AbbVie (ABBV +0.17%) is a leading drugmaker that investors have come to rely on for steady and consistent results over the years. Along the way, it has also paid and increased its dividend on a regular basis. It's been one of the better healthcare stocks to own, and it has nearly doubled in value in just five years.
This year, it's been off to a tough start, declining by around 10%. But the company reports earnings later this month, and a strong performance could give investors a reason to load up on the stock. Should you buy shares of AbbVie before it releases its latest earnings numbers on April 29?
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The company's growth rate has been trending upward
AbbVie has faced some significant challenges in recent years, most notably with the loss of patent protection on its top-selling drug, Humira. The company, however, has shown that it can continue growing amid the lost revenue. New drugs Skyrizi and Rinvoq are doing exceptionally well, and AbbVie has bolstered its business via acquisitions in recent years. The end result is a more diversified healthcare company, and its growth rate has been picking up the pace in recent quarters.
ABBV Revenue (Quarterly YoY Growth) data by YCharts
Meanwhile, on the bottom line, things look even better. This year, the company is projecting its adjusted diluted earnings per share (EPS) will be within a range of $13.96 to $14.16, which would be a significant increase from 2025, when its adjusted diluted EPS was $10.00.
Why AbbVie stock makes for an underrated buy right now
AbbVie's stock hasn't been getting much love from investors for its strong results amid adversity. Its top line may look unimpressive in recent years, but that's with the company facing some considerable challenges related to Humira. A strong performance in the first quarter of 2026 could be just what the healthcare stock needs to remind investors of the solid investment that it is.
NYSE: ABBV
Key Data Points
While its valuation looks high, with AbbVie trading at a price-to-earnings multiple of 88, that's largely due to the effects of one-time expenses as a result of acquisitions. Based on analyst expectations of future earnings, however, it's trading at an earnings multiple of just 14.
AbbVie's stock is a solid long-term buy for its growth opportunities and high-yielding dividend, which currently pays 3.3% (the S&P 500 average is only 1.2%). And the company has tripled the rate of its quarterly payout over the past decade. Whether you want reliable dividend income or to take advantage of its long-term growth potential, AbbVie is a solid investment you can hang on to for years.
