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AbbVie: Comparing The Current Valuation To Its Last Growth Cycle

Mar. 14, 2023 12:43 PM ETAbbVie Inc. (ABBV)23 Comments
Leon Laake profile picture
Leon Laake
623 Followers

Summary

  • AbbVie is one of the most prominent biotechnology/healthcare stocks known for paying a good dividend.
  • Besides the dividend, AbbVie didn't generate any returns on a one-year basis and is still a bit away from its all-time high.
  • Due to the fallout of Humira as AbbVie's blockbuster product, analysts expect a steep downfall in earnings in 2023 and flat earnings in 2024.
  • Even though AbbVie is undervalued compared to its historical averages, it's still mispriced when looking at growth prospects and gives zero to little total return potential at current prices.
  • In this article, I will look solely at AbbVie's valuation compared to its past and not at the current business performance.

Abbott and Abbvie sign at their headquarters in Abbott Park, IL, USA.

JHVEPhoto

Thesis

AbbVie (NYSE:ABBV) is a well-known and liked healthcare stock, and I own some shares, too. In the last year, the market feared the end of Humira as AbbVie's blockbuster product would damage sales and earnings more than previously expected. Therefore, the stock price did

This article was written by

Leon Laake profile picture
623 Followers
I am a 23 years old financial advisor/wealth manager at a local bank and a long-time investor from Germany. I have learned to analyze stocks due to my research and through my several degrees, which I can't name here because they can´t be translated into English.I focus on generating income with my invested money, mainly analyzing stocks that pay dividends. Either high yielders or stocks with great dividend growth. Contrary to this, I invest in small, highly disruptive companies with a minor part of my portfolio to boost overall performance.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ABBV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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