success of Skyrizi and Rinvoq, double-digit neuroscience growth, and strategic acquisitions, including Gilgamesh and Capstan Therapeutics. They're expanding manufacturing with a $195 million investment in North Chicago and a $70 million expansion in Worcester, advancing pipeline programs for alopecia areata, vitiligo, and Parkinson's. Despite aesthetic challenges, AbbVie's focus on immunology and neuroscience fuels growth.
On Oct. 31, ABBV shares closed down by 4.5% after reporting its Q3 results. Its adjusted EPS of $1.86 beat Wall Street expectations of $1.77. The company’s revenue was $15.8 billion, beating Wall Street's $15.6 billion forecast. ABBV expects full-year adjusted EPS in the range of $10.61 to $10.65.
In the competitive arena of general drug manufacturers, Eli Lilly and Company (LLY) has taken the lead over ABBV, with a 43.8% uptick on a YTD basis and 47% returns over the past 52 weeks.
Wall Street analysts are reasonably bullish on ABBV’s prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it, and the mean price target of $244.54 suggests a potential upside of 5.5% 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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