North Chicago, Illinois-based AbbVie Inc. (ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. With a market cap of $323.4 billion, the company discovers and develops medicines and therapies that solve health issues across immunology, oncology, aesthetics, neuroscience, and eye care. 

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and ABBV definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the general drug manufacturers industry. ABBV stands out in the fields of immunology and oncology with its extensive product portfolio, featuring leading drugs like Humira, Imbruvica, and Rinvoq, combined with heavy investments in R&D, ensuring a steady pipeline of innovative therapies and strengthening its global presence. 

Despite its notable strength, ABBV slipped 15.1% from its 52-week high of $218.66, achieved on Mar. 10. Over the past three months, ABBV stock declined 11.2%, underperforming the Invesco Pharmaceuticals ETF’s (PJP) 7.9% dip during the same time frame.

In the longer term, shares of ABBV rose 4.5% on a YTD basis and climbed 19.5% over the past 52 weeks, outperforming PJP’s YTD losses 3.3% and 1.7% returns over the last year.

ABBV has been trading below its 50-day and 200-day moving averages since early April, experiencing some fluctuations, indicating a bearish trend.

ABBV has outperformed due to strong sales of Skyrizi and Rinvoq, which have replaced Humira as top revenue generators. The company expects continued growth from these drugs, as well as other promising pipeline candidates in blood cancers and solid tumors. AbbVie has been expanding through acquisitions in the immunology, oncology, and neuroscience spaces. Additionally, the company has entered the obesity market with a new drug. Despite the LOE of Humira, AbbVie anticipates robust revenue growth in 2025 and beyond, driven by its ex-Humira platform. AbbVie's oncology strategy is also gaining momentum with newer products like Elahere and Epkinly.

On Apr. 25, ABBV shares closed up more than 3% after reporting its Q1 results. Its adjusted EPS of $2.46 surpassed Wall Street expectations of $2.39. The company’s revenue was $13.3 billion, beating Wall Street forecasts of $12.9 billion. ABBV expects full-year adjusted EPS in the range of $12.09 to $12.29.

In the competitive arena of general drug manufacturers, Eli Lilly and Company (LLY) has lagged behind ABBV, with a 6.4% downtick on a YTD basis and 10.6% losses over the past 52 weeks.

Wall Street analysts are moderately bullish on ABBV’s prospects. The stock has a consensus “Moderate Buy” rating from the 27 analysts covering it, and the mean price target of $209.68 suggests a potential upside of 13% from current price levels.