AbbVie Inc. Maintains Strong Growth Amid Market Success
AbbVie Inc. (ABBV), a major player in the pharmaceutical industry based in North Chicago, Illinois, boasts a market capitalization of $356.2 billion. The company is recognized for its innovative treatments across various fields such as immunology, oncology, neuroscience, aesthetics, and eye care, establishing itself as a leader in global healthcare solutions.
AbbVie’s Stock Outshines Market Trends
Over the past 52 weeks, AbbVie’s shares have significantly outperformed the broader market. The stock has surged 42.5% during this period, contrasting with a 35.8% increase in the S&P 500 Index ($SPX). Year-to-date in 2024, ABBV’s shares have risen by 29.8%, whereas the S&P 500’s rise is at 24.3%.
In addition, AbbVie has outstripped the Health Care Select Sector SPDR Fund (XLV), which recorded a 15.4% gain over the last year and an 8.6% year-to-date increase.
Exceptional Q3 Results Feed Investor Confidence
AbbVie shares jumped 6.4% on October 30 following the company’s release of strong third-quarter earnings, reporting an adjusted EPS of $3 and revenue of $14.5 billion. This success was largely driven by the impressive sales of its newer immunology drugs, Rinvoq and Skyrizi, which grew year-over-year by 47.4% and 51.5% respectively. Such growth is attributed to expanded usage approvals. AbbVie also raised its full-year EPS guidance to between $10.90 and $10.94, indicating optimism about sustained growth. Additionally, solid sales from the oncology segment, particularly the recently acquired Elahere and Venclexta, have further bolstered investor confidence.
According to analysts, for the fiscal year ending in December, ABBV’s EPS is projected to decline by 1.4% to $10.96 per share. However, AbbVie has consistently surpassed consensus earnings estimates over the last four quarters, suggesting potential for better-than-expected performance.
Analysts Show Increasing Confidence in AbbVie
Among the 25 analysts tracking AbbVie, the consensus rating is a “Moderate Buy,” comprised of 15 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.” This reflects an increase in confidence compared to three months ago when there were only 13 “Strong Buy” ratings.
On November 6, Guggenheim analyst Vamil Divan raised AbbVie’s price target to $221, retaining a “Buy” rating after AbbVie’s strong Q3 results exceeded sales and EPS expectations. The average price target is set at $208.29, indicating a modest premium of 3.5% over current levels. Notably, the highest price target of $240 suggests a possible upside of 19.3% from today’s price.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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