Investors looking for a way to pump up their passive income streams want to turn their attention toward the pharmaceutical industry. From the end of 2022 through Nov. 22, the benchmark S&P 500 index rose by a stunning 55.5%, but many of its drug-selling components haven't participated in the rally.
AbbVie's stock dropped 17.3% due to Emraclidine's phase 2 trial failure, but management is expected to replace Humira revenues and grow the top line. Skyrizi and Rinvoq are projected to surpass Humira's peak revenues by 2027, indicating strong future growth in the immunology segment. Oncology and neuroscience segments show promise with acquisitions like ImmunoGen and Aliada, despite setbacks in schizophrenia drug development.
Leerink Partners upgrades its rating on ABBV stock from Market Perform to Outperform.
Key Points Donald Trump's victory is positive for the stock market.
Companies with high dividend yields are relatively uncommon in this market.
Earlier this month, the S&P 500 hit a record high of more than 6,000 for the first time ever. Based on that, you might assume that stocks may be too expensive to buy right now as the average stock in the index is trading at more than 25 times earnings.
Political uncertainty has created buying opportunities among blue-chip healthcare stocks with big-time dividends.
In recent days, financial market participants have remained pessimistic about AbbVie's prospects, mainly due to the data on clinical outcomes related to emraclidine. However, I believe Mr. Market overreacted to this news, given the increase in dividend payments and the full-year non-GAAP EPS. AbbVie continues to be a leader in the global immunology market, thanks in part to the strong performance of its two stars, Skyrizi and Rinvoq.
AbbVie (ABBV) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
The European Commission approves ABBV's Elahere for the treatment of platinum-resistant ovarian cancer.
The current market presents a complex mix of opportunities and risks, influenced by the Trump presidency, Fed policies, and elevated valuations. These factors require careful stock selection. I am focusing on sectors with strong recovery potential and long-term tailwinds, such as transportation and defense, while considering valuation and growth potential. My picks include high-quality, dividend-paying stocks positioned for growth, pricing power, and resilience, making them ideal investments for a volatile market.