10 Best Big-Name Stocks to Buy Right Now According to Short Sellers

7) AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 67

Short % of Shares Outstanding (August 15, 2024): 1.14%

AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company with strong exposure to immunology and oncology.

AbbVie Inc. (NYSE:ABBV)’s next-generation immunology drugs, Skyrizi and Rinvoq, continue to generate sufficient growth to offset biosimilar pressure on the firm’s older immunology drug, Humira.  The immunology drugs, Skyrizi and Rinvoq, appear to be well-placed for growth given the leading efficacy in several large immunology indications. They both have patent protection into the early/mid-2030s. Further, its strong aesthetics business (led by Botox) offers long product cycles as a result of brand power and physician entrenchment.

Considering the limited patent losses, AbbVie Inc. (NYSE:ABBV) should post mid-single-digit sales growth over the upcoming 3 years. Also, AbbVie Inc. (NYSE:ABBV) is expected to see the benefits of the recent acquisition. Its $10 billion acquisition of ImmunoGen led to the addition of Elahere to its oncology portfolio. Elahere, which is an antibody-drug conjugate, should top $2 billion in sales by the end of the decade, as per Barclays.

In 1H 2024, AbbVie Inc. (NYSE:ABBV)’s operational sales went up by ~4% in 1H 2024, with significant contributions from the immunology and oncology segments. For FY 2024, the company is increasing its adjusted diluted EPS guidance from $10.61 – $10.81 to $10.71 – $10.91. The company announced the acquisition of Cerevel Therapeutics recently for ~$8.7 billion. As a result of this acquisition, the company will now be able to expand its presence in the neurological disorders space.

Analysts at Morgan Stanley initiated the coverage on the shares of AbbVie Inc. (NYSE:ABBV). They increased the price target on the company’s shares from $211.00 to $218.00, giving an “Overweight” rating on 12^th August. As per Insider Monkey’s 2Q 2024 data, 67 hedge funds were long AbbVie Inc. (NYSE:ABBV).

Polen Capital, an investment management company, released its second quarter 2024 investor letter. Here is what the fund said:

“In the second quarter, the top relative contributors to the Portfolio’s performance were all names we do not hold: Home Depot, Meta Platforms, and AbbVie Inc. (NYSE:ABBV). AbbVie fell on the back of results that failed to allay concerns around continuing biosimilar threats to its very large, blockbuster arthritis drug, Humira, which went off patent last year.”