Latest news with #AbbVie
Globe and Mail
3 hours ago
- Business
- Globe and Mail
How Will AbbVie's Neuroscience Franchise Perform in Q2 Earnings?
AbbVie ABBV holds a leadership position in the neuroscience space, which encompasses blockbuster medications such as Botox Therapeutic and depression drug Vraylar. Over the years, the company has further expanded this franchise to now include oral migraine drugs Qulipta and Ubrelvy and, most recently, Vyalev (for Parkinson's disease). Sales from the neuroscience segment accounted for over 17% of AbbVie's first-quarter revenues, which grew 16% year over year. Our model estimates second-quarter 2025 sales for the overall neuroscience franchise to be $2.5 billion, representing around 15% year-over-year growth. Higher sales of Botox Therapeutic and Vraylar are likely to have contributed to growth during the quarter. Sales of Ubrelvy and Qulipta might have benefited from market share gains across their respective approved indications. While Vyalev was recently launched in the United States and is expected to have delivered modest domestic revenues in the second quarter, the drug is already approved in several international markets. As such, a majority of Vyalev's second-quarter sales are likely to have come from ex-U.S. regions. Though AbbVie's neuroscience portfolio continues to grow meaningfully, investor focus will largely remain on its immunology franchise, which houses three flagship drugs — Humira, Rinvoq and Skyrizi. All eyes will be on the magnitude of their sequential growth and market share gains when the company reports second-quarter results on July 31. Competition in the Neuroscience Space Other bigger players in this space are Biogen BIIB and Johnson & Johnson JNJ. Despite the steeply declining revenues of its multiple sclerosis franchise, Biogen generates more than half of its top line from neuroscience therapies. BIIB is one of the handful of companies that markets an FDA-approved treatment for Alzheimer's disease (AD), Leqembi, in partnership with Eisai. Biogen also markets Zurzuvae, the first and only FDA-approved oral treatment for postpartum depression (PPD). While not competing with Biogen directly in the neuroscience space, AbbVie is actively developing AD therapies as part of its neuroscience expansion strategy. J&J markets several leading neuroscience products, led by the blockbuster antidepressant nasal spray Spravato and antipsychotic drug Invega Sustenna. Both remain key growth drivers for the company's pharma unit. In April, J&J closed the acquisition of Intra-Cellular Therapies, which added antidepressant drug Caplyta to its neuroscience portfolio. While already approved for schizophrenia and bipolar depression, a regulatory filing is under FDA review for the drug in a third indication — major depressive disorder — with a regulatory decision expected later this year. ABBV's Price Performance, Valuation and Estimates Shares of AbbVie have outperformed the industry year to date, as shown in the chart below. From a valuation standpoint, AbbVie is not very cheap. Based on the price/earnings (P/E) ratio, the company's shares currently trade at 14.06 times forward earnings, a tad lower than its industry's average of 14.60. The stock is cheaper than some other large drugmakers, such as Eli Lilly and Novo Nordisk, but priced much higher than most other large drugmakers. The stock is currently trading above its five-year mean of 12.55. While the EPS estimates for 2025 have declined from $12.32 to $11.98, the same for 2026 have increased from $14.06 to $14.08 over the past 30 days. AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Biogen Inc. (BIIB): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report
Yahoo
2 days ago
- Business
- Yahoo
Morgan Stanley Reiterates a Buy Rating on AbbVie (ABBV) With a $250 PT
AbbVie Inc. (NYSE:ABBV) is one of the best long term low volatility stocks to buy now. On July 10, Morgan Stanley analyst Terrence Flynn reiterated a Buy rating on AbbVie Inc. (NYSE:ABBV) and set a price target of $250.00. A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist. AbbVie Inc. (NYSE:ABBV) reported positive fiscal Q1 2025 results that support the optimistic outlook, with adjusted diluted EPS reaching $2.46, experiencing a 6.5% growth. The company also reported $13.343 billion in net revenue for the first quarter of 2025, reflecting an 8.4% growth on a reported basis or 9.8% on an operational basis. AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions. While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Morgan Stanley Reiterates a Buy Rating on AbbVie (ABBV) With a $250 PT
AbbVie Inc. (NYSE:ABBV) is one of the best long term low volatility stocks to buy now. On July 10, Morgan Stanley analyst Terrence Flynn reiterated a Buy rating on AbbVie Inc. (NYSE:ABBV) and set a price target of $250.00. A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist. AbbVie Inc. (NYSE:ABBV) reported positive fiscal Q1 2025 results that support the optimistic outlook, with adjusted diluted EPS reaching $2.46, experiencing a 6.5% growth. The company also reported $13.343 billion in net revenue for the first quarter of 2025, reflecting an 8.4% growth on a reported basis or 9.8% on an operational basis. AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions. While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
All It Takes Is $2,000 Invested in Each of These High Dividend Stocks to Help Generate Over $280 in Passive Income Per Year
Key Points Income-focused investors seeking reliable dividends and a stable company can consider investing in telecommunications giant Verizon. AT&T's disciplined financial management is supporting its solid 4.1% dividend yield. AbbVie's ability to thrive post-Humira, combined with a 53-year history of dividend growth, makes it a smart buy now. 10 stocks we like better than Verizon Communications › It has been a volatile year for the U.S. markets, with many stocks experiencing impressive highs and sharp lows. Investing in such a turbulent environment may feel daunting for retail investors. However, dividend-paying stocks can help generate substantial passive income even amid market fluctuations. With the correct picks, investors can generate a steady dividend income even with a relatively modest investment. For instance, investing $2,000 each in Verizon Communications (NYSE: VZ), AT&T (NYSE: T), and AbbVie (NYSE: ABBV) will generate a total of $282.60 in passive income annually. Here's how the dividend income breaks down: With a 6.5% yield, $2,000 invested in Verizon will generate $130.20 in annual dividends. With a 4.1% yield, $2,000 invested in AT&T will generate $82.40 in annual dividends. With a 3.5% yield, $2,000 invested in AbbVie will generate $70 in annual dividends. These stocks are not only reliable dividend payers, but also boast strong business models and a rich and durable history of returning value to shareholders. Verizon Communications giant Verizon offers investors a sustainable 6.5% dividend yield, which translates to $2.71 annually per share, all backed by solid business fundamentals. It has raised its dividend for 18 consecutive years. Verizon's strong financial results underline the stability of its dividend policy. The company delivered its highest-ever quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $12.6 billion in the first quarter of fiscal 2025 (ending March 31). Free cash flow was $3.6 billion. With a dividend payout ratio of 64.2%, there are enough earnings to cover the dividend. The company's convergence strategy, which integrates its wireless and wireline networks (including 5G and fiber-optic networks) to create comprehensive connectivity solutions, has proven successful. This has helped reduce customer churn by 40% to 50% for both mobility and fiber products. A sticky customer base translates into predictable cash flows. Besides retaining existing customers, the company is also rapidly acquiring new clients. Verizon added 339,000 broadband customers and 308,000 fixed wireless customers in the first quarter. The company aims to achieve a goal of 100 million premises with fiber and fixed wireless access following the completion of its pending Frontier acquisition. Besides telecommunication services, Verizon built a robust adjacent services business (including discounted streaming services and other subscriptions, insurance products, and financial services) expected to clock an annual run rate of $2 billion by the end of 2025. The business also boasts mid-30s margins. Management is guiding for 2% to 3.5% adjusted EBITDA growth and free cash flows of $17.5 billion to $18.5 billion in 2025. This provides the required cushion for dividend sustainability. Hence, for investors seeking to earn passive income from high-quality companies, Verizon appears to be a smart buy now. AT&T Telecommunications giant AT&T is offering a solid 4.1% yield, which translates to $1.11 per share annually. The dividend also appears well-covered with a 68.1% dividend payout ratio, implying that the company also has the flexibility to increase dividends in the coming years. AT&T expects to resume share buybacks in the second quarter of fiscal 2025 as part of a $10 billion repurchase program, with at least $3 billion completed by the end of fiscal 2025, and the remainder allocated for fiscal 2026. AT&T has also been increasingly focusing on financial discipline. Since 2020, the company reduced its net debt by $32 billion. It ended the first quarter of fiscal 2025 with a net debt-to-adjusted EBITDA ratio of 2.63, lower than the 2.68 ratio at the end of fiscal 2024. In Q1, the company's revenues increased 2% to $30.6 billion, net income rose 23.6% year over year to $4.7 billion, and free cash flow increased 10.7% year over year to $3.1 billion. These numbers demonstrate AT&T's ability to fund its dividend policy sustainably while maintaining sufficient financial flexibility to invest in growth initiatives and repurchase shares. AT&T also has exceptional fiber and wireless businesses, both of which are relatively recession-resistant. The company is currently operating the largest fiber network in the U.S. and expects to hit 30 million fiber locations by mid-2025 and 50 million by 2029. This expansion is already driving strong customer growth, with 261,000 fiber net additions in Q1 alone. Additionally, the company's wireless network modernization and fixed wireless expansion contributed to a customer count increase of 181,000 during Q1. AT&T is also benefiting by bundling its services, creating stickier and more profitable customer relationships. AT&T Fiber and wireless services have 15% higher lifetime values than stand-alone customers. For income investors seeking defensive dividend growth, this transformed telecommunications player is an appealing pick now. AbbVie AbbVie also offers an impressive yield of 3.52% with an annual payout of $6.56 per share. With its history of increasing dividends for 53 consecutive years (including its Abbott Laboratories heritage), AbbVie sports the prestigious Dividend King status. When AbbVie lost the patent protection for its blockbuster immunology drug Humira in 2023, many investors were concerned about the sustainability of its dividend policy. However, the company has successfully reduced its over-reliance on Humira and continues to thrive even after the dreaded patent cliff. Humira's sales have fallen more than expected, decreasing by 49.5% year over year to $1.1 billion in Q1 of fiscal 2025. However, its next-generation immunology drugs Skyrizi and Rinvoq are showing impressive results, generating a combined $5.1 billion, a substantial 65% year-over-year increase. Management now expects these two drugs to generate $31 billion in combined sales by 2027, surpassing Humira's peak sales of $20.7 billion. In addition to immunology, AbbVie has successfully diversified into areas such as neuroscience, oncology, and aesthetics. The company is also focusing on strategic investments, including a $350 million obesity partnership with Gubra and plans for a $2.1 billion acquisition of CAR-T therapy developer Capstan Therapeutics. These deals will position AbbVie in several high-growth areas. Recently, however, AbbVie announced that the acquired in-process research and development (IPR&D) and milestone expenses have negatively affected its second-quarter earnings guidance. While these represent a short-term challenge, the deals can prove to be major growth drivers in the long run. With AbbVie proving its capability to navigate major patent cliffs while growing its dividend, I think the stock is worth considering in 2025. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. All It Takes Is $2,000 Invested in Each of These High Dividend Stocks to Help Generate Over $280 in Passive Income Per Year was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
All It Takes Is $2,000 Invested in Each of These High Dividend Stocks to Help Generate Over $280 in Passive Income Per Year
Key Points Income-focused investors seeking reliable dividends and a stable company can consider investing in telecommunications giant Verizon. AT&T's disciplined financial management is supporting its solid 4.1% dividend yield. AbbVie's ability to thrive post-Humira, combined with a 53-year history of dividend growth, makes it a smart buy now. 10 stocks we like better than Verizon Communications › It has been a volatile year for the U.S. markets, with many stocks experiencing impressive highs and sharp lows. Investing in such a turbulent environment may feel daunting for retail investors. However, dividend-paying stocks can help generate substantial passive income even amid market fluctuations. With the correct picks, investors can generate a steady dividend income even with a relatively modest investment. For instance, investing $2,000 each in Verizon Communications (NYSE: VZ), AT&T (NYSE: T), and AbbVie (NYSE: ABBV) will generate a total of $282.60 in passive income annually. Here's how the dividend income breaks down: With a 6.5% yield, $2,000 invested in Verizon will generate $130.20 in annual dividends. With a 4.1% yield, $2,000 invested in AT&T will generate $82.40 in annual dividends. With a 3.5% yield, $2,000 invested in AbbVie will generate $70 in annual dividends. These stocks are not only reliable dividend payers, but also boast strong business models and a rich and durable history of returning value to shareholders. Verizon Communications giant Verizon offers investors a sustainable 6.5% dividend yield, which translates to $2.71 annually per share, all backed by solid business fundamentals. It has raised its dividend for 18 consecutive years. Verizon's strong financial results underline the stability of its dividend policy. The company delivered its highest-ever quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $12.6 billion in the first quarter of fiscal 2025 (ending March 31). Free cash flow was $3.6 billion. With a dividend payout ratio of 64.2%, there are enough earnings to cover the dividend. The company's convergence strategy, which integrates its wireless and wireline networks (including 5G and fiber-optic networks) to create comprehensive connectivity solutions, has proven successful. This has helped reduce customer churn by 40% to 50% for both mobility and fiber products. A sticky customer base translates into predictable cash flows. Besides retaining existing customers, the company is also rapidly acquiring new clients. Verizon added 339,000 broadband customers and 308,000 fixed wireless customers in the first quarter. The company aims to achieve a goal of 100 million premises with fiber and fixed wireless access following the completion of its pending Frontier acquisition. Besides telecommunication services, Verizon built a robust adjacent services business (including discounted streaming services and other subscriptions, insurance products, and financial services) expected to clock an annual run rate of $2 billion by the end of 2025. The business also boasts mid-30s margins. Management is guiding for 2% to 3.5% adjusted EBITDA growth and free cash flows of $17.5 billion to $18.5 billion in 2025. This provides the required cushion for dividend sustainability. Hence, for investors seeking to earn passive income from high-quality companies, Verizon appears to be a smart buy now. AT&T Telecommunications giant AT&T is offering a solid 4.1% yield, which translates to $1.11 per share annually. The dividend also appears well-covered with a 68.1% dividend payout ratio, implying that the company also has the flexibility to increase dividends in the coming years. AT&T expects to resume share buybacks in the second quarter of fiscal 2025 as part of a $10 billion repurchase program, with at least $3 billion completed by the end of fiscal 2025, and the remainder allocated for fiscal 2026. AT&T has also been increasingly focusing on financial discipline. Since 2020, the company reduced its net debt by $32 billion. It ended the first quarter of fiscal 2025 with a net debt-to-adjusted EBITDA ratio of 2.63, lower than the 2.68 ratio at the end of fiscal 2024. In Q1, the company's revenues increased 2% to $30.6 billion, net income rose 23.6% year over year to $4.7 billion, and free cash flow increased 10.7% year over year to $3.1 billion. These numbers demonstrate AT&T's ability to fund its dividend policy sustainably while maintaining sufficient financial flexibility to invest in growth initiatives and repurchase shares. AT&T also has exceptional fiber and wireless businesses, both of which are relatively recession-resistant. The company is currently operating the largest fiber network in the U.S. and expects to hit 30 million fiber locations by mid-2025 and 50 million by 2029. This expansion is already driving strong customer growth, with 261,000 fiber net additions in Q1 alone. Additionally, the company's wireless network modernization and fixed wireless expansion contributed to a customer count increase of 181,000 during Q1. AT&T is also benefiting by bundling its services, creating stickier and more profitable customer relationships. AT&T Fiber and wireless services have 15% higher lifetime values than stand-alone customers. For income investors seeking defensive dividend growth, this transformed telecommunications player is an appealing pick now. AbbVie AbbVie also offers an impressive yield of 3.52% with an annual payout of $6.56 per share. With its history of increasing dividends for 53 consecutive years (including its Abbott Laboratories heritage), AbbVie sports the prestigious Dividend King status. When AbbVie lost the patent protection for its blockbuster immunology drug Humira in 2023, many investors were concerned about the sustainability of its dividend policy. However, the company has successfully reduced its over-reliance on Humira and continues to thrive even after the dreaded patent cliff. Humira's sales have fallen more than expected, decreasing by 49.5% year over year to $1.1 billion in Q1 of fiscal 2025. However, its next-generation immunology drugs Skyrizi and Rinvoq are showing impressive results, generating a combined $5.1 billion, a substantial 65% year-over-year increase. Management now expects these two drugs to generate $31 billion in combined sales by 2027, surpassing Humira's peak sales of $20.7 billion. In addition to immunology, AbbVie has successfully diversified into areas such as neuroscience, oncology, and aesthetics. The company is also focusing on strategic investments, including a $350 million obesity partnership with Gubra and plans for a $2.1 billion acquisition of CAR-T therapy developer Capstan Therapeutics. These deals will position AbbVie in several high-growth areas. Recently, however, AbbVie announced that the acquired in-process research and development (IPR&D) and milestone expenses have negatively affected its second-quarter earnings guidance. While these represent a short-term challenge, the deals can prove to be major growth drivers in the long run. With AbbVie proving its capability to navigate major patent cliffs while growing its dividend, I think the stock is worth considering in 2025. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. All It Takes Is $2,000 Invested in Each of These High Dividend Stocks to Help Generate Over $280 in Passive Income Per Year was originally published by The Motley Fool
