AbbVie (ABBV) is facing headwinds in 2023, down 11% year-to-date, significantly lagging behind the S&P 500’s 4% decline. The broader healthcare sector is similarly struggling, with the Healthcare Select Sector SPDR ETF down 6%, driven by investor concerns over healthcare reform and potential government cuts. Despite these challenges, AbbVie’s fundamentals may present a buying opportunity for long-term investors.
The company has shown resilience, pivoting successfully after losing patent protection for its top drug, Humira. AbbVie’s new immunology drugs, Skyrizi and Rinvoq, generated $25.9 billion in revenue last year, helping to offset Humira’s declining sales. With total revenue of $61.2 billion in 2025—up 9% from the previous year—AbbVie is demonstrating strong growth. Additionally, its current valuation appears attractive, trading at a forward P/E of 14 and a PEG ratio of 0.49, indicating significant upside potential.
For market professionals, AbbVie presents a compelling case for a long-term hold, especially given its above-average dividend yield of 3.4%. As the stock trades at a discount relative to its growth prospects, it could be an undervalued addition to portfolios focused on healthcare.
Source: fool.com