Institutional Managers Anticipate Market Correction in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy ABBV?
Source: Fool
- 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.
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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.
AbbVie: A Model of Continuous Innovation and Growth
- 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.
See More
Institutional Managers Anticipate Market Correction in 2026
- 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
Deutsche Bank Upgrades Merck to Buy with $150 Target
- Rating Upgrade: Deutsche Bank analyst James Shin upgraded Merck from Hold to Buy, raising the price target from $115 to $150, indicating a potential 26% upside from Thursday's closing price of $119.24, reflecting the market's undervaluation of the company.
- Patent Cliff Concerns: The analyst noted that market fears regarding Keytruda's impending patent expiration have led to Merck's undervaluation, but he believes the company has a clear path to navigate this transition effectively, similar to AbbVie's successful management of Humira's patent cliff.
- Optimistic Earnings Outlook: Shin projects Merck's trough earnings at approximately $11 per share, exceeding the Street's consensus of around $10, with historical data showing that investing at points of trough clarity often presents significant opportunities, as evidenced by AbbVie's valuation multiple expansion from 11x to 15x.
- Pipeline Potential: Deutsche Bank's assessment suggests that Merck may already have visibility to low-single-digit terminal revenue growth excluding Keytruda, with its pipeline strengthened by acquisitions like Winrevair, Ohtuvayre, and CDTX, potentially providing over $35 billion in risk-adjusted revenue by 2035, easing the transition beyond Keytruda.
See More
AI Technology Disrupts Market Dynamics
- Significant Industry Impact: The rapid advancement of artificial intelligence has severely impacted stocks in real estate, logistics, and finance, particularly in logistics where Algorhythm Holdings' new tool claims to increase freight volumes by 300% to 400%, leading to a sharp decline in related stocks.
- Market Reaction: Elon Musk warned that AI could lead to increased vacancy rates in office buildings, further affecting the leasing market, reflecting concerns about AI replacing white-collar jobs and potentially slowing economic growth.
- Divergent Company Performance: While most sectors are negatively affected by AI, Siemens saw its stock rise in European trading after raising its earnings outlook for fiscal year 2026, indicating the potential of AI applications in industrial manufacturing.
- International Trade Dynamics: The U.S. signed a trade deal with Taiwan that lowers tariffs on Taiwanese exports to 15%, while Taiwan will reduce 99% of tariffs on U.S. goods, highlighting shifts in global trade relationships and their potential market impacts.
See More
AbbVie: A Model of Continuous Innovation and Growth
- 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.
See More
Institutional Managers Anticipate Market Correction in 2026
- 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
Deutsche Bank Upgrades Merck to Buy with $150 Target
- Rating Upgrade: Deutsche Bank analyst James Shin upgraded Merck from Hold to Buy, raising the price target from $115 to $150, indicating a potential 26% upside from Thursday's closing price of $119.24, reflecting the market's undervaluation of the company.
- Patent Cliff Concerns: The analyst noted that market fears regarding Keytruda's impending patent expiration have led to Merck's undervaluation, but he believes the company has a clear path to navigate this transition effectively, similar to AbbVie's successful management of Humira's patent cliff.
- Optimistic Earnings Outlook: Shin projects Merck's trough earnings at approximately $11 per share, exceeding the Street's consensus of around $10, with historical data showing that investing at points of trough clarity often presents significant opportunities, as evidenced by AbbVie's valuation multiple expansion from 11x to 15x.
- Pipeline Potential: Deutsche Bank's assessment suggests that Merck may already have visibility to low-single-digit terminal revenue growth excluding Keytruda, with its pipeline strengthened by acquisitions like Winrevair, Ohtuvayre, and CDTX, potentially providing over $35 billion in risk-adjusted revenue by 2035, easing the transition beyond Keytruda.
See More
AI Technology Disrupts Market Dynamics
- Significant Industry Impact: The rapid advancement of artificial intelligence has severely impacted stocks in real estate, logistics, and finance, particularly in logistics where Algorhythm Holdings' new tool claims to increase freight volumes by 300% to 400%, leading to a sharp decline in related stocks.
- Market Reaction: Elon Musk warned that AI could lead to increased vacancy rates in office buildings, further affecting the leasing market, reflecting concerns about AI replacing white-collar jobs and potentially slowing economic growth.
- Divergent Company Performance: While most sectors are negatively affected by AI, Siemens saw its stock rise in European trading after raising its earnings outlook for fiscal year 2026, indicating the potential of AI applications in industrial manufacturing.
- International Trade Dynamics: The U.S. signed a trade deal with Taiwan that lowers tariffs on Taiwanese exports to 15%, while Taiwan will reduce 99% of tariffs on U.S. goods, highlighting shifts in global trade relationships and their potential market impacts.
See More
