ABBV Should I Buy
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AbbVie Inc. is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock has shown recent price gains and bullish technical indicators, the financial performance shows a significant drop in net income and EPS, and Congress trading data indicates cautious sentiment with more selling activity. Additionally, analysts' ratings are mixed, with some downgrades and concerns about long-term growth post-2028. The options data suggests a moderately bullish sentiment, but this is not enough to outweigh the financial and sentiment concerns.
The technical indicators for ABBV are bullish. The MACD is positive and expanding, the RSI is neutral at 66.323, and the moving averages show a bullish trend (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level (R1: 228.697), and the next resistance is at 234.719. Support levels are at 218.95 and 209.204.
AbbVie is recognized as a Dividend King, with 50 consecutive years of dividend increases.
Revenue growth of 10.04% YoY in Q4
Bullish technical indicators and recent price momentum.
Significant drop in net income (-5775% YoY) and EPS (-5200% YoY) in Q4
Congress trading data shows 4 sale transactions and no purchases in the last 90 days, indicating cautious sentiment.
Analysts express concerns about long-term growth post-2028 due to competition for key drugs like Skyrizi and Rinvoq.
AbbVie is involved in a lawsuit challenging Medicare price negotiations, which could create regulatory uncertainty.
In Q4 2025, AbbVie reported a 10.04% YoY increase in revenue to $16.62 billion. However, net income dropped significantly by -5775% YoY to $1.82 billion, and EPS fell by -5200% YoY to 1.02. Gross margin improved slightly to 72.64%, up 2.47% YoY.
Analysts' ratings are mixed. UBS, Citi, and Evercore have lowered their price targets to the $228-$230 range, maintaining Neutral ratings. Wolfe Research downgraded the stock to Peer Perform, citing concerns about competition and growth visibility. However, Berenberg and Morgan Stanley remain positive, raising price targets to $275 and $269, respectively, citing strong growth potential for Skyrizi and Rinvoq.
