Why AbbVie Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceuticals company AbbVie (NYSE: ABBV  ) 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

$58.3 billion 

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$18.0 billion

Management

Chairman/CEO Richard Gonzalez
CFO William Chase

Trailing-12-Month Operating Margin

43.8%

Cash/Debt

$4.6 billion / $0

Dividend Yield

1.1%

Competitors

GlaxoSmithKline
Merck
Pfizer

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 108 members who have rated AbbVie believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, czheng393, offered a cautiously bullish take on AbbVie:

Spinoff of [Abbott Laboratories]. This will most likely unlock value by allowing the company to be able to focus more on the experimental aspect of it. ... It holds the Humira patent which is due to expire in 2016. But until then, Humira is doing exceptionally well and is a leading brand for arthritis and Crohn's Disease. The drug manufacturing process is long and arduous, therefore we are unsure of the prospects of AbbVie developing another drug that is just as successful as Humira after the patent expiration. Meanwhile, the marketplace is also extremely competitive, with numerous pharmaceuticals vying for market share for their own drugs.

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, and as an added bonus, you'll receive a full year of free analyst updates as significant news hits. Simply click here now to claim your copy today.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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  • Report this Comment On February 03, 2013, at 2:14 PM, johnn277 wrote:

    hey. do your research. the dividend you quote for abbvie is short by about 3%

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