Yahoo Finance Buy this High-Yield Large Cap Pharma Stock for Income Amid Coronavirus
AbbVie ABBV stock popped on Tuesday. This is part of the global pharmaceutical giant’s larger 20% surge in the last week as the market tries to mount a comeback amid the coronavirus uncertainty.
AbbVie’s portfolio boasts one of the world’s top-selling drugs, Humira. That said, patent protections for Humira are running out outside of the U.S., which has hurt its sales recently. Luckily, Humira biosimilars aren’t due out in the U.S. for at least a few years and it has expanded its portfolio.
AbbVie topped our Q4 fiscal 2019 earnings and revenue estimates in February. Plus, AbbVie is in the process of acquiring Botox maker Allergan, though it is still awaiting regulatory approval. “The launches of Skyrizi and Rinvoq are going extremely well, and we are entering 2020 with substantial momentum,” CEO Richard Gonzalez said in prepared remarks. “We also look forward to completing the planned Allergan acquisition in the first quarter.”
Looking ahead, our Zacks estimates call for AbbVie’s sales and adjusted earnings to climb in fiscal 2020 and 2021. Meanwhile, ABBV’s longer-term earnings estimate revisions have remained positive. This helps AbbVie stock earn a Zacks Rank #2 (Buy) right now, alongside its “B” grades for Value and Growth in our Style Scores system.
Along with its growth outlook, AbbVie’s dividend yield is a strong 6.12% right now, which helps it crush Pfizer’s PFE 4.65%, Eli Lilly’s LLY 2.13%, and its highly ranked industry’s 3.09% average. And its next quarterly cash dividend is payable on May 15, to stockholders of record on April 15.
AbbVie also consistently raises its dividend, with its payout up 195% since 2013. Plus, despite its recent climb, ABBV shares sit 20% below their 52-week highs at roughly $77 a share, which might make it attractive to longer-term investors. In the meantime, AbbVie’s business is somewhat immune to the coronavirus.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
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
Pfizer Inc. (PFE) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
