AbbVie Stock Down Around 13% in 3 Months: Time to Buy the Dip?

AbbVie ABBV stock has declined 12.6% in the past three months. The stock is also trading below its 50-day and 200-day moving averages. A lot of this price decline is related to the broader macroeconomic uncertainty.The sky-high tariffs imposed by the United States and retaliatory tariffs by China and some other countries hurt global stock markets. Although the massive tariffs imposed by the United States and China are currently on pause, this is only a temporary suspension. The uncertainty around tariffs and trade production measures remains, which has muted economic growth.Although pharmaceuticals have been exempted from tariffs in the first round, they could be Trump’s target in the next round, considering the President’s goal to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Let’s understand ABBV’s strengths and weaknesses to better analyze how to play the stock in the uncertain macro environment.ABBV’s Successful New Drugs — Skyrizi and RinvoqAbbVie lost patent protection for Humira in the United States in January 2023 and in the EU in 2018. Humira's sales are declining due to the loss of exclusivity (“LOE”) and biosimilar erosion. However, with approvals for many new indications, sales of Skyrizi and Rinvoq have successfully replaced Humira, which once generated more than 50% of its total revenues.Skyrizi and Rinvoq generated combined sales of $5.1 billion in the first quarter of 2025, reflecting growth of more than 65%. The drugs are seeing strong performance across all their approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes two conditions — ulcerative colitis (UC) and Crohn’s disease (CD). Importantly, Skyrizi and Rinvoq have demonstrated compelling head-to-head data against several novel therapies in clinical studies, which have given them a competitive advantage.AbbVie expects combined sales of Skyrizi and Rinvoq to be around $24.7 billion in 2025 and more than $31 billion by 2027. Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive these drugs’ growth.ABBV Boasts an Attractive PipelineAbbVie has several early/mid-stage pipeline candidates with blockbuster potential. The company expects several regulatory submissions, approvals and key data readouts in the next 12 months.ABBV has an exciting and diverse pipeline of promising new therapies in blood cancers and solid tumors, like ABBV-383, a BCMA CD3 bispecific (relapsed/refractory multiple myeloma) and Temab-A (metastatic colorectal cancer). Emrelis (previously Teliso-V), a promising antibody drug conjugate or ADC, was approved in the United States for previously treated non-squamous non-small cell lung cancer with high c-Met expression in May 2025.In other areas, some key pipeline drugs are lutikizumab for immunology indications and tavapadon for early Parkinson's disease. AbbVie expects to file a new drug application for tavapadon this year.AbbVie on an Acquisition SpreeThe company has been on an acquisition spree in the past couple of years, which is strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience areas. It has inked more than 20 early-stage deals since the beginning of 2024, including promising technologies and innovative mechanisms that can elevate the standard of care in immunology, oncology and neuroscience. In early 2025, AbbVie bought rights to develop GUB014295 (ABBV-295), a long-acting amylin analog for the treatment of obesity, from Denmark’s Gubra. The deal marked AbbVie’s entry into the obesity space, dominated by Eli Lilly LLY and Novo Nordisk NVO. AbbVie plans to invest further in obesity.ABBV’s Slowing Aesthetics Sales & Humira ErosionSales of AbbVie’s blockbuster drug Humira are declining due to biosimilar erosion. Humira volume is rapidly eroding to other novel mechanisms (including Skyrizi and Rinvoq). Humira sales declined almost 50% in the first quarter of 2025 due to faster share erosion from biosimilar competition as well as further molecule compression in the United States.AbbVie is witnessing declining sales of Juvederm fillers in the United States and China due to challenging market conditions. The slowing growth of the U.S. facial injectables market and persistent economic headwinds, which are affecting consumer spending in China, are hurting AbbVie’s aesthetics portfolio sales, which declined 10.2% in the first quarter of 2025.ABBV Stock Price, Valuation and Estimate RevisionAbbVie’s stock has gained 5% so far this year against a decrease of 3% for the industry. The stock has also outperformed the industry and the S&P 500 index, as seen in the chart below.ABBV Stock Outperforms Industry, Sector & S&P 500Image Source: Zacks Investment ResearchFrom a valuation standpoint, AbbVie is not very cheap. Going by the price/earnings ratio, the company’s shares currently trade at 14.08 forward earnings, just slightly lower than 14.7 for the industry. The stock is cheaper than some other large drugmakers like Eli Lilly and Novo Nordisk but priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.35.ABBV Stock ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for 2025 earnings has risen from $12.22 per share to $12.28, while that for 2026 has increased from $14.03 to $14.05 per share over the past 30 days.ABBV Estimate MovementImage Source: Zacks Investment ResearchStay Invested in ABBV StockAbbVie faces its share of near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on its cancer drug, Imbruvica, and slowing sales of its aesthetics products. However, AbbVie has successfully navigated the LOE of its blockbuster drug, Humira, by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and should support top-line growth in the next few years.AbbVie expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE, driven by its ex-Humira platform. AbbVie’s ex-Humira drugs rose delivered robust sales growth of more than 21% (on a reported basis) in the first quarter of 2025.Boosted by its new product launches, AbbVie expects to return to robust mid-single-digit revenue growth in 2025 with a high single-digit CAGR through 2029, as it has no significant LOE event for the rest of this decade. A substantial portion of this growth is expected to be driven by robust performances from Skyrizi and Rinvoq.Rising estimates for AbbVie, its solid pipeline and the prospect of growth in 2025 sales and profits are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In fact, long-term investors may buy the stock on the recent dip.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks