AbbVie (NYSE:ABBV) is not getting much respect on the markets. Though the stock managed to bounced from its multiple bottom of around $77, it needs to hold the $80 - $85 range before rallying back to $90-$95. At an 8.4 times forward P/E, AbbVie is a solid investment for value investors.
AbbVie earned $2.14 a share (non-GAAP) despite revenue falling 1.3% to $7.83 billion. With results this solid, investors who held a partial position like this author may now accumulate more shares.
AbbVie has a great pipeline and continues to pivot its business away from Humira. As it lessens its reliance of Humira, caution over the stock’s prospects will dissipate.
First-Quarter Result
HCV sales fell 9.1% to $815 million in Q1 but was offset by IMBRUVICA global net revenues of $1.022 billion. This is up 34% Y/Y. The Hematologic Oncology Portfolio revenue rose 43.2% to $1.173 billion.
AbbVie forecast EPS in the range of $7.26 - $7.36 for 2019. It raised its diluted EPS guidance from $8.65 - $8.75. The 11% increase from the midpoint justifies further upside for ABBV stock.
Takeaway
Regulatory approvals, ongoing product development and a solid pipeline ahead, especially in the dermatology space, affirms the bullish view on AbbVie. Specifically, upadacitinib’s Phase 2 data presented at AAD is a positive data point among many. If the bearish sentiment in drug manufacturing stocks abates, continue to buy ABBV stock.
