AbbVie Stock Analysis: Is it Overrated?
Many Wall Street investors have ranked Abbvie in the top 10 value stocks among the best dividend stocks 2020. The Abbvie stock erased the COVID-19 related losses on June 9th, 2020. Now the question is, what’s next for this stock in terms of price.
In this video, I analyze the Abbvie stock (ABBV) from the 5 points of my signature Invest Diva Diamond analysis which (IDDA) to find out if it really is among the best stocks to buy now, what type of investors should look into adding ABBV to their investment portfolio, what price you can consider buying, how long you can consider holding on to it before taking profit, and whether or not AbbVie is among my personal “top stocks to buy now” list.
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Abbvie Stock Analysis – Fundamentals
Abbvie, which is a drug company most famous for its rheumatoid arthritis drug, Humira, that you probably have heard of during ad breaks on your TV, and it’s the one that goes on and on about the side effects to the point that you lose track which disease the drug actually cures and lose the will to live because of the possible side effects a simple drug can cause you.
How Wall Street Ranks AbbVie Stock
The Abbvie stock pays really high dividend payments at around 4.99% yield. And Seeking Alpha’s quant and Wall Street Analysis have ranked it in the top 10 stocks to buy, grading it A+ in terms of profitability, A in terms of growth and value.
But is Abbvie really as good as Wall Street wants us to believe?
That’s up for debate because unlike its competition in this category, more than 50% of Abbvie’s sales come from only 1 product, and that is Humira. Now Humira is certainly the leady drug in its category and is protected by a number of patents which gives it a competitive advantage… But the risk here is if there’s a drug pricing cut by a larger player, or if there’s any new competitive threats to Humira, both from biosimilars and new branded drug competition.
Also, AbbVie has taken on significant debt to purchase Allergan, but that actually may be a good thing because it could lead to a robust cash flows that will help manage the heavy debt load.
Overall, I would put AbbVie at a medium risk level but this could be leveled off if you’re investing in it mainly for the dividend payment cashflow.
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AbbVie Stock Price – Technical Analysis
The AbbView Stock price (ABBV) has once again hit the 61% Fibonacci resistance level of $97. A pullback here could indicate a formation of a double top bearish reversal chart pattern.
The price remains above the daily Ichimoku cloud. The support levels could be an optimal buying price for those who are looking to add the AbbVie stock to their portfolio. The key support levels are 87, 79 and 68.
Please watch this video for the full technical analysis.
Check out my book Ichimoku Secrets.
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