Is AbbVie Stock a Good Investment?
AbbVie Investment Advice | ABBV |
- Examine AbbVie's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research AbbVie's leadership team and their track record. Good management can help AbbVie navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact AbbVie's business and its evolving consumer preferences.
- Compare AbbVie's performance and market position to its competitors. Analyze how AbbVie is positioned in terms of product offerings, innovation, and market share.
- Check if AbbVie pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about AbbVie's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in AbbVie Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if AbbVie Inc is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine AbbVie Stock
Researching AbbVie's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 73.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.46. AbbVie Inc last dividend was issued on the 15th of October 2024.
To determine if AbbVie is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding AbbVie's research are outlined below:
| AbbVie Inc currently holds 59.38 B in liabilities with Debt to Equity (D/E) ratio of 4.37, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. AbbVie Inc has a current ratio of 0.91, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about AbbVie's use of debt, we should always consider it together with its cash and equity. | |
| About 73.0% of AbbVie shares are held by institutions such as insurance companies | |
| On 15th of August 2024 AbbVie paid $ 1.55 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Regenerative Medicine Market to Reach 37.27 Billion by 2031, Driven by the Growing Number of New Regenerative Medicine Approvals and Consistent Advancements in the Regenerative Medicine Space - Exclusive Report by Meticulous Research |
AbbVie Quarterly Liabilities And Stockholders Equity |
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AbbVie uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in AbbVie Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to AbbVie's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 2nd of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 2nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact AbbVie's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises AbbVie's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-04-23 | 2015-03-31 | 0.85 | 0.94 | 0.09 | 10 | ||
2014-10-31 | 2014-09-30 | 0.77 | 0.89 | 0.12 | 15 |
Know AbbVie's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as AbbVie is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AbbVie Inc backward and forwards among themselves. AbbVie's institutional investor refers to the entity that pools money to purchase AbbVie's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2024-06-30 | 20.3 M | Bank Of New York Mellon Corp | 2024-06-30 | 17.5 M | Franklin Resources Inc | 2024-06-30 | 16 M | Legal & General Group Plc | 2024-06-30 | 15.3 M | Ameriprise Financial Inc | 2024-06-30 | 14 M | Fmr Inc | 2024-06-30 | 13.1 M | Ubs Group Ag | 2024-06-30 | 11.9 M | Goldman Sachs Group Inc | 2024-06-30 | 11.6 M | Hhg Plc | 2024-06-30 | 11.5 M | Vanguard Group Inc | 2024-06-30 | 170.7 M | Blackrock Inc | 2024-06-30 | 136.4 M |
AbbVie's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 345.23 B.Market Cap |
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AbbVie's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.10 | |
| Return On Capital Employed | 0.18 | 0.21 | |
| Return On Assets | 0.04 | 0.03 | |
| Return On Equity | 0.47 | 0.65 |
Determining AbbVie's profitability involves analyzing its financial statements and using various financial metrics to determine if AbbVie is a good buy. For example, gross profit margin measures AbbVie's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of AbbVie's profitability and make more informed investment decisions.
AbbVie's Earnings Breakdown by Geography
Please note, the imprecision that can be found in AbbVie's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of AbbVie Inc. Check AbbVie's Beneish M Score to see the likelihood of AbbVie's management manipulating its earnings.
Evaluate AbbVie's management efficiency
AbbVie Inc has return on total asset (ROA) of 0.0794 % which means that it generated a profit of $0.0794 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.5426 %, meaning that it created $0.5426 on every $100 dollars invested by stockholders. AbbVie's management efficiency ratios could be used to measure how well AbbVie manages its routine affairs as well as how well it operates its assets and liabilities. At this time, AbbVie's Return On Capital Employed is fairly stable compared to the past year. Return On Equity is likely to climb to 0.65 in 2024, whereas Return On Tangible Assets are likely to drop 0.1 in 2024. At this time, AbbVie's Other Assets are fairly stable compared to the past year. Non Currrent Assets Other is likely to climb to about 6.9 B in 2024, whereas Non Current Assets Total are likely to drop slightly above 57.7 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 5.88 | 3.03 | |
| Tangible Book Value Per Share | (43.84) | (46.03) | |
| Enterprise Value Over EBITDA | 17.71 | 12.89 | |
| Price Book Value Ratio | 26.45 | 17.19 | |
| Enterprise Value Multiple | 17.71 | 12.89 | |
| Price Fair Value | 26.45 | 17.19 | |
| Enterprise Value | 57.3 B | 50.9 B |
The analysis of AbbVie's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze AbbVie's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of AbbVie Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0317 | Forward Dividend Yield 0.0317 | Forward Dividend Rate 6.2 | Beta 0.618 |
Basic technical analysis of AbbVie Stock
As of the 4th of October, AbbVie shows the mean deviation of 0.8973, and Risk Adjusted Performance of 0.1815. AbbVie Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm AbbVie Inc coefficient of variation, as well as the relationship between the treynor ratio and semi variance to decide if AbbVie Inc is priced correctly, providing market reflects its regular price of 194.29 per share. Given that AbbVie has jensen alpha of 0.2134, we suggest you to validate AbbVie Inc's prevailing market performance to make sure the company can sustain itself at a future point.AbbVie's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific AbbVie insiders, such as employees or executives, is commonly permitted as long as it does not rely on AbbVie's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases AbbVie insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Robert Alpern over three months ago Acquisition by Robert Alpern of tradable shares of AbbVie at 171.52 subject to Rule 16b-3 | ||
Edward Rapp over six months ago Acquisition by Edward Rapp of 212 shares of AbbVie at 182.1 subject to Rule 16b-3 | ||
Carrie Strom over a year ago Payment of 2876 shares by Carrie Strom of AbbVie subject to Rule 16b-3 |
AbbVie's Outstanding Corporate Bonds
AbbVie issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. AbbVie Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most AbbVie bonds can be classified according to their maturity, which is the date when AbbVie Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ABBOTT LABS 295 Corp BondUS002824BB55 | View | |
| ABBOTT LABS 6 Corp BondUS002824AV29 | View | |
| ABBOTT LABS 53 Corp BondUS002824AY67 | View | |
| US002824BP42 Corp BondUS002824BP42 | View | |
| US002824BQ25 Corp BondUS002824BQ25 | View | |
| ABBOTT LABS 475 Corp BondUS002824BG43 | View | |
| US002824BF69 Corp BondUS002824BF69 | View | |
| ABBOTT LABS 49 Corp BondUS002824BH26 | View |
Understand AbbVie's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing AbbVie's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1815 | |||
| Market Risk Adjusted Performance | 0.5353 | |||
| Mean Deviation | 0.8973 | |||
| Semi Deviation | 0.7989 | |||
| Downside Deviation | 1.1 | |||
| Coefficient Of Variation | 453.77 | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.49 | |||
| Information Ratio | 0.136 | |||
| Jensen Alpha | 0.2134 | |||
| Total Risk Alpha | 0.1185 | |||
| Sortino Ratio | 0.1511 | |||
| Treynor Ratio | 0.5253 | |||
| Maximum Drawdown | 6.19 | |||
| Value At Risk | (2.11) | |||
| Potential Upside | 2.37 | |||
| Downside Variance | 1.21 | |||
| Semi Variance | 0.6382 | |||
| Expected Short fall | (1.05) | |||
| Skewness | 0.1518 | |||
| Kurtosis | 0.8985 |
| Risk Adjusted Performance | 0.1815 | |||
| Market Risk Adjusted Performance | 0.5353 | |||
| Mean Deviation | 0.8973 | |||
| Semi Deviation | 0.7989 | |||
| Downside Deviation | 1.1 | |||
| Coefficient Of Variation | 453.77 | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.49 | |||
| Information Ratio | 0.136 | |||
| Jensen Alpha | 0.2134 | |||
| Total Risk Alpha | 0.1185 | |||
| Sortino Ratio | 0.1511 | |||
| Treynor Ratio | 0.5253 | |||
| Maximum Drawdown | 6.19 | |||
| Value At Risk | (2.11) | |||
| Potential Upside | 2.37 | |||
| Downside Variance | 1.21 | |||
| Semi Variance | 0.6382 | |||
| Expected Short fall | (1.05) | |||
| Skewness | 0.1518 | |||
| Kurtosis | 0.8985 |
Consider AbbVie's intraday indicators
AbbVie intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of AbbVie stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 62878.6 | |||
| Daily Balance Of Power | (0.45) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 194.35 | |||
| Day Typical Price | 194.33 | |||
| Price Action Indicator | (0.64) | |||
| Period Momentum Indicator | (1.16) |
AbbVie Corporate Filings
8K | 3rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 2nd of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 14th of August 2024 Other Reports | ViewVerify | |
10Q | 7th of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
AbbVie Stock media impact
Far too much social signal, news, headlines, and media speculation about AbbVie that are available to investors today. That information is available publicly through AbbVie media outlets and privately through word of mouth or via AbbVie internal channels. However, regardless of the origin, that massive amount of AbbVie data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of AbbVie news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of AbbVie relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to AbbVie's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive AbbVie alpha.
AbbVie Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards AbbVie can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
AbbVie Inc Historical Investor Sentiment
Investor biases related to AbbVie's public news can be used to forecast risks associated with an investment in AbbVie. The trend in average sentiment can be used to explain how an investor holding AbbVie can time the market purely based on public headlines and social activities around AbbVie Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AbbVie's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AbbVie and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average AbbVie news discussions. The higher the estimate score, the more favorable the investor's outlook on AbbVie.
AbbVie Corporate Directors
| Brett Hart | Independent Director | Profile | |
| Roxanne Austin | Independent Director | Profile | |
| Edward Rapp | Independent Director | Profile | |
| Frederick Waddell | Independent Director | Profile |
Already Invested in AbbVie Inc?
The danger of trading AbbVie Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of AbbVie is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than AbbVie. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile AbbVie Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for AbbVie Stock Analysis
When running AbbVie's price analysis, check to measure AbbVie's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AbbVie is operating at the current time. Most of AbbVie's value examination focuses on studying past and present price action to predict the probability of AbbVie's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AbbVie's price. Additionally, you may evaluate how the addition of AbbVie to your portfolios can decrease your overall portfolio volatility.