ABBV Should I Buy
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AbbVie Inc (ABBV) is not a strong buy for a beginner, long-term investor at this moment. While the company has positive growth prospects in immunology and oncology, its recent financial performance shows significant declines in net income and EPS. Additionally, the cautious sentiment from Congress trading data and mixed analyst ratings suggest waiting for a better entry point. The technical indicators and options data do not provide a compelling buy signal either.
The MACD is slightly positive but contracting, RSI is neutral at 43.408, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock closed below the pivot point (228.029) and is closer to the support level (222.551), indicating limited upward momentum in the short term.
Continued growth in immunology drugs Skyrizi and Rinvoq.
Recent FDA approval for Emrelis in non-small cell lung cancer.
Recognized as a Dividend King with stable returns for income investors.
$380 million investment in U.S. manufacturing capabilities, enhancing competitiveness.
Significant decline in net income (-5868.75% YoY) and EPS (-5300% YoY) in Q4
Concerns about long-term growth beyond 2028 due to competition and loss of exclusivity for Humira.
Congress members have sold shares recently, indicating cautious sentiment.
Mixed analyst ratings with some downgrades and lowered price targets.
In Q4 2025, revenue increased by 10.04% YoY to $16.62 billion, but net income dropped significantly by -5868.75% YoY to $1.85 billion. EPS also fell sharply by -5300% YoY to 1.04. Gross margin improved slightly to 72.61%, up 2.43% YoY.
Analyst sentiment is mixed. RBC Capital, Barclays, and Piper Sandler are optimistic with price targets ranging from $260 to $299, citing growth in immunology and operating leverage. However, UBS, Evercore, and Wolfe Research have lowered price targets or downgraded the stock, citing concerns about long-term growth and competitive dynamics.
