+ Watch ABBV
on My Watchlist
Have a few in the pipeline coming up in phase 111 and also reviews coming up.
invest, ABBV BP 47.0 TP 54.3 2.2 5star
ABT spin off, will do well
Humira will provide ABBV with a steady stream of cash to support a healthy dividend, and fund new product development and acquisitions.
I own this stock through my Investment Club, which bought it this month.Since it was only spun off from Abbott Labs earlier this year, I don't have as much data on this stock as I would normally like before purchasing it. But the club liked it, so we bought it. Sales have increased at an annual compound rate of over 5% since 2011. EPS increased at a compound rate of over 12% from 2010 to 2012. The profit margin has been fluctuating a lot, but was 31% last year, which is pretty good. The return-on-equity was 47%, which is pretty good. However, the debt-to-equity was 423%, which is pretty high in my book, so Abbott Labs loaded up their spin off with debt before spinning it off. Not amongst my favorite things. The current P/E is more than double its highest P/E from last year, so the stock seems expensive on that metric. The PEG ratio comes in at 2.35, which is very expensive. The company pays about a 3% dividend, which is pretty good.I show this stock as a Hold, with an expected annual return of about 8%. The person who presented the stock thinks we will get significantly more than that. We'll have to wait and see which of us is correct.
Real money pick - Dividend Aristocrats
Jan 1 20113 ABBV became independentCash flow & equivalent at end of period$8,743 2013 $74 2012 rev growth 1 yr 5.40% eps 53.70% rev trailing 12Q 9.02 B ers 1.27ytddiv ytd 0.80
TSA Abbott spinoff. Growth and yield.
AbbVie has a chance to beat Gilead in the race to gain approval for the first all oral Hep C treatment for the most common genotype 1.
Hep C cure and new drug pipeline
This stock will be quite volitile for the next few years, but it's pipeline is strong. If the pipeline is delivered, this will be a strong company for years to come. 2016 is the "big" year according to many analysts because of Humira patent protection loss, but this is an overhyped notion based on trends in the pharmaceutical market in general, not specifically based on the type of product it is. Since Humira is a biologic, creating a generic (bio-similar) is much more difficult to do, and much more difficult to get approved. The "patent cliff" is typically more important when it comes to small molecule drugs because generics are much easier to develop for these types of medicines. While the patent is worrysome, it's not to the extent that many analysts believe. The next few years will be crucial, though, for this young company - especially with the race with Gillead over Hepatitus C medicines.
Institutional investors have yet to buy
Fantastic dividend and growth here. This is Abbotts business
Could be in sweet spot for market performance
Some P/E ratios for comparison:BMY 33.79MRK 21.99PFE 22.24JNJ 20.50And...ABBV 12.44P/E isn't everything, but ROE and ROA are pretty outstanding as well in comparison. Yes there are worries about being reliant on one drug, but there's plenty of time to bail if nothing promising comes down the pipeline. In the meantime, revenues from Humira are increasing, which means good things for about 2 more years at least. This is a classic undervalued spinoff, despite the large size.
Happy owner in real life...value, yield and low beta.
MEDICAL SEC. result of 2/1 split from ABT last month should be good appreciation.
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