New Lifetime High Reached By AbbVie (ABBV)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified AbbVie ( ABBV) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AbbVie as such a stock due to the following factors:

  • ABBV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $376.5 million.
  • ABBV has traded 142,339 shares today.
  • ABBV is trading at a new lifetime high.

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More details on ABBV:

AbbVie Inc., a research-based biopharmaceutical company, is engaged in the discovery, development, manufacture, and sale of pharmaceutical products worldwide. The stock currently has a dividend yield of 3.1%. ABBV has a PE ratio of 20.9. Currently there are 4 analysts that rate AbbVie a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for AbbVie has been 5.7 million shares per day over the past 30 days. AbbVie has a market cap of $85.2 billion and is part of the health care sector and drugs industry. Shares are up 4.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AbbVie as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:
  • Compared to other companies in the Pharmaceuticals industry and the overall market, ABBVIE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 5.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ABBVIE INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ABBVIE INC increased its bottom line by earning $2.56 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($3.13 versus $2.56).
  • The debt-to-equity ratio is very high at 3.07 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ABBV has managed to keep a strong quick ratio of 2.20, which demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has decreased to $624.00 million or 47.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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