Abbvie Stock Buy Hold or Sell Recommendation

ABBV
 Stock
  

USD 142.72  1.88  1.30%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Abbvie Inc is 'Strong Hold'. Macroaxis provides Abbvie buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Abbvie positions. The advice algorithm takes into account all of Abbvie's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Abbvie's buy-and-hold perspective. Please continue to Abbvie Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Abbvie and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Abbvie Inc.

Execute Abbvie Buy or Sell Advice

The Abbvie recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Abbvie Inc. Macroaxis does not own or have any residual interests in Abbvie Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Abbvie's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AbbvieBuy Abbvie
Strong Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Abbvie Inc has a Risk Adjusted Performance of (0.08), Jensen Alpha of (0.06), Total Risk Alpha of (0.001631) and Treynor Ratio of (0.22)
Macroaxis provides advice on Abbvie Inc to complement and cross-verify current analyst consensus on Abbvie Inc. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Abbvie is not overpriced, please confirm all Abbvie Inc fundamentals, including its shares outstanding, net income, price to earnings to growth, as well as the relationship between the price to book and current ratio . Given that Abbvie Inc has a price to earning of 48.99 X, we suggest you to validate Abbvie Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Abbvie Trading Alerts and Improvement Suggestions

Abbvie Inc generated a negative expected return over the last 90 days
The company currently holds 73.65 B in liabilities with Debt to Equity (D/E) ratio of 4.51, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Abbvie Inc has a current ratio of 0.82, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Abbvie until it has trouble settling it off, either with new capital or with free cash flow. So, Abbvie's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Abbvie Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Abbvie to invest in growth at high rates of return. When we think about Abbvie's use of debt, we should always consider it together with cash and equity.
About 71.0% of Abbvie shares are held by institutions such as insurance companies
On 15th of August 2022 Abbvie paid $ 1.41 per share dividend to its current shareholders
Latest headline from www.nasdaq.com: Where to Invest 10,000 Right Now - Nasdaq

Abbvie current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Abbvie analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Abbvie analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price162.65
Target Median Price160.00
Target High Price200.00
Recommendation Mean2.20
Number Of Analyst Opinions22
Target Low Price135.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Abbvie Returns Distribution Density

The distribution of Abbvie's historical returns is an attempt to chart the uncertainty of Abbvie's future price movements. The chart of the probability distribution of Abbvie stock daily returns describes the distribution of returns around its average expected value. We use Abbvie Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Abbvie returns is essential to provide solid investment advice for Abbvie.
Mean Return-0.09Value At Risk-2.29
Potential Upside2.03Standard Deviation1.25
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Abbvie historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Abbvie Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Abbvie is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Abbvie Inc backward and forwards among themselves. Abbvie's institutional investor refers to the entity that pools money to purchase Abbvie's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares153.6 M23.5 B
Blackrock IncCommon Shares134.7 M20.6 B
State Street CorpCommon Shares77.1 M11.8 B
Jpmorgan Chase CoCommon Shares56.1 M8.6 B
Capital International InvestorsCommon Shares43.2 M6.6 B
Price T Rowe Associates IncCommon Shares30.8 M4.7 B
Geode Capital Management LlcCommon Shares30.1 M4.6 B
Note, although Abbvie's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Abbvie Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Abbvie or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Abbvie's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Abbvie stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.06
β
Beta against DOW0.47
σ
Overall volatility
1.27
Ir
Information ratio -0.0096

Abbvie Volatility Alert

Abbvie Inc exhibits very low volatility with skewness of -0.4 and kurtosis of 1.11. However, we advise investors to further study Abbvie Inc technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abbvie's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Abbvie's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Abbvie Implied Volatility

Abbvie's implied volatility exposes the market's sentiment of Abbvie Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Abbvie's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Abbvie stock will not fluctuate a lot when Abbvie's options are near their expiration.

Abbvie Fundamentals Vs Peers

Comparing Abbvie's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Abbvie's direct or indirect competition across all of the common fundamentals between Abbvie and the related equities. This way, we can detect undervalued stocks with similar characteristics as Abbvie or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Abbvie's fundamental indicators could also be used in its relative valuation, which is a method of valuing Abbvie by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Abbvie to competition
FundamentalsAbbviePeer Average
Return On Equity92.71 %(0.31) %
Return On Asset8.14 %(0.14) %
Profit Margin22.03 %(1.27) %
Operating Margin51.39 %(5.51) %
Current Valuation319.7 B16.62 B
Shares Outstanding1.77 B571.82 M
Shares Owned by Insiders0.11 %10.09 %
Shares Owned by Institutions71.44 %39.21 %
Number of Shares Shorted14.03 M4.71 M
Price to Earning48.99 X28.72 X
Price to Book19.27 X9.51 X
Price to Sales4.40 X11.42 X
Revenue57.35 B9.43 B
Gross Profit38.88 B27.38 B
EBITDA29.47 B3.9 B
Net Income12.56 B570.98 M
Cash and Equivalents7.57 B2.7 B
Cash per Share4.28 X5.01 X
Total Debt73.65 B5.32 B
Debt to Equity4.51 %48.70 %
Current Ratio0.84 X2.16 X
Book Value Per Share7.41 X1.93 K
Cash Flow from Operations22.92 B971.22 M
Short Ratio2.22 X4.00 X
Earnings Per Share2.91 X3.12 X
Price to Earnings To Growth63.35 X4.89 X
Number of Employees50 K18.84 K
Beta0.75-0.15
Market Capitalization252.31 B19.03 B
Total Asset53.05 B29.47 B
Retained Earnings4.32 B9.33 B
Working Capital5.42 B1.48 B
Current Asset16.31 B9.34 B
   Exercise or conversion by Michael Severino of 217 shares of Abbvie subject to Rule 16b-3 [view details]

About Abbvie Buy or Sell Advice

When is the right time to buy or sell Abbvie Inc? Buying financial instruments such as Abbvie Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Abbvie in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Services
Services Theme
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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Please continue to Abbvie Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Abbvie Inc information on this page should be used as a complementary analysis to other Abbvie's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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Is Abbvie's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbvie. If investors know Abbvie will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbvie listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Abbvie Inc is measured differently than its book value, which is the value of Abbvie that is recorded on the company's balance sheet. Investors also form their own opinion of Abbvie's value that differs from its market value or its book value, called intrinsic value, which is Abbvie's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbvie's market value can be influenced by many factors that don't directly affect Abbvie's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbvie's value and its price as these two are different measures arrived at by different means. Investors typically determine Abbvie value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbvie's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.