AbbVie: A Model of Continuous Innovation and Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ABBV?
Source: Fool
- Company Background: AbbVie was spun off from Abbott Labs 13 years ago and has since become the third-largest healthcare company globally, with a market cap of $390 billion, highlighting its significant industry presence.
- Dividend King Status: AbbVie is classified as a Dividend King, having increased its dividends for 50 consecutive years, with an attractive forward dividend yield of 3.1%, making its stock appealing to long-term investors.
- R&D Pipeline: AbbVie boasts approximately 90 clinical development programs, with around 60 in mid- to late-stage studies, indicating its strong capability in innovative drug development, particularly with standout autoimmune drugs like Skyrizi and Rinvoq.
- Strong Adaptability: Since its establishment in 1888, AbbVie has faced numerous challenges, including the patent expiration of Humira, yet it has achieved robust growth through R&D investments and strategic acquisitions, demonstrating its potential for sustained development.
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Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 227.500
Low
218.00
Averages
253.26
High
289.00
Current: 227.500
Low
218.00
Averages
253.26
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Volatility Expected: The ongoing rotation among investors suggests that market volatility will persist, and while Marvell Technology's recent pullback may seem excessive, its growth potential in the AI sector remains promising.
- Investment Recommendation: Although Marvell Technology was not included in the current top stock picks by The Motley Fool Stock Advisor, its unique position in AI technology, particularly in relation to partnerships with Nvidia and Intel, warrants attention.
- Historical Returns Comparison: Data from The Motley Fool indicates that previously recommended stocks like Netflix and Nvidia yielded returns of 414,554% and 1,120,663% respectively, highlighting the significant long-term investment value of their recommendations.
- Investor Community: Joining The Motley Fool's investor community provides access to the latest top 10 stock recommendations; while Marvell Technology is not among them, its potential market performance continues to attract investor interest.
See More
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- Market Volatility Analysis: All five stocks discussed have experienced varying degrees of pullback, and this volatility is expected to continue in the foreseeable future as investors rotate their assets.
- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
- Marvell Technology Growth Potential: As an AI-focused company, Marvell Technology has gone through significant ups and downs, yet its growth trajectory is still viewed positively, indicating potential for long-term investment.
- Video Content Recommendation: The video will delve deeper into the performance of these stocks, encouraging viewers to subscribe to the channel and check out the special offer in the link below for more investment insights.
See More
Three Dividend Stocks to Hold for 20 Years
- AbbVie's Dividend Growth: AbbVie (ABBV), a Dividend King, has raised its dividend for 54 consecutive years, with a current yield of 3.1%, demonstrating its ability to rebound from patent expirations and maintain growth, making it a solid hold for the next 20 years.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, having increased its dividend for 63 years, with a yield of 2.6%, as the company has successfully adapted to market changes, marketing 30 brands with annual sales exceeding $1 billion, and is expected to continue its dividend increases.
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- Low Volatility Investment Choice: Realty Income has a beta of 0.5 since its NYSE listing in 1994, reflecting low volatility, and combined with its high dividend yield, it presents an excellent long-term investment option for those seeking stable income.
See More
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- Market Correction Expectation: A survey by Natixis Investment Managers reveals that 74% of institutional money managers anticipate a market correction in 2026, citing concerns over the tech bubble, geopolitics, and macroeconomic factors, indicating a cautious outlook for future market conditions.
- Defensive Stock Performance: Pharmaceutical giants AbbVie and Merck are recognized as strong defensive stocks, having performed exceptionally well during market downturns, with AbbVie stock rising 24% and Merck 49% in the 2022 bear market, demonstrating their resilience in economic slowdowns.
- Stable Dividend Growth: AbbVie recently raised its dividend by 5% to $1.73 per share, marking the 13th consecutive year of increases, while Merck pays a quarterly dividend of $0.85 per share, having raised it for 15 years, both significantly exceeding the S&P 500 average yield.
- Future Growth Outlook: AbbVie projects adjusted diluted earnings per share of $14.37 to $14.57 in 2026, representing a 43% to 45% increase from 2025; Merck forecasts global sales of $65.5 billion to $67 billion, indicating strong growth potential for both companies in the upcoming market landscape.
See More
Investment Potential of Novo Nordisk and AbbVie
- Novo Nordisk Growth Potential: Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity care drugs surging by 26%, and experts predict the GLP-1 market will reach $254 billion by 2034, reflecting a robust long-term growth outlook.
- Attractive Valuation: Currently trading at a price-to-earnings ratio of 13, Novo Nordisk's stock price is $49.55, allowing a $500 investment to purchase 10 shares, making it an ideal choice for investors given its strong market position and low valuation.
- AbbVie as a Defensive Investment: AbbVie has risen 24% during the 2022 bear market since its spin-off from Abbott in 2013, showcasing its resilience as a defensive stock, while its dividend has increased for 13 consecutive years, currently yielding 3.1%.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue growth of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, highlighting its strong performance amid drug transitions.
See More
Investment Outlook for Pharmaceutical Sector
- Novo Nordisk Growth Potential: As a global leader in GLP-1 drug manufacturing, Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity drugs rising 26%, indicating strong market demand and future growth potential.
- Optimistic Market Outlook: Experts predict that the GLP-1 market will grow to $254 billion by 2034, with a compound annual growth rate of 17%, positioning Novo Nordisk to benefit significantly from this rapidly expanding market and further solidify its leadership.
- AbbVie Defensive Investment: Since its spin-off from Abbott Labs in 2013, AbbVie has shown impressive resilience, rising 24% during the 2022 bear market, demonstrating its strength as a defensive stock, while its 3.1% high dividend yield attracts long-term investors.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue gains of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, enhancing its investment appeal.
See More
