Why AbbVie Is Poised to Keep Poppin'
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company AbbVie has earned a coveted five-star ranking.
With that in mind, let's take a closer look at AbbVie and see what CAPS investors are saying about the stock right now.
AbbVie facts
Headquarters (Founded) | North Chicago, Ill. (2012) |
Market Cap | $72 billion |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $18.5 billion |
Management | Chairman/CEO Richard Gonzalez |
Trailing-12-Month Return on Equity | 71.4% |
Cash/Debt | $7.5 billion / $15.2 billion |
Dividend Yield | 3.5% |
Competitors | Merck |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 151 members who have rated AbbVie believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, cschweit, tried to calm a few concerns surrounding the AbbVie opportunity:
This stock will be quite [volatile] for the next few years, but its pipeline is strong. ... 2016 is the "big" year according to many analysts because of Humira patent protection loss, but this is an overhyped notion based on trends in the pharmaceutical market in general, not specifically based on the type of product it is. ... The "patent cliff" is typically more important when it comes to small molecule drugs because generics are much easier to develop for these types of medicines. ... The next few years will be crucial, though, for this young company -- especially with the race with [Gilead] over Hepatitis C medicines.
In the pharma business, great success comes with a caveat. AbbVie is a perfect example, as investors in the new company are left wondering what the future holds once the company's golden goose, Humira, is cooked. The Fool's brand new premium report on the company answers the high-profile questions that AbbVie investors are asking. Simply click here now to claim your copy today.
The article Why AbbVie Is Poised to Keep Poppin' originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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