#7 - AbbVie (NYSE:ABBV)
AbbVie Inc. (NYSE: ABBV) stock is up more than 24% in 2024. That’s been somewhat of a surprise because investors expected a downturn after the company’s flagship drug, Humira, began facing biosimilar competition in the United States.
Lower revenue from Humira is one reason that the company’s revenue is down about 6% in the last 12 months. However, the company is making good on its projection that it will make up much of that revenue with its Skyrizi and Rinvoq drugs. By 2027, AbbVie predicts that combination of drugs will contribute a combined $27 billion in revenue. That’s about 50% of the total revenue the company generated in fiscal year 2023.
Add to that the company’s diverse pipeline, a rock-solid balance sheet, and its status as a dividend king with 52 consecutive years of increasing its payout and you have all the ingredients of a stock that checks many of the boxes that investors like Warren Buffett find desirable.
About AbbVie
AbbVie Inc discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, an injection for autoimmune and intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers.
Read More - Current Price
- $193.27
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $191.64 (0.8% Downside)
While Warren Buffett is beloved by many investors who rely on fundamental analysis. These investors agree with Buffett's focus on must-have brands that are reflected in products that stave off competition and deliver strong earnings and returns of invested capital (ROIC).
However, practitioners of technical analysis may find Buffett's buy-and-hold philosophy too limiting. One reason for that is that the companies Buffett loves are frequently best-in-class companies. So, while you may want to find the best price, these stocks frequently aren't going to give that to you.
But that doesn't mean you shouldn't look to own these stocks; it just means that you have to think like Buffett. That means looking for companies with a strong history of delivering a double-digit total return and, in many cases, paying attractive dividends that allow investors to experience the value of compounding.
MarketBeat provides a list of Warren Buffett stocks that provides a list of the largest holdings by Berkshire Hathway. For investors looking to “invest like Buffett" this list is a good place to start.
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