The share price of AbbVie Inc. [NYSE: ABBV] inclined by $78.57, presently trading at $78.95. The company’s shares saw 6.96% gains compared to the lowest price in the period of the last 52 weeks, set at $73.81 recorded on 13/06/2019. The last few days have been benevolent to the share price as ABBV jumped by +2.44% during the last week, even though the stock is still down by -0.37% compared to 1.88 of all time high it touched on 06/12/19. However, the stock had a poor performance during the past 3 months, roughly gaining 0.65%, while additionally dropping -20.18% during the last 12 months. AbbVie Inc. is said to have a 12-month price target set at $89.73. That means that the stock has a strong potential to acquire 10.78% increase from the current trading price.
AbbVie Inc. [NYSE:ABBV]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For AbbVie Inc. [ABBV], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give ABBV an Hold rating. Its stock price has been found in the range of 73.81 to 100.23. This is compared to its latest closing price of $78.57.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for AbbVie Inc. [ABBV] is sitting at 2.88. This is compared to 1 month ago, when its average rating was 2.88.
For the quarter ending in Mar-19 AbbVie Inc. [ABBV] generated $7.83 billion in sales. That’s 1.05% higher than the average estimate of $7.75 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 25 Apr (50 days ago).
Fundamental Analysis of AbbVie Inc. [ABBV]
Now let’s turn to look at profitability: with a current Operating Margin for AbbVie Inc. [ABBV] sitting at +37.06 and its Gross Margin at +76.93, this company’s Net Margin is now 16.30%. These measurements indicate that AbbVie Inc. [ABBV] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 32.66, and its Return on Invested Capital has reached 21.80%. Its Return on Assets is 8.69.
Similarly, its Total Debt to Total Capital is 126.51, while its Total Debt to Total Assets stands at 67.92.
What about valuation? This company’s Enterprise Value to EBITDA is 10.55 and its Total Debt to EBITDA Value is 2.90. The Enterprise Value to Sales for this firm is now 4.49, and its Total Debt to Enterprise Value stands at 0.23.
Shifting the focus to workforce efficiency, AbbVie Inc. [ABBV] earns $1,091,767 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.02 and its Total Asset Turnover is 0.50. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.89 and its Current Ratio is 0.98. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
AbbVie Inc. [ABBV] has 1.48B shares outstanding, amounting to a total market cap of $116.85B. Its stock price has been found in the range of 73.81 to 100.23. At its current price, it has moved down by -21.23% from its 52-week high, and it has moved up 6.96% from its 52-week low.
This stock’s Beta value is currently 1.06, which indicates that it is 1.50% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.78. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is AbbVie Inc. [ABBV] a Reliable Buy?
Shares of AbbVie Inc. [ABBV], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.