This Stock is Offering a Buy and Hold Opportunity

Illinois-headquartered AbbVie (NYSE:ABBV) is famous among pharmaceutical businesses for its diversified portfolio of medical treatments and solutions. ABBV stock is an outstanding deal at the current share price as AbbVie continues to develop industry-leading formulations through clinical trials.

Some folks might hesitate to buy pharmaceutical stocks because clinical trials involve risk. That’s undeniable, but AbbVie is among the best in the business and there are multiple reasons to choose this company over the competitors.

After delving into the company’s financials, investors should concur that AbbVie is a relatively low-risk pharmaceutical business to hold a stake in. Besides, there’s a window of opportunity here as AbbVie shares are reasonably valued and might return to their prior peak price this year.

What’s Happening with ABBV Stock?

Frankly, there’s a lot to like about ABBV stock right now. For one thing, the stock recently hit its all-time high of $175.91, but then backed down. Consequently, investors have a chance to get in at a favorable price point.

Plus, value hunters should be glad to know that AbbVie’s trailing 12-month price-to-earnings ratio is 21.67. This is quite reasonable and indicates that the stock is a good bargain. Bear in mind that bargains don’t last forever on Wall Street.

For income-focused investors, AbbVie offers a forward annual dividend yield of 3.94%. So, you can reinvest your dividend distributions into more ABBV stock shares, thereby leveraging the magic of compounding.

Furthermore, AbbVie’s financials suggest that the company should have no difficulty continuing to pay out its dividends. In its most recently reported quarterly results, AbbVie announced a 26% year-over-year increase in GAAP earnings per share. In terms of net revenue, AbbVie showed a respectable 4.1% year-over-year improvement.

Powerful Pipeline

Financials are important, but when it comes to pharmaceutical companies, a promising clinical pipeline is essential. Fortunately, AbbVie is demonstrating again and again that the company excels in this area.

Here’s a sampling of what AbbVie has achieved in just the past month:

  • May 20: Submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for foscarbidopa/foslevodopa (ABBV-951) to treat motor fluctuations in patients with advanced Parkinson’s disease.
  • May 23: Presented positive data from a Phase 3 trial of cariprazine (VRAYLAR) for the adjunctive treatment of major depressive disorder in patients with an inadequate response to ongoing antidepressant therapy.
  • May 27: Results from Phase 3 induction and maintenance programs evaluating Upadacitinib (RINVOQ) for ulcerative colitis were published in The Lancet.
  • June 1: Revealed positive results from Phase 3 trials of Upadacitinib (RINVOQ) in patients with axial spondyloarthritis.

What You Can Do With ABBV Stock

All in all, there’s no reason why ABBV stock shouldn’t revisit its all-time high price this year. Even if this doesn’t happen, you can collect and reinvest the dividends to potentially enhance your returns.

Moreover, AbbVie’s clinical pipeline is robust and the company is advancing its treatments through rigorous testing. Thus, investors can buy and hold shares of AbbVie with confidence. After all, they’ll have a stake in a top-tier, innovation-driven pharmaceutical giant.

AbbVie currently scores an “A” on my Portfolio Grader.

— Louis Navellier and the InvestorPlace Research Staff

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Source: Investor Place