Is AbbVie Stock a Buy Now?

AbbVie Inc. (NYSE: ABBV) has been a strong performer in the pharmaceutical sector, with a market capitalization of over $200 billion. The company's stock price has seen significant growth in recent years, driven by its robust pipeline of drugs and therapies. As of February 14, 2025, AbbVie's stock closed at $185.51, up from its 52-week low of $166.00. With a 50-day moving average of $181.57 and a 200-day moving average of $178.44, AbbVie's stock appears to be in a strong uptrend. However, the question remains: is AbbVie stock a buy now?

To answer this question, let's examine AbbVie's financial health, pipeline, and analyst ratings.

1. Financial Health: AbbVie's financial health is robust, with a strong balance sheet and solid earnings growth. The company's revenue growth has been consistently high, with an operational growth rate of 7.6% in 2024 and an expected high single-digit compound annual revenue growth rate through 2029. AbbVie's earnings per share (EPS) growth has also been robust, with an expected increase of 13.0% in 2025 and 13.68% in 2026. Additionally, AbbVie has a strong dividend yield of 5.5%, indicating that the company is distributing a significant portion of its earnings to shareholders.
2. Pipeline: AbbVie's pipeline of drugs and therapies is a significant driver of its future growth and profitability. The company's neuroscience portfolio, which includes Botox Therapeutic and Vraylar, has shown strong growth, with global net revenues increasing by 16.6% on a reported basis and 16.9% on an operational basis in 2024. AbbVie's oncology portfolio, led by Imbruvica and Venclexta, has demonstrated solid growth, with global net revenues increasing by 10.8% on a reported basis and 12.0% on an operational basis in the same year. Furthermore, AbbVie's immunology portfolio, which includes Humira, Skyrizi, and Rinvoq, has shown steady growth, with global net revenues increasing by 2.1% on a reported basis and 2.9% on an operational basis in 2024.
3. Analyst Ratings: AbbVie's stock is currently rated as a "Strong Buy" by 21 stock analysts, with an average price target of $209.6, which is an increase of 8.67% from the latest price. This indicates that analysts believe AbbVie stock is likely to perform very well in the near future and significantly outperform the market.

In conclusion, AbbVie's strong financial health, robust pipeline, and positive analyst ratings suggest that the company's stock is a buy now. However, investors should be aware of potential risks and challenges, such as regulatory hurdles, competition, and market fluctuations. As always, it is essential to conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.