Is AbbVie Stock a Buy?

From Yahoo Finance: 2025-04-20 08:15:00

AbbVie, a pharmaceutical giant, faced challenges with a failed drug trial and concerns over regulatory changes. Despite a stock price drop of 20%, strong fourth-quarter results provided a rebound. With Humira sales declining after patent expiration, AbbVie pivoted with acquisitions and new drugs, leading to revenue growth and solid earnings forecasts.

The company’s debt stands at $67 billion, but management plans to raise dividends while reducing debt. AbbVie’s low P/E ratio of 14.4 and double-digit earnings growth potential make it an attractive long-term investment. Political factors, such as potential TV ad bans and tariffs, pose risks, but AbbVie’s current valuation reflects these uncertainties.

Dividend investors favor AbbVie for its high yield and consistent increases over 50 consecutive years. The company is a Dividend King, known for its reliable returns. Despite recent challenges, AbbVie remains a strong investment option with the potential for solid returns and growth.



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