Is AbbVie Inventory Underperforming the S&P 500?

North Chicago, Illinois-based AbbVie Inc. (ABBV) discovers, develops, manufactures, and sells prescription drugs worldwide. With a market cap of $371.7 billion, the corporate discovers and develops medicines and therapies that resolve well being points throughout immunology, oncology, aesthetics, neuroscience, and eye care.

Firms price $200 billion or extra are usually described as “mega-cap shares,” and ABBV positively matches that description, with its market cap exceeding this threshold, reflecting its substantial dimension, affect, and dominance within the basic drug producers business. ABBV stands out within the fields of immunology and oncology with its in depth product portfolio, that includes main medication comparable to Humira, Imbruvica, and Rinvoq, mixed with vital investments in R&D, making certain a gentle pipeline of modern therapies and strengthening its international presence.

Regardless of its notable energy, ABBV slipped 3.8% from its 52-week excessive of $218.66, achieved on Mar. 10. Over the previous three months, ABBV inventory gained 13.4%, outperforming the S&P 500 Index’s ($SPX) 9.3% features throughout the identical timeframe.

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In the long term, shares of ABBV rose 18.4% on a YTD foundation, outperforming SPX’s YTD features of 9.8%. Nonetheless, the inventory climbed 7.7% over the previous 52 weeks, underperforming SPX’s 15.5% returns over the past 12 months.

ABBV has been buying and selling above its 50-day and 200-day transferring averages since early June, experiencing some fluctuations, indicating a bullish development.

AbbVie is dealing with challenges as a result of declining gross sales of its blockbuster drug Humira, which is predicted to proceed declining as a result of biosimilar erosion. Moreover, the corporate is experiencing slower market development for its Juvederm fillers within the U.S. and China as a result of difficult market situations and weakened shopper sentiment. Gross sales of Humira

ABBV’s shares dipped barely on Jul. 31 regardless of beating Q2 earnings expectations, with income rising 6.6% year-over-year to $15.4 billion, and adjusted EPS growing 12.1% from the year-ago quarter to $2.97. The corporate additionally raised its fiscal 2025 adjusted EPS steering to a variety of $11.88 to $12.08.

Within the aggressive enviornment of basic drug producers, Eli Lilly and Firm (LLY) has lagged behind ABBV, with a 5.1% downtick on a YTD foundation and 22.8% losses over the previous 52 weeks.