Image Source: https://www.abbvie.com
FULL DISCLOSURE:
I am not a financial advisor. This post is to provide information and not provide financial product advice. I discuss why I personally chose to invest in a stock, ETF, ETNs, CEF, REIT, investment fund or cryptocurrency (which I have held for over a week) and also share information that is public about the following stock, ETF, ETN, CEF, REIT, investment fund or cryptocurrency and they are based on my own personal opinion.
If I do not have anything invested or if I have sold the stock at the time of blogging the article, I will definitely let readers know.
I will not blog about any positions of stocks, ETFs, ETNs, CEFs or REITS and cryptocurrency which were initiated just within the last 72 hours of posting this blog article.
It is recommended that you should always consider visiting a financial advisor for independent financial advice before making investment decisions.
I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
I am not receiving compensation by the company for this blog post.
I have no working relationship with any company whose stock, ETF, ETN, CEF, REIT or cryptocurrency mentioned in this blog post. Nor do I have a family member or friend who works with the company.
I have written in the past about my feelings about investing in biotechnology and believing in the potential of companies who are fully invested in finding cures or making pharmaceuticals for diseases and illnesses. And while I have high convictions towards a few companies, with that being said, investing in biotechnology may not be for every investor.
For one, the biotechnology industry in 2021 has underperformed when compared to the S&P 500 and the Health Care Sector in general.
But when it comes to the healthcare sector, I believe in investing in biotechnology, especially the company AbbVie Inc (NYSE: ABBV). which has been performing quite well.
So, the business summary for AbbVie is as follows:
AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).
Humira is an immunosuppresive drug which can treat arthritis, plaque psoriasis, ankylosing spondylitis, Crohn’s disease, and ulcerative colitis. Brands that some may be familiar with are Humira Pen, Humira Pen Psoriasis-Uveitis, Humira Pen Crohn’s-UC-HS Start, Humira Pediatric Crohn’s Start and of course, AbbVie-branded HUMIRA (adalimumab).
The company began on January 2, 2013 and the biopharmaceutical company had an initial stock price of $34.40 per share.
By October 2013, AbbVie ranked 4th on Science magazine’s list of top science employers and by November 2014, the company had served over 30 million patients worldwide.
And since then, the company has grown and contributed to new discoveries and sales of a wide range of pharmaceutical products.
Source: Schwab.com
As of July 7th, the closing price was $116.75. Looking at the chart, the company’s peak was in 2017 when the share price reached $125.86 and it looks as if the price of Abbvie is moving back up to the $120’s once again.
The company has reached lowes of $55 in 2016 and in the $60s in 2019 but since October 2020, the share price has been over $100.
The 52-week range is $79.11 – $118.28 and the Market Cap is $204.4 billion, enterprise value of $280.2 billion and outstanding shares at $1.766 billion.
AbbVie Inc. was given a grade of B by Charles Schwab with a percentile ranking of 11 because it’s outperforming and is a Buy. Schwab also gave a “Low” for Price Volatility Outlook. It’s important to note that the company was rated A as of last week, with a percentile ranking of 9.
For the most part, Quality, Sentiment and Valuation Grade was positive.
Morningstar gave the stock two stars which means its slightly overvalued. The Morningstar Equity Analyst Report as of June 18th felt the fair value estimate was $103.
Morningstar’s Damien Conover, CFA, Sector Director wrote, “While AbbVie holds a strong portfolio of marketed and pipeline drugs, the increasing competition to the company’s key drug Humira should slow the growth for the company. At close to 40% of total sales and a higher portion of earnings (due to higher margin revenue), Humira is a key determinant of AbbVie’s earnings performance over the next three years”.
And also wrote, “AbbVie looks well-positioned with next generation immunology drugs. In particular, recently launched drugs Skyrizi and Rinvoq have shown improved efficacy and safety over Humira and other currently leading treatment options”.
Ned Davis Research gave AbbVie Inc. an Equity Focus Ranks Rating of Neutral. While CFRA has a three star recommendation of “HOLD”.
The report from CFRA feels that they look for sales growth due to the 2020 acquisition of Botox-manufacturer Allergan plc (AGN) for $3.4 billion. But also noting that ABBV’s revenue has been largely tied to sales of Humira. According to CFRA, “In 2021, we expect U.S. sales to grow 8% and OUS sales to decline 17%. In 2021, we expect combined sales of Rinvoq and Skyrizi to nearly double in their second full year of sales to $4.5 billion due to continued strong uptake in existing indications and expansion into three
additional indications”.
Source: Schwab.com
One of the reasons why I also like AbbVie Inc. is their dividend. At $1.30 for their quarterly dividend ($5.20 annually), the annual dividend yield is 4.49%.
With an earnings per share of $2.83 and price/earnings of $40.87. A forward P/E of $9.27 and Price to Earnings/Growth (PEG) of $9.08.
Since the company’s founding, the company has paid their dividend and steadily increased it with no drops.
Personally, I like the acquisition plays the company has made and in today’s news, Soliton (SOLY) and AbbVie (ABBV) agreed to provide the Federal Trade Commission with additional time to complete its review of AbbVie’s proposed acquisition of the medical device company.
But I am long and continually building my portfolio with ABBV.
As always, perform your due diligence and do a lot of research before investing. Talk to a financial advisor and find out if AbbVie Inc (NYSE: ABBV) would be a perfect investment for you.
