Updated
Updated · Trefis · Jul 21
AbbVie Gains 2.9% in 5 Days as S&P 500 Slips 1.0%
Updated
Updated · Trefis · Jul 21

AbbVie Gains 2.9% in 5 Days as S&P 500 Slips 1.0%

2 articles · Updated · Trefis · Jul 21

Summary

  • AbbVie rose 2.9% over the past five trading days even as the S&P 500 fell 1.0%, standing out as a rare gainer in a weaker market.
  • A 0.23 five-year correlation with the S&P 500 suggests most of AbbVie’s returns have come from company-specific drivers rather than broad market moves.
  • Over the past year, AbbVie captured only 16% of the market’s up days but tended to rise by about 32% of the market’s losses on down days, giving it a hedge-like profile.
  • Recent business momentum has supported that pattern: AbbVie posted 12.4% revenue growth to $15 billion, lifted by 29% Skyrizi sales growth and 20% Rinvoq growth, and raised full-year earnings guidance.
  • Pipeline wins including positive Phase 3 Epcoritamab data and a new pediatric FDA approval for Skyrizi add support, though investors are watching whether AbbVie can defend immunology market share as competition intensifies.

Insights

After a $10.9B acquisition, can AbbVie's current blockbusters defend their market share against intensifying competition?
Is AbbVie's stock a true market hedge, or does its high volatility hide a riskier profile than its low correlation suggests?