This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Fund Managers Love for 2013

AbbVie

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

By far, the biggest new position picked up by institutions has been AbbVie (ABBV - Get Report). That's not surprising; after all, the $67 billion pharma firm only spun off from Abbott Labs (ABT) early this year. Between new purchases and distributions for firms that already owned ABT, funds added 97.2 million shares of ABBV to their portfolios in the first quarter. That's a $4 billion position at current price levels.

>>4 Health Care Stocks Under $10 to Watch

AbbVie is a direct play on Abbott's legacy pharmaceutical business. The firm may as well have been named Humira -- the immunology drug represents around half of the firm's total sales, making ABBV highly dependent on its patent until it expires in 2016. That's enough lead time, however, for AbbVie to develop a more mature drug pipeline with more diversification and less reliance on a single blockbuster drug.

In the meantime, AbbVie is going to be raking in the cash with a well-defended high margin pharmaceutical product. Some of that cash will go toward building that pipeline, while another chunk will go to pay investors what amounts to a 3.77% dividend yield. With a reasonable net debt position (ABBV's cash covers around half of its current debt load) and a few attractive names in its pipeline, investors could do worse than to follow funds into this "old" company with a new name.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ABBV $68.50 1.90%
BRK.B $137.26 0.84%
GOOG $520.63 0.02%
JNJ $98.43 1.00%
PG $79.63 1.80%

Markets

DOW 17,717.43 +97.92 0.56%
S&P 500 2,072.27 +9.16 0.44%
NASDAQ 5,002.1430 +15.2760 0.31%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs