5 Best Pharmaceutical Stocks to Buy in 2022

1. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 82

AbbVie Inc. (NYSE:ABBV), the Illinois-based biopharmaceutical company that provides medicines and vaccines for therapeutic focus areas including immunology, oncology, neuroscience, and virology, tops the list of Best Pharmaceutical Stocks to Buy in 2022.

On February 4, Mizuho analyst Vamil Divan raised the company’s price target on AbbVie Inc. (NYSE:ABBV) to $166 from $154 and kept a ‘Buy’ rating on ABBV shares, stating that he continues to see AbbVie Inc. (NYSE:ABBV) as a Top Pick since the company’s “more diversified growth story” exceeded expectations in the fourth quarter of 2021. 

AbbVie Inc. (NYSE:ABBV) reported earnings for the quarter ending December 2021 on February 2. The company announced EPS of $3.31, beating estimates by $0.03. However, its $14.89 billion in revenue missed consensus estimates by approximately $73 million. 

Of the 82 hedge funds that were bullish on AbbVie Inc. (NYSE:ABBV) at the end of Q4 2021, Orbis Investment Management held a significant stake in the company, with more than 3 million shares worth $324.3 million.

On October 29, AbbVie (NYSE:ABBV) declared a $1.41 per share quarterly dividend, an 8.5% increase from its prior dividend of $1.30. The dividend was paid on February 15 to shareholders of record on January 14. 

Here is what Miller Howard Investments had to say about AbbVie Inc. (NYSE:ABBV) in its Q3 2021 investor letter:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”

You can also take a look at Early Retirement Portfolio: 15 Stocks to Live Off Dividends and 10 Best Dividend Kings to Buy for 2022. 

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