Assessing AbbVie (ABBV)’s Valuation After a Recent Pullback and Strong One-Year Share Price Performance

AbbVie (ABBV) has quietly pulled back about 4% over the past month even as its one year return sits near 35%, setting up an interesting entry check for long term healthcare investors.

See our latest analysis for AbbVie.

The recent 1 month share price return of negative 4.5 percent looks more like a breather than a trend change, given AbbVie still boasts a 1 year total shareholder return near 35 percent and a strong multi year track record.

If you are weighing AbbVie against other opportunities in the space, it is a good moment to scan comparable healthcare stocks that may offer similar defensiveness with different growth or dividend profiles.

With AbbVie trading about 10 percent below consensus targets yet showing robust earnings momentum, the key question now is simple: Is there still mispricing to exploit, or are markets already baking in the next leg of growth?

Most Popular Narrative Narrative: 8.3% Undervalued

With AbbVie last closing at $223.38 against a narrative fair value near $243.55, the story leans toward upside and hinges on ambitious profit expansion.

Analysts assume that profit margins will increase from 6.4% today to 28.5% in 3 years time. Analysts expect earnings to reach $20.8 billion (and earnings per share of $11.87) by about September 2028, up from $3.7 billion today.

Read the complete narrative.

Curious how AbbVie gets from today’s margins to that kind of earnings leap? The narrative leans on aggressive revenue growth and a premium future multiple. Want to see the full playbook behind that price tag?

Result: Fair Value of $243.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained pricing pressure and setbacks in key immunology or neuroscience programs could quickly challenge the bullish assumptions underpinning AbbVie’s rerating story.

Find out about the key risks to this AbbVie narrative.

Build Your Own AbbVie Narrative

If you are not fully aligned with this outlook or simply want to dig into the numbers yourself, you can build a tailored view in just a few minutes: Do it your way.

A great starting point for your AbbVie research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.

Ready for more investment ideas?

If you stop at AbbVie, you could miss compelling opportunities, so take a few minutes now to see where the data points to your next move.

• Capture potential hidden value by reviewing these 916 undervalued stocks based on cash flows that the market may be overlooking despite strong underlying cash flows.
• Tap into cutting edge innovation by scanning these 24 AI penny stocks positioned to benefit from accelerating demand for artificial intelligence solutions.
• Boost your income stream by evaluating these 13 dividend stocks with yields > 3% that can add reliable yield alongside your growth holdings.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com