20 Oct

AbbVie Stock: Performance in 3Q17

WRITTEN BY Mike Benson

A look at AbbVie

Headquartered in Illinois, AbbVie (ABBV) is one of the leading biopharmaceutical companies dealing with research-based pharmaceutical products. It develops and markets pharmaceutical drugs and therapies that address complex and serious diseases worldwide. The company was separated from Abbott Laboratories (ABT) in 2013.

AbbVie Stock: Performance in 3Q17

The above chart shows revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.

Stock performance

AbbVie stock price has risen ~22.5% in 3Q17. It has risen ~54.1% year-to-date as of October 20, 2017.

Analyst recommendations

Wall Street analysts estimate that the stock will fall ~3.9% over the next 12 months. Their recommendations show a 12-month target price of $92.67 per share compared to the last price of $96.48 per share as of October 19, 2017.

There are 20 analysts tracking AbbVie stock. Ten of them recommend a “buy,” and ten of them recommend a “hold.” None of the analysts recommend a “sell.” The consensus rating for AbbVie stands at 2.30, which represents a “strong buy” for value investors and a “moderate buy” for long-term investors.

Analysts’ revenue estimates

AbbVie’s revenues have risen over the last few quarters and are estimated to rise due to the strong performance of the blockbuster drug Humira.

Wall Street analysts estimate revenues of $7.0 billion in 3Q17, a ~9.6% rise compared to 3Q16, and EPS of $1.38.

To divest the company-specific risks, investors can consider ETFs such as the Vanguard Healthcare ETF (VHT), which holds 3.1% of its total assets in AbbVie (ABBV). VHT also holds 2.7% of its total assets in Bristol-Myers Squibb (BMY), 4.9% in Merck & Co. (MRK), and 5.5% in Pfizer (PFE).

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