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This Warren Buffet Stock Could Rise, Following Setback

While Berkshire Hathaway (NYSE:BRKa) (BRK.A) doesn't pay dividends, many of the companies it owns do. AbbVie (NYSE:ABBV), a biopharmaceutical company, is among the various...
This Warren Buffet Stock Could Rise, Following Setback © Reuters. This Warren Buffet Stock Could Rise, Following Setback

While Berkshire Hathaway (NYSE:BRKa) (BRK.A) doesn't pay dividends, many of the companies it owns do. AbbVie (NYSE:ABBV), a biopharmaceutical company, is among the various income-friendly stocks held by Berkshire.

This Dividend Aristocrat seems to have the makings of a core long-term Warren Buffett holding. Approximately five decades of dividend increases provide a rather impressive track record investors can point to as a key reason to buy. However, there are other catalysts that investors such as Buffett appear to be watching.

Let's dive into what may have some investors spooked. I remain bullish on ABBV stock for now. (See AbbVie stock charts on TipRanks)

FDA Warning on Arthritis Drug

ABBV stock has seen dramatic declines since the beginning of September. Shares of AbbVie have fallen 11.1% since closing at $120.78 on August 31, after a new arthritis drug witnessed a major setback.

U.S. Food and Drug Administration announced on September 2, that Rinvoq, a drug used for arthritis, will have to carry new additional warnings. These warnings outline risks related to blood clots, and mortality.

This unanticipated warning comes after tests of Xeljanz from rival Pfizer (NYSE:PFE) displayed these risks. With Rinvoq expected to be AbbVie's latest and greatest cash flow machine, shares have understandably taken a hit.

In fact, as a result of this news, ABBV stock saw its sharpest drop since March 2020.

Reasons to Be Optimistic about ABBV Stock

These warning labels on one of AbbVie's key drugs are certainly a drawback. In may ways, investors can admit the recent sell-off in ABBV stock was warranted.

However, Rinvoq is one of many AbbVie drugs in the pipeline. Various other drugs, including autoimmune drug Skyrizi, provide investors with optimism. Antipsychotic drug Vraylar is another excellent drug in the company's pipeline. Additionally, AbbVie has high hopes for two of its migraine medications, Atogepant and Ubrelvy, when they hit the market.

AbbVie will also look to right the ship when it comes to Rinvoq. The company's management team has an excellent track record of success when it comes to its prospective drugs. Additionally, the FDA did not request additional safety plans or data, a positive sign for investors worried about Rinvoq.

There's certainly hope that this Rinvoq debacle will be short-term in nature. Looking at ABBV stock holistically certainly sheds a different light on this stock. The company hopes to see significant revenue growth over the latter-half of this decade.

Given the quality of the drugs in AbbVie's pipeline, that seems like a high-probability scenario.

Wall Street's Take

According to TipRanks' analysts rating consensus, ABBV stock is a Strong Buy. Out of 13 ratings, 11 are Buy recommendations and two Hold recommendations.

The average ABBV price target is $128.15. Analyst targets range from a low of $112 per share, to a high of $142 per share.

Bottom Line

The Rinvoq news has provided some sharp headwinds for AbbVie to deal with. However, long-term investors taking the longer view of this stock may want to buy the dip. After all, this is an excellent defensive growth play in a market filled with overvalued meme stocks.

AbbVie is a pharmaceutical giant that prints money. The company's revenue growth looks strong, and this remains a top dividend stock. (A yield of 4.8% is certainly juicy right now.)

Accordingly, investors who stick with this stock, and buy the dips when presented, are likely to do very well over the long-term.

Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

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27-09-2021 19:14:54 (UTC+7)

EUR/USD

1.1697

-0.0016 (-0.14%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (9)

Sell (1)

EUR/USD

1.1697

-0.0016 (-0.14%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (9)

Sell (1)

GBP/USD

1.3694

+0.0013 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (6)

Sell (2)

USD/JPY

110.91

+0.19 (+0.17%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (9)

AUD/USD

0.7253

-0.0006 (-0.08%)

Summary

Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (2)

Sell (5)

USD/CAD

1.2664

+0.0012 (+0.09%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (4)

Sell (3)

EUR/JPY

129.74

+0.04 (+0.03%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (9)

EUR/CHF

1.0849

+0.0027 (+0.24%)

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↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (0)

Sell (6)

Gold Futures

1,749.65

-2.05 (-0.12%)

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↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (10)

Sell (0)

Silver Futures

22.637

+0.212 (+0.95%)

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↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

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Copper Futures

4.2735

-0.0120 (-0.28%)

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↑ Buy

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Buy (10)

Sell (2)

Indicators:

Buy (8)

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Crude Oil WTI Futures

75.28

+1.30 (+1.76%)

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↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (1)

Brent Oil Futures

78.55

+1.32 (+1.71%)

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↑ Buy

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Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (1)

Natural Gas Futures

5.447

+0.247 (+4.75%)

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Buy

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Buy (10)

Sell (2)

Indicators:

Buy (4)

Sell (2)

US Coffee C Futures

193.75

-0.60 (-0.31%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (3)

Euro Stoxx 50

4,166.55

+8.04 (+0.19%)

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↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (7)

S&P 500

4,455.48

+6.50 (+0.15%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (8)

DAX

15,580.85

+49.10 (+0.32%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

FTSE 100

7,046.19

-5.29 (-0.08%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

Hang Seng

24,208.78

+16.62 (+0.07%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

US Small Cap 2000

2,253.88

-5.16 (-0.23%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (11)

IBEX 35

8,973.50

+100.40 (+1.13%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (3)

Sell (8)

BASF SE NA O.N.

64.650

+0.950 (+1.49%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (9)

Bayer AG NA

47.27

+0.79 (+1.70%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (4)

Sell (0)

Allianz SE VNA O.N.

195.52

+3.18 (+1.65%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (10)

Adidas AG

279.98

-1.59 (-0.56%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (6)

Sell (0)

Deutsche Lufthansa AG

6.480

+0.247 (+3.96%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Siemens AG Class N

147.01

-1.10 (-0.74%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (7)

Sell (0)

Deutsche Bank AG

10.992

+0.157 (+1.45%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (10)

Sell (0)

 EUR/USD1.1697↑ Buy
 GBP/USD1.3694↑ Buy
 USD/JPY110.91↑ Sell
 AUD/USD0.7253Sell
 USD/CAD1.2664Neutral
 EUR/JPY129.74↑ Sell
 EUR/CHF1.0849↑ Sell
 Gold1,749.65↑ Buy
 Silver22.637↑ Buy
 Copper4.2735↑ Buy
 Crude Oil WTI75.28↑ Buy
 Brent Oil78.55↑ Buy
 Natural Gas5.447Buy
 US Coffee C193.75↑ Buy
 Euro Stoxx 504,166.55↑ Sell
 S&P 5004,455.48↑ Sell
 DAX15,580.85↑ Sell
 FTSE 1007,046.19↑ Sell
 Hang Seng24,208.78↑ Buy
 Small Cap 20002,253.88↑ Sell
 IBEX 358,973.50↑ Sell
 BASF64.650↑ Sell
 Bayer47.27Buy
 Allianz195.52↑ Sell
 Adidas279.98↑ Buy
 Lufthansa6.480↑ Sell
 Siemens AG147.01↑ Buy
 Deutsche Bank AG10.992↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,665/ 5,715
(5,665/ 5,715) # 900
SJC HCM5,635/ 5,700
(0/ 0) # 885
SJC Hanoi5,635/ 5,702
(0/ 0) # 887
SJC Danang5,635/ 5,702
(0/ 0) # 887
SJC Nhatrang5,635/ 5,702
(0/ 0) # 887
SJC Cantho5,635/ 5,702
(0/ 0) # 887
Cập nhật 27-09-2021 19:14:56
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ↀ Giá vàng thế giới
$1,749.67+0.180.01%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2204022480
RON 95-II,III2194022370
E5 RON 92-II2071021120
DO 0.05S1658016910
DO 0,001S-V1693017260
Dầu hỏa1564015950
ↂ Giá dầu thô thế giới
WTI$75.30-1.32-1.75%
Brent$79.42-1.36-1.71%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.630,0022.860,00
EUR25.993,7727.346,60
GBP30.324,2231.591,18
JPY200,45212,05
KRW16,7520,39
Cập nhật lúc 18:54:42 27/09/2021
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