Stock Market Woes, but AbbVie Stands Strong
Crisis shouldn't terrify you; instead, it's wise to avoid unloading this specific pharmaceutical stock.
The stock markets are on a rollercoaster ride, and the latest bumps were due to DeepSeek and Trump's tariffs. The Schiller P/E ratio of the S&P 500 is perilously close to its peak in December 1999, a sign that may indicate a forthcoming market crash. But in this bleak landscape, one pharmaceutical giant shines - and it's not the usual suspects like Novo Nordisk or Eli Lilly.
A Titan in the Pharma Sector
With a staggering market capitalization of $330 billion, AbbVie secures its position as one of the most valuable pharmaceutical companies in the market [1]. Even titans like Novo Nordisk and Eli Lilly, along with Johnson & Johnson, can't match AbbVie's astronomical value.
AbbVie's crowning achievement was the blockbuster drug Humira for psoriasis, which ruled the industry from 2012 to 2022. The drug netted a whopping $21.2 billion in 2022 alone [2]. As the patent for Humira expired, some investors might have dumped the stock. However, AbbVie has rebounded spectacularly with successor drugs Skyrizi and Rinvoq, posting growth rates of around 50% [2]. The company expects this growth spurt to continue, with revenue predictions for the combined revenue of the drugs reaching approximately $31 billion by 2027 [2]. If these drugs perform as well as their predecessor, the longevity of their sales might stretch into the 2030s.
Rinvoq's patent isn't set to expire before 2033, according to rumors and AbbVie's statements [2]. Additionally, AbbVie's pipeline is brimming with about 75 programs in middle and late development phases and another 60 programs in early development stages [2].
AbbVie: A Lucrative Dividend Powerhouse
AbbVie's growth prospects aren't the only reason for investors to take notice. The company has increased its dividend every year for eleven consecutive years, with a payout ratio of 3.7% in the last five years. Over the past five years, the stock has gained an impressive 170% based on the US dollar [3].
For those seeking high-yield stocks, the Global Dividend Stars Index from BÖRSE ONLINE offers more promising picks [3].
AbbVie doesn't boom as fast as some competitors, but its consistent growth and cheaper valuation, with a 2025 P/E ratio of roughly 15, make it an enticing choice for portfolio security, even in times of turmoil [4].
[1] AbbVie Inc. (ABBV) Stock Price and Company Profile - Yahoo Finance
[2] AbbVie: Higher Sales Forecast for Humira successors - Yahoo Finance
[3] AbbVie Stock (ABBV) Retreats 5% Despite Robust Q3 Earnings - Zacks Equity Research
[4] AbbVie (ABBV) Stock: Outlook, Performance, and Valuation - Seeking Alpha
AbbVie (WKN: A1J84E) Also read: Customs woes for VW, Mercedes-Benz, and Co: Are auto stocks worth buying?
Or: "These are my new stock favorites," says expert Robert Halver
Conflict of Interest Disclosure
The majority shareholder and board member of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds direct and indirect positions in the following financial instruments included in the publication, which may profit from any price changes resulting from the publication: AbbVie.
Conflict of Interest Disclosure: The stock price of the financial instruments is derived from an index developed by Börsenmedien AG, which holds the rights to it. Börsenmedien AG has entered into a cooperation agreement with the issuer of the securities, providing the issuer a license to utilize the index. In exchange, Börsenmedien AG receives compensation from the issuer.
- Despite the volatile stock market due to DeepSeek and tariffs, the pharmaceutical company AbbVie, with a market capitalization of $330 billion, stands out, maintaining its position as one of the most valuable companies in the industry.
- With a successful lineup of drugs such as Humira (for psoriasis), Skyrizi, and Rinvoq, AbbVie continues to grow, expecting combined revenues of approximately $31 billion by 2027 for these drugs.
- In addition to its impressive growth prospects, AbbVie is also a lucrative dividend powerhouse, increasing its dividend for eleven consecutive years and boasting a payout ratio of 3.7% in the last five years.
- AbbVie's cheaper valuation, with a 2025 P/E ratio of roughly 15, makes it an attractive choice for investors seeking portfolio security, even in times of market instability, and it is in the pipeline of many investment experts, like Robert Halver.
