SCHD, SEA: Big ETF Inflows
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2025
0mins
Should l Buy ABBV?
Source: NASDAQ.COM
ETF Inflows: The SEA ETF experienced the largest increase in inflows, adding 125,000 units, which represents a 35.7% rise in outstanding units.
Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
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Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 205.200
Low
223.00
Averages
252.00
High
289.00
Current: 205.200
Low
223.00
Averages
252.00
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.
AbbVie's Growth Potential Emerges Amid Challenges
- Accelerating Revenue Growth: AbbVie reported total revenue of $61.2 billion in 2025, reflecting a 9% year-over-year increase, showcasing the company's recovery capabilities and market adaptability despite challenges from the expiration of Humira's patent.
- Strong Performance of New Drugs: The new immunology drugs Skyrizi and Rinvoq generated a combined revenue of $25.9 billion last year, effectively filling the gap left by declining Humira sales, indicating the strategic effectiveness of AbbVie's product diversification.
- Attractive Valuation: AbbVie trades at a forward price-to-earnings ratio of just 14, significantly lower than the S&P 500's average of 21, with a PEG ratio of 0.49 suggesting the stock is undervalued given the expected growth over the next five years, making it suitable for long-term investment.
- Dividend Yield Advantage: With a dividend yield of 3.4%, AbbVie offers investors a stable cash flow, and despite its recent stock price underperformance, the long-term hold remains appealing due to its income potential.
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Fed Chair Discusses Inflation Driven by Tariffs and Oil Prices
- Inflation Drivers: Fed Chair Jerome Powell indicated that inflation is being driven by tariffs, particularly as oil prices have surged due to supply disruptions in the Middle East, creating an 'oil shock' that impacts various sectors of the economy.
- Fed's Dilemma: Powell emphasized that the Fed faces a dilemma in addressing tariff-driven inflation since raising interest rates does not effectively mitigate inflation caused by tariffs, and slowing economic growth could further weaken the economy if rates are increased.
- Stock Market Risks: In a potential stagflation environment, growth stocks with high valuations and minimal profits are at significant risk, particularly consumer discretionary stocks, as consumers tend to cut back on discretionary spending first during economic slowdowns.
- Defensive Investment Choices: Despite the risks, energy stocks like Chevron and utility stocks may perform relatively well in a high-inflation, low-growth environment due to their stable cash flows and attractive dividends, making them safe havens for investors.
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Federal Reserve's Concerns Over Inflation and Economic Growth
- Inflationary Pressures: Fed Chair Jerome Powell indicated that recent inflation rises are primarily driven by soaring oil prices and tariffs, suggesting that inflationary pressures may persist, impacting consumer confidence and spending.
- Slowing Economic Growth: U.S. GDP growth slowed to 1.4% in February, significantly below expectations, indicating economic weakness that could lead to rising unemployment, complicating the Fed's decision-making regarding interest rate hikes.
- Safe Stock Selections: In the current environment, energy stocks, utility stocks, and consumer staples are viewed as relatively safe investments, particularly companies like Chevron and Walmart, which benefit from stable cash flows and attractive dividends, helping to maintain investor confidence during high inflation.
- Investment Strategy Adjustments: Investors should focus on stocks with durable demand and strong pricing power while avoiding high-valuation, low-profit growth stocks to navigate potential stagflation, ensuring the stability of their portfolios.
See More
Google Partners with Agile Robots to Advance Robotics Technology
- Partnership Formation: Google has partnered with Agile Robots to integrate Gemini Robotics foundation models with Agile's intelligent robotic hardware, aiming to enhance efficiency in manufacturing applications, highlighting Google's strategic focus on robotics.
- Data-Driven Innovation: This collaboration will provide Google with real-world deployment data, which is crucial for competing in the AI space, particularly in manufacturing, thereby strengthening its market position.
- Technology Integration and Application: With over 20,000 robotic systems deployed globally, Agile Robots will integrate Google's technology into existing industrial robots, expected to accelerate the development of high-value industrial applications and solidify Google's leadership in robotics.
- Future Development Potential: Carolina Parada, Senior Director at Google DeepMind, stated that this partnership will drive the development of more advanced AI models, marking a significant long-term investment by Google in robotics and its commitment to the future of manufacturing.
See More
AbbVie and Bristol Myers Squibb's Dividend Performance
- AbbVie's Dividend King Status: AbbVie is not only a reliable dividend raiser but also a Dividend King, having increased its dividend for 50 consecutive years; despite facing the patent expiration of Humira, management strategically bolstered its pipeline with Skyrizi and Rinvoq, which generated $7.4 billion in net revenue in Q4, accounting for 44% of total revenue.
- Strong Cash Flow Support: AbbVie's robust free cash flow is more than sufficient to sustain its quarterly dividend of $1.73 per share, currently yielding 3.4%, ensuring the company's ability to maintain dividend stability and attractiveness amid market fluctuations.
- Bristol Myers Squibb's Innovative Response: Facing similar patent cliff challenges, particularly with cancer drugs, Bristol Myers Squibb's growth portfolio achieved a 16% year-over-year revenue increase in Q4, nearing $7.4 billion, demonstrating the company's resilience in navigating market pressures.
- Solid Financial Forecast: Despite a 15% decline in revenue from its legacy portfolio to $5.1 billion, Bristol Myers Squibb's management projects annual revenue between $46 billion and $47.5 billion for 2023, with free cash flow at $12.8 billion, significantly exceeding the $5 billion needed for dividends, ensuring a sustainable dividend yield of 4.4%.
See More
Dividend Performance of AbbVie and Bristol Myers Squibb
- AbbVie's Dividend King Status: AbbVie is not only a reliable dividend raiser but also a Dividend King, having increased its dividend annually for 50 years, and despite facing the patent expiration of Humira, its management has effectively navigated challenges through strategic acquisitions and new drug development, ensuring strong cash flow and a quarterly dividend of $1.73 per share, currently yielding 3.4%.
- New Drug Revenue Growth: AbbVie's next-generation drugs, Skyrizi and Rinvoq, generated a combined net revenue of $7.4 billion in the fourth quarter, accounting for 44% of the company's total revenue, demonstrating its strong market adaptability post-Humira patent loss and further solidifying its leadership in the biopharmaceutical sector.
- Bristol Myers Squibb's Innovative Response: Facing patent cliffs with cancer drugs like Revlimid and Opdivo, Bristol Myers Squibb has driven growth through innovation, with its growth portfolio's revenue increasing by 16% year-over-year to nearly $7.4 billion in the fourth quarter, alleviating the revenue decline from its legacy portfolio and showcasing resilience in adversity.
- Strong Free Cash Flow: Although Bristol Myers Squibb may experience a decline in free cash flow, which was $12.8 billion last year, significantly exceeding the $5 billion needed for dividend payments, its current dividend yield stands at 4.4%, providing a stable return outlook for long-term investors.
See More
AbbVie's Growth Potential Emerges Amid Challenges
- Accelerating Revenue Growth: AbbVie reported total revenue of $61.2 billion in 2025, reflecting a 9% year-over-year increase, showcasing the company's recovery capabilities and market adaptability despite challenges from the expiration of Humira's patent.
- Strong Performance of New Drugs: The new immunology drugs Skyrizi and Rinvoq generated a combined revenue of $25.9 billion last year, effectively filling the gap left by declining Humira sales, indicating the strategic effectiveness of AbbVie's product diversification.
- Attractive Valuation: AbbVie trades at a forward price-to-earnings ratio of just 14, significantly lower than the S&P 500's average of 21, with a PEG ratio of 0.49 suggesting the stock is undervalued given the expected growth over the next five years, making it suitable for long-term investment.
- Dividend Yield Advantage: With a dividend yield of 3.4%, AbbVie offers investors a stable cash flow, and despite its recent stock price underperformance, the long-term hold remains appealing due to its income potential.
See More
Fed Chair Discusses Inflation Driven by Tariffs and Oil Prices
- Inflation Drivers: Fed Chair Jerome Powell indicated that inflation is being driven by tariffs, particularly as oil prices have surged due to supply disruptions in the Middle East, creating an 'oil shock' that impacts various sectors of the economy.
- Fed's Dilemma: Powell emphasized that the Fed faces a dilemma in addressing tariff-driven inflation since raising interest rates does not effectively mitigate inflation caused by tariffs, and slowing economic growth could further weaken the economy if rates are increased.
- Stock Market Risks: In a potential stagflation environment, growth stocks with high valuations and minimal profits are at significant risk, particularly consumer discretionary stocks, as consumers tend to cut back on discretionary spending first during economic slowdowns.
- Defensive Investment Choices: Despite the risks, energy stocks like Chevron and utility stocks may perform relatively well in a high-inflation, low-growth environment due to their stable cash flows and attractive dividends, making them safe havens for investors.
See More
Federal Reserve's Concerns Over Inflation and Economic Growth
- Inflationary Pressures: Fed Chair Jerome Powell indicated that recent inflation rises are primarily driven by soaring oil prices and tariffs, suggesting that inflationary pressures may persist, impacting consumer confidence and spending.
- Slowing Economic Growth: U.S. GDP growth slowed to 1.4% in February, significantly below expectations, indicating economic weakness that could lead to rising unemployment, complicating the Fed's decision-making regarding interest rate hikes.
- Safe Stock Selections: In the current environment, energy stocks, utility stocks, and consumer staples are viewed as relatively safe investments, particularly companies like Chevron and Walmart, which benefit from stable cash flows and attractive dividends, helping to maintain investor confidence during high inflation.
- Investment Strategy Adjustments: Investors should focus on stocks with durable demand and strong pricing power while avoiding high-valuation, low-profit growth stocks to navigate potential stagflation, ensuring the stability of their portfolios.
See More
Google Partners with Agile Robots to Advance Robotics Technology
- Partnership Formation: Google has partnered with Agile Robots to integrate Gemini Robotics foundation models with Agile's intelligent robotic hardware, aiming to enhance efficiency in manufacturing applications, highlighting Google's strategic focus on robotics.
- Data-Driven Innovation: This collaboration will provide Google with real-world deployment data, which is crucial for competing in the AI space, particularly in manufacturing, thereby strengthening its market position.
- Technology Integration and Application: With over 20,000 robotic systems deployed globally, Agile Robots will integrate Google's technology into existing industrial robots, expected to accelerate the development of high-value industrial applications and solidify Google's leadership in robotics.
- Future Development Potential: Carolina Parada, Senior Director at Google DeepMind, stated that this partnership will drive the development of more advanced AI models, marking a significant long-term investment by Google in robotics and its commitment to the future of manufacturing.
See More
AbbVie and Bristol Myers Squibb's Dividend Performance
- AbbVie's Dividend King Status: AbbVie is not only a reliable dividend raiser but also a Dividend King, having increased its dividend for 50 consecutive years; despite facing the patent expiration of Humira, management strategically bolstered its pipeline with Skyrizi and Rinvoq, which generated $7.4 billion in net revenue in Q4, accounting for 44% of total revenue.
- Strong Cash Flow Support: AbbVie's robust free cash flow is more than sufficient to sustain its quarterly dividend of $1.73 per share, currently yielding 3.4%, ensuring the company's ability to maintain dividend stability and attractiveness amid market fluctuations.
- Bristol Myers Squibb's Innovative Response: Facing similar patent cliff challenges, particularly with cancer drugs, Bristol Myers Squibb's growth portfolio achieved a 16% year-over-year revenue increase in Q4, nearing $7.4 billion, demonstrating the company's resilience in navigating market pressures.
- Solid Financial Forecast: Despite a 15% decline in revenue from its legacy portfolio to $5.1 billion, Bristol Myers Squibb's management projects annual revenue between $46 billion and $47.5 billion for 2023, with free cash flow at $12.8 billion, significantly exceeding the $5 billion needed for dividends, ensuring a sustainable dividend yield of 4.4%.
See More
Dividend Performance of AbbVie and Bristol Myers Squibb
- AbbVie's Dividend King Status: AbbVie is not only a reliable dividend raiser but also a Dividend King, having increased its dividend annually for 50 years, and despite facing the patent expiration of Humira, its management has effectively navigated challenges through strategic acquisitions and new drug development, ensuring strong cash flow and a quarterly dividend of $1.73 per share, currently yielding 3.4%.
- New Drug Revenue Growth: AbbVie's next-generation drugs, Skyrizi and Rinvoq, generated a combined net revenue of $7.4 billion in the fourth quarter, accounting for 44% of the company's total revenue, demonstrating its strong market adaptability post-Humira patent loss and further solidifying its leadership in the biopharmaceutical sector.
- Bristol Myers Squibb's Innovative Response: Facing patent cliffs with cancer drugs like Revlimid and Opdivo, Bristol Myers Squibb has driven growth through innovation, with its growth portfolio's revenue increasing by 16% year-over-year to nearly $7.4 billion in the fourth quarter, alleviating the revenue decline from its legacy portfolio and showcasing resilience in adversity.
- Strong Free Cash Flow: Although Bristol Myers Squibb may experience a decline in free cash flow, which was $12.8 billion last year, significantly exceeding the $5 billion needed for dividend payments, its current dividend yield stands at 4.4%, providing a stable return outlook for long-term investors.
See More
