For no real reasons, shares of AbbVie (NYSE:ABBV) and Regeneron (NASDAQ:REGN) are falling sharply. Neither company posted anything new. Regeneron posts quarterly results on Feb. 6 while AbbVie will close its buyout of Allergan in the first quarter.
Regeneron fell from $390 to the $335 range recently on heavy volume. The company is set to grow earnings by over 50%. And the forward P/E of below 13 times will attract value investors. Its blockbuster Dupixent keeps growing in revenue and in its addressable market. As patients aged six to 12 years old test the atopic dermatitis drug in the months ahead, the market will keep expanding.
Investors will have to wait until after Regeneron’s earnings report before buying the stock.
AbbVie peaked at ~$90 first reached in November 2019. The company’s cash flow is so strong that it may pay off debt and raise its dividend, which yields ~5.8%.
The earnings report, scheduled for Feb. 7, should offer no new surprises.
But the market is anticipating disappointing growth. The Allergan acquisition will have the highest risks. AbbVie will be busy cutting costs and absorbing its debt.
Investors decided to stay on the sidelines with both stocks. Continue watching them until selling pressure ends.
