AbbVie (ABBV +0.35%) is a top healthcare company that's been doing well this year, rising by 17% in value, which is better than the S&P 500 and its gains of around 14%. It's been beating the market, and what could send its shares even higher is a strong earnings report for the third quarter.
In a few weeks, on Oct. 30, AbbVie will release its Q3 numbers. Here's why investors may want to consider buying the healthcare stock before then.
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The results are likely to be strong, again
In the past two quarters, AbbVie has generated strong growth, with its net revenue rising by more than 12% in the first quarter of 2026 and then by over 10% in the second quarter. The company's top-selling drugs, Rinvoq and Skyrizi, have also been obtaining more approvals from regulators, particularly in Europe, which could lead to stronger growth ahead.
The business has been doing extremely well, and yet there's still room for improvement in its oncology and aesthetics segments, which experienced modest declines in the second quarter.
With a broad and diverse business, AbbVie is in an excellent position to grow in both the short term and over the long run. Another period of double-digit growth could give investors an incentive to pile more money into this relatively safe healthcare stock, especially given how cheap it looks right now.
NYSE: ABBV
Key Data Points
AbbVie's low valuation makes the stock a great buy right now
Acquisitions have bolstered AbbVie's business over the years, but one-time charges have also weighed down its financials in the process, which is why the stock may look expensive, with its price-to-earnings (P/E) multiple being a hefty 75. But based on its estimated future profits, its forward P/E multiple is just 16. By comparison, the average stock on the S&P 500 trades at close to 20 times its future profits.
And if its valuation wasn't enough of a reason to buy the stock, then the dividend could make AbbVie a no-brainer buy. At 2.6%, it’s a solid payout from a company that has an excellent track record of growing its dividend over the years.
For investors looking for a relatively safe stock to invest in, AbbVie is an attractive option for its modest valuation and excellent overall fundamentals. This is a stock that can be an excellent pillar to build a portfolio around and to simply hang on to for the long haul.
